Polycab India Limited, a leading wires and cables manufacturer, saw a surge in its share price on Thursday following the announcement of its partnership with state-run telecom giant Bharat Sanchar Nigam Limited (BSNL) for the ₹3,000 crores BharatNet Project. The stock climbed as much as 2.1% to ₹5,114 per share on the National Stock Exchange (NSE). As of 10 AM on March 13, 2025, Polycab India shares were trading at ₹5,046.5, marking a 0.75% increase.
The ₹3,002.99 crores contract involves Polycab India providing the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network for BharatNet in the Bihar Telecom Circle. The agreement includes significant capital expenditure (CapEX) of ₹1,549.66 crores, operating expenses of ₹929.79 crores, and operational expenses for the existing network amounting to ₹523.53 crores. The contract spans a construction period of three years, followed by a 10-year maintenance contract.
The announcement of the deal has driven positive sentiment among investors, leading to a spike in Polycab India’s share market performance. The company also confirmed that its promoters had no interest in the entity awarding the contract, ensuring the deal's transparency.
Polycab India posts impressive quarterly growth
Polycab India’s impressive growth extends beyond its recent deal with BSNL. The company reported an 11.48% increase in its consolidated net profit, which rose to ₹464.34 crores in Q3 of FY 2024-25. This was up from ₹416.51 crores in the same quarter of the previous financial year. Polycab India’s revenue from operations also grew by 20.4%, reaching ₹5,226.06 crores compared to ₹4,340.47 crores in Q3 FY 2023-24.
The company’s diverse business segments saw significant contributions to the growth. The Wires & Cables (W&C) business registered a 12% year-on-year increase. Meanwhile, Polycab India’s Fast-Moving Electrical Goods (FMEG) segment surged by 45%, and other business units achieved a remarkable growth of 111%. These figures demonstrate the company’s strong financial health and ability to deliver strong results, even as it takes on large-scale projects like BharatNet.
Inder Jaisinghani, the Chairman and Managing Director of Polycab India, highlighted the company’s remarkable achievements, noting that it had surpassed its initial five-year revenue target of 200 billion, reaching 210 billion for the calendar year 2024, ahead of schedule.
Polycab India’s share market investment outlook
The recent developments surrounding Polycab India provide an interesting case for share market investment. The company's strong financial growth, bolstered by the significant BSNL deal and its solid performance across various business segments, creates a positive outlook for investors. The surge in the stock price following the announcement of the BharatNet project is a clear reflection of market confidence in the company’s ability to execute high-value contracts efficiently.
For investors considering share market investment in Polycab India, the company’s consistent growth in revenue and profit, combined with the strategic partnerships it is forming, makes it an attractive option. With the company continuing to scale its operations and deliver impressive results, there is potential for further price appreciation, making it a strong contender for long-term investments.
Polycab India’s performance also suggests that it is well-positioned to capitalise on opportunities in the expanding telecom and infrastructure sectors. As India continues to roll out digital connectivity projects such as BharatNet, Polycab’s role in these initiatives will likely strengthen, boosting its market position.
Live stock updates
As of 11:10 AM, March 13, 2025, Polycab India shares were trading at ₹5,039.50, up by 0.61% on NSE. The company’s stock has experienced an uptick following its deal with BSNL for the BharatNet project. This positive movement in Polycab’s share price, along with its strong quarterly results, makes it an appealing option for those considering share market investment.
Polycab India’s performance in Q3 FY 2024-25, combined with its strategic deal with BSNL, underlines its potential for future growth. Investors looking for opportunities in the wires and cables sector, as well as in large-scale telecom projects, might find Polycab India to be a valuable addition to their portfolios. With continued strong results and significant contracts in the pipeline, Polycab India is a stock worth keeping an eye on for wise share market investment.
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