Archive · 8 Sep 2026
Polycab’s Stock Drop Sparks Debate Over Ultravolt Threat
Polycab’s share price recently went down by about 10% in five days.
This happened after UltraTech launched a new wires and cables brand called Ultravolt.
Jefferies thinks the fall may be a chance to buy Polycab shares.
It says Polycab mainly sells cables, while UltraTech is more focused on wires.
Kotak Securities is less positive and says Ultravolt could become a real competitor.
However, Kotak changed its rating from SELL to REDUCE after Polycab’s recent decline.
UltraTech plans to sell Ultravolt through many retailers and company-linked outlets.
Nuvama said the launch could temporarily make investors value the cables and wires industry less highly.
Polycab India shares fell 10% over five days after UltraTech launched Ultravolt.
Jefferies called the decline a buying opportunity, noting Polycab gets 70–75% of revenue from cables.
Kotak Securities upgraded Polycab to REDUCE from SELL after its recent underperformance.
Kotak Securities set a price target of Rs 8,400, compared with its earlier target of Rs 8,700.
UltraTech plans to distribute Ultravolt through more than 100,000 retailers and over 5,000 UBS outlets.
- Who
- Polycab India, UltraTech Cement, the Aditya Birla Group, and brokerages including Jefferies, Kotak Securities, and Nuvama.
- What
- UltraTech launched Ultravolt in the wires and cables market, prompting debate about the impact on Polycab.
- When
- The launch was announced on Thursday, September 3; Polycab then recorded a 10% five-day decline.
- Where
- The reports discuss the wires and cables market and UltraTech’s retail and building-solutions distribution network.
- Why
- The launch represents a new competitor with planned capacity, portfolio, and distribution expansion, while analysts differ on whether the share-price decline is an opportunity or reflects a credible threat.
Buying Opportunity
Competitive Threat
Meaning of Polycab’s share-price decline
Buying Opportunity
Jefferies sees the recent 10% five-day fall as an opportunity to buy Polycab shares.
Competitive Threat
Kotak Securities and Nuvama view the Ultravolt launch as a meaningful competitive development that could pressure incumbent wires players and temporarily reduce industry valuations.
Relative business exposure
Buying Opportunity
Jefferies argues Polycab is more cable-focused, with cables accounting for 70–75% of its business, while UltraTech is more focused on wires.
Competitive Threat
Kotak Securities considers Ultravolt a credible threat to established wires players despite differences in business mix.
Potential for price competition
Buying Opportunity
Jefferies says there is limited room for price wars because industry net profit margins are only 5–7%.
Competitive Threat
The planned expansion of Ultravolt’s portfolio, capacity, and distribution could still intensify competitive pressure, according to Nuvama’s assessment.
- Polycab five-day decline
- 10%
- Polycab cable exposure
- Approximately 70–75%
- Industry net profit margin
- Approximately 5–7%
- Kotak Securities rating
- Upgraded to REDUCE from SELL
- Kotak Securities price target
- Rs 8,400, versus the earlier Rs 8,700 target
- Ultravolt planned retail reach
- More than 100,000 retailers
- UltraTech Building Solutions outlets
- More than 5,000 outlets