The Indian wires and cables market was valued at approximately Rs 79,640 crores in 2024 and is projected to grow from Rs 85,583 crores in 2025 to Rs 1,45,979 crores by 2032, exhibiting a compound annual growth rate (CAGR) of 7.94 percent during the forecast period.
Business Overview
Finolex Cables is one of the major manufacturers of electrical and communication cables that include: power, solar, automotive cables, optical fiber cables, and FMEG products, namely switches, fans, LED lights, and water heaters under the Finolex brand. Products are sold to consumers through both retail and e-commerce channels.
RR Kabel manufactures wires and cables, and FMEG products for residential, commercial, industrial and infrastructure use. The range of products includes house wires and industrial wires, power and special cables, fans, lighting, switches, switchgear and water heaters that are used in domestic and foreign markets.
Financial HIghlights
Finolex Cables reported a revenue growth of 6.08 percent to Rs 5,319 crores in FY25 from Rs 5,014 crores in FY24. Its net profit also increased by 7.51 percent, rising to Rs 701 crores from Rs 652 crores in the previous fiscal year. It reported that, in FY25, due to the fluctuation in commodity prices, Electrical Wires growth was flat in volume, while Cables grew by 15 percent, and OFC volumes were higher by 30 percent.
RR Kabel posted a revenue growth of 15.52 percent, reaching Rs 7,618 crores in FY25 compared to Rs 6,595 crores in FY24. The company’s net profit rose by 4.70 percent to Rs 312 crores from Rs 298 crores in FY24. It reported a 14.7 and 21.7 percent surge in its wire & cable and its FMEG division, to Rs 6,688.8 and 929.5 crores in FY25 respectively. As of Q4 FY25, it derived 88 and 12 percent of its revenue from its wires & cables and its FMEG segment respectively.
Finolex cable has a P/E ratio of 20x; on the other hand, RR Kabel has a P/E ratio of 47.81x against the industry P/E ratio of 33.21x. This highlights that Finolex Cables is trading at a fair valuation, whereas RR Kabel is currently overvalued.
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Future Prospects
As of November 2024, Finolex announced a Rs 500 crore capex over 18–20 months to expand product capacities, boost backward integration with optical fiber preforms, scale auto cable capacity by 50 percent, and set up new compound and e-beam facilities. Commercialization is targeted for H2FY26.
RR Kabel has announced a capex plan of Rs 1,200 crores over FY26 to FY28, aimed at achieving a 1.7x capacity expansion. This includes new facilities in Silvassa for wires and Waghodia/Vadodara for cables. The expansion is expected to drive 15–20% volume growth along with margin improvement. Additionally, a previous capex of Rs 500 crores is nearing completion and is set to contribute meaningfully to growth in FY26.
Conclusion
RR Kabel delivers better revenue growth and more zealous growth plans but is also priced at a premium. Finolex Holdings is relatively stable compared to RR Kabel with a lower P/E indicating a better value proposition given peers. Additionally, both companies indicate they are going to pursue sustaining capex or expansion capex to increase their capacity, which is advantageous during expansion times. However, investors must conclude their own research before investing.
Written by Satyajeet Mukherjee
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