India’s cables and wires industry to grow 16% in FY26

Mumbai

India’s cables and wires industry is poised for a robust revenue growth of 15-16% in fiscal year 2026, following a 16% rise in fiscal 2025, according to a report by Crisil. This growth is fueled by increased investments in sectors like power generation, transmission, railways, and real estate.

The sector is also benefiting from the global "China+1" strategy, where Western countries are seeking alternative suppliers to reduce reliance on China. India stands to gain significantly from this shift, with its competitive edge in quality and a broader product range.

Organised players, who account for nearly two-thirds of the industry’s demand, are projected to see a 15% increase in domestic revenue. Exports are expected to rise faster, by 20-22%, as Indian manufacturers gain preference over Chinese companies, particularly in markets like the United States and Europe.

Demand in the sector remains strong, with industry capacity utilisation reaching 80-85% in fiscal 2024. Capital expenditure has surged by 70% in fiscal 2025 and is expected to continue growing in fiscal 2026.

The industry's financial stability remains solid, with a stable operating margin of 10-11%. Its ability to manage raw material price fluctuations, particularly with copper and aluminum—key components accounting for 70% of sales—has helped maintain profitability.

Crisil’s analysis indicates that the industry will continue to attract new investments, with return on capital employed (RoCE) projected to stay above 20%, ensuring its financial strength in the coming years.