Polycab Q1 Revenue Surges 39%, Profit Growth Lags
Polycab India's Q1 FY27 revenue grew 39% year-on-year, but net profit margin contracted slightly as profit growth trailed sales.
Polycab India reported robust revenue growth of 39% YoY in Q1 FY27, though profit growth of 33% was slower, leading to a slight margin squeeze.
Polycab India started fiscal 2027 with powerful top-line momentum, reporting a 39% year-on-year jump in revenue for the June quarter. However, profit growth of 33% lagged behind, indicating some pressure on profitability compared to the same period last year.
While the annual comparison is strong, the sequential picture is mixed. Revenue dipped 7.4% from the previous quarter, which is typical for the seasonally slower Q1. More positively, profit managed a slight sequential increase of 1.4%, showing resilience in earnings. The net profit margin for the quarter stood at 9.7%, down 50 basis points from Q1 last year but an improvement from the 8.9% margin in Q4 FY26.
The company's recent quarterly performance shows a clear upward trajectory in both sales and profit over the past year.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 8,209.73YoY +39% | 8,864.48 | 5,905.98 |
| Profit (₹ Cr) | 796.65YoY +33% | 785.60 | 599.70 |
| Net Profit Margin (%) | 9.7YoY -4.9% | 8.9 | 10.2 |
Key Points
- The trailing twelve-month (TTM) net profit margin is 9.3%, with TTM profit reaching ₹2,905 crore.
- The balance sheet remains exceptionally strong, with negligible debt and a high return on equity of 25%.
- The stock has delivered impressive returns, gaining 32.6% over the past year and nearly 95% over three years.
Despite the robust earnings growth, Polycab's stock trades at a price-to-earnings (P/E) ratio of 38.5, which is at a notable discount to its industry peers. The focus now shifts to whether the company can sustain its high revenue growth while improving its profit margins in the coming quarters.
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