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W&C companies under our coverage are expected to report strong revenue growth in Q2FY27, supported by commodity-led realization gains, and healthy domestic sales, with cables continuing to outperform wires. The FMEG segment is expected to see a gradual recovery in Q2FY27, supported by price-led growth across appliances and consumer electricals, although demand remains mixed across categories. The RAC segment is expected to witness healthy growth, supported by strong demand in Jul’26- Aug’26, while margins are likely to remain under pressure. We expect our consumer durables universe to register sales/EBITDA/PAT growth of 29.5%/18.2%/19.3% YoY in Q2FY27. Furthermore, we anticipate RRKABEL, POLYCAB, and KEII to outperform, while BJE and CROMPTON to underperform in sales. In terms of profitability, VOLT is expected to outperform.

We continue our positive view on W&C companies driven by higher realization, domestic demand, and favorable industry trends in both domestic and export markets. POLYCAB and BLSTR are our top picks.

W&C - Realization-led revenue growth:

W&C companies under our coverage are expected to deliver moderate single-digit volume growth in Q2FY27, with cables outperforming wires. Revenue growth is likely to remain strong, driven by higher realization, while channel demand remained healthy. Rise in RM prices is driving realization higher (Cu up 57.2% & Al up 34.9% YoY in Q2FY27). Domestic infrastructure development, housing activity, and the continued shift toward organized/branded players are expected to sustain healthy offtake. We estimate HAVL/ POLYCAB/KEI/RRKABEL to see W&C revenue growth of 23%/42%/28%/40% YoY in Q2FY27

FMEG – gradual recovery with steady appliance and solar momentum:

The FMEG segment is expected to see a gradual recovery in Q2FY27, supported by healthy traction in appliances and consumer electricals, although consumer sentiment remains cautious. Appliances are likely to maintain steady momentum, while lighting should continue its gradual recovery. Solar products are expected to sustain strong growth, aided by robust demand in the rooftop solar market. We expect coverage companies to report 6.3% YoY growth in the FMEG segment

Strong RAC growth with margin pressure:

Coverage companies are expected to report strong RAC growth in Q2FY27, supported by healthy demand in July–August, premiumization and higher realizations following the transition to higher BEE-rated models. Demand remained resilient across key markets, although growth moderated with the onset of the monsoon. Channel inventory remained comfortable at below 30 days, indicating healthy offtake and limited inventory build-up. Continued price hikes and elevated input costs are likely to support realizations, while keeping margins under pressure. The UCP segment of VOLT/Lloyd/BLSTR is expected to grow by 22%/8%/13%, with margins broadly remaining under pressure

Writing Instruments to drive growth:

Consumerware segment is expected to deliver steady 5.0% YoY growth, while the Writing Instruments & Stationery segment is likely to register robust 50% YoY growth, supported by the re-entry into the stationery category under the “CELLO” brand and continued market expansion. Meanwhile, the Moulded Furniture & Allied Products segment is expected to witness a marginal decline of 2.0% YoY

Key changes in ratings/TP:

As we roll forward our TP to Sep’28E and introduce FY29 numbers, We downward revise our FY27E/FY28E earnings estimates by 13%/32% for BJE, No Change/2% for CELLO, 4.8%/7.4% for CROMPTON, No Change/3.9% for HAVL, 1.2%/1% for VOLT, 7.3%/3.4% for BLSTR and upward revise by 2.0%/2.0% for KEI, 7.4%/4.8% for POLYCAB, 5.3%/6% for RRKABEL. We upgrade BLSTR to ‘BUY’ from ‘Accumulate’, KEII to ‘BUY’ from ‘Accumulate’, CELLO to ‘BUY’ from ‘Accumulate’ and VOLT to ‘BUY’ from ‘HOLD’ and LGEL to ‘Accumulate’ from ‘HOLD’. We downgrade HAVL to ‘HOLD’ from ‘Accumulate’ and BJE to ‘HOLD’ from ‘Accumulate’ due to recent movements in stock prices, while maintaining our ratings on the rest of the coverage universe.

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