Sector Pulse
The Cables and Power sector delivered a quarter characterized by 16% to 54% YoY revenue growth across 5 of 6 constituents, offset by a 10.3% contraction at UNIVCABLES. Volume growth reached 40% for POLYCAB and 30% for RRKABEL, proving that top-line beats were driven by physical demand rather than mere commodity price pass-throughs.
Catalysts Playing Out Across the Pack
The Value Added Product Mix Shift is the dominant theme. APARINDS pushed its premium product mix to 44.2%, while DIACABS expanded gross margins to 23.3% via Extra High Voltage (EHV) cable sales. Concurrently, Operating Leverage Inflection is visible; RRKABEL posted 86% YoY EBITDA growth, and DIACABS saw a 52% QoQ EBITDA jump as fixed costs were absorbed by higher volumes. The Order Book Or Contract Wins catalyst remains active, with KEI sitting on an INR 3,928 Crore backlog and POLYCAB executing an INR 4.5 billion BharatNet order.
What Managements Are Guiding
Forward outlooks are overwhelmingly numeric and upward-trending. DIACABS raised its revenue target to "Higher double digits", and KEI bumped Q4 growth expectations to "25% plus". Capex commitments are massive, totaling over INR 6,000 crores across the group, led by KEI's INR 2,000 crore plan and POLYCAB's INR 12-16 billion annual run-rate.
Sub-Sector Aggregates
Looking at the aggregates, the YoY Revenue Growth range spans -10.3% to 54%, with 4 of 6 players exceeding 15%. The EBITDA Margin range sits between 8.1% and 14.7%. Companies with higher B2C and EHV exposure (DIACABS at 14.7%, POLYCAB at 12.7%, KEI at 11.98%) are defending double-digit margins better than those heavily indexed to standard institutional cables.
Shared Risks (9-type taxonomy)
The commodity risk is the most acute headwind. Copper and aluminum prices spiked 11% to 25% sequentially between September and December 2025. This forced POLYCAB to absorb a 300 bps margin hit to protect market share, while RRKABEL noted working capital pressure at the channel level. geopolitical risks are also fracturing the export narrative; US Section 232 tariffs caused APARINDS' US cable revenue to plummet 65%, forcing a pivot toward the EU and Middle East—a strategy KEI has already executed, yielding 95% export growth.
Bottom Line
The sector is absorbing a severe commodity shock through volume growth and premiumization. With over INR 6,000 crores in capex entering the pipeline and EHV demand accelerating, the structural setup remains intact despite near-term margin volatility.
