India’s cable and wire industry is heading toward one of its strongest growth years in recent memory, with revenues projected to rise by as much as 30% in FY27 despite mounting pressure from soaring raw material costs.
According to a recent analysis by CRISIL Ratings, the sector is expected to deliver revenue growth of 28-30%, driven by a combination of strong infrastructure demand and significant increases in the prices of key inputs such as copper, aluminium, and PVC.
The outlook comes after a year of robust volume-led expansion, with the industry recording more than 20% growth in FY26. However, the next phase of growth is expected to be driven increasingly by higher realizations as manufacturers pass rising commodity costs through the value chain.
Copper and aluminium prices have risen sharply over the past year, climbing between 22% and 27%, while PVC prices have increased by roughly 12%. Industry analysts attribute the rally to tightening global supplies, geopolitical disruptions linked to the West Asia conflict, and growing demand from energy and infrastructure sectors worldwide.
Despite higher input costs, demand fundamentals remain exceptionally strong.
India currently has an estimated ₹10-12 lakh crore investment pipeline spanning power transmission, renewable energy, real estate, data centres, smart meters, and other infrastructure projects. Housing wires and power cables alone account for nearly half of the industry’s revenue, placing cable manufacturers at the center of India’s infrastructure expansion story.
CRISIL expects volume growth to moderate to around 10% this fiscal as higher product prices may temporarily delay some discretionary industrial investments. However, manufacturers are expected to largely protect margins through calibrated price increases and strong pricing power.
The industry’s expansion is also triggering a fresh wave of capacity additions.
With utilization levels already approaching 75%, manufacturers are accelerating expansion plans. Industry capacity is expected to increase by 20-22% by FY27, with nearly half of the new capacity expected to come from recent entrants seeking to capitalize on the sector’s growth prospects.
The copper rally, in particular, is attracting growing attention across the supply chain. Major financial institutions including Goldman Sachs and Citi have recently warned of looming global copper shortages, citing mine disruptions, declining ore grades, and surging demand from power grids, electric vehicles, renewable energy, and AI infrastructure. These factors are expected to keep copper prices elevated in the medium term.
For cable and wire manufacturers, the challenge now lies in balancing higher raw material costs with growing market opportunities. For suppliers of PVC compounds, stabilizers, additives, and specialty chemicals, the continued expansion of India’s cable industry is expected to create significant downstream demand over the coming years.
As infrastructure spending accelerates and electrification projects gather pace, the cable and wire sector appears poised to remain one of the strongest-performing segments within India’s broader manufacturing and industrial ecosystem.