Polycab raises Q2 ad spend 26% to Rs 40.5 crore

Polycab India increased its consolidated advertising and sales promotion expenditure by 25.8% year-on-year to ₹40.5 crore in Q2 FY27, as revenue from operations climbed 52.8% to ₹9,898.9 crore. The rise in spending came amid strong business growth, particularly in wires and cables and the company’s fast-moving electrical goods (FMEG) portfolio.

The company’s earnings presentation, dated October 15, puts advertising and sales promotion expenses at ₹32.2 crore for the September quarter of FY26. Compared with the ₹32.8 crore reported in Q1 FY27, the latest quarter’s expenditure was up 23.5% sequentially.

For H1 FY27, advertising and sales promotion expenditure increased 55.3% to ₹73.3 crore, against ₹47.2 crore in the corresponding period last fiscal. Consolidated revenue for the six months grew 46.2% year-on-year to ₹18,108.6 crore.

Despite the increase in absolute spending, advertising and sales promotion expenses accounted for around 0.41% of consolidated revenue in Q2 FY27, compared with 0.50% in the year-ago quarter. For the first half, the ratio stood at approximately 0.40%, marginally higher than 0.38% a year earlier.

Polycab’s FMEG business posted its highest-ever quarterly revenue of ₹993.1 crore in Q2 FY27, up from ₹443.7 crore in the corresponding quarter last year. The segment’s earnings before interest and tax (EBIT) margin expanded to 10.1%, compared with 0.5% in Q2 FY26 and 8% in Q1 FY27.

According to the company, growth was broad-based across FMEG product categories, with solar products delivering multifold growth and emerging as the largest contributor to the segment’s expansion. Other categories also recorded strong growth during the quarter.

The improvement in profitability accompanied the sharp rise in revenue. FMEG EBIT increased to ₹100.6 crore in Q2 FY27 from ₹2.4 crore in the year-ago quarter.

For H1 FY27, FMEG revenue grew 97% year-on-year to ₹1,754.3 crore. Segment EBIT rose to ₹161.2 crore from ₹12 crore in the corresponding period of FY26.

The wires and cables (W&C) business remained Polycab’s largest revenue contributor, reporting 47% year-on-year growth in Q2 FY27. Demand across government and private-sector markets supported the performance, with wires leading the segment’s growth. The company also reported healthy sales across channel and institutional markets.

W&C revenue reached ₹8,300.5 crore during the quarter. Its EBIT margin improved to 14.2% from 13.3% in Q1 FY27, marking a sequential expansion of approximately 90 basis points. Polycab attributed the improvement to operational efficiencies and a favourable business mix.

The company’s international business grew 17% year-on-year and contributed 5% to consolidated revenue. Export revenue increased to ₹493.1 crore from ₹420.2 crore in Q2 FY26, although exports accounted for a lower proportion of consolidated revenue than in the year-ago period.

At the consolidated level, revenue from operations rose to ₹9,898.9 crore from ₹6,477.2 crore in Q2 FY26. EBITDA increased 39.4% to ₹1,422.5 crore, while profit after tax (PAT) grew 42.9% to ₹990 crore.

The consolidated EBITDA margin, however, narrowed to 14.4% from 15.8% a year earlier. The net profit margin also declined to 10% from 10.7%.

The increase in advertising and sales promotion expenditure during the first half coincided with growth across Polycab’s core electrical businesses. Consolidated EBITDA rose 36.2% year-on-year to ₹2,558.7 crore in H1 FY27, while PAT increased 38.2% to ₹1,786.7 crore.

The company’s earnings presentation does not break down advertising and sales promotion expenditure by business segment, advertising medium or campaign. It also does not specify the share of the total outlay allocated to FMEG. The disclosures, therefore, indicate the overall trajectory of marketing expenditure but do not establish which businesses or campaigns drove the increase.

Polycab operates across wires and cables, FMEG and engineering, procurement and construction (EPC). Its FMEG portfolio includes fans, lighting, switches, switchgear, solar products and other electrical equipment.

The EPC business recorded 53% year-on-year revenue growth in Q2 FY27. EBITDA declined 39% year-on-year, which the company attributed to a one-off gain in the corresponding quarter last fiscal. Polycab said the segment continued to maintain a healthy order book.