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%.

Should you buy, sell or hold?

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%.