Polycab India shares recovered on Friday, October 30, after the NCLAT set aside an insolvency petition against the company. The firm faced exclusion from the F&O space following an October 7 NCLT order. Investors now watch if regulators will reverse this exit, similar to a past case involving Zee Entertainment.

Shares of Polycab India Ltd., recovered from the lows of the day, after the company received relief from the National Company Appellate Law Tribunal (NCLAT) on Friday, October 30, with regards to its insolvency petition.

The NCLAT has set aside the insolvency petition against the company. The insolvency petition was admitted by Ahmedabad bench of the National Company Law Tribunal (NCLT) on October 7. The petition was filed by Asier metals over a disputed operational debt.

As a fallout of this move, the shares of Polycab were marked for exclusion from the Futures & Options (F&O) space from December 30, 2026. Criteria suggests that once the NCLT admits a CIRP petition against the company, the F&O exclusion is automatically triggered.

However, there is a past precedent of an immediate reversal of an F&O exit circular, that of Zee Entertainment, back in 2023. The rule states that once a stock is excluded from F&O, there has to be a 12-month cooling off period and only then can the stock look to be eligible for re-entering the F&O segment.

The excluded contracts of Zee Entertainment were restored within three days.

On Thursday, index service provider MSCI had announced that it will defer the deletion of Polycab India from the MSCI indexes pending further developments and clarifications from relevant authorities. It added that it will continue to monitor the security's status on the insolvency resolution process list and subsequent orders issued by the NCLAT.

Polycab India's September quarter results were largely higher than expectations with topline growth driven by the strong cables & wires and FMEG business. A high base, lower exports, and product mix dragged margins down by 160 basis points from last year.

The company has increased its market share by nearly 4% to 30-31% in financial year 2026, from 26-27% in financial year 2025.

Shares of Polycab India recovered from the lows of the day and are currently trading above the flat line with gains of 0.2% at ₹7,766. The stock is flat for the year, having declined 3% in the last one month.