India's Cables & Wires Sector to Grow 13-14% CAGR

The Indian cables and wires sector is poised for sustained growth, driven by a broad-based demand recovery across infrastructure, industrial capex, and exports. With a projected market size of around Rs 900 billion by FY25, the industry is expected to maintain a similar growth trajectory over the medium term.

Demand Drivers

The demand environment remains robust, with power generation, transmission, and distribution projects emerging as key volume drivers. This is complemented by accelerating investments in renewables, metro and rail infrastructure, defence, and electric vehicles.

Growth Outlook

The sector's growth is not narrowly concentrated, but benefits from diversified end markets, which lends resilience across cycles. The industry is expected to grow at a 13-14% CAGR over FY25-30, taking the market size close to Rs 1.9 trillion.

Key Players

Companies like Polycab India and KEI Industries are well-positioned to benefit from this growth trend. Polycab India continues to deliver strong momentum in its core Cables & Wires business, supported by robust demand across power, infrastructure, real estate, and industrial capex. KEI Industries reported a robust 2QFY26 performance, with revenue rising ~19% YoY to INR27.3b, led by ~22% growth in the Cables & Wires segment.

Investment Opportunities

The C&W sector offers a compelling medium-term opportunity aligned with India's infrastructure and electrification priorities. With growth projected at 1.5-2.0 times real GDP, stable margins aided by commodity pass-through, and increasing export competitiveness driven by quality improvements and global certifications, investors can look to tap into this growth story.

Remember, this is a perspective, not a prediction. Do your own research and consider your own risk tolerance before making any investment decisions.