Polycab India Ltd (POLC): Q4 FY25 Results Show Resilient Growth & Margin Expansion
Polycab India Ltd is India’s largest manufacturer of wires, cables, FMEG (fans, lighting, switches), and EPC solutions. A key player in the power and industrial sectors, the company has delivered consistent revenue and profit growth, backed by robust execution and cost discipline.
📊 Q4 FY25 & FY25 Performance Highlights
- Q4 Revenue: ₹6,985.7 cr, +25% YoY; FY25 revenue hit ₹22,408 cr (+24% YoY)—surpassing Project Leap target early.
- EBITDA: ₹1,025.7 cr in Q4 (+35% YoY); margins improved to 14.7% (+110 bps YoY).
- PAT: ₹727 cr in Q4 (+33% YoY) and annual PAT ₹2,045 cr (+13% YoY). Record quarterly and full-year profits.
- Segments: Wires & cables led growth (~84% of revenues); FMEG +33%, EPC +47% YoY.
- Dividend: Final ₹35/share recommended (~0.52% yield).
📈 Market Reaction & Technical Momentum
- Polycab shares rose ~3% on strong Q4 results, driven by healthy cable demand and margin expansion.
- Technically, the stock formed a double bottom near ₹4,560 and rallied past ₹6,077. Now trading above 20- & 50-day SMAs; MACD signals bullish momentum.
- Current price ~₹6,705 (close to 52-week high ₹7,605) with P/E ~50×, P/B ~10.3×, ROE ~15.8%.
⚖️ Strengths & Risks
| Strengths | Risks |
|---|---|
| Market leader in organized wires & cables (~27% share) | High valuation (~50× P/E) may limit near-term upside |
| Resilient margins through operating leverage and product mix | Potential commodity price volatility (copper/aluminum) |
| Strong FMEG and EPC growth—diversifies revenue base | Tax/back-office investigations remain a latent risk |
| Record profits and healthy cash position (~₹2,460 cr net cash) | Execution delays or project slippages in EPC could impact outlook |
🧭 Outlook & Triggers
- Margin outlook: Sustained 14–15% EBITDA margins; any guidance on price hikes to cushion commodity costs will matter.
- Segment momentum: Watch domestic wires & cables volume growth; new EPC order flow.
- Re-rating potential: Recovery above ₹7,600 and breakout of technical resistance may invite fresh buying.
- Macro & sector trends: Infrastructure capex, power grid investments, and strong housing demand will support wires/cables.
✅ Conclusion
Polycab’s Q4 FY25 performance confirms its leadership in wires, cables, and FMEG, with robust margin improvement and record profits. While valuations are high, execution strength, segment diversification, and technical momentum support further gains. The stock remains a high-quality pick for investors bullish on infrastructure and industrial capex in India.
