Polycab Reaffirms FY30 EBITDA Margin Targets Of 11-13% W&C And 8-10% FMEG

Market snapshot: Polycab India Limited has reiterated its long-term strategic guidance under Project Spring, targeting an EBITDA margin of 11-13% in Wires & Cables and 8-10% in Fast-Moving Electrical Goods by FY30. Additionally, the company expects its greenfield Extra High Voltage cable plant to commence commercial production in FY28.

Data Snapshot

• Wires & Cables FY30 EBITDA margin target maintained at 11-13%.
• FMEG FY30 EBITDA margin target maintained at 8-10% under Project Spring.
• Extra High Voltage cable plant commissioning targeted for FY28.
• H1 FY27 consolidated revenue stood at ₹18,108.6 crore, up 46% year-on-year.

What's Changed

• FMEG profitability structural trajectory reconfirmed following consecutive quarters of positive EBIT expansion.
• Clear line-of-sight established for entering the high-margin Extra High Voltage transmission segment by FY28.

Key Takeaways

• Polycab continues to leverage economies of scale in its core Wires & Cables portfolio to sustain 11-13% EBITDA margins.
• The FMEG segment is scaling via premiumization and solar product adoption, targeting 8-10% EBITDA margins by FY30.
• The EHV project scheduled for FY28 aims to capture domestic import-substitution demand, as nearly 50% of domestic EHV consumption is currently imported.

SAHI Perspective

Polycab's guidance underlines capital allocation discipline alongside aggressive expansion into high-entry-barrier segments like EHV cables. Reaffirming margin guidance amidst raw material volatility signals strong pricing power and robust supply chain execution.

Market Implications

Sustained execution on Project Spring strengthens Polycab's leadership in industrial power transmission and consumer electricals, potentially driving operational leverage as manufacturing capacity scales.

Trading Signals

Market Bias: Bullish

Reaffirmation of long-term EBITDA margin guidance combined with 46% YoY revenue growth in H1 FY27 provides strategic earnings visibility.

Overweight: Capital Goods, Wires & Cables, Electrical Equipment

Trigger Factors:

• Quarterly FMEG margin expansion trajectory
• Progress updates on greenfield EHV plant execution
• Domestic infrastructure capital expenditure pacing

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

Industry Context

The domestic electrical equipment sector benefits from structural tailwinds including power grid expansion, industrial capital spending, and residential construction demand. Import reliance in the Extra High Voltage segment offers significant market share opportunities for domestic integrated manufacturers.

Key Risks to Watch

• Fluctuations in primary input costs like copper and aluminum
• Delays in execution or commissioning of the EHV manufacturing project
• Competitive intensity in the retail consumer electricals space

Recent Developments

On October 15, 2026, Polycab India reported its Q2 FY27 results with H1 FY27 consolidated revenue of ₹18,108.6 crore (up 46% YoY) and net profit of ₹1,786.7 crore (up 38% YoY).

Closing Insight

Polycab's dual focus on operating margin stability and expanding technology capabilities in EHV cables position it firmly to capture macro power-transmission growth.

High Performance Trading with SAHI.