The Wires & Cables (W&C) segment reported volume growth in high teens, with cables bit higher than wires. Domestic W&C business grew by 20.6% YoY, driven by high government spending and improved project execution. The company's international business grew by 25% YoY in Q2FY26 and contributed 6.5% to the total revenue. In EPC segment reported an EBIT margin of 18.1% in Q2FY26, supported by a one-time gain of Rs 300mn. The company aims to increase export contribution to 10% by FY30. Its FMEG segment delivered another quarter of positive EBIT led by solar products and is expected to be the major contributor to the FEMG portfolio. Its new plant is expected to be commissioned by Q3FY27 and accordingly, revenue contribution from EHV sales is likely to commence from FY28. POLYCAB aims to achieve 1.5x sector growth in volume and EBITDA margin of 11-13% by FY30 through its Project Spring.
OutlookWe expect revenue/EBITDA/PAT CAGR of 18.6%/22.0%/20.9% over FY25-28E. We assign SOTP-based target price of Rs8,808 (Rs 8,718 earlier), implying PE of 40x FY28E.
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