Polycab India Reports 53% Revenue Growth in Q2 FY27 Driven by FMEG and Cables

Market snapshot: Polycab India delivered strong operational results for Q2 FY27, featuring a 53% YoY increase in revenue and a 39% YoY expansion in EBITDA. Growth was led by robust domestic demand in wires and cables alongside a sharp acceleration in the FMEG business. Meanwhile, the appellate tribunal has stayed an insolvency proceeding concerning a ₹2.79 crore operational dispute, securing legal clarity.

Data Snapshot

• Polycab India reported a 53% YoY increase in Q2 FY27 consolidated revenue to ₹9,899 crore.
• Operating EBITDA for Q2 FY27 expanded 39% YoY to ₹1,423 crore with EBITDA margin recorded at 14.4%.
• Wires and cables revenue rose 47% YoY, while FMEG revenue surged 124% YoY during the quarter.
• NCLAT granted a stay on NCLT insolvency proceedings regarding a ₹2.79 crore operational debt claim.

What's Changed

• Revenue growth accelerated to 53% YoY in Q2 FY27 compared to 17.8% YoY growth recorded in Q2 FY26.
• FMEG EBIT margin crossed the 10% threshold for the first time, reaching 10.1% in Q2 FY27.
• Legal risk was abated following the NCLAT order staying the CIRP initiation ordered by NCLT Ahmedabad.

Key Takeaways

• Core Cables & Wires division continues to deliver strong momentum, supported by domestic infrastructure and real estate execution.
• FMEG segment execution under Project Spring is yielding margin expansion and top-line scaling.
• Strong balance sheet liquidity with net cash exceeding ₹4,000 crore buffers against temporary commercial disputes.

SAHI Perspective

Polycab's Q2 FY27 figures demonstrate strong operating leverage. The surge in FMEG revenues and highest-ever segment margins indicate that diversification efforts beyond institutional cabling are gaining scale. The stay granted by NCLAT on the ₹2.79 crore operational dispute isolates core operations from legal distraction.

Market Implications

Strong top-line acceleration reinforces industrial and infrastructure capex momentum in the domestic electricals sector. While high base effects in subsequent quarters present a elevated comparison bar, structural margin targets under Project Spring provide mid-term operational visibility.

Trading Signals

Market Bias: Bullish

Broad-based growth across wires, cables, and FMEG combined with 39% YoY EBITDA growth supports positive operational momentum, reinforced by the legal stay granted by NCLAT.

Overweight: Wires & Cables, Fast-Moving Electrical Goods (FMEG)

Trigger Factors:

• Execution against Project Spring margin guidance of 11%-13% in wires and cables
• Sustained institutional and retail distribution expansion in FMEG
• Final resolution of NCLAT appellate proceedings

Time Horizon: Medium-term (3-12 months)

Industry Context

The Indian electrical equipment and cabling industry benefits from ongoing infrastructure expansion, industrial capex, and residential construction. Polycab's domestic cabling revenue grew 50% YoY, outperforming broader industry growth benchmarks.

Key Risks to Watch

• Volatile raw material costs, particularly refined copper and aluminum prices
• High comparison base in upcoming quarters following consecutive record volume quarters
• Intense pricing competition within retail electrical and appliances segments

Recent Developments

On October 13, 2026, Polycab India disclosed to stock exchanges that the NCLAT stayed an NCLT order regarding an insolvency petition filed by an operational creditor over a ₹2.79 crore claim, noting zero adverse financial or operational impact.

Closing Insight

Polycab's execution across both institutional wires and retail electrical goods highlights strong earnings power, while balance sheet liquidity provides resilience against cyclical or operational risks.

High Performance Trading with SAHI.