Polycab Q3 Results: Stock recovers after better-than-expected results, strong guidance

Shares Cables and Wires manufacturer Polycab Ltd. recovered after a fall of as much as 8% after some positive management commentary post its December quarter results.

The management said that it will be surpassing its financial year 2026 revenue growth guidance of ₹20,000 crore in the current financial year itself.

For the first nine months of 2024, Polycab's revenue has grown by 24% to ₹15,422 crore.

Net profit for the quarter stood at ₹464.3 crore, which was in-line with the CNBC-TV18 expectation of ₹450 crore. On a year-on-year basis, the company's net profit was flat.

Revenue for the quarter increased by 20.4% from last year to ₹5,226 crore. However, the figure was marginally lower than the CNBC-TV18 poll of ₹5,369 crore.

Polycab's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 26.5% from last year to ₹721 crore, which was better than the CNBC-TV18 poll expectations of ₹646 crore.

EBITDA margin for the quarter expanded by close to 70 basis points to 13.8%, and were also better than expectations of 12%.

This is Polycab's Guidance for the next five years:

Among Polycab's segments, its Wires & Cables business grew by 12% from last year, while margins expanded by 50 basis points to 13.5%.

FMEG business revenue grew by 43% year-on-year. EBIT loss narrowed to ₹12.7 crore for the segment, from ₹36.6 crore loss last year.

The management also said that the robust order book will sustain its momentum in the fourth quarter as well.

Shares of Polycab fell as much as 8% but are attempting a recovery from the lows of the day. The stock is currently trading 5.4% lower at ₹6,203.