Polycab India Ltd Q1 FY27 Results Analysis: Revenue Surges 39%, EBITDA Margin Compresses 68 bps

Polycab India Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 8,209.73 Cr (+39.01% YoY) and PAT growth of +32.46% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Polycab delivered 39% YoY revenue growth in Q1FY27 with all three segments showing improvement: W&C margin stayed within guidance, FMEG surged toward its profitability target, and EPC margins exceeded expectations despite weak revenue. The key risk remains copper cost pressure, which compressed EBITDA margin 68 bps YoY, but tight operating cost control and sequential margin improvement provide confidence in management's execution.

Key Investment Insights

Key Positives

• Consolidated revenue at Rs.8,209.73 Cr grew 39.01% YoY, the highest Q1 growth in recent history.
• FMEG revenue surged 67.57% YoY and EBIT margin more than tripled to 7.97%, approaching FY30 target of 8-10%.
• W&C EBIT margin of 13.32% remained within the guided 12-14% band, expanding 20 bps sequentially from Q4FY26's 13.12%.
• EBITDA margin expanded 74 bps QoQ to 13.84%, confirming management's guidance of sequential improvement.
• Other expenses grew only 9.66% YoY, well below revenue growth, demonstrating tight cost control.
• Credit rating upgraded to CRISIL AAA/Stable and IND AAA/Stable.

Risk Factors

• Material cost as a share of revenue rose to 79.3% from 70.9% in Q1FY26 due to record copper prices, compressing EBITDA margin 68 bps YoY.
• Finance costs jumped 56.12% YoY to Rs.80.02 Cr due to higher working capital borrowings at elevated copper prices.
• EPC segment revenue declined 11.42% YoY and 39.64% QoQ, reflecting project execution cycle volatility.
• EBITDA margin compressed 68 bps YoY to 13.84% from 14.52% in Q1FY26 due to higher material cost intensity.