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Informist, Tuesday, Jun. 2, 2026

 

MUMBAI – The top line of cable and wire manufacturers in India is expected to rise around 28-30% in 2026-27 (Apr-Mar), mainly due to their ability to pass on the sharp increases in prices of key raw materials, according to Crisil Ratings Ltd. Operating profits of these companies are also expected to expand 12-13% this year amid "high pricing flexibility," which should more than offset the rise in raw material costs and higher competition in the sector, Crisil said in a report Tuesday.

 

The volume growth of these companies is expected to moderate this year after strong growth in FY26. However, it will still be supported by steady demand from infrastructure-linked sectors such as thermal power, renewables and data centres, and the real estate sector. Crisil analysed 17 such companies that account for around 70% of the organised sector's revenue of INR 1 trillion. Volumes in the cable and wire sector have risen at a compounded annual rate of over 15% in the last five years, Crisil said.

 

"This fiscal (FY27) too, volumes will continue to grow on the back of demand for housing wires and power cables (~50% of total revenue) with investments upto Rs. 10-12 lakh crore (INR 10 trillion-INR 12 trillion) lined up in renewables, power, real estate and new age sectors like data centres and smart meters," Mohit Makhija, senior director at Crisil Ratings, said in the report. "However, volume growth is expected to be a tad lower this fiscal at ~10% as higher prices (18-20% rise in realisations) may lead to some deferment of discretionary capex spends by industrial sector," Makhija said.

 

Prices of key raw materials such as copper and aluminium have risen around 22-27% amid tightening global supply due to the West Asia war. Prices of polyvinyl chloride, another key raw material, have risen by around 12% over FY26, according to the report. "It may be pertinent to note here that cables and wires generally form less than 5% of total project cost. However, increasing competition with entry of new players will limit incumbents' ability to some extent, and price hikes will be more calibrated," as per the report.

 

Healthy cash flows and steady demand will encourage these companies to ramp up capital expenditure as utilisations had already touched 75% in FY26, Rucha Narkar, associate director at Crisil Ratings, said in the report. Overall capacities are expected to rise gradually by 20-22% by the end of FY27, of which nearly half will be added by the new entrants, Narkar said.

 

Strong cash flows and low reliance on external debt is expected to keep these companies' credit profiles stable. Increasing competitive intensity and any slowdown in investments in end-user segments will bear watching, as per the report.  End

 

Reported by Ashutosh Pati

Edited by Avishek Dutta

 

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