Polycab Earnings Beat Sparks Rally: SEBI RAs See Potential Upside To ₹7,500

Polycab shares rose 2% on Friday, driven by a strong show in its June quarter earnings and bullish brokerage outlook.

India's largest cable manufacturer reported a 49.3% surge in profits for their first quarter (Q1 FY26) to ₹599.6 crore from ₹401.6 crore year-on-year (YoY). 

Revenue from operations increased 25.7% to ₹5,906 crore,  aided by pricing revisions, better operational efficiency. EBITDA rose 46.2% (YoY) to ₹858 crore, and margins expanded to 14.5% from 12.4%. 

Its wires and cables (W&C) segment grew 31%, driven by strong domestic demand, and better execution. Domestic W&C grew 32%, while international grew 24%. 

The Fast Moving Electrical Goods (FMEG) segment was up 18%, marking its second consecutive profitable quarter. It benefited from strong solar product demand and premium focus. However, the EPC segment saw 19% fall (YoY).

What worked for Polycab?

SEBI-registered analyst A&Y Market Research noted that the company recorded strong fundamentals in its June quarter. Its margin expansion showed cost discipline, while strong demand continued from infrastructure, housing, rural electrification.

They highlighted that Polycab maintained a net cash position with zero debt and saw steady growth in export contributions. Additionally, it expanded into the FMEG segment with products such as fans, switches, and appliances. 

In terms of valuation, they believe it remains reasonably priced compared to its peers.

Technical Outlook

On its technical charts, Vinay Taparia noted that the stock is looking very strong and is ready to make a fresh all time high and can go up to ₹8,000 level. He suggested that one can look to buy on any dip, with ₹6,600 acting as a good support level for Polycab.

Meanwhile, Lalit Mundhra flagged a breakout ahead, driven by a surge in volumes. He identified key resistance at ₹7,104.90, and added that it needed to close above this for confirmation. Support is seen near ₹6,600, with resistance now acting as a new support level after the breakout. With bullish sentiment gaining traction, Mundhra advised watching for a rally toward ₹7,500 if volume holds.

And Vijay Kumar Gupta added that the post-results breakout is backed by strong buying interest, rising volumes, and positive money flow signals. He sees a likely valuation rerating if margins can be sustained.  Gupta pegged support at ₹6,850 and ₹6,636, with resistance between ₹7,080 and 7,100. 

He cautioned that a temporary pause is likely if the stock is rejected from the upper Fair Value Gap (FVG), advising traders to watch for a pullback to support.

Brokerages Bullish

Citi maintained a Buy rating with a target price of ₹7,700, implying an upside potential of 12%. UBS also reiterated a Buy rating on Polycab, raising its target price to ₹8,100.

Polycab shares are down 4% year-to-date (YTD). 

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