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The cables and wires sector demonstrated robust performance in the fourth quarter of the financial year ended 31st March 2025, driven by sustained underlying demand and strategic initiatives by key players
Key trends shaping up in the Industry:
Polycab India reported a 25% year-on-year revenue growth in Q4FY25, supported by steady performance across all business segments. For the full year, revenue rose by 24% YoY to over ₹22,000 crore, crossing the company's FY26 revenue goal of ₹20,000 crore a year ahead of schedule.
In terms of profitability, EBITDA grew by 35% YoY in Q4, with margins improving by about 110 basis points to 14.7%. This increase was mainly due to improved performance in the FMEG segment and better margins in the EPC business.
Net profit (PAT) grew by 33% YoY and 58% compared to the previous quarter, with margins increasing to 10.5%. Q4 PAT crossed ₹700 crore for the first time, contributing to a full-year PAT of over ₹2,000 crore.
During Q4FY25, the segment recorded solid growth, supported by continued demand across key sectors. Factors such as higher government spending, improved execution of infrastructure projects, firm real estate activity, and rising commodity prices contributed to this performance. The domestic business grew 27% YoY, with cables once again growing faster than wires. Both the channel and institutional segments showed steady momentum.
In contrast, the international business declined 24% YoY during the quarter, mainly due to the deferral of a large order to the next quarter. However, for the full year, it still contributed 6.0% to total consolidated revenue. A recovery in FY26 is anticipated, backed by a strong order pipeline and positive demand trends across key global markets.
Segment margins improved by around 140 basis points quarter-on-quarter to 15.1%, aided by better operating leverage and a favourable product mix, though the lower contribution from international operations limited the overall upside.
Polycab’s FMEG (Fast-Moving Electrical Goods) business achieved a key milestone in Q4FY25 by turning profitable for the first time, following ten consecutive quarters of strategic investments in talent, innovation, and brand building.
The segment also reported a 33% YoY growth in Q4 revenue, while full-year revenue reached an all-time high of ₹1,653 crore, up 29% YoY.
Growth was seen across all product lines. The fans category performed well despite a delayed summer, reflecting gains from premiumisation efforts. Lights and luminaires maintained strong momentum with volume and value growth, even amid ongoing pricing pressures. Switchgears, conduit pipes, fittings, and switches also posted healthy growth, supported by consistent demand from the real estate sector.
Solar products saw particularly strong traction, growing nearly 2.5 times year-on-year, and are now the third largest contributor within the FMEG portfolio.
Polycab’s EPC (Engineering, Procurement & Construction) segment reported a 47% year-on-year increase in revenue for Q4FY25, supported by strong execution of the RDSS (Revamped Distribution Sector Scheme) order book. For the full year, the segment recorded a 143% increase in revenue compared to FY24.
On the profitability front, EBIT rose by 171% YoY in Q4, with the EBIT margin improving to 9.4%. For FY25 overall, EBIT grew by 186%, reflecting improved operational efficiency and scale.
The segment’s annual operating margins are now in line with the company's expectations for the mid-to-long term, aiming to maintain high single-digit margins on a sustainable basis.
All in all, a neat quarter that keeps the momentum rolling into FY26.
The fourth quarter of the Financial Year 2025 provided a mixed, yet increasingly hopeful, picture for the microfinance sector, following what was widely acknowledged as a challenging year. While headwinds persisted, particularly related to asset quality and regional disruptions, lenders discussed strategic adjustments and observed signs of potential normalisation.
Performance and Asset Quality Trends:Several lenders noted the challenging business environment during the year, especially in the microbanking segment. Equitas Small Finance Bank, for instance, experienced a significant increase in microfinance credit costs, rising to 11.37% in FY25 from 2.3% in FY24, which substantially impacted their profitability. In response, Equitas slowed down fresh disbursements in microfinance, leading to a notable drop in their MFI advances and a significantly reduced share of MFI in total disbursements in Q4 FY25 compared to the previous year. Equitas expects their MFI book to continue to degrow in FY26.
Ujjivan Small Finance Bank, on the other hand, saw a robust growth in Micro Banking disbursements by 38% quarter-on-quarter in Q4 FY25, although their Group Loan (GL) book de-grew by 4% for the quarter. This disbursement growth was primarily driven by lending to good existing customers. Ujjivan managed to maintain what they consider one of the best portfolio qualities in the industry within the microbanking segment. Their Portfolio at Risk (PAR), Gross Non-Performing Assets (GNPA), and Net Non-Performing Assets (NNPA) ratios all showed improvement in Q4 FY25 compared to Q3 FY25, and their SMA book started to reduce, with PAR seeming to have peaked in Q4.
AU Small Finance Bank saw an improvement in overall asset quality in Q4 FY25, with GNPA and NNPA ratios decreasing compared to Q3 FY25. Slippages also improved in Q4, including in their Secured assets and MFI portfolios. However, AU's Microfinance credit cost remained elevated at 7.75% for the full year FY25.
Five Star Business Finance, while not a traditional MFI (focusing on secured business loans), noted that their gross stage 3 assets (GNPA) inched up in Q4 FY25. They attributed this largely to disruption in collections in Karnataka from January to March 2025, alongside a general issue of over-leverage. They aim to maintain gross NPAs below 2% and credit costs below 1% for their portfolio, which serves middle and lower-middle-class customers with average ticket sizes between three to five lakhs.
Challenges and Contributing Factors:A significant factor impacting asset quality and collections discussed by lenders was the disruption in Karnataka, particularly noted by Five Star and Ujjivan. Five Star estimated that two-thirds of their collection dip was due to the Karnataka situation. Ujjivan's Bucket-X collection efficiency in Karnataka was notably lower (98.7% in March '25) than in other states (99.6%), despite overall improvements elsewhere.
The issue of over-leverage among borrowers was also highlighted. Five Star noted that while this crisis was still prevailing, the threat of more over-leverage had reduced as small ticket lenders had stopped significant lending to this segment.
Regarding the Tamil Nadu ordinance, Equitas stated they had not seen any impact on collection behaviour as of their earnings call.
Strategic Responses and Regulatory Environment:Lenders are actively implementing strategies to navigate the challenging environment and mitigate risks. Diversification is a key theme, with Ujjivan significantly increasing the share of their secured loan book to 44% by March '25, up from 30% the previous year, focusing on Housing and MSME segments. AU Small Finance Bank also has MFI as part of its secured asset mix. Equitas is focusing on growing their Small Business Loans (SBL) and Vehicle Finance books while shrinking their MFI portfolio. Five Star is adjusting its focus within its secured lending, moving towards larger ticket sizes (3-10 lakhs) and reducing exposure to the less than 3 lakhs segment, which they feel is sometimes wrongly bucketed with MFIs and perceived to have slightly higher stress.
Accelerated provisioning was undertaken by both AU (₹150 Cr in Q4) and Ujjivan (₹46 Cr for FY25) to strengthen provision coverage.
The MFIN guardrails, including limits on the number of lenders (three lenders) and borrower indebtedness caps, were seen as structurally positive for the industry, expected to increase discipline. Ujjivan has implemented Guardrail 2 fully from April 1st, and Five Star believes these guardrails will help contain over-leverage and potentially lead to increased credit demand for regulated entities as the supply from small ticket unsecured lenders reduces.
The CGFMU credit guarantee scheme was highlighted by AU as a critical backstop for eligible MFI loans, enabling them to lend more confidently and mitigate downside risk. AU expects to cover nearly 100% of Q4 MFI disbursements under this scheme, aiming for over 75% coverage on their overall book in the future.
Despite the challenges faced, there is an expectation of gradual improvement. AU anticipates that their MFI credit costs will take two more quarters to reach near normalcy (around Q3-Q4 FY26). Equitas expects credit costs to remain elevated in Q1 and Q2 FY26 due to a lag effect of previous slippages, with normalisation anticipated from Q3 onwards. Five Star expects the impact of the prevailing stress (related to over-leverage and Karnataka) to continue for at least the next two quarters. Ujjivan's management noted that while the business momentum picked up in Q4, the Microbanking business still needs to navigate some geography-specific issues and industry guardrail mandates before providing full-year guidance.
In summary, Q4 FY25 reflected an industry grappling with lingering asset quality pressures and regional issues in microfinance, prompting strategic shifts towards diversification and risk mitigation. While some normalisation is expected, the timeline varies, with lenders keeping a close watch on the impact of regulatory guardrails and the evolving market dynamics.
Privi is growing its production capacity while also launching new, high-demand aroma products.
In conclusion, IHCL's Q4 FY25 earnings call paints a vibrant picture of the Indian hotel industry
M&M strengthened its SUV revenue market share by 210 bps year-over-year in Q4FY25, securing the top spot. This growth was fueled by new models like the XUV 9e and BE6, along with price adjustments for certain XUV 700 versions. In the <3.5T LCV category, the company's market share increased by 290 bps year-over-year to 51.9% in the same period. M\&M also continued to lead the EV 3W segment, achieving a 42.9% market share in Q4FY25, a 110 bps quarter-over-quarter improvement. The company introduced four new EV 3W products last quarter: Treo Metal, Zeo, eAlfa Plus, and Alfa Duo.
Paytm’s Q4 FY25 results mark a crucial turning point for the fintech giant, signaling resilience and recalibration amid regulatory headwinds.
After a turbulent FY24, marked by regulatory action against Paytm Payments Bank and sharp contraction in business operations, Q4 FY25 showcased early signs of a turnaround. While revenues dropped 3% QoQ to ₹2,267 Cr, the company made significant progress in realigning its business model.
What’s Next?
Q4 FY25 shows Paytm is down but not out. Strategic cost control, retention of core merchants, and a rebooted banking model are signs of a business realigning for sustainable, profitable growth. If execution remains tight and regulatory risk subsides, the comeback story might just be real.
Historical Resilience: In four major India–Pakistan standoffs since 1999 (Kargil, Parliament attack, Uri strikes, Pulwama/Balakot), the Nifty 50 never dropped more than 2%, except during the 2001 Parliament attack (‑13.9%). 2001 drop was also coincided with global turmoil as at that point S&P 500 was also down close to 30%
Global Conflict Norms: Across 25 major conflicts worldwide, equities average a 7% correction (median 3.2%).
Current Tensions: Renewed India–Pakistan friction may spark short‑term volatility, but a steep market crash seems unlikely seeing the historical trends
Expected Range: Even under significant escalation, historical precedent and current risk pricing imply a 5–10% max pullback for the Nifty 50.
Investor Strategy: Focus on fundamentals, avoid knee‑jerk selling, and view geopolitical jitters as temporary rather than market‑derailing.
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It is recommended that you conduct your own research and analysis before making any investment decisions. We believe that investment decisions should be based on personal conviction and not borrowed from external sources. Therefore, we do not assume any liability or responsibility for any investment decisions made based on the information provided in this reference.
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