This sector could double by FY32 on India’s infra boom. These 3 stocks are poised to benefit – Stock Insights News

Investment in infrastructure has a very positive impact on the economy, as it remains the key driver of growth for various sectors like cement and paints. Apart from all this, the wire and cable (W&C) sector also gets a boost from investment. Picture this: India’s W&C market is expected to double from $9 billion in FY24 to $17 billion by FY32, as per R R Kabel’s FY25 annual report.

Government-driven infrastructure and electrification programs will be the key growth drivers. Additionally, renewable energy, data centers, solar installations, rising power demand, and investments in real estate are also expected to contribute to growth. But which company is best suited to follow this theme? Here are three such stocks.

#1 R R Kabel

R R Kabel is one of the leading companies in the Indian consumer electrical industry. The company operates in two business segments, including Wires & Cables (W&C) and Fast Moving Electrical Goods (FMEG).

R R Kabel Operates in Two Business Segments

Its W&C business offers a diverse product range, including domestic wiring, industrial wiring, and power cables. The segment has an annual manufacturing capacity of 4.47 million cable-kilometres (ckm). The FMEG portfolio includes fans, lighting, switches, and appliances. It has an annual manufacturing capacity of 3.3 million fans and 16.8 million switches.

R R Kabel is India’s fourth-largest W&C company by value, with a strong position in the housewares category. Domestically, it has a pan-India distribution network of 4,400 distributors, 4,500 dealers, and over 1,91,000 retailers. It also has a global presence in 75 countries.

The company is also a major exporter, contributing around 26% of revenues, while domestic revenues contributed 74% in FY25. In the export market, it manufactures products under its brand and also under private label brands. Europe accounts for over 50% of revenues, and the US for around 10%.

Profitability Impacted by Losses in FMEG Business

Revenue grew 15.5% year-on-year (YoY) to ₹76.2 billion in FY25. W&C segment revenue rose 15% to ₹66.9 billion, accounting for 88% of its revenue. FMEG segment revenue grew 21.5% to ₹9.3 billion, accounting for 12%. Profit after tax (PAT) rose 4% to ₹3.1 billion, while EBITDA margin declined 60 basis points (bps) to 6.4%.

EBITDA stands for earnings before interest, tax, depreciation, and amortization. The FMEG business continues to incur losses, which are dampening its profitability. The segment, however, is expected to break even by FY26, which is likely to boost PAT.

Capacity Expansion to Boost Growth

Looking ahead, the company has launched Project ‘RRise’ with a 3-year roadmap to accelerate growth by FY26-28. It plans to achieve 2.5x growth in EBITDA, 25% YoY growth in FEMG revenue, and 18% in the W&C segment. Moreover, it also plans to increase margins to around 10.5% by FY28.

It aims to grow domestic W&C business by 1.6x and exports by 1.8x. To achieve this growth, it plans to invest ₹12 billion to increase W&C capacity by 1.7 times. This includes adding about 42,000 metric tonnes (MT) of wire capacity to meet demand. Of this, 6,000 MT of capacity is expected to be completed by Q3FY27.

The remaining capacity will be commissioned by FY29. Apart from capacity expansion, the company is also developing 46 new products in the FMEG segment. It is diversifying its range by introducing new switches and switchgears to meet the needs of residential and commercial markets.

From a valuation standpoint, it trades at a price-to-equity multiple of 45x, which is at a discount to the 2-year median of 56x. Relatively, it trades in line with Polycab (45x) and KEI Industries (49x).

R R Kabel Share Price

#2 Polycab India

Polycab is a leading company in the W&C industry, with a market share of 26-27%. Apart from W&C, it also deals in FMEG and engineering procurement and construction (EPC).

The W&C Segment Dominates in Both Revenue and Profitability

Polycab’s revenue grew 24% YoY to ₹224 billion in FY25. W&C segment revenue rose 18% to ₹188.9 billion, contributing 84% to revenue. Out of this, domestic business grew 27%, contributing 94% to W&C revenue. The remaining contribution came from exports.

The segment recorded strong growth due to demand across various sectors. Increased government spending and demand from real estate also contributed to this growth. W&C earnings before interest and tax (EBIT) also rose 8% to ₹25.7 billion.

FMEG business revenue grew 29% YoY to ₹16.5 billion, accounting for 7% of revenue. However, it is still loss-making, with an EBIT loss of ₹0.38 billion. It is noteworthy that losses have more than halved from ₹0.94 billion in FY24.

Polycab Revenue (FY25)

Particulars	Revenue	EBIT	Margin
Total Revenue	₹224 billion	₹20.5 billion	9.1%
W&C	₹188.9 billion	₹25.7 billion	13.6%
FMEG	₹16.5 billion	-₹0.38 billion	-2.3%
EPC	₹19.2 billion	₹1.8 billion	9.4%

Source: Polycab Q4FY25 Presentation

Polycab is on a strong growth path with a focus on premiumization. Solar products are leading the growth, with 2.5x growth in FY25, and becoming the third largest category in the FMEG category. Another segment, EPC business revenue grew strongly by 143% to ₹19.2 billion, accounting for 8.5% of revenue.

The EPC segment is growing on the back of strong order book execution of the restructured distribution sector scheme worth ₹48 billion. EBIT also increased by 186% to ₹1.8 billion. Overall, Polycab PAT increased by 9% YoY to ₹204 billion.

Project Spring Expected to Unlock Growth

Looking ahead, the company expects the domestic business to grow strongly. It also expects the international business to pick up in FY26, driven by a strong order book and favourable demand environment. Polycab also launched a new project called Project Spring to drive the next phase of growth over five years during FY26-30.

Under this project, the company plans to invest ₹12-16 billion annually till FY30. A major portion of this capex will be invested in the W&C business and the rest in the FMEG business. It also plans to increase international business contribution to around 10% by FY30.

Polycab aims to grow the FMEG business at around 1.5-2 times the industry growth rate of 8-10%. With higher growth, it expects to improve FMEG margins to 8%-10%. Polycab trades at a P/E multiple of 46x, in line with its 5-year median of 43x.

#3 KEI Industries

KEI Industries manufactures low tension, high tension, and extra high voltage cables as well as control and instrumentation, specialty cables, housing wire, and stainless steel wire. It also operates in EPC works for electrification, which includes laying of cables, installation of transformers, separation of feeders, and providing last-mile connections.

KEI Boasts a Diverse Product Mix

KEI products are in great demand across various end-user industries such as urban and rural electrification, solar power projects, tunnel and ventilation projects on highways, railways, and metro rail projects. KEI has a diverse channel mix with presence in institutional, retail, and export segments.

Its revenue is well diversified across 2,000 institutional clients. Revenue grew 20% YoY to ₹97.4 billion in FY25. C&W’s institutional segment revenue rose 14% to ₹41 billion, accounting for 42% of revenue. Of this, 26% came from exports and 74% from domestic sales.

Well-Diversified Revenue Mix

On the other hand, sales through dealers and distribution grew 35% to ₹51 billion. This is 52% of the revenue. Revenue is well diversified across North (38%), West (28.5%), South (18%), and East (15.5%). The rest (6%) comes from the stainless steel and EPC segment. KEI PAT also rose ₹20% to about ₹7 billion, with margins steady at 10.9%.

Looking ahead, KEI has raised about ₹20 billion to set up a new greenfield capacity at Sanand in Gujarat. This facility is expected to be partially operational by FY26. The company also regularly undertakes brownfield expansions at its existing plants.

Besides, it is also expanding its distribution network by adding dealers to increase retail sales. KEI enjoys higher margins in retail sales as compared to the institutional sector. KEI trades at a P/E of 49x, well-above the 10-year median of 33x.

KEI Share Price

Conclusion

As India’s infrastructure push intensifies, W&C companies are emerging as quiet beneficiaries. R R Kabel is betting on capacity expansion and FMEG growth to lift margins. Polycab is focusing on both domestic and export growth, with solar and EPC driving momentum. KEI, with its balanced channel mix and expansion plans, is quietly strengthening its position. While all three companies are well-positioned, they are all well-placed to capture the larger share of this $17 billion opportunity by FY32.

Disclaimer

Note: Throughout this article, we have relied on data from and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.

The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.

Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.

A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.

Disclosure: The writer and his dependents do not hold the stocks discussed in this article.

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