A Q2 FY27 revenue print of ₹99 billion, up 53% year-on-year and 16% ahead of brokerage estimates. EBITDA up 40%. PAT up 44%. .
The Indian wires and cables space has been one of the more interesting corners of the industrial complex through 2026.
Domestic capex continues to pull volumes higher, copper prices have driven realisations even when volume growth has been uneven, and the shift from unorganised to organised players has structurally benefited the listed leaders.
For investors tracking the segment, the question has been less about whether growth is coming and more about which specific franchise is best placed to monetise it across both the cables business and the adjacent FMEG category.
The name that is being read as the clearest answer to that question is Polycab India (NSE: POLYCAB). The stock trades at ₹8,207, down approximately 11% from its 52-week high of ₹10,126, with a market capitalisation of approximately $12.9 billion. Bobcaps, which had been running with a HOLD call on the stock, has used the Q2 FY27 print to upgrade to BUY.
“POLYCAB’s Q2FY27 revenue grew 53% YoY to Rs 99.0bn, 16% ahead of our estimate. EBITDA rose 40% YoY to Rs 14.2bn, a 24% beat. EBITDA margin contracted 130bps YoY to 14.4%,” says BOBCAPS in a recent note.
The margin contraction is the one soft note in an otherwise strong print, and the brokerage attributes it to a specific set of transitory factors rather than any underlying business pressure.
Copper-led pass-through diluted gross margin in the current quarter, and the EPC base quarter included a one-off gain — two effects that between them more than offset the meaningful margin expansion the FMEG business delivered. Adjusted PAT grew 44% year-on-year to ₹9.8 billion.
W&C Momentum
The wires and cables business, which remains Polycab’s largest revenue engine, delivered revenue growth of 47% year-on-year to ₹83.8 billion, with domestic sales up 50%. The volume versus pricing split is worth sitting with — volumes grew in the mid-to-high single digits on a high base, meaning the headline growth was substantially a copper-linked realisation story.
“Wires grew faster than cables, and channel sales faster than institutional. Exports grew 17% YoY to Rs 4.9bn while EBIT margin fell 90bps YoY to 14.2%,” Bobcaps says in its report.
The channel sales outpacing institutional is a specific positive signal. It indicates demand is coming through the distributor network and retail-adjacent channels rather than being concentrated in a few large institutional contracts — a healthier mix for a brand-led franchise.
The FMEG Breakout
The quarter’s most striking operational development was in the FMEG (Fast Moving Electrical Goods) business. FMEG revenue grew 120% year-on-year to ₹9.9 billion, with solar inverters — a category Polycab trades — the largest contributor. More importantly, EBIT margin rose to 10.1% from 0.5% a year ago, driven by operating leverage and a richer premium mix.
“FMEG revenue grew 120% YoY to Rs 9.9bn. Solar inverters, which Polycab trades, were the largest contributor, and the other categories also grew strongly. EBIT margin rose to 10.1% from 0.5% YoY on operating leverage and a richer premium mix. The margin is above the 8-10% FY30 target, which management has kept unchanged,” Bobcaps notes.
FMEG margins reaching 10.1% in Q2 FY27 against an FY30 target band of 8-10% means the division has already arrived at its multi-year target with four years still to go. Management has kept the FY30 target unchanged, which suggests either conservatism in the goal or an acknowledgement that the current margin benefits from a specific product mix that may normalise.
EPC Picks Up Pace
The EPC (Engineering, Procurement and Construction) business delivered revenue growth of 53% year-on-year to ₹6.2 billion on faster execution of BharatNet and RDSS projects. EBIT margin fell to 7.2% from 18.1% a year ago, specifically because the base quarter included a one-off gain. Management has guided to high-single-digit margins as the normalised run-rate for the business.
The order book across EPC now sits in the ₹90-100 billion range, which gives the business visibility well into FY28.
The Rating and the Target
BOBCAPS has upgraded Polycab India from HOLD to BUY, with a target price of ₹10,100 valuing the stock at 40x September 2028 estimated EPS. The implied upside from the current price of ₹8,207 is 23%. The brokerage has also raised FY27 estimated EPS by 23% and FY28 estimated EPS by 17% to reflect the H1 beat and the faster FMEG margin ramp.
“We raise FY27E/FY28E revenue by 16%/15%, EBITDA by 20%/12% and PAT by 23%/17%, reflecting the H1 beat, higher copper-linked realisations and a faster FMEG margin ramp-up. We roll forward to Sep-28E EPS and value the stock at 40x, arriving at a TP of Rs 10,100. Following an ~11% correction since our last review, the stock now offers 23% upside to our TP; we upgrade to BUY from HOLD,” notes Bobcaps.
The Numbers
| Metric | Value |
|---|---|
| Current Market Price | ₹8,207 |
| Target Price | ₹10,100 |
| Upside | +23% |
| Previous Rating | HOLD |
| Current Rating | BUY (Upgraded) |
| Valuation Basis | 40x Sep-28E EPS |
| Market Cap | ~$12.9 bn |
| 52-week Range | ₹10,126 / ₹6,663 |
| Q2 FY27 Revenue | ₹99 bn (+53% YoY) |
| Q2 FY27 EBITDA | ₹14.2 bn (+40% YoY) |
| Q2 FY27 Adj. PAT | ₹9.8 bn (+44% YoY) |
| W&C Revenue Growth | +47% YoY |
| FMEG Revenue Growth | +120% YoY |
| FMEG EBIT Margin | 10.1% (vs 0.5% YoY) |
| EPC Order Book | ₹90-100 bn |
Key Risks
Solar demand continues to depend on PM Surya Ghar subsidies, which the BOBCAPS note explicitly flags as a key risk to how long the current FMEG growth trajectory lasts. Copper price volatility remains a factor on both the realisation side and the gross margin side. Any slowdown in BharatNet and RDSS execution timelines would weigh on the EPC business.
