Aluminium and copper price hike expected to lead Indian cable and wire sector towards 30% revenue growth

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India’s cable and wire industry is expected to report revenue growth of 28-30 per cent in FY27, supported not only by infrastructure demand but also by tighter global supplies nd increasing prices of aluminium and copper, according to a report by Crisil Ratings. 

The sector is expected to benefit from an investment pipeline of INR 10-12 trillion (USD 105-126 billion) across power transmission, renewable energy, real estate, data centres and smart meter projects. The growth forecast comes after the industry recorded more than 20 per cent volume-led growth in FY26.

Crisil’s analysis covers 17 cable and wire manufacturers that account for nearly 70 per cent of the organised sector’s revenue of around INR 1 trillion (USD 10.5 billion). Organised companies contribute nearly two-thirds of the industry's total revenue.

Demand for housing wires and power cables, which account for around half of the industry's revenue, is expected to remain strong due to ongoing investments in power, renewable energy, real estate, and newer sectors such as data centres and smart meters. 

But according to Mohit Makhija, Senior Director at Crisil Ratings, “volume growth is expected to be a tad lower this fiscal at around 10 per cent as higher prices (18-20 per cent rise in realisations) may lead to some deferment of discretionary capex spends by the industrial sector.” 

Raw material costs have increased sharply due to tighter global supplies and disruptions linked to the West Asia conflict. Over the past fiscal year, prices of copper and aluminium rose by 22-27 per cent, while polyvinyl chloride (PVC), another key input, increased by around 12 per cent.

Despite rising commodity prices and growing competition from new entrants, Crisil expects manufacturers to pass on most of the higher costs to customers while maintaining pricing discipline. As a result, operating profits in absolute terms are projected to increase by 12-13 per cent during FY27.

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The report also points to a new capacity expansion cycle across the industry. Capacity utilisation reached around 75 per cent in FY26, encouraging companies to invest in additional production facilities.

According to Rucha Narkar, Associate Director at Crisil Ratings, industry capacity is expected to increase by 20-22 per cent by the end of FY27, with nearly half of the new capacity coming from new entrants.

Most of the expansion is expected to be funded through internal accruals and equity rather than debt. Crisil estimates that debt-to-EBITDA ratios will remain at 0.5-0.6 times, while interest coverage is expected to stay strong at 16-17 times, supporting stable financial profiles across the sector.