Polycab Ltd., a leading name in the cables and wires manufacturing industry, witnessed its Polycab share rebound after an initial fall of up to 8%, following the announcement of its Q3 FY25 results. The positive outlook from the management, which included a forecast of exceeding its ₹20,000 crore revenue target for FY2026 within the current financial year, helped the Polycab share price regain momentum.
Polycab Q3 Financial Results: Key Highlights
In the third quarter for FY2025, Polycab achieved a 24% growth in revenue, amounting to ₹15,422 crore for the first nine months of the fiscal year. The company’s net profit for the quarter stood at ₹464.3 crore, meeting market expectations of ₹450 crore. Despite the flat year-on-year profit growth, the strong revenue growth and EBITDA performance sparked investor optimism regarding the Polycab share.
Polycab’s revenue for Q3 was recorded at ₹5,226 crore, which was a 20.4% increase from the same period last year. Although the figure fell slightly short of the ₹5,369 crore consensus estimate from the CNBC-TV18 poll, the company’s solid operational performance helped offset the revenue miss.
The EBITDA for the quarter grew by 26.5% to ₹721 crore, exceeding analysts’ estimates of ₹646 crore. The EBITDA margin also saw a rise of 70 basis points, reaching 13.8%, higher than the anticipated 12%, reflecting better operational efficiencies and cost control, further boosting the Polycab share price.
Management Guidance for FY25 and Beyond
Management has shared a highly optimistic outlook for FY25, forecasting the company will surpass its original revenue growth target of ₹20,000 crore set for FY2026 within this fiscal year.
Key factors contributing to this positive outlook include the company’s continued focus on expanding its wires and cables business, as well as its FMEG (Fast-Moving Electrical Goods) segment. The company has also outlined a capital expenditure plan (capex) in the range of ₹6,000 crore to ₹8,000 crore over the next few years.
Further details of the management’s future expectations include:
- Wires and cables margin to be between 11% to 13%
- FMEG EBITDA margin expected to range between 8% and 10%
- A dividend payout ratio of over 30%
- Exports contributing more than 10% of the company’s total business
These growth prospects are expected to lead the company towards long-term success, even as it faces fluctuations in its Polycab share price in the short term.
Stock Performance: Short-Term Fluctuations and Long-Term Confidence
After the initial sharp drop of up to 8%, Polycab share price started to recover, and as of the latest trading session, is down by 5.4% at ₹6,203. Despite the short-term fluctuations, Polycab’s long-term outlook remains solid due to the company’s strong market position, growth guidance, and robust operational performance.
Conclusion:
Polycab share has gained investor attention following its strong Q3 results and an optimistic future revenue guidance. Polycab’s ability to exceed its long-term revenue growth targets in FY25 is a positive sign for investors. While the flat profit growth for Q3 and the slight revenue miss may have initially concerned market participants, Polycab’s strong EBITDA growth, margin expansion, and optimistic forward guidance indicate that the company is on track for substantial growth.
Looking forward, investors will focus on the company’s Q4 performance, any updates regarding its capex plans, and how it manages global supply chain issues and inflationary pressures in the coming quarters. expanding export business, and consistent capital expenditure make it a key player in the wires and cables sector, positioning it well for the future.
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