India Cables and Wires Sector Set for Strong Q2 FY2027 as Copper Prices and Grid Investment Drive Growth

The Quick Take

• India's wires and cables sector is expected to deliver a strong Q2 FY2027 driven by elevated copper and aluminium prices and value-led revenue growth across the sector.
• Diamond Power Infrastructure and Finolex Cables are InCred Equities' top picks for Q2 outperformance, with Diamond Power benefiting from EHV grid infrastructure orders.
• The sector benefits from a structural multi-year tailwind as India's renewable energy expansion and grid modernization investment drive sustained cable demand.

India's wires and cables sector occupies a favourable position at the intersection of two multi-year tailwinds: rising industrial metal prices that flow through to average selling prices via commodity pass-through pricing mechanisms, and India's accelerating infrastructure investment cycle. Companies with copper pass-through contracts can deliver revenue growth from raw material price increases without sacrificing margins, provided procurement hedging is well managed. Q2 FY2027 results will reflect copper prices that have remained elevated through the period, providing a broad-based revenue uplift across Polycab, Diamond Power, Finolex, RR Kabel, and KEI Industries.

Diamond Power Infrastructure stands out for its positioning in the extra-high-voltage cable segment used for large power transmission projects, including new lines for renewable energy evacuation. India's national grid modernization — connecting solar and wind generation in Rajasthan and Gujarat to consumption centers in Maharashtra and the South — requires new EHV cable networks at scale, and Diamond Power is among the limited suppliers qualified for 400kV and above projects. Finolex benefits from strong brand recognition in the residential construction segment, where wiring demand tracks directly with India's housing construction activity currently at a multi-year high.

Forward signals include the full Q2 FY2027 results for the entire sector cohort, with Polycab India's results typically setting the tone given its market leadership. Copper prices at the London Metal Exchange are the primary input variable — sustained levels above $9,000 per tonne drive strong ASP-led revenue growth. Watch Power Grid Corporation of India's annual capex plan and state transco tender activity for new EHV line orders, which will define the medium-term demand curve for infrastructure-grade cables that Diamond Power and its peers supply at the high-value end of the product mix.

Synthesized from 1 source.