Polycab share price rises nearly 3% post strong Q1 results 2025. Should you buy, sell or hold?

Polycab India shares increased by nearly 3% following the company's announcement of a 50% year-over-year (YoY) increase in its consolidated net profit for Q1 FY26 (attributable to equity shareholders). The net profit for the June quarter stood at ₹592 crore, compared to ₹396 crore during the same period last year.

Revenue from operations also saw robust growth, climbing 26% YoY to ₹5,906 crore, up from ₹4,698 crore in the previous year's quarter. However, when compared to the previous quarter, profit after tax (PAT) fell by 19% from ₹727 crore in Q4FY25, and revenue decreased by 15% from ₹6,986 crore reported in the March quarter.

Polycab's Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose by 47.1% to reach ₹858 crore. The EBITDA margins for the quarter improved by more than 200 basis points compared to the same period last year, reaching 14.5%.

As per Nuvama Institutional Equities, the brokerage holds a BUY recommendation on the stock, setting a target price of ₹7,950. It is anticipated that other cables and wires companies will also report strong earnings for the first quarter, partly due to a low comparative base affected by the General Elections.

The brokerage mentioned that the company demonstrated exceptional performance, with consolidated revenues, EBITDA, and PAT increasing by 26%, 47%, and 50%, respectively, surpassing their forecasts by 2%, 13%, and 18%. The C&W segment experienced a 33% year-over-year growth, with cables outpacing wires growth, achieving nearly record high EBIT margins at 14.7% (up from the previous year) due to strategic price changes and operating leverage. Despite a slowdown in fans growth, FMEG revenue increased by 18% year-over-year, with margins improving by 280 basis points year-over-year to 2.1%.

According to ICICI Securities, Polycab has experienced year-on-year growth of 25.7% in revenue, 47% in EBITDA, and 49.5% in PAT. The gross margin increased by 230 basis points year-on-year, while the EBITDA margin rose by 210 basis points, aided by strategic pricing changes, a decline in commodity prices, an improved revenue mix, and a 26 basis point decrease in advertising expenses relative to net sales. The PAT margin also grew by 170 basis points year-on-year, reaching 10.2%.

"We believe, the strong revenue growth trajectory will likely continue in FY26E led by favourable demand tailwinds. Maintain HOLD with a DCF-based revised target price of ₹7,000," said the brokerage house.

Polycab share price today opened at ₹6,998 apiece on the BSE, the stock touched an intraday high of ₹7,080 per share, and intraday low of ₹6,939.05 apiece.

According Anshul Jain, Head of Research at Lakshmishree Investments, Polycab share price has tested a major resistance zone—the weekly order block—around 7,022 on the weekly charts. Despite hitting this key level, the stock shows no signs of weakness, indicating strong underlying demand. A healthy consolidation in this range would be ideal for bulls, allowing the stock to absorb supply and gather momentum for the next leg higher. Once this order block is convincingly breached, Polycab is well-positioned to retest its all-time high and potentially rally towards the 7,600 zone as the next target.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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