Shares of Polycab India slipped nearly 4% in Friday’s trade after the company reported a strong set of Q3 FY26 numbers but fell short of market expectations on key profitability metrics, triggering profit-booking.
Polycab posted robust top-line growth for the quarter ended December 31, 2025. Revenue from operations surged 46.1% year-on-year to Rs 7,636 crore, compared with Rs 5,226 crore in the same period last year. Total income rose to Rs 7,686.58 crore, reflecting strong demand across segments and scale-led growth.
However, margins emerged as the key concern. EBITDA for the quarter increased 34.3% YoY to Rs 967 crore, but EBITDA margin declined to 12.7% from 13.8% a year ago. This margin contraction weighed on sentiment, especially as it missed Street expectations. The CNBC-TV18 poll had estimated EBITDA at Rs 977 crore with margins of 14.4%.
Net profit rose a healthy 35.7% YoY to Rs 621.7 crore, but still came in below the CNBC-TV18 poll estimate of Rs 644 crore. While revenue exceeded estimates at Rs 7,636 crore versus the poll forecast of Rs 6,761 crore, the miss on margins and profit led to disappointment.
On a nine-month basis, Polycab’s performance remained strong, with revenue rising nearly 30% YoY to Rs 20,019 crore and profit after tax jumping about 46.7% to Rs 1,922.82 crore, indicating sustained earnings momentum.
Despite the solid growth outlook, the stock reaction reflected concerns over margin pressure and valuation sensitivity, explaining the sharp decline in Polycab India shares today.