Polycab India Share Price: Should You Buy, Sell, or Hold After Announcing Strong Q3 Results?

Synopsis: Polycab India Limited reports 46.12% YoY revenue growth and a 35.71% YoY net profit surge in Q3 FY26 results, while Jefferies, Morgan Stanley, and UBS remain bullish, citing strong demand outlook despite near-term margin pressures.

This Large-cap Cable Stock, engaged in manufacturing wires, cables, lighting, fans, switches, switchgear, solar products, and providing EPC services for power transmission and electrification, jumped 3.56 percent after the company reported strong December quarterly results with a 46.12 percent YoY increase in revenue, while brokerages shared positive views on its future outlook.

With a market capitalization of Rs. 1,10,303.30 crores, the share of Polycab India Limited has reached an intraday high of Rs. 7,385 per equity share, rising nearly 3.56 percent from its previous day’s close price of Rs. 7,130.95. Since then, the stock has retreated and is currently trading at Rs. 7,327.25 per equity share.

Q3 FY26 Result

Coming into the quarterly results of Polycab India Limited, the company’s consolidated revenue from operations increased by 46.12 percent YOY, from Rs. 5,226.06 crore in Q3 FY25 to Rs. 7,636.13 crore in Q3 FY26, and grew by 17.89 percent QoQ from Rs. 6,477.21 crore in Q2 FY26.

Polycab India Limited generated 88.32 percent of its revenue from the wires and cable segment sales, 6.44 percent from the FMEG segment sales, and 5.24 percent from the EPC segment sales in Q3 FY26.

Furthermore, the company’s EBITDA increased by 34 percent, reaching Rs. 966.1 crore in Q2 FY26, compared to a 5 percent decrease in the previous quarter.

In Q3 FY26, Polycab India Limited’s consolidated net profit increased by 35.71 percent YOY, reaching Rs. 630.17 crore compared to Rs. 464.34 crore during the same period last year. As compared to Q2 FY26, the net profit has decreased by 9.06 percent, from Rs. 692.96 crore.

The basic earnings per share increased by 35.77 percent and stood at Rs. 41.30 as against Rs. 30.42 recorded in the same quarter in the previous year, FY2025.

Polycab India Limited’s revenue and net profit have grown at a CAGR of 20.47 percent and 21.71 percent, respectively, over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 29.7 percent and 21.4 percent, respectively. Polycab India Limited has an earnings per share (EPS) of Rs. 174, and its debt-to-equity ratio is 0.02x.

Brokerage Viewpoints

Jefferies, a prominent brokerage firm, has recommended a “Buy” call on Polycab India Limited with a target price of Rs. 9,225 per share, indicating an upside potential of 25.90 percent from its current price of Rs. 7,327.25. 

Jefferies maintains a positive view on Polycab, supported by strong 40 percent volume growth and its direct exposure to private capex, housing, and infrastructure spending. While margins were impacted due to deferred price hikes, the brokerage expects profitability to improve as pricing actions take effect, making Polycab an attractive buy for long-term growth.

Similarly, Morgan Stanley, a prominent brokerage firm, has recommended a “Overweight” call on Polycab India Limited with a target price of Rs. 9,373 per share, indicating an upside potential of 27.92 percent from its current price of Rs. 7,327.25. 

Morgan Stanley maintains an Overweight rating on Polycab, citing strong topline performance in Q3 driven by healthy demand. While margins declined during the quarter, this was largely due to an unfavorable product mix, deferred cost pass-through, and higher advertising spending. The brokerage expects margins to normalize going forward, supporting its positive long-term outlook on the stock.

Likewise, UBS, a prominent brokerage firm, has recommended a “Buy” call on Polycab India Limited with a revised and increased target price to Rs. 9,500 per share from Rs. 9,440 per share, indicating an upside potential of 29.65 percent from its current price of Rs. 7,327.25. 

UBS maintains a Buy rating on Polycab, supported by solid topline growth and a strong demand outlook reiterated by management. While near-term margins may face pressure due to commodity inflation, UBS expects these headwinds to ease over time, underpinning the company’s long-term growth prospects.

Polycab India Limited was established in 1964 as a small electrical trading business in Mumbai and later evolved into a leading wires and cables manufacturer by 1983 through family-owned manufacturing units in Gujarat. Over the years, the company has grown into one of India’s largest electrical product players.

Today, Polycab India Limited operates across wires and cables, consumer electricals such as fans, lighting, switches, and switchgear, and also undertakes EPC projects for power infrastructure. The company focuses on innovation, energy efficiency, and smart solutions, supported by a strong nationwide distribution network.

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