Wire & Cable stocks rally up to 34% in 1 month; Polycab, KEI log new highs

Infrastructure development, housing growth, electrification and the ongoing shift towards organized and compliant products continue to support the demand, said RR Kabel.

Shares of wire & cable (W&C) companies today

 

Shares of wire & cable (W&C) companies were in demand and rallied up to 6 per cent on the BSE in Friday’s intra-day trade in an  otherwise weak market on expectations of a healthy business outlook. The market price of Polycab India and KEI Industries hit new all-time highs.

 

Among individual stocks, Finolex Cables surged 8 per cent to ₹943.70 in intra-day trade on the BSE. The stock price of R R Kabel gained 4 per cent to ₹1,578, while Polycab India (₹8,680.30) and KEI Industries (₹5,108) were up 2 per cent each. In comparison, the BSE Sensex was down 0.80 per cent at 81,624.47 at 01:09 PM.

 

Meanwhile, in the past month, KEI Industries and Finolex Cables zoomed 34 per cent and 33 per cent, respectively. Polycab soared 28 per cent and R R Kabel 18 per cent, as against a 0.26 per cent decline in the BSE Sensex.

 

Why did Wire & Cable stocks outperform the market?

 

W&C companies reported healthy revenue/EBIT growth in the December 2025 quarter (Q3), led by a runaway rally in commodity prices and an uptick in volume growth. Wires outpaced cables, led by channel stocking, a weaker base and faster pricing pass-through.

 

The management of W&C companies said they are witnessing signs of recovery in consumption. This improving demand environment is expected to translate into a revival in private capex, complemented by sustained public investment, providing strong confidence in India's growth outlook.

 

The W&C companies are witnessing robust demand for its products from various end-user industries that are benefitting  from  government  infrastructure  development  activities,  including  urban  and  rural  electrification,  refinery expansion and upgradation, solar power projects, tunneling and ventilation projects on highways, as well as railway and metro rail projects. 

 

The private capex cycle in India is showing signs of recovery aided by the monetary policy support and the stimulative impact of GST rate cuts on consumption, laying the foundation for sustained investment growth, Polycab said in its Q3 earnings conference call on January 16, 2026.

 

In Q3, wires growth outperformed cables, driven by pre-stocking by channel partners amid elevated copper prices. Within the cable segment, institutional sales growth outpaced the channel sales, reflecting strong traction in project-led demand. The management of Polycab expects the strong W&C momentum to sustain in the fourth quarter (Q4), traditionally the strongest quarter.

 

RR Kabel said Q3 growth was supported by healthy volume expansion across infrastructure, construction and power-related applications, along with the impact of commodity price movements, better operating leverage, pricing discipline and tighter cost control helped improve segment performance. 

 

Looking ahead, while some near-term unevenness may persist in certain segments, the longer term fundamentals for the electrical industry in India remain intact. Infrastructure development, housing growth, electrification and the ongoing shift towards organized and compliant products continue to support the demand. Our focus remains on disciplined execution, strengthening the company’s core businesses and creating sustainable value over the long term, the management said.

 

Meanwhile, the rating agency ICRA expects KEI to report revenue growth of 15-20 per cent year-on-year (YoY) per annum over FY2026-FY2028. Revenue growth from FY2026 onwards will be primarily led by a likely increase in capacities post the greenfield expansion planned at Sanand (Gujarat) in addition to healthy market size and market share improvement.