These 2 cable & wire stocks are a must have in your portfolio; details here

India’s cables and wires (C&W) industry is witnessing robust demand momentum, underpinned by infrastructure expansion, renewable energy investments, the rise of electric vehicles, and strong real estate activity. Industry interactions highlight that despite investor concerns over sustainability, the structural demand drivers remain intact. Power sector upgrades, transport infrastructure, and new avenues such as data centers continue to anchor growth. 

  Competitive intensity, initially feared to rise with new entrants, appears manageable. Announced projects have yet to scale meaningfully, and incremental supply is expected to be absorbed by healthy demand. Meanwhile, raw material price increases, particularly in copper and aluminum, are largely passed through to customers, sustaining revenue growth. In Q2FY26 so far, average copper and aluminum prices have risen 6-9 per cent quarter-on-quarter and 10-14 per cent year-on-year, translating into price hikes of 3–5 per cent across product categories. 

 

  The sector’s growth trajectory remains well above GDP trends. The domestic market expanded at a ~9 per cent CAGR between FY14 and FY25, reaching ₹90,000 crore. Rising infrastructure investment, renewable capacity additions, defense applications, and the real estate cycle are key drivers. Organised players are steadily gaining market share, aided by GST compliance, rising safety standards, and the increasing complexity of applications.  ALSO READ | Coming months will test business models' resilience, policy effectiveness 

Exports are also emerging as a powerful growth lever. India has been a net exporter of C&W since FY20, with shipments expanding at a ~19 per cent CAGR over FY17-25. Export momentum remains strong, with double-digit growth in recent months led by the US and UAE. Global demand is rising from renewable energy, electric mobility, data centers, and grid modernisation, while the China+1 strategy is positioning India as a preferred supplier.

  Looking ahead, public capex in roads, railways, metros, and airports, coupled with rapid digital infrastructure buildout, will underpin sustained domestic demand. Power consumption per capita is projected to more than double by FY40, reinforcing long-term demand for efficient transmission and cabling solutions. The global clean energy transition and smart city initiatives add further upside.

  With steady margins supported by cost pass-throughs, strong volume growth, and structural demand visibility, India’s cables and wires industry is poised to deliver sustained expansion in the long term.

Polycab | Target: ₹8,750

Polycab has established itself as a clear leader in the domestic organised C&W market with ~26-27 per cent share, up from ~18-19 per cent in FY20. Its diversified portfolio, strong supply chain, and wide distribution network underpin sustained growth, while margins remain healthy at ~13-15 per cent. The FMEG segment has turned around with ~29 per cent growth in FY25 and breakeven in 4QFY25, driven by distribution expansion, portfolio upgrades, and brand investments. Under Project Spring, Polycab aims to grow both C&W and FMEG at 1.5–2.0x industry rates while maintaining profitability. A planned ₹6,000–8,000 crore capex over five years will expand capacity, support backward integration, and enhance exports. With strong free cash generation, robust balance sheet, and steady return ratios, Polycab stock remains structurally well positioned for long-term growth.

KEI Industries | Target: ₹4,700

KEI Industries has embarked on a robust expansion trajectory with a ₹1,700 crore Sanand greenfield facility, adding ₹5,500-6,000 crore capacity by FY27. With further expansions at Salarpur & Kheda, it targets 19-20 per cent revenue CAGR over 5 years. It has increased its B2C revenue share from 29 per cent in FY20 to 52 per cent in FY25 through enhanced marketing and retail presence across India and overseas. Export sales grew 15 per cent Y-o-Y in FY25, with a focus on expanding high-value international markets, aiming to raise export share from 13 per cent to 15-18 per cent in 3 years. Given KEI’s sustained growth momentum, softer-than-expected competitive pressures, we estimate a 18 per cent/21 per cent revenue/PAT CAGR over FY25-28E.

 

(Disclaimer: This article is by Motilal Oswal Financial Services Research desk. Views expressed are their own.)