Polycab India Q4 FY26: Expenses jump 29.68% to ₹7,875.6 crore, EBITDA margin contracts 160 bps
Synopsis
Polycab India's Q4 FY26 tells a tale of two halves: a 27% revenue surge to ₹8,864.4 crore powered by wires, cables, and a solar-led FMEG boom, but a 160-basis-point EBITDA margin squeeze to 13.1% as expenses jumped nearly 30%. The real question is whether Project Spring can restore profitability while the EPC segment recovers from execution delays.
Key Takeaways
Polycab India total expenses jumped 29.68 per cent to ₹7,875.6 crore in Q4 FY26 , up from ₹6,073.31 crore a year ago.
EBITDA margin contracted 160 basis points to 13.1 per cent , down from 14.7 per cent in Q4 FY25.
Revenue grew 27 per cent year-on-year to ₹8,864.4 crore , driven by a 30 per cent rise in the Wires and Cables segment.
FMEG segment grew 47 per cent ; solar products nearly doubled and became the segment's largest category.
EPC segment revenue fell 15 per cent due to execution delays and project timing issues.
Board declared a final dividend of ₹47 per share ; payout ratio rose to 27.2 per cent , targeting over 30 per cent by FY30 .
Polycab India Limited reported significant margin pressure in the March quarter (Q4 FY26), with total expenses surging 29.68 per cent to ₹7,875.6 crore from ₹6,073.31 crore in the year-ago period, according to its stock exchange filing. The cost spike, driven by an unfavourable product mix and operating deleverage, squeezed profitability even as the company delivered robust top-line growth of 27 per cent year-on-year.
Margin Contraction and Cost Pressures
Polycab's EBITDA margin contracted by 160 basis points to 13.1 per cent in Q4 FY26, down from 14.7 per cent in the same quarter last year. The company attributed the decline to a higher contribution from lower-margin institutional sales and operating deleverage that amplified overall cost pressures.
Despite the margin squeeze, EBITDA rose 13.3 per cent to ₹1,161 crore from ₹1,025 crore a year ago, reflecting the scale of the revenue expansion even as profitability ratios came under pressure.
Revenue Growth Led by Wires and Cables
Revenue climbed 27 per cent year-on-year to ₹8,864.4 crore in Q4 FY26, compared to ₹6,986 crore in the corresponding quarter of the previous financial year. The core Wires and Cables segment was the primary growth engine, posting a 30 per cent increase, supported by healthy domestic demand and continued market share gains.
Polycab's strategic initiative, Project Spring, contributed to approximately 3 per cent to 4 per cent domestic market share gains during the financial year. International business grew 18 per cent year-on-year, accounting for 4.4 per cent of consolidated revenue.
FMEG Segment Surges; EPC Drags
The Fast-Moving Electrical Goods (FMEG) segment emerged as a standout performer, recording 47 per cent growth year-on-year. Solar products nearly doubled in revenue and became the largest category within the FMEG segment. The company is targeting FMEG margins of 8 per cent to 10 per cent by FY30 under Project Spring.
In contrast, the EPC segment witnessed a 15 per cent decline in revenue, attributed to execution delays and project timing issues, partially offsetting gains from other high-performing segments.
Dividend and Shareholder Returns
Polycab's board approved a final dividend of ₹47 per share for the quarter. The payout ratio rose to 27.2 per cent, up from 26.3 per cent in the previous year, as the company progresses toward its long-term target of exceeding 30 per cent by FY30.
With Project Spring continuing to drive market share gains and the FMEG solar vertical scaling rapidly, the company's ability to restore margins while sustaining revenue momentum will be closely watched in the quarters ahead.
Point of View
But the cause — a higher mix of institutional sales and operating deleverage — suggests the company may be chasing volume at the cost of profitability. Project Spring's market share gains are real, but the EPC segment's 15 per cent revenue decline flags execution risk that cannot be papered over by a solar boom. The ₹47 dividend and an improving payout trajectory are shareholder-friendly signals, yet the path to the FY30 FMEG margin target of 8-10 per cent remains contingent on disciplined segment management that Q4 FY26 did not fully demonstrate.
NationPress
10 Aug 2026
Frequently Asked Questions
What were Polycab India's Q4 FY26 results?
Polycab India reported a 27 per cent year-on-year revenue increase to ₹8,864.4 crore in Q4 FY26, but EBITDA margins contracted 160 basis points to 13.1 per cent as total expenses surged 29.68 per cent to ₹7,875.6 crore. EBITDA rose 13.3 per cent to ₹1,161 crore.
Why did Polycab's EBITDA margin contract in Q4 FY26?
The margin contraction was driven by an unfavourable product mix, with a higher share of lower-margin institutional sales, and operating deleverage that increased overall cost pressures. These factors outweighed the benefit of strong top-line growth.
How did Polycab's FMEG segment perform in Q4 FY26?
The FMEG segment posted 47 per cent year-on-year growth, with solar products nearly doubling in revenue to become the segment's largest category. The company is targeting FMEG margins of 8 per cent to 10 per cent by FY30 under Project Spring.
What dividend did Polycab India declare for Q4 FY26?
Polycab's board approved a final dividend of ₹47 per share, taking the payout ratio to 27.2 per cent, up from 26.3 per cent a year ago. The company is targeting a payout ratio exceeding 30 per cent by FY30.
What is Polycab's Project Spring initiative?
Project Spring is Polycab India's strategic growth initiative aimed at expanding domestic market share and scaling the FMEG segment. In FY26, it helped the company gain approximately 3 per cent to 4 per cent domestic market share, while also setting a long-term FMEG margin target of 8-10 per cent by FY30.
