Three mega cycles—Electrification, Urbanisation, and Digitisation—each of which independently justifies a multi-year demand upcycle and together create a compounding structural growth story that is rare in its breadth and longevity. At the confluence of these three is the “Wires and Cables” industry.
India’s wires and cables industry is at a structural inflection point, driven by three simultaneous and self-reinforcing mega-cycles. The domestic market is estimated to grow at a 9–10% CAGR over the next 5 years, making it one of the fastest-growing infrastructure sub-sectors in the country.
There is strong government policy support in this sector, with Union Budget FY26 earmarking Rs 9.12 trillion (tn) for infrastructure—a 25% YoY increase—channelled into power systems, railways, and real estate, all intensive consumers of cables.
Having strong macro support for this sector, let’s deep dive into fundamentally strong stocks operating in this space. The selection focuses on companies with consistent sales growth and ROE.
#1 Polycab India
First on the list is Polycab India.
The company has established itself as India’s largest player in the wires and cables segment, making it a direct proxy to the country’s power infrastructure expansion, real estate growth, and rising electrification demand.
Polycab operates across a diversified portfolio including wires & cables (W&C), FMEG products, and EPC solutions, enabling it to participate across the entire electrical value chain from generation connectivity to end consumption.
The company has also demonstrated strategic maturity by consciously delaying full pass-through of raw material inflection to protect demand and strengthen dealer loyalty—an approach that may impact margins in the short term but strengthens long-term competitive positioning.
Financial Snapshot
| Particulars | FY23 | FY24 | FY25 | 9MFY26 |
| Revenue (Rs m) | 141,078 | 180,394 | 224,083 | 200,913 |
| Growth YoY (%) | 15.6 | 27.9 | 24.2 | 29.8 |
| Operating Profit (Rs m) | 19,854 | 27,127 | 31,679 | 28,444 |
| Operating Margin (%) | 14.1 | 15.0 | 14.1 | 14.2 |
| Net Profit (m) | 12,831 | 18,029 | 20,455 | 19,229 |
| Net Margin (%) | 9.1 | 10.0 | 9.1 | 9.6 |
Source: Equitymaster
The company delivered a strong financial performance in Q3FY26, with revenue growing by 46% YoY, EBITDA rising 34% YoY, and PAT increasing 36% YoY.
A key growth driver for the company remains its wires & cables segment, where the domestic business recorded an exceptional 59% YoY growth, supported by strong demand from government capex, private investment, and real estate activity.
Valuations
The median PE ratio over the last 5 years has been 40x, with the highest PE traded at 60x and the lowest around 15x. Currently, it is trading at 47x.
#2 KEI Industries
Founded in 1968 as a partnership firm, KEI Industries initially focused on manufacturing rubber cables for house wiring. It offers end-to-end wire and cable solutions across different sectors and industries.
Product portfolio includes various types of cables and wires designed to meet the specific needs of customers across retail, institutional and export segments.
With a strong distribution network of over 2,000 channel partners, it serves clients in more than 60 countries.
Financial Snapshot
| Particulars | FY23 | FY24 | FY25 | 9MFY26 |
| Revenue (Rs m) | 69,082 | 81,207 | 97,359 | 89,763 |
| Growth YoY (%) | 20.6 | 17.6 | 19.9 | 21.3 |
| Operating Profit (Rs m) | 7,020 | 8,542 | 9,793 | 8,474 |
| Operating Margin (%) | 10.2 | 10.5 | 10.1 | 10.2 |
| Net Profit (m) | 4,773 | 5,808 | 6,964 | 6,341 |
| Net Margin (%) | 6.9 | 7.2 | 7.2 | 7.7 |
Source: Equitymaster
The company delivered a strong financial performance in Q3FY26, with revenue growing by 19% YoY and PAT increasing by 42% YoY, highlighting strong operational momentum.
The order book as of Dec ’25 remains at Rs 37,243 Mn, with 61% consisting of domestic cables, 13% exports, 10% EPC, and 16% EHV.
A key highlight remains its strong order momentum and execution discipline, which has enabled the company to achieve this level of profitability.
Valuations
The median PE ratio over the last 10 years has been 30x, with the highest PE traded at 70x and the lowest around 10x. Currently, it is trading at 52x.
#3 RR Kabel Ltd
Founded in 1995, RR Kabel Limited has grown into a prominent player in India’s consumer electrical products industry.
The company operates through two segments Wires & Cables (W&C) and Fast-Moving Electrical Goods (FMEG) with products including fans, lighting, switches, appliances, and switchgear.
The company has built an extensive pan-India distribution network comprising over 4,400 distributors, 4,500 dealers, and 1,91,000+ retailers, along with a large ecosystem of electricians.
Financial Snapshot
| Particulars | FY23 | FY24 | FY25 | FY26 |
| Revenue (Rs m) | 55,992 | 65,946 | 76,182 | 97,224 |
| Growth YoY (%) | 27.7% | 17.8% | 15.5% | 25.1% |
| Operating Profit (Rs m) | 3,230 | 4,619 | 4,868 | 7,891 |
| Operating Margin (%) | 5.8% | 7.0% | 6.4% | 8.1% |
| Net Profit (m) | 1,899 | 2,981 | 3,116 | 4,922 |
| Net Margin (%) | 3.4% | 4.5% | 4.1% | 5.1% |
Source: Equitymaster
The company delivered a strong financial performance in Q4FY26, with revenue growing by 33% YoY and PAT increasing by 30% YoY, highlighting strong operational momentum. It is the highest-ever quarterly revenue for the company.
The revenue mix stands at 74% domestic and 26% export. A key highlight remains its working capital management, with working capital days coming down from 56 days in FY25 to 49 days in FY26.
Valuations
The median PE ratio over its listing history is 49x, with the highest PE traded at 76x and the lowest around 37x. Currently, it is trading at 41x.
Conclusion
Wires and cables, being a long-term thematic growth story for India with many tailwinds operating around this industry, have a very fascinating long-term outlook. However, the very important short-term risk in the sector is raw material prices, which can be highly volatile and can lead to short-term margin pressure for the sector. Copper and aluminium, which together constitute 40–60% of a cable’s input cost, remain the most persistent margin risk, directly impacting pricing strategy and profitability across the value chain.
Happy investing.
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