Polycab Shares Fall 4% Despite Strong Q1 Earnings Beat; Jefferies, HSBC Stay Bullish

Polycab India Share Price: Shares of Polycab India Ltd fell nearly 4% on July 17, 2026, extending losses for the third consecutive trading session despite the company reporting stronger-than-expected Q1 FY27 earnings. Robust growth in its Wires & Cables (W&C) business and a sharp jump in the Fast Moving Electrical Goods (FMEG) segment helped the company beat Street estimates, while global brokerages Jefferies and HSBC maintained their bullish outlook with Buy ratings and double-digit upside targets.

Polycab Q1 FY27 Results: Key Highlights

Particular	Q1 FY27	Q1 FY26	YoY Growth
Revenue	₹8,209 crore	₹5,906 crore	39%
EBITDA	₹1,136 crore	₹858 crore	32.5%
EBITDA Margin	13.8%	14.5%	-70 bps
Wires & Cables Revenue	₹7,202 crore	₹5,226 crore	38%
FMEG Revenue Growth	-	-	71%
EPC Revenue Growth	-	-	-11%
Share Price (Intraday)	₹8,850	-	-3.96%

Polycab Shares Decline Despite Strong Quarterly Performance

Polycab shares slipped nearly 4%, making the stock one of the top losers on the NSE Midcap 50 index. The stock has now declined over 7% in the last three trading sessions, even though the company delivered an earnings beat across revenue and profitability.

Despite the recent correction, Polycab remains one of the best-performing large-cap industrial stocks, with the share price still up around 15.5% in 2026, outperforming the Nifty 50, which has declined around 7.1% during the same period.

Revenue and EBITDA Beat Street Estimates

Polycab reported revenue of ₹8,209 crore, significantly ahead of market estimates of around ₹7,902 crore, driven by strong domestic demand, higher product realizations and healthy project execution.

EBITDA increased 32.5% year-on-year to ₹1,136 crore, exceeding analyst expectations of ₹1,062 crore. While the EBITDA margin narrowed to 13.8% due to commodity cost movements, it still came in ahead of consensus estimates.

Financial Metric	Reported	Street Estimate
Revenue	₹8,209 crore	₹7,902 crore
EBITDA	₹1,136 crore	₹1,062 crore
EBITDA Margin	13.8%	13.4%

Wires & Cables Business Continues to Drive Growth

The company's core Wires & Cables segment remained the biggest growth engine during the quarter.

Revenue from the segment increased 38% year-on-year to ₹7,202 crore, while domestic wires revenue surged 43%, supported by healthy demand across infrastructure, housing and industrial projects. The company also benefited from execution under its Project Spring initiative, with wires outperforming the cables business during the quarter.

FMEG Business Delivers Exceptional Growth

Polycab's Fast Moving Electrical Goods (FMEG) division emerged as another major growth driver, with revenue surging 71% year-on-year across product categories.

Solar products recorded the strongest performance, with sales more than doubling and becoming the largest category within the FMEG portfolio. Improved operating leverage and a richer premium product mix helped the segment's EBIT margin expand to 8%.

Segment Performance Snapshot

Business Segment	Performance
Wires & Cables	Revenue up 38% YoY
Domestic Wires	Revenue up 43% YoY
FMEG	Revenue up 71% YoY
Solar Products	Sales more than doubled
EPC Business	Revenue down 11% YoY

Brokerages Remain Bullish on Polycab

Despite the recent decline in the share price, leading global brokerages continue to maintain positive ratings on the stock.

Jefferies reiterated its Buy rating with a target price of ₹11,100, implying an upside of nearly 20%. The brokerage expects Polycab to deliver around 22% EPS CAGR between FY26 and FY29, supported by India's power infrastructure investments, capacity expansion and continued demand for wires and cables.

HSBC also maintained a Buy recommendation with a target price of ₹10,160, citing strong execution, improving FMEG profitability and sustained demand across electrical products. The brokerage expects earnings to grow at around 21% CAGR over FY26–FY29, while highlighting commodity price volatility in copper and aluminium as a key risk.

Brokerage	Rating	Target Price	Key View
Jefferies	Buy	₹11,100	Strong W&C growth, 22% EPS CAGR expected
HSBC	Buy	₹10,160	FMEG expansion and demand remain strong

Why Did Polycab Shares Fall?

The decline appears to be driven primarily by profit booking after the stock's strong rally over the past month rather than weak operational performance. Analysts also pointed to margin compression in the Wires & Cables business due to higher commodity costs, although earnings comfortably exceeded market expectations.

Investors will continue to monitor commodity prices, execution under Project Spring, FMEG scaling, and demand from India's infrastructure and power sectors.

Outlook

Polycab delivered another strong operational quarter with robust growth across its core Wires & Cables business and exceptional momentum in the FMEG segment. Although the stock corrected after the results, leading brokerages remain optimistic about its long-term growth prospects, backed by India's expanding power infrastructure, rising capital expenditure, premium product mix and capacity expansion. Margin trends, commodity prices and execution across key business segments will remain important factors for investors over the coming quarters.

1. Why did Polycab shares fall despite strong Q1 results?

The decline was largely due to profit booking after a strong rally and some concerns around margin compression, despite the company reporting better-than-expected earnings.

2. How much revenue did Polycab report in Q1 FY27?

The company reported ₹8,209 crore in revenue, up 39% year-on-year.

3. Which business segment performed the best?

The FMEG business recorded the strongest growth, with revenue rising 71% YoY, while the Wires & Cables segment remained the largest contributor.

4. What are Jefferies and HSBC's target prices for Polycab?

Jefferies has a target price of ₹11,100, while HSBC has a target price of ₹10,160, with both maintaining Buy ratings.

5. What should investors watch going forward?

Key monitorables include commodity prices, Wires & Cables demand, FMEG expansion, Project Spring execution, capacity additions and India's infrastructure and power capex cycle.