A Steady Hand; Delivering Through Cycles

研报英文原文证据摘录

A Steady Hand; Delivering Through Cycles

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(+71%YoY) and premiumization drove margin growth. Solar products grew 2x YoY, and is now

the largest category in FMEG. Company targets OPM of 8–10% by FY30e. We est FMEG sales Exhibit 1 - Op. Leverage, Premiumisation

Boosted FMEG Profitability

CAGR at +20% over FY26-28e. (Rs. mn)

600 15%

EPC: Margin Improves: ~5% of mix; Q1 sales declined by -11% YoY, in-line with timing of the 400 10%

project execution cycle. But order book is healthy, which can drive upcoming execution. Q1 2000 5%0%

Sustains positive EBIT for last 6-Qs nowEBIT margin rose by +330bps YoY and +340bps QoQ. Company expects annual sustainable -200 -5%

OPM in high-single digit. -400 -10%

-600 -15%

FMEG EBIT EBIT Margin (RHS)Why we Stay Bullish on Polycab? In FY26, Polycab gained +400bps organized C&W market . Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27

Source: Jefferies, company data

share to 30-31% (sustained market leader). Capex at Rs15bn in FY26 vs Rs10bn LY, as

cashflows were reinvested for strong demand prospects. Dividend payout at 27% in FY26.

B/S is strong with net cash position at Rs39bn. Data centers is a strong opportunity; Recent Research Notes:

1MW installation can translate to approx Rs35mn of C&W demand, of which 50-60% are

conventional & rest is optical. Company foresees Rs200-250bn addressable market over next EMS: New Mobile Mfg Scheme Approved

6-8 Y. Refer to our Thematic Notes: 1) FY26 Annual Report Analysis, 2) 'Power'ful Play, 3)

[Watch the Video] Decoding PLIs: LookingNavigating (Dire) Strait of Hormuz.

Back, Moving Forward

Strong Outlook; JEF Top Pick: Factoring Q1 beat, we raise FY27-28e EPS by +2-3%. Over

Decoding PLIs: Looking Back, MovingFY26-29e, we est PAT CAGR of +22% led by volume growth and FMEG margin improvement.