UltraTech Cement shares advanced 1.54% to ₹11,396.20 following the formal launch of their wires and cables business under the 'Ultravolt' brand, marking the company's fourth new business foray in three years. The stock movement reflects strong investor sentiment following the commercial production commencement from September 1, 2026, ahead of the previously stated December timeline. The latest performance builds on the 2% surge to ₹11,438.80 recorded on Friday, demonstrating sustained positive momentum around the strategic diversification initiative.
The Aditya Birla Group has officially launched its wires and cables business under the 'Ultravolt' brand, backed by a ₹1,800 crore investment and anchored by a new manufacturing facility at Jhagadia in Bharuch district, Gujarat. As reported by Business Standard, this strategic location is expected to support efficient distribution and logistics, enabling the company to serve markets across India. Dilip Gaur, Director of Ultravolt, emphasized the company's pan-India approach, stating they are venturing at scale rather than testing the market region by region. The facility's state-of-the-art manufacturing capabilities are supported by a network of more than 20 warehouses, extensive channel connects, and UltraTech's deep relationships with individual home builders, contractors, real-estate developers and EPC companies. The new Ultravolt brand has a current installed capacity of nearly 1.1 million kilometres of house wires and light duty cables, with plans to scale this to 3 times this level over five years.
ICICI Securities has maintained a HOLD rating on UltraTech Cement with a revised target price of ₹12,138, up from the previous target of ₹11,900. As per ICICI Securities research report dated September 04, 2026, the brokerage acknowledges the excitement around the new wires and cables segment but believes it is unlikely to move the needle materially for UTCEM just yet. The revised target price is based on an EV of ₹70 billion for Ultravolt, assuming ₹30 billion revenue in FY28E, net working capital of ₹5 billion, and a valuation multiple of 2.5x price/sales. With no change in assumptions for the core cement business (valued at 17x FY28E EV/EBITDA), the total target price stands at ₹12,138 per share.
The launch has intensified competition in the wires and cables sector, with incumbent players facing sharp declines as major industry players came under pressure. According to Business Standard, RR Kabel declined 8.92%, KEI Industries fell 7.79% and Polycab shed 6.40% following the development. KEI Industries shares cracked more than 8% to trade at ₹4,855.75, while Polycab India dropped 6.6% to ₹8,308.55. RR Kabel and Finolex Cables declined 5% each, and Havells India shares fell 3.5%. A domestic brokerage estimated that UltraTech could achieve a 5%-7% market share by FY31, while another brokerage cautioned that the aggressive expansion could result in a near-term de-rating for the wires and cables sector. The W&C market is worth about ₹1 trillion, with historical long-term growth rates of 9%, which is around 1.5 times the GDP growth rate, with demand expected to accelerate to twice GDP by FY30.
UltraTech Cement's latest venture expands its participation in the construction ecosystem beyond grey cement, ready-mix concrete, building products and white cement, aligning with the company's broader Building Solutions strategy. The move is strategically positioned to tap into rising demand from home construction, infrastructure development and electrification. Kumar Mangalam Birla, Chairman of Aditya Birla Group, emphasized that wires and cables are becoming central to India's next phase of development, sitting at the intersection of three megatrends in the Indian economy – urbanisation, electrification and digitisation. He noted that more than 100 million new homes over the next decade, expanding energy infrastructure and the rapid rise of data centres are poised to fuel a boom in the category. The company's consolidated net profit jumped 16.77% to ₹2,599.28 crore in Q1 FY27 from ₹2,225.90 crore in Q1 FY26, while revenue from operations climbed 15.85% YoY to ₹24,648 crore in Q1 FY27. UltraTech generated ₹15,320 crore of operating cash flow in FY26, giving it the resources to scale up and fight potential price wars in the competitive market.
