Record growth, margin expansion, structural tailwinds intact

Delivered 124% YoY growth in FMEG aligns with 1.5x–2x guidance at ~8% GDP growth

Reported OPM 14.4%, EBITDA margin 14.4%, W&C EBIT margin 14.2% vs guided 11–13% long-term

Q2 revenue ₹9898.9 Cr (up 52.8% YoY), PAT ₹990 Cr (up 42.9%); H1 ₹18k Cr, up 46% YoY

Confirmed 50% domestic growth, export sales up 17% YoY + 85% QoQ

10.1% EBIT margin in Q2 vs prior single-digit range; first time crossing double-digit. Driven by scale, premium mix (fans 33%, lights 38%), solution-driven approach.

Q1 to Q2 export growth 85% QoQ (off lower base); management cites strong order book in US, Europe, LATAM, Middle East. Year-to-date +17% despite geopolitical headwinds and supply-chain delays.

Management maintained 'outlook unchanged' despite commodity volatility, geopolitics. Confidence in structural demand (GDP 7.8%, capex ₹510 lakh Cr Apr–Aug), domestic/urban real estate (3.8 lakh units sold/launched in 2024).

Margin from scale, premium mix (fans 33%, lights 38%), solution-driven approach. All six FMEG categories beating industry. Longer-term target 8–10% EBITDA range.

Volume growth should be viewed on 10–12 month rolling basis, not sequential. Wires early double-digit volume, cables mid-single digit. Market at 12–13% growth; Polycab anchors at 1.5x that, so cables ~12–13% long-term.

Hearing concluded today (Oct 15). Company confident of strong case; order to be announced by tribunal in due course. No material impact expected on operations.

Guidance is CAGR approach for FY30. Margins will fluctuate year-to-year (high single digits to double digits). UltraTech is small portion of ₹11 lakh Cr market. We gain 1–3% share annually; execution and distribution scale provide advantage.

Not right to look sequential. On 12-month trailing basis, we still do reasonable volume growth. Q3 had high base; market at 7.8% GDP growth; Polycab 1.5x that in cables/wires = 12–13% long-term.

Order book ~₹9,000–10,000 Cr for both. Milestone-based; execution ongoing. Expect sustained margin in high single digits.

No significant delay. Cost-plus model passes through copper to end-customers monthly (cables) or fortnightly (wires). Aluminum also came down with copper. No stocking visible given price levels.

Doing conventional cables (LV, HV, MVs), all institutional-based business. US market strong demand for data-center cables, energy-transition segments. Working through market representatives globally.

Not taking pricing initiatives to gain share. Mix changing quarterly (cables vs wires, exports 5% vs 6.5% prior year). Channel growing faster than institutional. Long-term guidance stick because of mix and operating leverage.

We don't share segment breakdown. Wires market is 30–35% of overall C&W pie. Combined cable+wire market share ~30–31% organized; we're largest in organized.

Commissioning expected FY28 (next year). Likely April–May start; contribution ramps FY28 onwards. Not expecting any material impact on current-year financials.

Only doing inverters, not solar panels or rooftop installations. Currently bought-out model. If manufacturing opportunity arises, will explore. Inverters trading business growing multifold.

100% imports today. Market dynamics beneficial. No domestic sourcing plans at present. Supply-chain stable; shipping lines normalizing. Happy with current arrangements.

Anchored on 7.8% GDP growth + structural tailwinds (renewable energy, real estate recovery). Q2 delivery 124% validates mechanism.

Market at 12–13% expected long-term; Polycab targets 1.5x via volume + mix. Domestic 50% growth Q2 corroborates base demand strength.

Current 14.2% EBIT margin is strong but may not be sustained (temporary copper pass-through, favorable exports mix). FY30 target allows margin compression to 11–13% range.

Q2 EBIT 10.1% (first double-digit), but unsustainable at 124% growth pace. Target implies margin normalization as base grows.

Q2 EBIT 7.2%; order book large and diversified. Milestone-based revenue supports stable margins.

Project Spring-driven; EHV commissioning FY28, capacity additions ongoing. Annual run-rate ~₹1,200+ Cr implied.

11 consecutive quarters at/above 1.5x industry growth (Q2: 124% YoY) is exceptional. As base normalizes and penetration rises, growth rate likely to settle toward 20–30% medium-term, below current pace.

Copper prices +40–45% HtD; while cost-plus model passes through costs, demand could soften if prices persist or macro uncertainty rises. Q2 benefited from favorable base and strong volume; future quarters dependent on underlying demand.

Geopolitical tensions, elevated bond yields, supply-chain disruptions (shipping delays 10–12 days) acknowledged. Could pressure export order execution, domestic demand (if real estate, infrastructure investment slows), or margin leverage.

UltraTech entered wires market; competitors positioned 10–15% lower on price. If volume growth slows or price wars intensify, could pressure W&C margins and market share gains (currently 1–3% annually).

Export orders growing strongly (85% QoQ, strong order book across 94 countries, US/Europe/LATAM/Middle East), but geopolitical disruptions, shipping delays, and logistics costs could delay/reduce margin realization.