Polycab India Ltd

It is with immense pride and gratitude that I present to you the Integrated Report for FY 2024-25. This year has been one of strong, purposeful growth for Polycab — anchored in the resilience of our business model, the trust of our customers and the unwavering commitment of our people. The theme of this year's Integrated Report, "Leading with Strength, Growing with Purpose" perfectly captures the spirit of our journey in FY 2024-25. We have led with strength — by outperforming the industry, navigating uncertainties and staying true to our strategic path. And we have grown with purpose — by making bold investments in the future, sharpening our focus on sustainability, expanding into new markets and continuously elevating the experience we offer to our customers.

At Polycab, growth is not merely measured in financial terms. It is about impact, about building a resilient institution that delivers long-term value while being deeply aligned with the needs of society and the environment. FY 2024-25 has been a year of acceleration — and more importantly, of alignment between what we do and why we do it.

FY 2024-25 will be remembered as a year in which Polycab consolidated its leadership position and advanced its purpose-driven agenda. We delivered robust growth across key business verticals, outperforming most peers in the industry. Our revenues grew by 24%, one of the fastest growth rates among electrical companies, underscoring the strength of our business model and execution. This exceptional growth has propelled Polycab to become the largest Company by revenue in the Indian electrical industry.

We also continue to be the most profitable player in the Indian electricals ecosystem, demonstrating the financial discipline and operational efficiency that have become synonymous with the Polycab name. Our consistent profitability enables us to reinvest in innovation, capacity building and people — ensuring the longevity and sustainability of our success.

Our market share in the organised Wires & Cables (W&C) segment rose by 1% to reach the 26-27% range, a significant achievement in a competitive environment. This was made possible by our relentless focus on quality, supply chain agility and deep market penetration. Importantly, this gain was not just numerical — it reflected a deeper relationship with our channel partners and end customers.

The FMEG segment, after a subdued performance in recent years, staged a strong comeback with a 29% growth during FY 2024-25. We achieved break-even in Q4 — a critical milestone that validates the strategic changes made in distribution, product portfolio and brand building over the past four years. This performance reflects the rising strength of our consumer business and our ability to respond to changing market dynamics with agility.

Our EPC division also had a standout year, growing 143% on the back of significant orders under the Government's RDSS scheme. This momentum further solidifies our credentials as a trusted partner for large-scale infrastructure projects.

While our International business registered marginal de-growth this year due to geopolitical and trade-related headwinds, we remained resilient. The fundamentals are strong and the healthy global demand environment positions us well for a turnaround in FY 2025-26.

Throughout FY 2024-25, we led with strength — consistently delivering operational excellence — and we grew with purpose, ensuring that each initiative contributed meaningfully to our long-term vision.

One of the defining accomplishments this year has been the successful conclusion of Project LEAP, our multi-year transformation journey launched at the end of FY 2020-21. Project LEAP was initiated barely two years after our listing — a bold move driven by our belief that transformation should begin not in response to a crisis, but from a position of strength.

At its core, Project LEAP was about reimagining how we operate, serve our customers and create value. I'm proud to report that we have achieved our Project LEAP goal of 1200 billion in revenues — a full year ahead of our FY 2025-26 target. This outcome is not just a reflection of top-line performance but of the structural transformation we have achieved across business units.

Key initiatives under Project LEAP included the merger of HDC and LDC verticals, which improved operational synergies and enabled more targeted customer engagement. In Wires, we implemented price laddering, making our offerings more responsive to different customer segments and enhancing affordability across markets.

On the go-to-market front, we invested in building digital and data-driven capabilities that now allow us to be more agile and localised in our approach.

The international business saw a continuous expansion of our global footprint, while FMEG gained momentum through distribution expansion, influencer engagement and new product development. These initiatives were not standalone — they were tied together by a shared philosophy: to scale responsibly, sustainably and inclusively.

Project LEAP laid the foundation for a stronger, future-ready Polycab. It gave us the confidence to take bold decisions, build resilience in our operations and align every layer of the organisation with our larger purpose. It was our first major statement of intent — and its success has encouraged us to aim even higher.

With Project LEAP successfully behind us, we have now entered a new strategic cycle through

Project Spring — our roadmap for the next five years. This project is not just a continuation of LEAP; it is an evolution that reflects our growing maturity, global ambitions and deeper sense of purpose.

Project Spring is underpinned by a clear and ambitious set of goals to be achieved by FY 2029-30. The macro environment supports this ambition — India is in the midst of a strong infrastructure upcycle and the W&C industry is expected to grow at 1.5x to 2x of real GDP growth. We expect this trend to be skewed toward the higher end and Polycab is well-positioned to capture this upside.

We aim to grow our W&C business at 1.5x of industry growth, continuing to gain market share and deepen our presence across markets. Our long-term EBITDA margin guidance stands at 11-13%, reflecting our ability to manage costs while investing in capacity and innovation.

International business is another critical focus area. We aim to raise its contribution to more than 10% of the Company's top-line, supported by a sharpened go-to-market strategy, localised presence and improved distribution infrastructure in key geographies.

The FMEG segment, where we now have a strong operational footing, will be a major growth engine going forward. Our target is to grow FMEG revenues at 1.5x to 2x of industry growth, while steadily moving towards an EBITDA margin of 8-10%. Premiumisation, brand building and channel expansion will be the levers that drive this growth.

We will be investing between K60-80 billion in capital expenditure over the next five years. These investments will be directed towards capacity expansion, backward integration, digitisation and ESG-related initiatives.

Importantly, our financial strategy will continue to prioritise long-term sustainability. Despite this elevated capex, we will fund all investments through internal accruals and simultaneously increase our dividend payout to 30% or higher. This reflects the robustness of our balance sheet and our commitment to rewarding shareholders even as we scale.

Project Spring is our next big leap. It is our way of ensuring that we not only stay ahead of the curve but also define it.

It is about leading with scale, efficiency and vision — and doing so with integrity and purpose.

One of the most significant developments in FY 2024-25 has been the formalisation of our five-year ESG goals. As a responsible corporate citizen, we believe that growth cannot be sustainable unless it is equitable and environmentally sound. Our ESG roadmap is therefore not an add-on — it is integral to our business strategy.

We have adopted goals across 10 measurable parameters, spanning all three ESG pillars — Environmental, Social and Governance. These include targets around renewable energy consumption, water recycling, gender diversity, health and safety, ethical governance, community development and a few more.

To ensure accountability, we have institutionalised governance structures: a Board-level ESG Committee to provide strategic oversight and an ESG Council to drive execution. Moreover, we have linked ESG metrics to variable compensation for relevant leaders, reinforcing the idea that sustainability is everyone's responsibility.

Progress against these goals will be reported annually with transparency, enabling our stakeholders to track performance and hold us to our commitments.

Our ESG agenda is aligned with the principle of "Growing with Purpose." Whether it's reducing our environmental footprint, empowering our workforce, or contributing to community development, we believe that every action counts. As we scale new heights in business, we are equally committed to raising the bar on sustainability.

As I look back on the year gone by, I feel an immense sense of gratitude. None of our accomplishments would have been possible without the extraordinary efforts of our employees, the faith of our customers, the support of our channel partners, the guidance of our Board and the trust of our investors.

FY 2024-25 has been a defining year — one in which we not only delivered strong results but did so with greater clarity of purpose. The foundation we have laid with Project Spring, the investments we are making in capacity, technology and people and the culture we are building across the organisation give me confidence that Polycab is on a path of enduring value creation.

As we move forward, we will continue to lead with strength — through innovation, execution and market leadership. And we will grow with purpose — by being responsible stewards of capital, of people and of the planet.

Thank you for being part of our journey.

Warm regards,