Housewires to Hyperscalers: How India’s Rs 3-Lakh-Crore Data Centre Push Could Lift RR Kabel’s Growth
The Indian wires and cables (W&C) market is expected to nearly double to $17.08 billion by 2032, growing at a 10% CAGR since FY14. Organised players have consistently outpaced the unorganised segment, according to Ambit. Beyond traditional drivers such as infrastructure and real estate, incremental demand is expected from renewables, digital infrastructure, data centres, and electric vehicles.
India’s Data Centre Boom
Jefferies estimates that adding eight gigawatts of data centre capacity by FY30 alone will require investments of around $30 billion (Rs 2.7 lakh crore). This gradual broadening of end-use applications reinforces the growth outlook for established, organised W&C players such as R R Kabel. RR Kabel share price is expected to benefit from this trend.
RR Kabel’s Business Verticals
RR Kabel operates through two business verticals: the W&C segment and the fast-moving electrical goods (FMEG) segment. The W&C segment continues to dominate the business and contributes close to 90% of total revenue. The portfolio includes housewires, industrial wires, power cables, and specialised cables for renewable energy, railways, and data centres.
Expansion Plans
To support growth, the company plans to invest Rs 1,200 crore to expand manufacturing capacity by 1.7 times. About 80% of the investment will go into the cables business, including adding 36,000 metric tonnes of cable capacity and 6,000 metric tonnes of wire capacity. The first phase of 12,000 metric tonnes is expected to be operational by Q4FY26.
Data Centre Opportunities
The company is positioning itself as a solution provider as India expands digital infrastructure. Data centres, along with the rollout of 5G networks and the BharatNet project, drive demand for communication and high-speed data transmission cables. Management expects data centres to undergo a structural shift and grow over the long term.
Financial Performance
In the first half of FY26, revenue from operations rose 16.7% year-on-year to Rs 4,222 crore. Net profit increased 80.9% to Rs 206 crore, marking the company’s highest-ever half-yearly performance. Strong revenue growth improved operating profitability, with operating EBITDA rising 76.4% year-on-year to Rs 319 crore.
Valuation and Outlook
At Rs 1,502 per share, R R Kabel trades at a price-to-earnings multiple of 42, compared with its closest peer, Polycab, at 46. Return on capital employed stands at 19.4%, and return on equity at 15.6%. Elevated copper prices may pressure W&C margins in the near term if costs are not passed on to consumers. For more information on copper prices in India, visit our website.
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