Polycab India slips as stock exits F&O segment from December 30
In a circular dated 12 October 2026, the NSE said Polycab had been shortlisted under the Insolvency and Bankruptcy Code (IBC) framework. The exchange also announced a 100% margin requirement on all existing and new derivative positions in the stock from 14 October 2026. Further surveillance measures, including price bands and gross settlement, are to apply from 1 January 2027 under the IBC framework.
The development follows insolvency proceedings initiated against Polycab by Asier Metals Private Limited over an alleged operational debt of Rs 2.79 crore. On 7 October 2026, the National Company Law Tribunal (NCLT), Ahmedabad Bench, admitted a petition seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the company under Section 9 of the IBC.
However, the National Company Law Appellate Tribunal (NCLAT), on 9 October 2026, stayed and kept the NCLT order in abeyance pending further orders. It directed the appellant to deposit the amount stated in the insolvency petition through a fixed deposit receipt in the name of the tribunal?s Registrar within one week. The appeal is scheduled for hearing on 26 October 2026.
Despite the NCLAT?s interim order, the NSE?s circular placed Polycab under the IBC-related derivatives framework. The F&O exclusion and enhanced margin requirement may affect derivatives trading and investor positioning in the stock.
Polycab India is India?s largest manufacturer of wires and cables and one of the fastest growing FMEG companies. It reported 33% rise in consolidated net profit to Rs 7,96.7 crore on a 39% increase in revenue to Rs 8,209.7 crore in Q1 FY27 over Q1 FY26.
In September, a foreign brokerage retained its 'Buy' rating on Polycab with a target price of Rs 11,100, citing growth prospects in the wires and cables industry. The stock had come under pressure following UltraTech Cement?s entry into the wires and cables market with its Ultravolt brand. The company announced an investment of Rs 1,800 crore and plans to distribute products across 500 districts through more than one lakh retailers.
The broker viewed Polycab?s correction as a potential opportunity, noting that the wires and cables market was expected to grow at 11%-12% annually. The brokerage also highlighted that cables account for around 70%-75% of Polycab?s wires and cables revenue, while Ultravolt?s initial focus appeared to be on wires and low-tension cables. High entry barriers in large power transmission and industrial cable projects could help protect Polycab?s position.
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