JPMorgan has initiated overweight coverage on two prominent cable and wire manufacturers, citing strong sector fundamentals and earnings upside potential. The global brokerage's positive stance comes amid robust industry growth and structural demand drivers supporting the cables and wires sector.

Industry Growth Momentum

India's cables and wires industry has demonstrated impressive growth trajectory, expanding at a compound annual growth rate of approximately 11.00% over the past five years. The sector reached an estimated market size of ₹90,000 crore in FY25, with growth momentum accelerating further to nearly 13.00% during FY23-FY25.

The growth has been supported by rising demand from multiple sectors including real estate, renewable energy, infrastructure development, and industrial capex. According to projections, the industry is expected to expand at 1.50-2.00 times India's real GDP growth over the near to medium term, reflecting strong structural demand drivers.

Export Performance and Market Dynamics

India has emerged as a net exporter of cables and wires since FY20, with exports demonstrating remarkable growth. Export revenues climbed from ₹8,300 crore in FY20 to ₹19,800 crore in FY25, translating into a robust 19.00% CAGR.

The sector benefits from specific demand patterns, with cables typically accounting for 5-10% of total project capex. Notably, every 1 MW of new data centre capacity can generate approximately ₹3.50 crore of incremental cable demand, pointing to substantial growth opportunities for premium and institutional-grade cabling manufacturers.

Polycab India Coverage Initiation

Polycab India, with a market capitalization of ₹1.13 lakh crore, received an overweight rating from JPMorgan with a target price of ₹8,900 per share. This implies potential upside of approximately 17.00% from previous closing levels. The stock hit an intraday low of ₹7,526 on BSE, declining around 1.30% during Tuesday's trading session.

JPMorgan expects Polycab to outperform peers in the near term, though the brokerage cautioned that the company's margin superiority may face pressure as competitive intensity increases. The report noted that Polycab's EBIT margins, approximately 450 basis points higher than the top five peers, could gradually normalize due to new entrants targeting the organized wires segment.

KEI Industries Coverage Analysis

KEI Industries, with a market capitalization of ₹41,198 crore, also received an overweight rating with a target price of ₹5,250 per share, implying potential upside of more than 20.00% from previous close. The stock reached an intraday low of ₹4,282.25 on BSE, declining approximately 2.00% during Tuesday's session.

According to JPMorgan, KEI Industries is better positioned than most peers due to its higher exposure to cables, which contribute around 65-70% of revenues. The brokerage highlighted KEI's cleaner play on cables and wires, stronger export footprint, and higher exposure to Extra High Voltage products.

Competitive Landscape and Risk Factors

The sector faces potential challenges from new entrants, particularly large conglomerates entering the wires segment. The Adani Group announced its entry through Kutch Copper Limited's joint venture, Praneetha Ecocables Ltd., with 50.00% stake. Additionally, UltraTech Cement revealed plans to enter the segment with ₹1,800 crore capex spread over two years.

JPMorgan's FY27 EPS estimates for both Polycab and KEI Industries are 8-12% higher than current consensus forecasts, indicating scope for positive earnings revisions. The brokerage expects near-term earnings upside supported by rising global copper prices, which tend to benefit inventory-led players. However, increased competition could pressure industry margins and return on capital employed over time, though both companies are considered relatively better positioned than peers.

Polycab India Limited has completed the allotment of equity shares to employees under its Employee Stock Option Performance Scheme 2018. The Finance and Operations Committee approved this corporate action during its meeting on January 12, 2026, demonstrating the company's commitment to employee participation in ownership.

Share Allotment Details

The allotment encompasses 8,650 equity shares distributed among eligible employees who exercised their stock options under the established scheme. The following table summarizes the key parameters of this allotment:

Employee Stock Option Framework

The allotment represents the successful exercise of stock options by eligible employees under Polycab's Employee Stock Option Performance Scheme 2018. This scheme enables qualifying employees to acquire equity shares in the company, aligning their interests with long-term organizational performance and shareholder value creation.

Regulatory Compliance

Polycab India Limited has notified both the BSE Limited and National Stock Exchange of India Limited about this allotment, ensuring full compliance with listing requirements and regulatory frameworks. The company maintains transparency in its corporate actions through timely disclosure to relevant stock exchanges.

Corporate Information

Polycab India Limited operates with its registered office located at Unit 4, Plot No 105, Halol Vadodara Road, Village Narpura, Taluka Halol, Panchmahal, Gujarat. The company's corporate office is situated at The Ruby, 21st Floor, Senapati Bapat Marg, Tulsi Pipe Road, Dadar (West), Mumbai. The allotment was executed under the supervision of Vice President-Legal and Company Secretary Manita Carmen A. Gonsalves.