Q2 Results: Polycab may sustain growth momentum seen during Q2 and first half FY24. Analysts raise estimates

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Polycab India Pvt that had reported strong Q2 performance with revenues from operations at ₹4217.6 crore growing by 27% YoY and 11% sequentially, is inching closer to the targeted run rate of ₹20,000 Crore per annum revenues by FY26. Gandharv Tongia Executive Director & CFO at Polycab said that looking at the rate we have grown during Q2 and first half FY24, we should easily be able to reach our target of ₹20,000 crore of the top line by FY26. Estimates of analysts on the other hand indicate that Polycab could achieve its target of ₹20,000 crore in revenues even earlies.

Analysts at Jefferies India Pvt Ltd estimate FY25 revenues to come at ₹20,537.3 Crore. Also read- Stock to Watch: ITC, Tata Motors, HUL, Zomato, NTPC, Jindal Stainless The growth is being led by various initiative under project Leap that is a multi-year transformational programme aimed at having the right building blocks in place to achieve company’s growth target by FY26.Integration of HDC (heavy duty cables) and LDC (light Duty Cables) verticals was one such initiative which as per Tongia has helped. The distributors got both ranges of products and benefited too.

Among other factors leading to growth are initiatives as Logo change, brand positionings and partnerships with ICC. All these have been helping. In the FMEG (fast moving Electrical goods) segment Luminaires business had a strong quarter, benefiting from the set-up of its separate vertical, under Project LEAP.

Various other initiatives such as wires and switches business being aligned in same vertical and also has helped. The demand for the segment however remains muted. The high competitive intensity in lighting segment and weak growth in appliances are posing challenges.