Polycab Q3 Results: Stock Rebounds After Strong Guidance and Better-Than-Expected EBITDA

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Polycab Q3 Results: Stock Rebounds After Strong Guidance and Better-Than-Expected EBITDA

The management also said that it will be surpassing its financial year 2026 revenue growth guidance of ₹20,000 crore in the current financial year itself.

January 22nd, 2025 News

Cables and Wires manufacturer Polycab Ltd. witnessed a significant recovery in its stock price after falling as much as 8% earlier in the day, following the announcement of its December quarter (Q3 FY24) results. The company’s positive management commentary and robust performance provided the much-needed boost to investor confidence.

Key Highlights of Q3 FY24 Results

Revenue Growth: Revenue for the quarter increased by 20.4% year-on-year (YoY) to ₹5,226 crore, slightly below the CNBC-TV18 poll estimate of ₹5,369 crore. For the first nine months of FY24, revenue grew by 24% YoY to ₹15,422 crore.
Net Profit: Net profit stood at ₹464.3 crore, in line with the expected ₹450 crore, but remained flat YoY.
EBITDA Performance: EBITDA grew by 26.5% YoY to ₹721 crore, exceeding the forecast of ₹646 crore. The EBITDA margin expanded by 70 basis points to 13.8%, surpassing the expected 12%.
Segment-wise Performance:
- Wires & Cables Business: Revenue increased by 12% YoY, with margins expanding by 50 basis points to 13.5%.
- FMEG Business: Revenue grew by an impressive 43% YoY, while EBIT loss narrowed to ₹12.7 crore compared to ₹36.6 crore in the same period last year.

Strong Guidance and Growth Momentum

Polycab’s management provided optimistic guidance for the upcoming years, indicating that the company is poised to surpass its FY26 revenue growth target of ₹20,000 crore in the current financial year.

The company’s guidance for the next five years includes:

Capital Expenditure (Capex): ₹6,000-₹8,000 crore.
Wires and Cables Margin: Between 11% and 13%.
FMEG EBITDA Margin: Between 8% and 10%.
Dividend Payout: Over 30%.
Exports Contribution: Exports to account for over 10% of total business.

The management also highlighted a robust order book that is expected to sustain growth momentum in the fourth quarter.

Stock Performance

Shares of Polycab initially dropped by 8% but showed signs of recovery, reducing losses to 5.4% by trading at ₹6,203. Investors responded positively to the strong operational metrics and the company’s forward-looking guidance.

Polycab continues to demonstrate resilience in a challenging environment, supported by its robust performance across key business segments and strategic growth initiatives. The company’s emphasis on profitability, operational efficiency, and diversification positions it well for long-term success.