POLYCAB INDIA LIMITED (NSE: POLYCAB) Q1 2026 Earnings Call dated Jul. 18, 2025
Corporate Participants:
Unidentified Speaker
Gandharv Tongia — Executive Director & Chief Financial Officer
Chirayu Upadhyaya — Head, Investor Relations
Inder T Jaisinghani — Chairman and Managing Director
Analysts:
Unidentified Participant
Shrenik Bachhawat — Analyst
Saumil Mehta — Analyst
Pulkit Patni — Analyst
Renu Baid Pugalia — Analyst
Charanjit Singh — Analyst
Natasha Jain — Analyst
Sujit Jain — Analyst
Dhruv Jain — Analyst
Achal Lohade — Analyst
Aniruddha Joshi — Analyst
Arshia Khosla — Analyst
Praveen Sahay — Analyst
Vidit Trivedi — Analyst
Manish Poddar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Polycab India Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on a touch tone phone. Please note that this call is being recorded.
With this I now hand the conference over to Mr. Gandhas Tongya, Executive Director and Chief Financial Officer, Polycab India Ltd. Thank you. And over to you sir.
Gandharv Tongia — Executive Director & Chief Financial Officer
Good afternoon everyone and thank you for joining us. I hope all of you are staying healthy and safe. I’m Gandhar Tongal, Executive Director and CFO at Polycab India Limited. On this call we shall discuss the Q1FY26 results which were approved in the Board meeting held yesterday. We will be referring to the earnings presentation, financial results and condensed necessary statements which are available on the stock exchanges as well as on the Investor Relations page of our website. Joining me today from our team is our head Investor Relations, Mr. Chirayu Upadhya. Let us now move to the business performance.
I’m pleased to share that we have had a strong start to FY26. Our performance in the first quarter builds on the solid trajectory we have maintained over the past four years and marks our highest ever Q1 revenue and profitability in the company’s history. This achievement reflects both the underlying strength and resilience of our business model as well as the relentless commitment of our teams across all businesses and functions. The Biosm cable business continued to be our primary growth engine, driven by robust domestic demand and supportive commodity price trends. On the FMEG side, we are beginning to see tangible outcomes from our strategic initiatives with the business delivering its second consecutive profitable quarter, a positive step forward in our transformation journey.
Looking ahead, we see strong tailwind from infrastructure spending, improving private sector investment and momentum in the real estate sector. Guided by our long term roadmap under Project Spring, we are executing with greater focus, quickness and ambition. We remain confident in our ability to sustain this momentum and create enduring value for all stakeholders in the quarters to come. Moving on to the quarterly update, I will start with a high level view of the macro environment and then we will dwell deeper into business performance. The past month witnessed heightened volatility in the global financial system triggered by a sudden escalation in hostilities between Iran and Israel.
The 12 day conflict had an immediate ripple effect across asset classes, pushing up oil prices and driving inflows into safe haven assets. The brief but intense period of tension served as yet another reminder of the vulnerability of global trade and financial system to geopolitical shocks. Thankfully, a ceasefire was quickly brokered, restoring relative calm and stabilizing investor sentiments. Meanwhile, global monetary policy remains a balancing act with countries navigating diverse inflation and growth trajectory. In India, a favorable inflation outlook prompted the central bank to front load rate cuts, complemented by proactive liquidity measures and regulatory reforms. Together these have supported the economy steady expansion as evidenced by the strength in high frequency indicators.
Early data for Q1 FY26 suggests a gradual improvement in consumption demand. This is reflected in rising steel consumption, a pickup in electronic imports and higher central government revenue expenditure. Services activity is also gaining pace with encouraging trends in services, pmi, vehicle registration, diesel consumption, E rate bills and state level tax collections. Monsoon progress has been favorable as well, currently tracking 15% above the long period average which bodes well for rural demand and agricultural output. On the ground, momentum is clearly visible. Digital payments continue to surge, capital goods output is improving and auto sales are recovering.
Manufacturing industrial output rose close to 3% year on year in May while steel and cement Production remained resilient, growing 7% and 9% respectively. Headline CPI for June declined sharply to 2.1%, a 73 month low with core inflation also remaining well anchored at 4.4%. The real estate sector remains buoyant, albeit with some signs of moderation. Government CAPEX 2 has gathered pace with 19.7% of the FY 2016 budgeted outlay already spanned by May 2025 marking the highest spend in seven years. While few challenges persist, India’s economic foundation remains strong with strong fundamentals, proactive policy support and demonstrate resilience.
We are well positioned to navigate global uncertainty. I would now hand over to Chirayu to take you through the financial performance for the quarter.
Chirayu Upadhyaya — Head, Investor Relations
Thank you Guindhav. Let me now take you through slide 4 of the earnings presentation for the quarter ended 30 June 2025. We are pleased to report that our consolidated revenue grew by a strong 26% year on year, led primarily by robust performance in our wires and cables business. Our EBITDA for the quarter grew by 47% year on year, significantly outpacing revenue growth. This was on the back of a 210 basis point improvement in EBITDA margin which stood at 14.5% for the quarter.
The margin expansion was driven by a combination of strategic pricing action, operational efficiency and a favorable business mix. At the PAT level, the company delivered its highest ever quarter one PAT at roughly 6 billion rupees reflecting a 49% year on year growth. Our PAT margins improved by 170 basis points reaching 10.2% for the quarter. Finance cost came in at 513 million rupees while other income stood at 799 million rupees. A detailed breakdown of this line items is available on slide 17 of the presentation. We continue to maintain a strong balance sheet, closing the quarter with a net cash position of 31 billion rupees.
Our working capital cycle stood at 43 days in Q1 FY26, positively impacted by a temporary increase in payable days. We expect this to normalize and revert to a long term steady range of 50 to 55 days in the coming quarters. Capital expenditure for the quarter was 4.1 billion rupees in line with higher project spring guidance of investing 12 to 16 billion rupees annually through FY30. On the advertising front, spends were lower during the quarter largely due to limited promotional activity in the fans business due to an early onset of monsoon which impacted the seasonal campaign cycle.
However, with the upcoming festive season, the advertising and promotion spend will start tacking towards our targeted range of 3 to 5% of B2C top line. Moving on to slide number 6, the Wyzen Cables business delivered a strong 31% year on year revenue growth supported by over 25% volume growth during the quarter. Within this, our domestic wires and cables business recorded an impressive 32% year on year revenue growth driven by higher government spending, improved project execution and the favorable impact of rising commodity prices. Notably, cables outpaced wires in terms of year on year growth this quarter, both our distribution and institutional channels suggested healthy performance indicating broad based demand momentum.
From a regional perspective, the south led the growth followed by north, east and then west reaffirming our strong Pan India footprint. Our international business grew by 24% year on year albeit on a low base and contributed 5.2% to the consolidated revenue. On the profitability front, EBIT margins for the wires and cable segment stood at 14.7% and improvement of 190 basis points year on year supported by better operating leverage and strategic pricing action. Moving on to Slide 8 for an update on the FMEG business. The FMEG segment continued its healthy trajectory in Q1 FY26, registering an 18% year on year growth despite seasonal headwinds from an early monsoon.
In the fans segment while overall sales were muted due to shortened summer, we made further inroads in our premiumization strategy. Our premium fans Portfolio contributed roughly 25% of the fan sales, underscoring growing consumer preference for future reach and aesthetically superior products. E Commerce is also gaining ground now accounting for mid teen share of total spends revenues, further supporting premium offerings to digital channels. The impact of premiumization is even more evident in the Lighting category where premium products made up over 35% of the sales during the quarter. This deliberate portfolio shift is helping us improve gross margin realization in this business.
In switches, switchgears and conduit solutions, healthy demand from the real estate sector continues. Year two Our focus on value added offerings is showing results with Levena our premium switch line now constituting almost 20% of the total switch sales. Similarly, in Switchgliss the focus is on increasing the mix of RCCBs and multiple MCBs in sales. The standout performance again this quarter was our solar products category which recorded more than 2x growth over the same quarter previous year. Now emerging as the largest contributor within the Atomic portfolio. We expect this momentum to continue backed by supportive government policies and rising adoption of renewable energy solutions.
The continued focus on premiumization helped the FMEG business achieve its second consecutive profitable quarter. Margin expansion was driven by a better product mix and operating leverage from scaling efficiency. We remain confident in the long term potential of our FMET business, continuing to align our efforts with project spring targeting 1.5 to 2 years of industry growth and improving EBITDA margins to 8 to 10% range by FY30. Moving on to slide 10 which provides an update on our EPC business. During quarter one FY26 revenues in the EPC segment declined by 19% year on year to 3474 million rupees.
Segment profitability stood at 268 million rupees translating to a margin of 7.7%. Our open order book remains healthy offering strong visibility for future growth. We expect the annual sustainable operating margin to be in high single digit over mid to long term in this business. That was the update for the quarter. Thank you and we are now open for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. So the first question is from the line of SRINICK B. From Mahindra, Mississippi, please go ahead.
Shrenik Bachhawat
Hi. Congratulations on good set of numbers. My first question is can you throw some light on the export scenario particularly in the US geography because of the tariff issue that is going on there. And my second question, can you throw some light on the growth outlook across the energy categories that we are working on?
Chirayu Upadhyaya
Sure, shreyading starting with the exports opportunity. As you rightly mentioned, US is one of the largest consumer of cables and hence has been one of the larger contributor for our export sales. Definitely the tariff situation over there is kind of an overhang which kind of impacts the visibility in the near term. But in the longer term, as you are aware, it’s a very very big opportunity. If you look at the exports that we did in this quarter, roughly one third of the exports were to the US we had a good order book over there and that is what we are executing right now.
If you look at the current situation in terms of tariffs, India tends to be in a beneficial position. The other larger exporters to the US which are China has almost 55% import duties on them. Mexico which is another large exporter has 30% import duties getting effective from 1st of August. The other geographies of South Korea have 25%, Vietnam has 20%, Philippines has 20% and India stands at 10% right now. So as of now the situation is in favor of India but this is an evolving situation so we won’t be able to comment very clearly on how this will play out. But irrespective in the longer term I think exports will definitely be growing and definitely USA will be one of the larger contributor in terms of the exports that we do.
Coming to Smeg smeg. If you follow the company’s trajectory over the last few years we did have, we did witness couple of years where the FMEG kind of flat sided at roughly around 1200 to 1300 crores of top line. But since last five to six quarters that business has again started gaining traction. We undertook a lot of steps to make sure that we can become one of the top three players in that segment across different product categories. And those steps are something which are now giving a positive trajectory for us. We believe and what we are targeting within project Spin is that we should grow this business at roughly 1 1/2 to 2x of the industry growth. Currently the industry growth is hovering at around 8 to 10%. We believe that the smeg industry itself will see a pickup largely from the real estate uptick that we have seen in the country over the last three to Four years France and lights, which are the largest category as far as the SMEG industry is concerned, that kind of sees demand towards the end of a real estate construction phase and that is something we believe we’ll see much better demand over the leg of a year from now.
The other categories of switches, switch gears, conduits, wires, they are anyway seeing very good demand momentum. So we definitely believe that atomic as an industry will start seeing at least a budget of quick growth from a year from now and we should be targeting at least 2x of growth over that. So that is the target on the FMEG business from US parallel. While we grow, we will also target to improve our margins within that business. Last couple of quarters is when we have again become profitable and going ahead. Every year you see our profitability improving and us reaching the 8 to 10% of targeted EBITDA margins by 30.
Shrenik Bachhawat
So can you please shed some light on the CapEx plans for the next two years?
Chirayu Upadhyaya
Sorry, what plans for next year?
Shrenik Bachhawat
CAPEX plans.
Chirayu Upadhyaya
So again within Project Spring we have given a guidance that we will be spending roughly 6 to 8,000 crores over the next five years. That is roughly 1200 to 1600 crores on an annual basis. In the first quarter of this year itself you spent roughly 410 crores. So we are in line with our guidance. So that is, we’ll continue with that guidance. A large part of the CapEx that we’ll be doing do will be for the cables and wires business and remaining for backward integration or for some part for the atomic business.
Shrenik Bachhawat
Great sir, thank you so much.
Chirayu Upadhyaya
Thanks.
operator
Thank you. The next question is from the line of Sawmill Mehta from Kotak Mutual Fund. Please go ahead.
Saumil Mehta
Yeah, thanks for the opportunity and congrats on a great set of numbers. Two questions from my side. First on exports. Now obviously we believe in us, the Chinese and some of the other players will have some sort of issues given the higher tariffs. But outside of us, maybe in some other markets like Middle East, Australia and various other markets, are we seeing some sort of, you know, pricing aggression by Chinese players? And to that extent are the incremental orders coming at pricing which is much lower than what we’ve seen in the past quarters?
Chirayu Upadhyaya
Sure. So let’s go geography by geography. If you look at Europe, Europe very akin to us, is not very pro China and they are looking at alternatives away from China. So over there, even if the products available from a Chinese supplier is probably at a lower price compared to other suppliers, the end customer, they are still willing to pay a bit of A premium just so that they can have an alternative over and about China. So we are not seeing that dumping behavior, at least in Europe. Middle east again by itself has huge demand of keyboard because of all the investments happening on the infrastructure side. So they are open to everybody.
Depending on what tariff situation is there in different countries you are able to get a lot of orders. For example, we are doing a lot of supply to Saudi Arabia where we enjoy a better tariff situation and hence we are not seeing as much of a competition coming in from the Chinese. If you come to Australia, Australia is where probably China has a bit of an edge. They have worked a zero tariff treaty with Australia. That is where most of the imports that Australia does has largely been from China. And that continues to be the case. Probably that is a geography where we have to compete effectively on pricing terms or on other servicing terms and so on and gain a bit of market share through that. But in other geographies I don’t see a dumping effect from China coming in and hampering our exports.
Saumil Mehta
Sure. My second and last question is obviously this quarter will have would have some benefits on the election spending in the last. I mean some slowdown in the previous days. But going forward, are we seeing some sort of a slowdown given at least some of the broader macro indicators in India seem to have slowed down marginally. So are we seeing some sort of impact in terms of ordering activity from the government or business seems as strong as usual. That’s it from my side. Thank you.
Chirayu Upadhyaya
If you look at the current situation, we are not actually witnessing any form of slowdown. If you look at the kind of trend that the government has been doing since December of last year, they have continuously spent almost 1.26 trillion rupees on a monthly basis. If you compare that with the April 24 to November 24 data, it was roughly only 0.64 trillion per month. So we have definitely seen a lot of pickup in terms of investments on the government side.
And that is translating into demand for cables. And obviously it comes with a lag. It is not immediately so probably it comes with a lag to us. And hence this sector is continuing to see very good growth. Looking at the annual target that the government has taken for this year and whatever they have spent till now, they still have to invest roughly around a trillion rupees per month in terms of infrastructure growth. So that will continue to transcend to very good demand for cable on the wire side, the residential housing piece definitely continuing to do well.
Obviously we’ve heard a lot of commentary in the recent terms in terms of a bit of a slowdown that we are witnessing in the top cities. But in the parallel, what we are also seeing is that in tier 3 to 5 cities where affordable housing was a bit slow till now, that is seeing a bit of a pickup and that is translating into improved demand for ys. At our end we are focusing on both those opportunities for tier three to five cities. We have Atira brand which is doing very well and increasing its contribution to our viruses.
On Metro tier one, Tier two cities we have the class two is we are focusing on and that is also where we are seeing very good traction from our ranges of maxima and suprema which we’ve launched. So we as of now don’t believe that there will be any form of slowdown at least on the cables and wires business. We believe that this year we should continue to see very good momentum even in the remaining three quarters of the year.
Saumil Mehta
Great, great. Thank you. And all the best for subsequent quarters.
Chirayu Upadhyaya
Thanks.
operator
Thank you. The next question is from the line of Pulkit Patni from GS. Please go ahead.
Pulkit Patni
So thank you for taking my question. My first question is on margin. You said there are certain strategic initiatives. Is it possible to give some detail on what exactly does that mean.
Chirayu Upadhyaya
On the cables and wire side? What you mentioned is there are strategic pricing action. By that what I mean is if you compare this year or this quarter versus the previous three to four quarters, you would have seen that the copper price volatility is not as much as it was in the past and the direction of it was in a particular direction. For example in the first five days of the quarter while the copper was going down. But since then we have seen it continuously moving in one direction. Now that is something wherein the pricing transfer for us becomes relatively much simple and that is where we can get the maximum benefit out of the whatever movement is there in commodity prices. So that was what we were mentioning in terms of strategic pricing action.
The other benefit that we had is obviously from scale as well as the mix at a company level. If you compare with Q1 of last year, we had higher contribution coming in from the EPC business, but this time around EPC had a lower contribution and cables and wires which had relatively better margins had higher contribution and hence that helped at a company level in terms of margin profile. The other thing is on the FMEG business where as you are aware and as we have mentioned, across all the product categories within the FMEG business, we have seen gross margin expansion and that is what has helped the improvement in the FMEG profitability and that indirectly contributes the overall company’s profitability improvement as well.
Pulkit Patni
So this is clear one connected question. I mean we have been giving a guidance for margin which is much lower than what we have been clocking and we’ve been clocking it consistently. Now, given the fact that exports should increase from here on, given the fact that you yourself said FMEG your target is for margins to go up, I just want to understand what is holding the company back from actually resetting your margin guidance higher or in a way you’re acknowledging that these margins are actually fairly high and not sustainable. Just wanted to get your thought delivering 14.7 but still the guidance remains at 11 to 13. What’s the reason for that?
Chirayu Upadhyaya
So Pulkit, as you’re aware we don’t give near terms or yearly guidance. Our guidance is for the longer term. It is more like five year guidance and that is where we’ve given an 11 to 13% of EBITDA margins in the cables and wires business is our guidance. When you look at the longer term there are multiple variables that you have to look at and which will impact your profitability. While obviously the cables and wires mix, if it goes in favor of wires that can help your profitability, as the exports mix increases, that also helps the profitability.
But parallel when you are investing a lot in terms of capacity expansion, that is bound to have an impact in terms of lower operating margins in the near to midterm. So that would take a bit of a shinob of the improvement in profitability that we might see because of the other two parameters over and above that for the B2C business, which includes the wires as well, we are going to be improving or increasing our spend on EMP continuously every year and that will also impact the profitability of the segment. So keeping all those four variables into mind and long term guidance is 11 to 13%. Having said that, internally, we will obviously try to optimize on that and whenever in whatever quarters we can improve on that with the the practice will be to improve on that but otherwise the longer term guidance will continue to be the 11 to 13% EBITDA margin.
Pulkit Patni
No thank you, that’s clear. And you guys have done very well on that. Thank you.
Chirayu Upadhyaya
Thank you.
operator
Thank you. The next question is from the line of Renu Bed from IIFL Capital. Please go ahead.
Renu Baid Pugalia
Yeah, thank you. And congratulations teams for the strong performance. My first question is on the FMEG within the FMEG bucket Solar now, which is the largest category for you. Can you elaborate more with respect to how is the manufacturing product mix here with respect to in house and outsourced product mix and any capacity expansion and localization plans and solar inverters also aligned with this. Any insights that you can share on the market share for polycab in this segment?
Chirayu Upadhyaya
Thanks Renu. So as far as the mix and the domestic or in house manufacturing is concerned, as of now, we’ve mentioned this particular quarter, sodar was the largest category as far as the Atom eg business is concerned. The other categories are relatively pretty much equal in terms of their contribution as far as in house manufacturing is concerned. Except solar inverters. Everything as of now is currently being manufactured in house. We don’t plan to do anything otherwise. As of now, solar inverters will continue to be outsourced in terms of manufacturing and it will be status quo as of now. Sorry, the last question was in terms of the growth opportunities in smeg.
Renu Baid Pugalia
Yeah. And the market share for polycab in solar inverters category for us.
Chirayu Upadhyaya
So very difficult to as of now pinpoint the market share. We are relatively a smaller player over there. Probably once we are of a significant size then we will start giving out market size numbers. But other than that, in other product categories for fans, lights which give our market share will hover anywhere between 2 to 5%.
Renu Baid Pugalia
Got it. Secondly, within the cables and wires, what was the approximate mix of cables in the revenue mix for the quarter.
Chirayu Upadhyaya
Cables will be close to around 73, 74% and remaining will be wires.
Renu Baid Pugalia
Okay. And lastly if you can share just the bookkeeping number on what was the. Order book in the projects business and. Do we expect with more projects in pipeline the order book to improve further. As the year goes by? Thank you.
Chirayu Upadhyaya
By project business, are you meaning the institutional part of the cables or the EPC business?
Renu Baid Pugalia
The EPC business.
Chirayu Upadhyaya
In the EPC business as at end of March we had an open order book of roughly 70 billion rupees post that we won an order on the Bharatnet project over there. So both put together roughly the capex part that we have to do and the overall is outstanding is around 80 billion rupees. This excludes the GST part. The exchange notifications that we had done included the gst. But if you look at whatever accrual we will get that is roughly around 80 million rupees and that will be accrued over the period of next three years.
Renu Baid Pugalia
Okay, thank you and best wishes team. Thank you.
operator
Thank you. The next question is from the line of charanjeet Singh from DSP Mutual Fund. Please go ahead.
Charanjit Singh
Yeah, hi. Thanks for the opportunity. My question is regarding the market share in the cables and wires space. And I think you have talked about the market, so just want to understand that is it just our capacity, availability, product or distribution reach? What is driving this, you know, consistent market share gains in the cables and wire space? And are we gaining this from, you know, more from the unorganized or there is also some gains from the organized space which you are seeing in the cables and wires? That’s my first question.
Chirayu Upadhyaya
Sure. So I think it will be a mix of both the things that you mentioned. Definitely having capacity, having the largest set of approvals, the largest set of bouquet of SKUs in cables and wires. Those are the parameters which have continuously worked for us in the past and that too continues to work for us currently as well. More and about that, the movement in market share from organized to unorganized, that has also picked up pace in the recent few quarters. So both of them would have contributed in our market share continuously improving over the last few years and including this quarter.
Charanjit Singh
So what will be our current market share in the cables and the wire space?
Chirayu Upadhyaya
I would probably able to guide you our market share up to the end of FY25 because for this quarter we are yet to have results from the other larger companies. But if you look at FY25, by the time our market share in cables and wires put together was roughly about 26 to 27%. This is the organized market share. We would have it a bit higher as far as cables is concerned, more closer to 30, whereas in Wyers we’ll be in maybe in early 20s.
Charanjit Singh
Okay. And just coming onto the BharatNet projects, you know, in terms of the opportunity pipeline, the margin profile of these projects and the working capital requirements, if you can give more details. And how has been the competitive intensity in the BharatNet projects in terms of, you know, L1, L2 tendering? What has been the differential? If you can give some of those details.
Chirayu Upadhyaya
I’ll probably stick to what is available. Information is available in the public domain right now. We have won two orders. Obviously the 16 tenders which had opened, we have been awarded two of them. There are a few more tenders which will be opened up which is the part two of phase three. And whenever that opens up, we try and participate as possible. But as of now, this is the information as far as the profitability is concerned. We expect to accrue almost 12 to 14% of margins in that order book. As well, which is pretty much in line with what we currently making working capital cycle.
We have seen the receivable days in the historical orders that we have executed to be in time. We have never seen late payments over there. Overall, I think it should be a pretty good business as far as overall working capital cycle is concerned because of the fact that over here there is an upfront payment of almost 10% of the order book that happens. So you can utilize that money and then continue to use that for your future expenses and turn it around. So I think in that way, I think it’s a pretty good business. Good margins, less working capital cycle business.
Charanjit Singh
Okay, so that’s all from my side. I’ll circle back into you. Thank you.
operator
Thank you. The next question is from the line of Natasha Jain from Philip Capital. Please go ahead.
Natasha Jain
Thank you for the opportunity and congratulations team on a very good set of numbers. I have two questions on buyers and cables, predominantly on the export side in fourth quarter. I remember the commentary was that there was a decline in your export business by 24% when you mentioned that there would be a large rollover of an order to 1Q now 1Q, the numbers kind of the growth numbers match to 24%. I just want to know whether the growth is because of that order which came through or is it an organic growth. First question, Saad.
Chirayu Upadhyaya
Sure, Natasha. So the order which was rolled over, that has not been executed at one go, that will be executed over a period of the entire year and hence it, it was not the single contributor of the exports growth that we have seen. It is an organic growth and it is seen through the execution of multiple orders that we had across geographies.
Natasha Jain
Understood. So there is a chance that we will see that order executing in the remaining part of the year, correct?
Chirayu Upadhyaya
Yes, that’s right.
Natasha Jain
Okay. My second question is more a broader based question in terms of cable export. Now, you know, understanding the big beautiful bill, there is absolute cut on the renewables side in terms of US now if I see larger players like Chris Nexon, Southwire, lf, if I read any of their commentary, predominantly they were setting up capacities to be exported to the US now that US has kind of shut markets for renewables for the time being, do you think these capacities, because they are fungible, they would dump into other geographies which kind of gives competition in other geographies barring us. Or is it. Or you know, it may not happen. So can you please clear on that? Thank you.
Chirayu Upadhyaya
Sure. So if you again, I mean if we’ll have to go product wise and the business wise. When you are thinking of renewable energy investments, you’re setting up renewable plants and then you are evacuating that energy to different geographies. You are utilizing your normal loop of voltage power cables, medium voltage power cables, as well as the entire EHV coding. But the larger part over there is through the evacuation where you require EHV cables and probably in the next part where you require higher set of multiple or medium voltage cables. Now if you look at the product portfolio of Prismian, Nexon and other larger companies, they are more predominantly present on the higher voltage side.
That is where their expertise lies and they focus on that category so as to get a margin bump in their overall business profile. So that is the capacity that they were developing. When we export to us, we are exporting largely low voltage and a bit of a medium voltage cable. So largely we were not competing more actively with Nexon. We were more competitively, more aggressively competing with the Chinese players who are also into low voltage and medium voltage cables. The change in the outlook of investment towards renewable, I don’t think it will have any material impact in that way in the kind of export that we were doing.
And about that, what you also have to keep in mind are two other opportunities. One is the kind of investments which will be required on the data center side because of all the investments towards AI which are being done by the large corporations in India, that will require huge set of power cables as well as optical fiber cables and that will continue to be there. Worrying about that. The power infrastructure in US and even other larger geographies like Europe, they are now almost 60, 70 years old and they require they are required to be upgraded irrespective of whether it comes from renewable or traditional sources. So that too will require a lot of cable. So just because there will be relatively lesser investment on renewables in the near term, that doesn’t take away the cables opportunity that is there in the us. There are other types of cables which would be required and we will continue to export those cables over there.
Natasha Jain
Got it. That’s helpful. Just one, one more question related to that. EHV capacity is fungible, right? We can use it for low, medium and high voltage if you do not manufacture ehv.
Chirayu Upadhyaya
That’s true.
Natasha Jain
Understood. Got it. Thank you so much and all the best.
Chirayu Upadhyaya
Thanks.
operator
Thank you. The next question is from the line of Sujith Jain from Bajaj Alliance Life Insurance Co. Ltd. Please go ahead.
Sujit Jain
Thank you. I hope I’m audible. Congratulations on a good set of number. You explained strategic pricing Decisions that help you get those margins and very superior margins. So that means that you kind of were benefited from the lower procurement prices. Is the understanding correct?
Chirayu Upadhyaya
The pricing will be pretty much similar for everybody because it is linked to LME obviously to a certain extent. At what point of time during the quarter you place the order that also plays apart probably that can also benefit to a particular player in a particular quarter, but on an overall yearly basis and it averages out. What I was meaning in terms of strategic pricing revision is what I explained to Pulkit is because the trend of copper passage was in one specific direction during the quarter and the volatility was not very high, we were able to swiftly pass on without having to take any impact on our profitability.
Sujit Jain
And so the earlier complete hedging policy used to follow did not apply for this quarter. Is that the understanding correct?
Chirayu Upadhyaya
Not really. I mean we continue to follow hedging policies. If you are aware, almost 90% of our sales are through distributors and 10% is institutional. When you are supplying to a distributor and you don’t have an order book in place, you can’t not have hedging in place. If you, if you do that then you are open to the. You are exposed to the commodity prices. So we don’t do that. We hedge our entire copper procurement that we do and that is what is meant for selling to distributors. On the institutional part it is back to back pricing. So it doesn’t really have any meaningful impact the changes in prices. But on distribution we do hedge the prices.
Sujit Jain
So it’s not this. But good margins are sustainable in because of the other things that you spoke about sales mix and as well as operating leverage. So therefore CNW margins can be maintained broadly.
Chirayu Upadhyaya
We have a long term guidance in place. And again I’ll take you back to the FY30 guidance that we have in the longer term, 11 to 13% of EBITDA margins is we will be able to generate irrespective of what happens on what type of business or procurement or commodity prices respective of that in the near term we will obviously try to maximize as far as whatever variables are presented in front of us and hopefully we should be able to maintain what the market provides.
Sujit Jain
And one last question about you know, your cables capacity being narrowed of the industry in the sense people didn’t have capacity you had that situation still persists or now capacities are catching up.
Chirayu Upadhyaya
The capacities have started coming up since the beginning of last year and yet we continue to grow ahead of the market. As I was mentioning previously. What is the Most important part over here is while you might have capacity, what is the portfolio that you have? What are the number of SKUs and what are your accruals? That is the biggest player and obviously the distribution needs. Now those are the variables which we have worked on over a period of decades. And that advantage continues to be there with us. So while capacity will come up for the industry, that advantage will help us worry about that. The kind of investments and growth that we are witnessing from various end sectors that also helps in absorbing the new capacity which are coming up from other peers. So both of them will continue to help us in terms of our outperformance over the industry.
Sujit Jain
Yeah. Thank you. And all the best.
Chirayu Upadhyaya
Thank you.
operator
Thank you. The next question is from the line of Dhruv Jain from Ambit Capital. Please go ahead.
Dhruv Jain
Thanks for the opportunity. My first question highlighted by Cable has outpaced buyers this quarter. So just wanted some color. Which are the categories of cables that have done well for me, Is it mainly low voltage or, you know, it’s the higher voltage sizes that have done well and what is your expectation for this figure? You know, in the. Which. Which subcategory could move well for device? That’s my first question.
Chirayu Upadhyaya
Dhruv, you are well aware that we have presence in low voltage, medium voltage and high voltage. We don’t have presence in extra high voltage. As far as the overall industry size is concerned, obviously low voltage and medium voltage are of the largest quantum since we have the maximum presence over there. Both of those categories have helped us in terms of the growth. And even at an industry level, those are the two particular segment of cables which have done very well. The other types of cables which are, let’s say control cables, instrumentation cables, optical fiber cables or high voltage cables, their requirement is relatively much smaller. So whatever growth the larger players will be able to generate will be because of the growth in the low voltage and medium voltage cables. I don’t see that changing very materially in the near to midterm, maybe in the longer term when in India the demand for high voltage or extra high voltage is pretty high probably at that point of time. The other type of cables can help in terms of outperformance, but otherwise in the near term I think the low voltage and medium voltage cables will be the primary driver of growth for the industry as well as for the larger players.
Dhruv Jain
Sure. And just one clarification. We’ve seen declining revenue in the EPC segment. So just wanted to understand what’s happening there.
Chirayu Upadhyaya
Do we have an order book in place? In epc. And that is something that we have to execute over the course of next two to three years. During those two to three years, on a quarterly basis, there might be variation. There are different phases of execution of a project. In certain period of time you are supplying material. In other phases of time you are executing the plan. Whenever you are supplying in those quarters, the margin profile will be relatively better. Whenever you are executing, it will be a bit softer. So that variation will exist during the different quarters in a year. But if you take it more of a yearly number, we will be able to delete pretty much in line with what we have guided in the last year. And overall, if you take near to midterm, the contribution from EPC business will continue to be in 5 to 10% range, which is where we are hovering right now.
Dhruv Jain
Thank you. All the best.
operator
Thank you. The next question is from the line of Achal Loharde from Nuama Institutional Equities. Please go ahead.
Achal Lohade
Yeah, good afternoon team. Thank you for the opportunity. A couple of questions. One is in terms of the EPC, you said 5 to 10% range. But with Bharatnet, do you see that percentage going up for next three years or you think that is already felt in this number?
Chirayu Upadhyaya
EPC execution and Bharatman execution will begin from the second half of this year. That is when the revenue accrual will start happening. But again, over there, looking at the kind of demand which is there in your normal cables and wires business as well as the FMEG growth that now we are witnessing, I don’t see the contribution of EPC going about materially about 10% at a in a quarterly basis. As I was mentioning, probably when you are supplying or when you are. The execution is a bit high, probably in a particular quarter you might see the contribution go up a bit. But overall on a yearly basis I don’t expect it to grow. Go about 10% in the longer term.
Achal Lohade
Understood. But the margin should improve. Right? Because this has a higher margin, as you said, 12 to 14% margin for the BharatNet orders. Right. So.
Chirayu Upadhyaya
So that 14% of EBITDA margins from the Bharatnet piece from the RDS order book that we have, you’ll be able to generate high single digit of margin profile.
Achal Lohade
And what is the progress on the rdss? Are we seeing further orders or they have slowed down? Any, any update on the same?
Chirayu Upadhyaya
So there are new orders, new tenders which have opened up and which we had built for during the course of this year. Obviously we will be able to know the results of that but the IDSS scheme is up to the end of FY26 so there are still a few more tenders which are yet to be opened up and we’ll probably try and participate wherever we are comfortable with. So the traction continues even in rdhs.
Achal Lohade
Got it. Just another question at the industry level in terms of capacity expansion at the industrial level, what is the extent of expansion in your estimate? Is it like 40, 50%? Is it like 20%? Whatever known numbers for known players, your basis at what is your assessment?
Chirayu Upadhyaya
I guess there are only three or four large listed players who very obviously give out those numbers and that is the limited visibility that we have. But what is more important is not just looking at what supply is coming in but also in what phases they are coming in. And against that, what is the demand which is upcoming over there? We are very comfortable that the demand which we foresee in the near to midterm that will absorb the capacity which is about to come from all the announcements that you heard till date in the next three to four years. And that is where we sit pretty confident that there shouldn’t be any impact in terms of industry growth or the growth rate for the larger players in the near term.
Achal Lohade
Perfect. And just last question if I may. What is the volume mix in terms of the copper stroke aluminum for the quarter? Any ballpark mix
Chirayu Upadhyaya
, it’s largely seen there is no material change over there.
Achal Lohade
Understood. Thank you so much. Thank you.
Chirayu Upadhyaya
Thank you.
operator
Thank you. The next question is from the line of Anirud Joshi from ICICI Securities. Please go ahead.
Aniruddha Joshi
Yeah, thanks for the opportunity. So you spoke about Atira brand. So what will be the let’s say revenue share of Atira as percent of total sales as well as the other premium brand which we had introduced Home Hohm. So if you can indicate both the in A revenue shares that is question one. And secondly as far as solar products is concerned now that is a business which is going extremely well. So what are the in a way products that the company is looking to enter? For example solar pumps or let’s say rooftop solar or what are the overall aspirations in this solar business? Yeah, that’s it from my side. Thanks.
Chirayu Upadhyaya
So Anirudh, on the wire side wherein we introduced Atira Home is not a brand that we introduced in wire that was in a different category which was in home solutions. Atira was specifically introduced for tier 325 cities. And the contribution from Atira would now be in high teens of the overall via sales that we do. The other ranges that we Introduced in wires on the premium side were Maxima and Suprema. Both of them again are in double digits, close to around 20% plus in terms of their contributions to the vias. As far as the solar related question is concerned, as of now we are primarily into solar inverters and we are not looking to expand, expand it to any other product category. Of course along with solar inverters we are also able to sell solar cables and switch gears. So that is something which we kind of try to club and cross sell. But other than that we are not looking at expanding into any other categories right now.
Aniruddha Joshi
Okay, sorry. Thank you.
operator
Thank you. The next question is from the line of Arshia Goslav from Nirmal Bank. Please go ahead.
Arshia Khosla
Yeah, hi, thanks for my question. Am I audible?
operator
Yes, you are audible.
Arshia Khosla
Yeah. So my first question would be on the SMG part of the business. So I mean the solar has done very well for us. It’s a 2x growth for us. Can you just specify the geography from where in the demand, I mean where the demand is coming in from?
Chirayu Upadhyaya
Sure Ashya. So as far as solar is concerned, largely the demand driver has been because of the government’s rooftop solar scheme. Over and above that there are certain states where they have also introduced their own rooftop solar incentivization schemes. So largely the demand that we are seeing are from those states to name a few. I think Maharashtra, Gujarat, Rajasthan, mp, Telangana, Tamil Nadu and UP are few of the states where we have seen very good traction coming in for the solar inverters business of ours.
Arshia Khosla
Thank you, that’s helpful. And secondly on the capex you’ve already done a 5.1 billion so can you just specify which segment.
operator
Your voice is breaking?
Arshia Khosla
Yeah, am I audible now?
Chirayu Upadhyaya
I could, I could hear your question also. You want a breakup of where the CapEx has been spent in quarter one.
Arshia Khosla
Yes.
Chirayu Upadhyaya
So it’s largely on the cables and wires business. As we had mentioned, most of the capex that we are going to do over the next five years is for the cables and wires business. As of now there is no immediate requirement for any incremental capex for the FMEG business. Probably it will be towards the end or the mid to end part of the next five years. So all of the capex largely that we do right now is either for the cable syndrome business or maybe some for the backward integration.
Arshia Khosla
Thank you.
operator
Thank you. Thank you. The next question is from the line of Praveen Sahai from PL Capital. Please go ahead.
Praveen Sahay
Yeah, thank you for opportunity and many congratulations for A good set of numbers. First question is related to FMEG only. So that’s a clarification. Like this quarter successfully the contribution of a soda product has increased. Otherwise the overall sand and light contribution on the year or year basis if I look at that is on the higher contribution to your portfolio in the smeg.
Chirayu Upadhyaya
That’s true Praveen. In this quarter solar was the largest contributor. If you look at last year for the largest contributor solar was the third largest contributor to the FMEG top line.
Praveen Sahay
So is it a solar inverter is quite related to the government solar rooftop, the steam project. So is it treated as a one off kind of or do you believe this to continue in the coming quarters as well?
Chirayu Upadhyaya
We believe that demand is going to be very sequestering at least in the near term. The government scheme is there and yet I think only 20% of that has taken off. And over and above that, as I mentioned there are various state level schemes which have been introduced. Until those schemes continue at least next few years we are expecting continuous demand for the solar inverter. So that’s the near term midterm visibility that we have over there.
Praveen Sahay
Okay, thank you. And the second clarification related to the ETC as you had mentioned 80 million order book that include your 56 billion of BharatNet order book.
Chirayu Upadhyaya
The Bharat Net order book is the 80 billion that I mentioned. Over and above that there is an RDS order book which is roughly around 38 to 40 billion rupees.
Praveen Sahay
Okay. And these are executable over how many years?
Chirayu Upadhyaya
Next three to four years. All of it has to be executed over the course of next three to four years.
Praveen Sahay
Okay. And the last question related to the. You know the wire and cable as you had already mentioned, that’s the XI voltage.
You don’t have much business for that. But the way forward can we expect that by 27 we will see some contribution from the extra high voltage to come in for you?
Chirayu Upadhyaya
So extra high voltage as you’ll be aware is a tender based business. Once the plant is up and commissioned you’ll have to go and bid for the tender. And if you win, that is when and when you start executing is when you start accrue the revenue. So probably any form of meaningful revenue will only happen in FY28.
Praveen Sahay
Okay, thank you. Thank you and all the best.
operator
Thank you. The next question is from the line of Vidya Trivedi from Asian Market Securities. Please go ahead.
Vidit Trivedi
Yeah, hi. Congratulations on great set of numbers. Most of the questions have been answered. Just wanted to know, on the solar products, you know you have mentioned that this is now the largest category in fmeg. What’s the scale of this opportunity and how is the product portfolio evolving.
Chirayu Upadhyaya
Vidit we have the sole product category as I mentioned, solar inverters. Obviously there are requirement of various ancillary products as well as if you look at the overall solar rooftop opportunity. But we are not in that right now. We obviously are selling into solar inverters and wherever solar cables and switch gears can be a part of that order, we will try to process that. As far as the opportunity side is concerned, I think we can just sum up the outlay that various schemes of the central government as well as state government have and probably that is almost one third of the overall cost of the outlay. That happens as well on solar rooftop multiplied by three and that is the overall opportunity size on the overall solar rooftop.
Vidit Trivedi
Thank you. Got it, thanks. And what’s the margin contribution of solar products in the overall FMEG basket?
Chirayu Upadhyaya
It will vary across product categories. As I was mentioning, solar cables is what will have contribution in the bias and cable category. Solar inverters has now contribution a large contribution in the FMEG category. So it will vary and obviously I mean we keep on changing over the next few next many quarters.
Vidit Trivedi
Got it. Thanks a lot. All the best.
operator
Thank you. The next question is from the line of Manish for Das from Invesco amc. Please go ahead.
Manish Poddar
Yeah, hi. Congrats on the numbers. Just one question. So would you plan to set up a plant, let’s say internationally in the next 18, 24 months? Just how. What are your thoughts around this? Thanks.
Chirayu Upadhyaya
Manish, thanks for the question. Very good question. In the longer term. Yes. See if you look at the other larger global players like Disney and Nexon, etc. The way that they have looked at the growing globally is setting up manufacturing plants in multiple locations. But as of now we are not in that scale. In the near to midterm, we don’t have any plans of setting up manufacturing plants outside India. The benefit that we have when we are exporting our cables is because of the low cost manufacturing which is available in India. And that is where we continue to invest in setting up or expanding our capacities in the country. If you are thinking of more longer term, maybe next decade or couple of decades, probably that is where we will definitely have to think about going outside India, but not required in the near term.
Manish Poddar
Okay, got it, thanks.
operator
Ladies and gentlemen, we’ll take this as our last question for today. I would now like to hand the conference. Over to Mr. Gandharv Songya for closing comments.
Gandharv Tongia
Thank you so much for taking out time and joining us for this call. We deeply appreciate and value your support over the period. In case if there are any unanswered questions or you want to share any feedback to us, please feel free to reach out to me or Chirayu. You can also write to investors.relationsolicap.com thank you. Have a great day ahead. Bye Bye.
operator
On behalf of Polycab India Limited that concludes this conference. Thank you all for joining us and you may now disconnect your lines.