June 2, 2025

India's Cables & Wires Boom: Plug Into the ₹1 Lakh Crore Power Play

Shuchi Nahar

Plug In — Let’s Follow the Current!

What if we told you that the copper wire behind your home switchboard is part of a ₹1 lakh crore revolution?

That every new EV charging station, solar park, metro line, or 5G tower needs kilometers of specialized cables—and Indian manufacturers are now becoming the world’s wiring partner of choice?

As India's energy, real estate, and digital infrastructure boom, so does its need for cables and wires—the silent lifelines carrying power, data, and connectivity. Post Q4 FY25 results, it’s clear: the sector is not just growing—it’s electrifying.

So, who’s leading the charge? How are players like Polycab, KEI, RR Kabel, Havells, Apar, and Finolex Cables planning to keep up with the surge? And what are they saying about future demand, exports, and margins?

India’s Cables & Wires Sector: Strong Currents Continue in FY26 and onwards…

Organized cable and wire manufacturers are projected to achieve a revenue growth of 15-16% in FY26, following a solid growth trajectory of 16% in FY25. This expected growth is driven by a significant increase in infrastructure spending in India, the ongoing momentum of the China+1 export strategy, and the rapid pace of electrification across various sectors.

The India wires and cables market was valued at USD 9.32 billion in 2024 and is projected to reach USD 17.08 billion by 2032, growing at a CAGR of 7.94%. Key growth drivers include:

Renewable Energy Projects: India's ambitious solar energy targets necessitate extensive cabling. For instance, a 1 MW solar project requires approximately 50 km of solar cable, translating to over 5 million kilometers needed for the 100 GW target.
Infrastructure Development: Government initiatives in power transmission, railways, and real estate are fueling domestic demand.
Export Opportunities: The global shift towards diversifying supply chains (China+1 strategy) positions Indian manufacturers favorably in international markets.

The ₹80,000–82,000 crore organised market is being reshaped by:

Capital expenditure is expected to exceed ₹8,500 crore in FY25–26. Strong demand visibility forecasts an incremental demand of ₹20,000 crore in FY26. A robust export growth of 20–22% year-on-year and stable margins between 10–11% on a higher base.

Key Sector Tailwinds Driving FY26 Outlook

1. Infra & Energy Capex-Led Demand

India’s combined public + private investment in power, railways, metros, and real estate is expected to rise 25% in FY26 to ₹9 lakh crore. This includes:

45–55 GW power capacity addition
10,000 km of new interstate transmission lines
Metro expansions and real estate growth

This is expected to generate ₹20,000 crore worth of additional demand for wires and cables in FY26 and onwards.

2. China+1 Exports Opportunity

Indian manufacturers are seeing strong order inflow from Europe and the US, which together account for 45–55% of exports. Exports are expected to grow 20–22% YoY in FY26.

Indian players are preferred over Chinese competitors due to:

Better compliance
UL/CE certifications
Wider product portfolios (LV/MV/HV, solar cables, EV, defense)

3. Capex Cycle at Full Throttle

Capacity utilization peaked at 80–85% in FY24, and though new capacity may reduce this to 75–77% in FY26, growth momentum remains intact. Utilization touched 80–85% in FY24. With a ~40% capacity increase planned across FY25–26, players are preparing to handle 20%+ volume growth scenarios in FY27–28.

₹8,500 crore in planned capex is funding:

New HV/MV/LV lines
Specialty & solar cable expansion
Distribution automation
B2C dealership network expansion

Yet, working capital discipline, debt metrics (D/E < 0.8x), and 20%+ RoCE remain intact—keeping credit profiles healthy.

4. Margins to Stay Stable

Despite volatile copper and aluminium prices (~70% of COGS), players maintain pricing power through:

Indexed contracts (B2B)
Short pass-through lags (B2C)
High asset turns (4x+)
Export-led premiumization

The Cables and Wires (C&W) sector in India is buzzing with momentum. Fresh off a robust Q4 FY25, the industry is gearing up for a powerful FY26—fueled by rising infrastructure capex, export tailwinds, and a structural shift toward branded, high-quality, formalized players.

From Tier 3 homes wiring up with branded products to metro rails, solar parks, and EV charging grids drawing megawatts through specialty cables—this sector is fast becoming one of India’s most electrifying growth stories.

Let’s break down how the leaders performed and what the outlook holds.

Polycab India – Ahead of the Curve

FY25 Revenue: ₹22,000+ Cr (met FY26 goal early)
C&W Domestic Growth: +27% YoY in Q4; cables outpaced wires
Segment Margin: 15.1% (↑140 bps QoQ)
Export Dip in Q4 due to deferrals, but strong order pipeline for FY26
Capex: ₹600+ Cr annually; expanding in cables, solar, and automation
Outlook: Optimistic on export recovery, solar demand, and premiumisation

Inder Jaisinghani – CHAIRMAN & MANAGING DIRECTOR, POLYCAB INDIA LIMITED

Focus Areas:

US & Europe cable exports
Solar cables, automation, B2C growth
Strong product approvals (UL certified for North America)

Management expects export recovery in FY26, a steady margin profile, and strong dealer network-led volume growth.

KEI Industries – Balancing B2B & B2C

Q4 Revenue: ₹2,915 Cr (Up by 25.1% YoY)
Dealer Sales: Up by 40% YoY; now 50% of revenue
Margins: Stable at 11.6% & PAT: ₹227 Cr (Up by 33%)
Order Book: ₹3,839 Cr & Net cash ₹1,737 Cr
Capex: ₹400–500 Cr for UHV cables and retail expansion
Outlook: Confident of 15–17% CAGR over 2–3 years

Focus Areas:

UHV cables
Dealer-led expansion (B2C now \~50%)
Exports to Africa, Middle East
Management aims to maintain 12–13% margins and 15–17% revenue CAGR over 2–3 years.

RR Kabel – Project Rise in Motion

Q4 W&C Revenue: ₹1,956 Cr (↑28.4% YoY)
Volume Growth: 14% YoY in Q4; cables ↑19% for FY25
Exports: 26% of FY25 revenue & Strong export cable margins (~13%)
Capex: ₹1,200 Cr for 1.7x capacity expansion (FY26–28)
Outlook: Targeting 18% CAGR by shifting mix from 70:30 (wire:cable) to 60:40

Focus Areas:

Shift mix from 70:30 (wire :cable) to 60:40
Expand MV/HV offerings
Improve W\&C margin by 100 bps in FY26

Export cable margins (12–13%) remain a key profitability lever.

Havells India – Steady with Scale

Cables Q4 Revenue: ₹2,169 Cr (↑21.2% YoY)
Segment EBIT: ₹259 Cr & Mix: ~65% wires
Margins: Slight dip to 14.7% due to price/mix volatility
Capex: ₹2,000 Cr planned, Tumkur cable unit already ramping up
Outlook: Focused on reach, branding, premium products, and export growth

Management sees formalization and branded play gaining. Strong investments in premium cables, brand, and reach expansion.

Apar Industries

Cables Revenue (Q4): ₹1,410 Cr (↑29.9% YoY)
Full-Year Cables Revenue: ₹4,945 Cr (↑28.1%)
Margins: Q4 Cable EBITDA margin at 10.6% (↑100 bps QoQ)
Exports: US cable exports ↑268% YoY | Export share ~28%
Order Book (Cables): ₹1,690 Cr
Outlook: Strong positioning in high-spec cables for renewables, EVs, and rail. Most export-ready player with 14 UL approvals. Focused on sustaining double-digit margins through premium product mix and export scale.

Focus Areas:

Specialty cables for solar, EVs, railways
Premium exports (UL-certified)
High RoCE (20%+), low working capital cycle

Finolex Cables

Q4 Revenue: ₹1,594.6 crore (↑13.8% YoY)
Net Profit: ₹191.7 crore (↑3% YoY)
EBITDA Margin: 10.71%
Segment Performance:
- Electrical Wires: Volume growth of 7%
- Cables: Significant 50% volume growth, driven by infrastructure and industrial demand
- Optical Fibre Cables (OFC): Volume growth exceeding 30%, offsetting declines in other communication segments
FY25 Revenue: ₹5,318.9 crore (↑6% YoY)

Exploring the Allure of the Sector: Why It Captivates Investors

While copper/aluminium price volatility and new entrants are watchpoints, established players with scale, certifications, and distribution advantage are well-poised to grow and consolidate.

What Managements Are Saying:

Polycab: "We are building a global C&W powerhouse. FY26 will see exports rebound and solar demand accelerate."
KEI: "Retail channel is driving growth; we aim to keep margins stable and sustain 15–17% growth."
RR Kabel: "Under ‘Project Rise’, we’re shifting from wire-heavy to cable-dominant mix to unlock margin and volume gains."
Havells: "Formalisation is welcome. With the Tumkur plant, we’re well placed to meet premium cable demand."
Apar: "We’re the most export-ready cable maker in India, with global compliance and scale driving future growth."
Finolex Cables: “Global demand, especially from North America and Europe, has surged, pushing prices up from last year’s $2.5 to around $3.5 now.”

Plug into the Structural Opportunity

The Indian Cables & Wires industry is riding a multi-decade formalization and electrification wave. Companies like Polycab, KEI, RR Kabel, Apar, and Havells are no longer just copper processors—they are branded solution providers with global ambitions, robust balance sheets, and proven execution.

India’s C&W sector is not just in a growth phase—it’s at the center of three megatrends:

Domestic infrastructure revolution
Global supply chain realignment
Consumer formalization and premiumisation

With earnings visibility, scale-based margin resilience, global approvals, and free cash-flow-funded capex, the leading players are becoming structural compounders. Wires and cables are no longer just copper and PVC. They are the veins of a new, electrified India.

So next time you see a wire? Think wealth creation. The next phase of wealth creation may lie in cable-heavy, export-ready, cash-generating players with sustainable pricing power and product depth.

‍