Polycab India Q1FY27: commodity inflation driven topline beat

研报英文原文证据摘录

Polycab India Q1FY27: commodity inflation driven topline beat

/28E 262.02 248.12

Management continue to maintain their guidance of Polycab growing at 1.5x industry 03/29E 312.82 287.09

growth, with demand supported by T&D capex, data center, infrastructure upgrade,

Akshay Gattani

mobility investment and ramping up of exports. On pricing, management indicated that

Analyst

recent softness in commodity prices has been passed on the channel with 3-4% akshay-kumar.gattani@ubs.com

downward price revision. On FMEG, management expects to sustain 1.5x–2x industry +91-22-6155 6044

growth with steady margin expansion towards 8–10% by FY30, led by solar,

Amit Mahawar

premiumization, and distribution scale-up.

amit.mahawar@ubs.com

Valuations – remain constructive on demand, maintain Buy +91-22-6155 6030

Polycab has witnessed a sharp rally led by valuations over the past 3m with the stock up Harshita Surana

~20% vs a flat broader market. Reported volumes were subdued in Q1, which can be Associate Analyst

attributed to a high base of 26% growth last year and quarter-end channel destocking harshita.surana@ubs.com

amid declining commodity prices. However, structurally we believe the underlying +91-22-6155 6066

demand environment remains healthy with trends around electrification, renewable

energy adoption, and the ongoing T&D investment cycle continue to support long-term

growth, while the export opportunity provides a meaningful runway for further

expansion. Our earnings estimates remain unchanged. In the near term, we expect

investor focus will be on competition's product launches and their potential implications

for growth and pricing. The market will also closely monitor evidence of a recovery in

volume growth over the next few quarters.