Cable and wire sector stocks faced significant pressure on Tuesday, with Polycab, KEI Industries, RR Kabel and Quadrant Future Tek down up to 5% during intraday trading on BSE. According to Business Standard, these stocks have corrected up to 24% from their respective 52-week highs touched last month, as increasing competition may result in pricing pressure, higher promotional spending, and slower market share gains. The market reaction reflects investor concerns about intensifying competition in the sector, with Aditya Birla Group's launch of Ultravolt on September 3, 2026 marking a significant new entrant backed by ₹1,800 crore investment.
Aditya Birla Group's Ultravolt, launched on September 3, 2026, is backed by ₹1,800 crore investment and will be the second-largest player in the wires segment by capacity. As per Business Standard, UltraTech's entry extends its participation in the construction value chain beyond grey cement, ready-mix concrete, building products, and white cement consistent with its Building Solutions strategy. The brokerage Asit C. Mehta Financial Services (ACMIL) believes UltraTech's entry through Ultravolt will primarily intensify competition in house wires, flexible wires and low voltage (LV) power cables only up to 11kV. However, existing players like Polycab, RR Kabel and KEI have different revenue streams such as retail/B2C segment, Institutional segment, presence in low, medium and higher-voltage cables (>11kV up to 220kV/400kV) and already established networks, which may limit immediate impact.
India's wires and cables sector is positioned for another robust quarter in Q2 FY27, with multiple companies expected to deliver strong results driven by higher copper and aluminium prices and value-led growth. According to InCred Equities, Diamond Power and Finolex Cables are likely to outperform peers, while other major players including Polycab India, KEI Industries, and RR Kabel may also see double-digit growth. The brokerage notes that higher copper and aluminium prices are getting passed through to customers with volumes remaining in low to mid-single digit ranges, supporting the sector's strong performance trajectory despite current market pressures.
Global investment bank Jefferies has identified Polycab and Finolex Cables as its preferred picks in the Indian cables and wires sector, projecting significant upside potential. Jefferies has assigned a price target of ₹11,100 for Polycab, implying an upside of 35% from the stock's current price of ₹8,216. For Finolex Cables, the investment bank has set a target price of ₹1,410 apiece, though this implies only marginal upside. The Indian cables and wires industry continues to benefit from robust demand across multiple sectors, with power cables requirement ramping up and key growth drivers including data centers and the solar industry. The premiumisation of the residential sector in metro cities remains a significant catalyst, while copper cables are required for ensuring steady power supply in data centers.
Despite current market pressures, the Indian cables and wires industry presents significant growth opportunities with India's C&W market estimated at ₹1 trillion in FY26 and expected to reach ₹1.5 trillion–1.6 trillion by 2030, implying an 11–12% compound annual growth rate (CAGR). According to ACMIL, the sector is supported by rising investments in power transmission & distribution, infrastructure, renewable energy, housing, data centres, railways, telecom and the EV ecosystem. The premiumisation of the residential sector in metro cities remains a significant catalyst, while copper cables are required for ensuring steady power supply in data centers. However, the brokerage notes that large diversified conglomerates such as UltraTech Cement and the Adani Group, which have announced plans to establish a presence in the sector, are likely to intensify competition.
