Finolex Cables stock on 4-day winning run; up 100% from Feb low
Finolex Cables price movement
The stock price of the electrical cables company quoted higher for the fourth straight trading day, surging 15 per cent during the period. It has doubled or zoomed 100 per cent from its February 2026 low of ₹701 on the BSE. The stock hit a record high of ₹1,700 on June 25, 2024.
At 01:11 PM, Finolex Cables was trading 3 per cent higher at ₹1,392.15, against a 0.04 per cent rise in the BSE Sensex. A combined 1.8 million equity shares changed hands on the NSE and BSE.
Finolex Cables – Overview, outlook
Finolex Cables is a diversified manufacturer of electrical and communication cables, alongside a growing portfolio of consumer electrical products.
During the financial year 2025-26 (FY26), Finolex Cables invested approximately ₹240 crore in capital expenditure, including its investment in the Sumitomo joint venture, and planned a further ₹200 crore of investment in FY27.
Given the demand Finolex Cables is seeing from data centre and AI-led applications, the management said it is now moving with urgency to commission Phase 2 of this expansion, an investment of approximately ₹100 crore that will take perform capacity to nearly 8 million kilometres of fibre.
Alongside this, Finolex Cables is investing in newer cabling equipment designed to meet the more complex specifications that data centre applications demand, distinct in design and consumption from traditional telecom-grade fibre. Together, these investments position the company to serve hyperscalers and large data infrastructure customers as they scale their presence in India, the management said.
“The opportunities before us remain compelling. Continued investments under the Revamped Distribution Sector Scheme (RDSS), expansion of renewable energy infrastructure, BharatNet, fibre-to-the-home deployment, 5G rollout, electric vehicle adoption and the accelerating build-out of data centres and AI infrastructure continue to create favourable long-term demand across our businesses,” Finolex Cables said in its FY26 annual report.
With expanded manufacturing capacities, strengthened backward integration, a diversified product portfolio and one of India’s widest distribution networks, the management believes Finolex Cables is well-positioned to capitalise on these structural growth drivers.
Wires and Cables sector outlook
The India wires and cables market size was valued at $9.32 billion in 2024. The market is projected to grow from $10.01 billion in 2025 to $17.08 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.94 per cent during the forecast period.
India has observed a substantial rise in the demand for wires and cables due to the country’s ambitious renewable energy goals and the growing awareness of the potential of renewable energy, such as solar and wind power. In solar power plants, photovoltaic (PV) projects require a high-quality cabling system that connects all electrical components with minimal energy loss. The significant growth of solar panels in India is creating a considerable demand for solar cables, Finolex Cables said in its FY26 annual report.
According to industry standards, a 1 MW solar project will use about 50 km of solar cable. Considering the Indian government’s target of 100 GW of installed solar capacity by 2022, India’s solar cable requirement alone is more than 5 million kilometers, the company said.
Jefferies view on Finolex Cables
Despite 60 per cent plus rally year to date, Finolex Cables’ 1 year forward price to earnings (PE) at 21x is notably below peers. Communication (75 per cent optical fiber cable) drove margin upswing, now at 23 per cent of June 2026 quarter earnings before interest and tax (EBIT), said analysts at Jefferies.
Finolex targets to double its fiber draw capacity to 8mnkm by December 2026 quarter. Assuming fiber price of ~$11/km, this capacity can generate sales of ₹200-250 crore/quarter (estimate 11 per cent of FY28e sales). Electricals (85 per cent of sales) stays the mainstay biz; Solar, extra high voltage (EHV) is new drivers. Fast moving electrical goods (FMEG) EBIT stays positive. FY26-29e EBITDA CAGR estimated at +22 per cent, the brokerage firm said in September 8, 2026, report. The brokerage recommended a ‘Buy’ rating with a price target of ₹1,410 per share. Key risks are demand slowdown, sharp volatility in copper/optic prices. Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers’ discretion is advised.
