Why Did Polycab Deliver a Strong Beat in Q2 FY26 Earnings?
Polycab India Ltd reported another stellar quarter in Q2 FY26, comfortably surpassing market expectations. The company posted a net profit of ₹691 crore, up 57% YoY, driven by higher sales, better pricing, and operational efficiencies. Revenue rose 18% YoY to ₹6,477 crore, underscoring strong growth in both cables and FMEG segments.
Operating performance remained the highlight of the quarter. EBITDA surged 62% YoY to ₹1,021 crore, while EBITDA margin expanded sharply by 415 basis points to 15.7% compared to 11.55% last year. This improvement reflects scale benefits, cost optimization, and better product mix.
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Compared to consensus estimates, Polycab’s Q2 performance was a clear beat on most fronts. Net profit at ₹693 crore exceeded expectations of ₹651 crore, while EBITDA of ₹1,020 crore vs estimate of ₹915 crore demonstrated strong margin execution. Revenue was in line at ₹6,462 crore (vs estimate of ₹6,474 crore).
The consistent outperformance in margins has positioned Polycab as a benchmark in the electricals and cables sector. Analysts attribute this growth to robust domestic infrastructure demand, housing electrification, and institutional orders in the power and industrial segments.
Management’s focus on increasing exports and expanding premium product offerings under the FMEG segment is also contributing to higher profitability. With strong demand visibility and cost discipline, Polycab appears on track to deliver sustainable double-digit growth through FY26–FY27.
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Polycab’s Q2 performance reaffirms its leadership position in the cables and wires market. The strong margin profile, steady revenue growth, and above-consensus profit delivery indicate a solid operational framework and efficient execution strategy.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Polycab’s superior Q2 FY26 results highlight strong demand, pricing power, and margin resilience. The company remains well-positioned for sustained earnings momentum, making it a preferred pick among industrial midcaps.
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Related Queries
- ✅ How did Polycab outperform Q2 FY26 earnings estimates?
- ✅ What drove Polycab’s 62% YoY EBITDA growth?
- ✅ Is Polycab’s margin expansion sustainable into FY27?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.