Polycab India Surges 3% Post-Q3: Record Revenues and Strategic Wins Propel Growth

Market Performance

Shares of Polycab India breaks its two-day losing streak by gaining 3% to ₹6,380 on January 23, following the announcement of its Q3 FY25 results. Despite the recent uptick, the stock has declined by more than 15% since the start of the year.

Financial Highlights

For the October-December quarter of FY25, Polycab India reported:

• Revenue from Operations: ₹5,226 crore, up nearly 20% from ₹4,340.4 crore in the corresponding quarter of the previous year.
• Consolidated Net Profit: ₹457.57 crore, an 11% increase from ₹412.85 crore in Q3 FY24.

The company noted strong performance across its business segments, achieving its highest-ever third-quarter revenue. Revenue for the first nine months of FY25 surpassed ₹15,000 crore for the first time.

Segment Performance

• The Cables and Wires segment grew by 12% year-on-year but faced some challenges due to softening demand and fluctuating copper prices.
• The FMEG (Fast-Moving Electrical Goods) segment saw a sequential loss reduction, reflecting improved operational efficiency.

Key Announcements

Polycab India has already surpassed its FY26 revenue target of ₹20,000 crore, achieving net sales of ₹21,000 crore earlier than anticipated.

Industry Context

The company's performance aligns with broader market dynamics. The recent challenges in copper prices and government capital expenditure have impacted the industry in a contrasting manner.

Summary

Polycab India's Q3 results showcase its robust business growth and strategic focus. The company exceeded its long-term revenue goals well ahead of schedule, and the positive market reaction reflects confidence in its strong fundamentals and growth trajectory.