Wire & Cable stocks: Polycab, RR Kabel, KEI hit new highs; gain up to 5%

In the past six months, the market price of RR Kabel zoomed 60%, while Polycab India and KEI soared 41% and 38%, respectively, as against a 9% decline in the BSE Sensex.

Wire & Cable stocks today 

Shares of wire & cable (W&C) companies continued their upward movement, soaring 4 per cent and hitting new highs on the BSE in Wednesday’s intraday trade on the back of a healthy business outlook.

 

The market price of Polycab India (₹9,993.60), KEI Industries (₹5,649.60) and RR Kabel (₹2,284.75) hit new all-time highs. In comparison, the BSE Sensex was up 0.30 per cent at 77,041 at 2:15 PM.

 

In the past six months, the market price of RR Kabel zoomed 60 per cent, while Polycab India and KEI Industries soared 41 per cent and 38 per cent, respectively. The benchmark Sensex slipped 9 per cent during the same period.

 

 

Wire & Cables industry outlook

 

Accelerating investments in renewable energy infrastructure, electric mobility and digitisation are driving sustained international demand. For instance, the EU plans to invest $1.6 trillion in power grids and renewable energy projects by 2030. Simultaneously, global spending on the construction of AI-driven data centres is forecast to reach $49.0 billion by 2030, requiring massive deployments of highly specialised power and optical fibre cables.

 

Despite a strong long-term demand outlook, the operating environment in FY25-26 has been challenged by elevated US tariffs and shifting trade dynamics. This tariff-related uncertainty remains a global overhang impacting players worldwide, necessitating a highly agile approach to geographic risk management while awaiting a final resolution.

 

The Indian Wire and Cable Industry continues to demonstrate strong structural growth, supported by robust domestic demand, increasing electrification, and sustained investments across infrastructure, power, real estate, and emerging technology driven applications. 

 

Over the past decade, the industry has expanded significantly, reaching around ₹1 trillion in FY26 and is expected to maintain a strong growth trajectory over the medium term, with demand growth estimated at approximately 1.5x–2.0x real GDP, reflecting its close linkage with economic development and infrastructure intensity, Polycab India said in its FY26 annual report.

 

The rapid expansion of renewable energy capacity is further accelerating demand. Integration of solar and wind energy into the grid requires significant investments in evacuation infrastructure, thereby driving demand for specialized cables. Additionally, increased focus on electrification across sectors, including railways, industrial automation, and rural electrification continues to expand the scope of the industry, the company said.

 

Demand outlook remains strong across power transmission & distribution (T&D) (huge capex coming up), data centres, infrastructure (metros, rails, railways), construction (commercial real estate), and oil & gas. Power generation is set to see substantial growth in FY27, led by solar, wind, and importantly thermal power. Data centres are also expected to be a big booster, said the management of KEI Industries.

 

Brokerages view on Polycab, RR Kabel, KEI Industries

 

“Polycab’s January to March 2026 quarter (Q4FY26) operating performance was above our estimates, mainly led by better-than-estimated revenue and margin in fast moving electric goods (FMEG), while W&C margin was in line with our estimates,” analysts at Motilal Oswal Financial Services (MOFSL) said in the result update.

 

There have been several near-term challenges due to external factors; however, the demand outlook remains strong for the next 2-3 years. Its continued proactive capex ensures no capacity constraints and positions it well to capture demand recovery and maintain strong growth, the brokerage firm said. However, the stock was quoting above the analysts’ target price of ₹9,800 per share.

 

As regards to RR Kabel, MOFSL said near-term revenue growth is expected to be largely price-led, fueled by elevated copper and aluminum prices and the subsequent price hikes. Meanwhile, the FMEG segment remains in an investment phase, with the company expanding its presence in kitchen appliances and premium product categories. The management continues to target breakeven in the FMEG segment by FY27, the brokerage firm said.

 

After being capacity-constrained in FY26, KEI Industries' growth is set to inflect with Sanand ramp-up driving volume recovery from FY27. Margins are also trending favourably, with cables EBIT margins at multi-quarter highs and operating leverage expected to flow through from FY28, said analysts at Equirus Securities. The stock currently traded above the target price of ₹5,460 per share.  ==================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.