Polycab India Limited has emerged as a standout performer in the electrical manufacturing sector, showcasing robust growth in its fourth quarter earnings for fiscal year 2025 (Q4 FY25). The company reported a remarkable 25% year-on-year increase in revenue, reaching ₹6,985.8 crore, driven by strong performance in its core Wires and Cables segment and a significant milestone achieved in its Fast-Moving Electrical Goods (FMEG) business.
The financial highlights that sparked this rally are impressive. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) surged 34.7% year-on-year to ₹1,025.7 crore, with the EBITDA margin expanding by 110 basis points to 14.7%. Furthermore, Polycab declared a final dividend of ₹35 per share, reflecting its strong cash flow health and commitment to shareholder value.
In terms of segment performance, the Wires and Cables division continued to dominate, contributing over 85% of the total revenue. This segment experienced a 22% year-on-year revenue increase, buoyed by government capital expenditure and infrastructure expansion. Meanwhile, the FMEG segment achieved a significant milestone by breaking even in Q4 FY25, with a robust 33% growth compared to the previous year. Analysts note that new product launches and expansion of distribution channels were key drivers of this segment’s success.
Market reaction to Polycab's results was overwhelmingly positive. The stock price saw an intraday jump of over 5% following the announcement, reaching new highs. Analysts have responded by raising their price targets for the stock to ₹7,200 or higher, indicating strong confidence in Polycab’s future performance. The surge in trading volume also signaled strong buying interest among investors.
Looking ahead, Polycab's successful quarter sets the stage for continued outperformance. The company plans to focus on expanding its FMEG segment, turning its recent break-even into profit growth. Additionally, it aims to explore new domestic and export markets while investing in operational improvements and innovation. If these strategies are executed effectively, the Polycab share price could reach new milestones in fiscal year 2026.
While concerns about increasing competition in the electrical manufacturing space have been raised, particularly with new entrants like UltraTech and the Adani Group, industry experts maintain that the market remains large enough to accommodate these new players. KEI Industries, a competitor, has expressed confidence that the existing market dynamics will allow for continued growth even with new competition.
In summary, Polycab India Limited's Q4 FY25 results not only reflect its operational strength but also set a positive tone for investor sentiment and market valuation moving forward. With strategic investments and a focus on expanding its product lines, Polycab is well-positioned to capitalize on growth opportunities in the electrical manufacturing sector.
As the company prepares for its upcoming Annual General Meeting, shareholders are keenly awaiting approval for the proposed dividend, which is expected to be paid within 30 days following the meeting. This commitment to returning value to shareholders is indicative of Polycab's strong financial health and operational performance.
