The demand follows an assessment order passed by the Office of the Deputy Commissioner of Income Tax, Mumbai. The order includes disallowances and additions aggregating to ₹41.87 crore. The company said it received the order on March 3, 2026.
Polycab stated that, in consultation with its tax advisors, it believes the demand amount is higher than the additions made in the assessment order due to certain computational or clerical errors. These are rectifiable under the provisions of the Act, and the company has initiated the process of filing an application for rectification before the jurisdictional Assessing Officer.
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The company further said it considers the tax demand raised pursuant to the assessment order as not sustainable in law and is in the process of filing an appeal against the additions under the applicable provisions of the Income Tax Act, 1961. Polycab said it does not expect any material impact on its financial position or operations on account of the order.
Third Quarter Results
Revenue for the quarter increased by 46.1% from the same quarter last year to ₹7.636.1 crore. The CNBC-TV18 poll had pegged the figure at ₹6,761 crore. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹966.7 crore, 34.2% higher than the last year’s figure of ₹720 crore, and marginally lower than the street expectation of ₹977 crore.
EBITDA margin for the quarter narrowed by over 100 basis points to 12.66% from 13.8% last year and missed the CNBC-TV18 poll estimate of ₹14.4%.
Polycab’s advertising and sales promotion expenses more than doubled from the same quarter last year to ₹91 crore from ₹37.3 crore. Finance costs also increased to nearly ₹69 crore at the end of the December quarter from ₹50 crore in the year-ago period.
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The company’s core wires and cables segment revenue increased to ₹6,852 crore from ₹4,450 crore during the same quarter last year. Revenue for the FMEG segment touched the ₹500 crore mark from ₹423.1 crore last year. The EPC segment revenue stood at ₹407 crore from ₹392 crore in the year-ago period.
Shares of Polycab India Ltd ended at ₹8,274.50, down by ₹273.90, or 3.20%, on the BSE.
