FMEG vs Wires and Cables: Which Business Contributes More to Polycab’s Growth?

Synopsis: Polycab delivered another strong quarter, with both its core Wires & Cables business and fast-growing FMEG segment posting healthy growth, highlighting a balanced business model with multiple long-term growth opportunities. 

The shares of this large cap company majorly engaged in manufacturing of cables,  wires and allied products such as uPVC conduits, lugs & glands and many more were in focus after its FMEG segment grew by 71 percent yoy. 

With the market capitalization of Rs. 1,33,574 Crores, the shares of Polycab India Ltd were trading at around Rs. 8,867 per share which is 12 percent discount from its 52 week high of Rs. 10,129 per share and is trading at a P/E of 46.7 whereas industry P/E stands at 25.6  

Record quarter (Q1 FY27)  driven by strong performance across businesses

Polycab reported its highest-ever first-quarter revenue of Rs. 8,209.7 crore, registering a 39 percent  YoY increase from Rs. 5,891.8 crore. EBITDA stood at Rs. 1,136.2 crore, up 32 percent  YoY from Rs. 861.8 crore, while the EBITDA margin came in at 13.8 percent  compared to 14.6 percent  in the year-ago quarter. Net profit increased 33 percent  YoY to Rs. 796.7 crore from Rs. 571.1 crore, reflecting healthy earnings growth despite a slight moderation in margins.

Wires & Cables continue to dominate the business

The Wires & Cables business remained Polycab’s largest segment, reporting revenue of Rs. 7,155 crore, a 39 percent  YoY increase from Rs. 5,154 crore. Domestic demand remained healthy, supported by better execution under Project Spring and higher commodity prices. The wires category outperformed cables during the quarter, while exports were impacted by weaker international demand. Even so, the company said its diversified global presence and healthy order book continue to support future growth. 

FMEG business delivers its best-ever quarter

The FMEG segment reported its highest-ever quarterly revenue of Rs. 761.2 crore, growing 71 percent  YoY from Rs. 444.8 crore. Growth was broad-based across all product categories, while solar products recorded more than 2x YoY growth, making them the largest contributor within the segment. The strong performance indicates increasing demand for consumer electrical products and reflects the company’s continued focus on expanding beyond its core Wires & Cables business. 

The FMEG business reported an EBITDA margin of 8 percent , improving from the previous year due to better operating leverage and a higher share of premium products. Management reiterated that the segment remains on track to achieve its Project Spring target of 8–10 percent  EBITDA margin by FY30. As revenue continues to grow, further improvement in margins could make the business a more meaningful contributor to overall profitability. 

International and EPC businesses remain well positioned

The EPC segment experienced a typical seasonal slowdown this quarter, with revenue dipping 11 percent  year-over-year to Rs. 3,077 Mn due to the natural timing of project execution cycles. However, the real highlight is the operational efficiency: EBIT margins climbed significantly to 11.0 percent , picking up roughly 330 basis points compared to last year. 

Even with the predictable quarter-on-quarter volume drop following a massive Q4, the underlying business remains highly efficient, backed by a healthy order book that secures upcoming project execution and keeps long-term, high-single-digit margin targets firmly on track.

Balanced business model supports long-term growth

Although Wires & Cables contributed around 87 percent  of total revenue (Rs. 7,155 crore out of Rs. 8,209.7 crore), the FMEG business grew 71 percent  YoY, significantly faster than the core segment’s 39 percent  growth. This indicates that while Wires & Cables will continue to remain the company’s main revenue contributor, the rapidly expanding FMEG business is gradually becoming a larger part of Polycab’s overall business mix. Continued investments in premium products, distribution expansion and manufacturing capabilities are expected to support this transition. 

Conclusion

Polycab’s latest quarter shows that the company is growing on multiple fronts. While the Wires & Cables business continues to provide scale and steady revenue, the FMEG segment is expanding at a much faster pace with improving margins. Strong execution, healthy demand, and management’s focus on long-term profitability indicate a balanced growth strategy. If the company continues to strengthen both businesses while delivering on its margin targets, it could remain well placed to benefit from India’s long-term electrical and infrastructure growth.

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