Summary:
Polycab could see Q2 FY27 support from higher copper prices and dealer pre-buying ahead of price revisions, despite intensifying competition from UltraTech’s Ultravolt. Investors will track wires and cables volumes, margins, exports and Polycab’s response to the new entrant.
Polycab India is heading into the September quarter with two opposing trends at play. Competition in the wires and cables market has increased following UltraTech Cement’s entry through Ultravolt, but firm copper prices and possible advance purchases ahead of price revisions could support Polycab’s Q2 FY27 performance. The company remains the largest organised player, with an estimated 30-31% market share.
Ultravolt Adds A New Competitive Dimension
UltraTech launched Ultravolt on September 3 after committing ₹1,800 crore to the business. The new venture started commercial production at its Jhagadia facility in Gujarat with capacity of 10.98 lakh km of house wires and light-duty cables. It plans a pan-India presence covering more than 500 districts and 6,000 pin codes.
Ultravolt is initially concentrating on wires. That distinction matters for Polycab because cables account for roughly 70-75% of its wires and cables mix. Industrial and power-transmission cables also have higher entry barriers, with some products requiring around 2-4 years of pre-qualification. This could limit the immediate impact of a new entrant on a large part of Polycab’s portfolio.
Copper Prices Could Support Q2 Revenue
The September quarter could receive support from higher copper prices. As copper becomes more expensive, dealers may purchase additional inventory before manufacturers implement price increases. Such pre-buying towards the end of the quarter could result in somewhat stronger sequential volumes.
A similar commodity effect was visible during Q1 FY27, when Polycab’s consolidated revenue jumped 39% year-on-year to ₹8,210 crore. The wires and cables segment contributed 87% of revenue, fast-moving electrical goods accounted for 9.2%, while the balance came from the engineering, procurement and construction business.
The weak spot was underlying wires and cables volume growth, which remained in the low-to-mid single digits. Overall EBITDA margin also declined by 70 basis points to 13.8%, partly because of softer exports. A recovery in exports could therefore provide some support to profitability.
For Q2 FY27, expectations are for margins to remain broadly flat or improve slightly sequentially, although they could stay below the year-ago level.
Q2 Volumes And Margins Take Centre Stage
Polycab’s Q2 numbers will provide a clearer indication of whether higher copper prices translated into better volumes. Investors will also watch margins, exports and the company’s response to growing competition.
For now, Polycab’s cables-heavy portfolio provides some insulation from the immediate competitive push in wires. The next key test will be whether the company can translate healthy revenue growth into stronger underlying volumes while maintaining profitability as competition expands.
