Polycab revenue jumps +26.89%, but margin slips 1.58 percentage points YoY
Expenses grew faster than revenue and interest costs more than doubled, limiting net profit growth to +6.98% despite a +16.09% sequential sales increase.
Filed 06 May 2026, 14:33 IST · Polycab India Ltd (POLYCAB)
Key takeaways
- Consolidated revenue grew +26.89% YoY, but operating margin fell 1.58 percentage points to 13.10% as expenses grew +29.24%.
- Net profit rose only +6.98% YoY as interest expense surged +129.38% and the tax rate increased 1.58 percentage points.
- The stock gained +0.94% on results day, below its 1.83% median absolute move across eight recent result reactions.
Price around the results
Sales momentum improved in the consolidated Q4
Polycab’s consolidated revenue grew +26.89% YoY and +16.09% QoQ, while operating profit increased only +13.26% YoY. The sequential comparison was better: revenue grew faster than expenses, which rose +15.49%, lifting operating margin by 0.45 percentage points. Net profit growth remained limited at +6.98% YoY, despite a +24.66% QoQ increase.
Higher costs and interest diluted earnings conversion
Expenses grew +29.24% YoY against revenue growth of +26.89%, narrowing operating margin by 1.58 percentage points. Interest expense increased +129.38% YoY, while depreciation rose +21.70%, adding pressure below the operating line. Other income contributed 5.76% of profit before tax, and the 1.58-percentage-point rise in the tax rate also weighed on net profit conversion.
Margin recovered from Q3 but remained below last year
Operating margin improved from 12.65% in Q3FY26 to 13.10% in Q4FY26, reversing part of the prior-quarter decline. It remained below the 14.68% recorded in Q4FY25 and the 15.76% seen in Q2FY26. Polycab’s margin was 2.56 percentage points below the 15.66% median for the 71 Industrials peers that had reported the quarter.
Initial stock move was modest, with larger follow-through
The stock rose +0.94% on the results day, compared with a 1.83% median absolute move across its eight recent result reactions. Its history has been mixed, with three positive and five negative reactions. The move extended to +7.99% on the following session and +6.60% by the fifth session.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹8,864 cr | ₹7,636 cr | +16.09% | +26.89% |
| Other income | ₹60 cr | ₹50 cr | +19.74% | +25.69% |
| Expenses | ₹7,703 cr | ₹6,670 cr | +15.49% | +29.24% |
| Operating profit | ₹1,161 cr | ₹966 cr | +20.21% | +13.26% |
| Operating margin (%) | 13.10% | 12.65% | — | — |
| Interest | ₹75 cr | ₹69 cr | +8.60% | +129.38% |
| Depreciation | ₹98 cr | ₹106 cr | -7.38% | +21.70% |
| Profit before tax | ₹1,049 cr | ₹842 cr | +24.59% | +9.24% |
| Tax | ₹264 cr | ₹212 cr | +24.36% | +16.57% |
| Net profit | ₹786 cr | ₹630 cr | +24.66% | +6.98% |
| EPS (₹) | ₹52.18 | ₹41.30 | +26.34% | +8.01% |
Operating margin of 13.10% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.94% | -0.30% |
| Next session | +7.99% | — |
| 5 sessions | +6.60% | +9.18% |
| 15 sessions | +15.92% | — |
| 30 sessions | +19.38% | — |
Volume on the results session was 2.44× its 20-day average.
What to watch
- Whether operating margin holds above 13.10% after the 0.45-percentage-point QoQ recovery.
- Whether interest expense growth moderates from +129.38% YoY.
- Whether revenue growth remains above +26.89% YoY.