Brokerage Predicts Strong Second Quarter For Wire And Cable Companies

Financial Outlook

India's wires and cables sector is heading toward another strong quarter, supported by value-led growth and higher prices for copper and aluminium. Brokerage firm InCred Equities expects Diamond Power Infrastructure Limited and Finolex Cables to outperform their peers in the second quarter of the financial year 2026-27. Other key industry players like Polycab India, KEI Industries, and RR Kabel are also projected to post double-digit growth. The arrival of Ultravolt, UltraTech Cement's cable business, has caused no material impact on existing industry players so far.

Company Projections

Polycab India expects revenue to surge nearly 39 percent annually, while its EBITDA may jump 20 percent. However, its margin could drop 215 basis points to 13.6 percent because of a high inventory gain base, and the stock closed 1.21 percent higher at ₹8,250 on Friday. KEI Industries anticipates a 27 percent annual jump in revenue and a 48 percent increase in EBITDA, with its stock closing 1.01 percent lower at ₹4,583. RR Kabel is projected to see a 39 percent annual jump in revenue alongside a 48 percent EBITDA improvement, though profit after tax may decline about 16 percent sequentially, with shares closing 0.46 percent higher at ₹2,705.30. Finolex Cables looks toward 38 percent annual growth driven by its electrical and communications segments, with shares closing 0.83 percent lower at ₹1,390.25. Diamond Power Infrastructure expects to maintain its strong momentum with a robust order book in the MT and HT segments, while its stock closed 1.71 percent higher at ₹378.15 on the BSE.

Context

Brokerage earnings previews help investors understand what financial performance to expect from listed companies ahead of their official quarterly financial results. These projections look at sales volumes, profit margins, and market trends to gauge overall sector health.