Polycab India Limited experienced margin pressure in the March quarter of FY26 due to increased expenses and an unfavorable business mix. The company’s EBITDA margin decreased by 160 basis points to 13.1% from 14.7%. This decline was attributed to a less favorable product mix, with higher institutional sales contribution, and operating deleverage that raised overall cost pressures.
Total expenses for the firm surged by 29.68% to Rs 7,875.6 crore in the March quarter, compared to Rs 6,073.31 crore in the previous year, as per its stock exchange filing. Despite this, the company achieved strong revenue growth, with a 27% increase year-on-year to Rs 8,864.4 crore from Rs 6,986 crore in the same period of the previous financial year.
The growth was mainly driven by the core Wires & Cables segment, which saw a 30% rise, supported by robust domestic demand and continuous market share gains. EBITDA also increased by 13.3% to Rs 1,161 crore from Rs 1,025 crore a year ago, according to the company’s filing.
Polycab’s strategic initiative, Project Spring, continued to foster growth, aiding in gaining approximately 3%-4% domestic market share during the financial year. The Fast-Moving Electrical Goods (FMEG) segment notably performed well, registering a 47% growth compared to the previous year.
The solar products within the FMEG segment saw a significant revenue increase, almost doubling and becoming the largest category within the segment. The company is optimistic about this vertical and aims for margins of 8%-10% by FY30 under Project Spring. On the other hand, the EPC segment experienced a 15% revenue decline due to execution delays and project timing issues, partially offsetting gains from other segments.
Regarding shareholder returns, the board approved a final dividend of Rs 47 per share, increasing the payout ratio to 27.2% from 26.3% last year, as part of the company’s progress towards exceeding 30% by FY30.
