Wire and cable companies continued their impressive rally on Wednesday, with Polycab India, KEI Industries, and RR Kabel hitting new all-time highs during intraday trading. According to reports from Business Standard, the shares soared 4% as investors responded positively to the healthy business outlook. In comparison, the BSE Sensex was up only 0.30% at 77,041 at 2:15 PM, highlighting the strong performance of these specialized sectors.
The wire and cable sector has significantly outperformed the broader market over the past six months. As reported by Business Standard, RR Kabel zoomed 60% during this period, while Polycab India and KEI Industries soared 41% and 38% respectively. In stark contrast, the BSE Sensex declined 9% during the same timeframe, demonstrating the sector's resilience and strong fundamentals.
The wire and cable industry is benefiting from accelerating investments in renewable energy infrastructure, electric mobility, and digitization. According to Business Standard, the EU plans to invest $1.6 trillion in power grids and renewable energy projects by 2030, while global spending on AI-driven data centres is forecast to reach $49 billion by 2030. The Indian Wire and Cable Industry has expanded significantly, reaching around ₹1 trillion in FY26 and is expected to maintain strong growth with demand growth estimated at 1.5x–2.0x real GDP.
Motilal Oswal Financial Services noted that Polycab's Q4FY26 operating performance was above estimates, driven by better-than-expected revenue and margins in fast-moving electric goods. The brokerage expects continued strong demand outlook for the next 2-3 years, though the stock trades above their target price of ₹9,800 per share. For RR Kabel, near-term revenue growth is expected to be price-led due to elevated copper and aluminum prices, while the FMEG segment remains in investment phase with management targeting breakeven by FY27.
The demand outlook remains strong across multiple sectors including power transmission & distribution, data centres, infrastructure, construction, and oil & gas. As reported by Business Standard, KEI Industries' growth is set to inflect with Sanand ramp-up driving volume recovery from FY27, while margins are trending favorably with cables EBIT margins at multi-quarter highs. The rapid expansion of renewable energy capacity and increased electrification across sectors continue to drive specialized cable demand across the industry.
