Q1 2026 Polycab India Ltd Earnings Call Transcript
Key Points
- Polycab India Ltd (BOM:542652) reported its highest ever Q1 revenue and profitability, marking a strong start to FY26.
- The Wires and Cables business saw a robust 31% year-on-year revenue growth, driven by over 25% volume growth.
- The company's EBITDA grew by 47% year-on-year, with a 210 basis point improvement in EBITDA margin to 14.5%.
- The FMEG business achieved its second consecutive profitable quarter, with an 18% year-on-year growth.
- Polycab India Ltd maintains a strong balance sheet with a net cash position of INR31 billion and a working capital cycle of 43 days.
- The EPC segment experienced a 19% year-on-year decline in revenues, indicating challenges in this business area.
- Export growth faces uncertainty due to tariff issues in the US, which could impact future visibility.
- The company anticipates a normalization of its working capital cycle to a longer-term range of 50 to 55 days, suggesting potential future cash flow constraints.
- Advertising spends were lower due to limited promotional activity, which could impact brand visibility and sales.
- Despite strong performance, the company maintains a conservative long-term EBITDA margin guidance of 11% to 13%, indicating potential margin pressures.
Ladies and gentlemen, good day, and welcome to the Polycab India Limited Q1 FY26 earnings conference call. (Operator Instructions) Please note that this call is being recorded.
With this, I now hand the conference over to Mr. Gandharv Tongia, Executive Director and Chief Financial Officer, Polycab India Limited. Thank you and over to you, sir.
Good afternoon, everyone, and thank you for joining us.
I hope all of you are staying healthy and safe. I'm Gandharv Tongia, Executive Director and CFO at Polycab India Limited. On this call, we shall discuss the Q1 FY26 results, which were approved in the Board meeting held yesterday. We will be referring to the earnings presentation, financial results and condensed financial statements, which are available on the stock exchanges as well as on the Investor Relations page of our website.
Joining me today from our team is our Head Investor Relations, Mr. Chirayu Upadhyaya. Let us now move to the business
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