Synopsis: Three wiring stocks, including a stock with an industry-leading margin of 14 percent, surged up to 4 percent as India’s data center boom unlocked a Rs 25,000 crore cable industry opportunity, boosting demand visibility.
India’s fast-expanding data center industry is driving strong demand for power and fiber cables, with capacity expected to reach 10 GW by 2030. On this optimism, three major wiring stocks surged up to 4 percent today, reflecting expectations of sustained order inflows, better capacity utilization, and long-term growth prospects.
With a market cap of Rs 1.25 lakh crore, Polycab India Ltd is one of the first stocks that surged by 3 percent today to hit an intraday high of Rs 8404. Another stock, Finolex Cables Ltd, saw its stock grow by 2 percent to hit an intraday high of Rs 829. KEI Industries Ltd also saw its stocks grow by 4 percent to hit an intraday high of Rs 4974.
Why the surge in cable stocks?
With the boost in data centers, India’s capacity is set to rise from nearly 950 MW in 2024 to over 8GW in 2030, supported by investments with as high as US dollar 25 billion by 2030. This expansion has also been driving strong demand for power and fiber cables, significantly boosting orders for cable companies across electrical wiring and optical fiber segments.
Why are cables important in Data centers
Cables are critical in data centers as they enable reliable power supply, high-speed data transmission, and seamless connectivity between servers, storage, and networking equipment. Efficient cabling ensures minimal latency, uninterrupted operations, better airflow management, and scalability, which are essential for maintaining performance, uptime, and overall operational efficiency.
With rapid expansion in data center capacity, demand for advanced electrical, fiber-optic, and structured cables is rising sharply. High-quality cabling supports higher bandwidth, faster speeds, and improved energy efficiency. This ensures stable operations, future-ready infrastructure, and long-term reliability, driving sustained growth opportunities for cable manufacturers.
According to one of the key players in this industry- India’s data centre expansion is expected to create a Rs 25,000 crore opportunity for the cables and wires industry, this was said by KEI Industries CMD, who even estimates the investment of $30- 35 billion by 2030- 31, translating into 8- 10 GW capacity, and he believes cables form about 3- 5 percent of total project costs fro building a data center.
Additionally, he also said each 1 GW data centre requires Rs 3,500- 4,000 crore worth of cables. With an 11- 13 percent market share, KEI could capture Rs 2,500- 3,000 crore. Rising investments, strong domestic manufacturing, and limited import dependence position cable stocks to benefit from sustained demand and long-term growth.
Business Overviews
KEI Industries is a leading manufacturer of power cables, wires, and EPC solutions. In FY25, it reported revenue of around Rs 9,700 crore, growing nearly 20 percent YoY. The company currently operates with operating profit margin of about 10 percent, supported by strong demand from infrastructure, real estate, and industrial sectors.
Finolex Cables manufactures electrical and communication cables, along with fast-moving electrical goods. In FY25, it generated revenue of nearly Rs 5,300 crore, recording 6 percent annual growth. The company maintains operating profit margin of around 10 percent, driven by strong brand presence, cost efficiency, and expanding retail distribution across India.
Polycab India is India’s largest wires and cables maker with a strong presence in FMEG products. In FY25, it posted revenue of around Rs 22,400 crore, growing 24 percent YoY. The company enjoys industry-leading operating profit margin of 14 percent, supported by premium products, brand strength, and operational efficiency.
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