Polycab shares drop 3.96% even after Q1 beat as Jefferies, HSBC keep Buy ratings
AI Market Summary
Polycab's Q1 beat on revenue and EBITDA was offset by margin compression and a continued share pullback despite reiterated Buy ratings from Jefferies and HSBC. The key read-through is input-cost sensitivity: both brokers flag copper and aluminium volatility as the primary risk to profitability, keeping near-term focus on commodity pass-through and margin sustainability rather than headline growth.
Impact level
● Low
Affected assets
NCCO724COPPER2USD/USDT+2.69%
AI Insight · NCCO724COPPER2USD/USDTAI Insight
● Neutral
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Polycab India reported fiscal Q1 results that beat expectations, with revenue up 39% year-on-year to Rs 8,209 crore and EBITDA rising 32.5% to Rs 1,136 crore, while EBITDA margin narrowed 70 basis points to 13.8%. Even so, the stock extended its decline for a third straight session, falling 3.96% and becoming the biggest loser on the NSE Midcap 50. Jefferies and HSBC reiterated their Buy calls, while pointing to copper and aluminium price volatility as a key risk.
