R R Kabel Limited

RRKABEL

Sector: Electrical EquipmentSub-sector: Wires & Cables, FMEG
Qtr Score Rank 27 / 57 (Top 54 percentile)Growth Score Rank 21 / 51 (Top 61 percentile)

Quarterly Score

Trend: Improving
Strong improvement - Recent 3Q avg 8.80 vs 1Q avg 8.50 (+0.30)

Showing the latest 12 quarterly points (newest to oldest).

Score context (latest 12 quarters)

Q4 FY2025
8.5

The company introduced 'Project Rise,' a 3-year strategic vision, targeting Wires & Cables revenue CAGR of 18% and FMEG revenue CAGR of 25%, aiming for a 2.5x growth in overall EBITDA. It projects double-digit EBITDA margins (around 10.5%) by FY28 with yearly 100 bps improvement, and FMEG segment breakeven in FY26. An INR 1,200 crores capex plan for FY26-FY28 is initiated to increase cable capacity by 1.7x to support 15-20% volume growth and margin improvement.

Quarter summary

  • The company achieved a strong performance in Q4 FY25, marking a significant recovery from previous quarters and recording its highest revenue and EBITDA margins for the fiscal year.
  • Management launched 'Project Rise,' a detailed 3-year strategic plan outlining aggressive growth targets for both Wires & Cables and FMEG segments, supported by substantial capital expenditure for capacity expansion.

Rationale

  • The company delivered a robust Q4 FY25, with revenue growing 26.4% YoY (INR 2,218 crores) and EBITDA growing 69.4% YoY (INR 196 crores) at an 8.8% margin, marking the highest margin during the year and amongst the highest in the company's history, showing strong recovery and execution.
  • A comprehensive 3-year strategic initiative, 'Project Rise,' was announced with aggressive targets: 18% Wires & Cables revenue CAGR, 25% FMEG revenue CAGR, and 2.5x EBITDA growth, indicating clear vision and ambition for fundamental improvement.
Q1 FY2026
8.3

Management maintained FY26 guidance for 18% volume growth and 100 basis points improvement in margins. Specifically, wire volume growth is expected around 10-12% and cable volume growth around 25%. The FMEG segment is targeted to achieve EBIT positive (breakeven) status for FY26 with a 20-25% revenue growth.

Quarter summary

  • The company experienced sustained demand across key sectors such as infrastructure, housing construction, and increased electrification efforts nationwide, creating a robust environment for wires and cables.
  • R R Kabel focused on expanding its distribution network in Tier 2 and Tier 3 cities domestically, while also scaling its export business, particularly in Europe and the Middle East.

Rationale

  • Revenue from operations grew strongly by 13.9% YoY to INR 2,058.6 crores in Q1 FY26.
  • EBITDA surged by 50% YoY to INR 143.1 crores, driven by improved operating leverage and cost controls, leading to a significant EBITDA margin expansion to 7% from 5.3% in Q1 FY25 (+170 bps YoY).
Q2 FY2026
9.3

H2 FY26 is expected to be better than H1. Wires & Cable EBIT margins are targeted to improve by 100 bps for FY26 (from 7.4% in FY25), having already achieved this in H1, with an expectation to sustain or improve in H2, and a long-term target of 10.5%-11% by FY28. The FMEG segment is guided to breakeven by Q4 FY26. The Project Rise 18% volume growth (CAGR) target remains on track, despite H1 volume growth being around 12%. Working capital (net 57 days) is to be maintained, with H1 negative FCF expected to normalize by year-end. The INR 1,200 crores capex plan (80% for cables up to 220kV) is proceeding as planned.

Quarter summary

  • The core wires and cable business demonstrated robust resilience and expansion, leveraging strong economic drivers such as construction, infrastructure development, and electrification.
  • The company's focus on high quality, safety standards, value-added offerings, and global quality benchmarks significantly strengthened its market position.

Rationale

  • Exceptional profitability growth: Q2 FY26 EBITDA surged 105.8% YoY to INR 176.1 crores, with margin expanding to 8.1% from 4.7% in Q2 FY25.
  • Strong revenue growth: Revenue from operations grew 19.5% YoY to INR 2,163.8 crores in Q2 FY26, and 16.7% YoY for H1 FY26, marking the highest ever half-yearly revenue in the company's history.
Q3 FY2026Latest
8.8

Management expects to achieve breakeven at EBIT level in the FMEG segment by Q4 FY26. The company is on track to achieve its planned 17-18% volume growth for FY26 and is adhering to its INR 1,200 crore capex plan over 3 years, with INR 280 crores incurred in 9M FY26.

Quarter summary

  • The company delivered its strongest ever 9-month performance in terms of revenue, operating profitability, and profit after tax.
  • The FMEG segment showed a meaningful reduction in losses and is on track for EBIT breakeven by Q4 FY26, despite challenging market conditions for discretionary products.

Rationale

  • Exceptional Financial Performance: Consolidated revenue grew 42.3% YoY in Q3 FY26 (INR 2,536 crores) and 25.1% YoY for 9M FY26 (INR 6,758 crores), achieving highest-ever 9-month revenue.
  • Strong Profitability & Margin Expansion: Q3 FY26 EBITDA surged 86% YoY to INR 206 crores (9M EBITDA +80% YoY to INR 526 crores), with PAT up 72.4% YoY to INR 118 crores (9M PAT +77.7% YoY to INR 324 crores), all marking highest-ever 9-month figures. EBITDA margins improved due to operating leverage and cost discipline.

Future Growth Prospects

Growth score: 8.5Visibility: 70%Updated: 25 Feb 2026, 10:06 am

Catalysts (next 12-24 months)

Total triggers: 5Visible per view: 1 / 2 / 3Slides: 5

Swipe or use arrows to browse all triggers.

capexongoing, completion by March 2028Impact: revenueQty: 1200 ₹ Cr

Capacity Expansion (Wires & Cables)

Timeline

  • in progressFY25-26 to FY27-28 · ar

    INR 1,200 Crores has been planned... to add around 36,000 MT of cable capacity at Waghodia and 6,000 MT of wire capacity at Silvassa.

  • commissionedMarch 2026 · concall

    one more phase of capacity in cable that was going to come on stream in March.

Show full timeline (3)
  • unknownMarch 2028 · ar

    This phased expansion, to be completed by March 2028, is aimed at meeting rising demand.

Supporting evidence

• Q3 FY26 · concall · our capex plan where we have planned to invest around INR1,200 crores over a period of 3 years, in which like almost 80% will be invested in cable side only.

Show evidence (2)

• FY25 · ar · A substantial capital expenditure of INR 1,200 Crores has been planned for FY 2025–26 to FY 2027–28, focused on expanding Wires & Cables capacity.

mixQ4 FY26, by FY28Impact: marginQty: 5 %

FMEG Breakeven & Margin Improvement

Timeline

  • unknownFY25-26 · ar

    remain on track to break even in this segment by FY 2025–26.

  • unknownQ4 FY26 · concall

    we are quite hopeful to achieve breakeven in this quarter.

Show full timeline (4)
  • in progress9M FY26 · concall

    losses are in the range of INR5 crores only.

    reduced losses meaningfully

  • unknownFY28 · concall

    EBIT margins in the range of 5% to 6% in FMEG segment also.

Supporting evidence

• Q3 FY26 · concall · on profitability front...we are quite hopeful to achieve breakeven in this quarter [Q4 FY26].

Show evidence (2)

• FY28E · concall · by FY '28, we can achieve margins of -- EBIT margins in the range of 5% to 6% in FMEG segment also.

geonext 12-24 monthsImpact: revenue

Export Growth & EU Trade Deal

Timeline

  • in progressQ3 FY26 · concall

    we have seen good growth, and it is like continuous process... in export, it is about 25%.

  • unknownnext 12 months or so · concall

    EU trade deal... may take impact after maybe 12 months or so.

Show full timeline (3)
  • unknownmedium term · concall

    export will do much better...maybe a little bit better than domestic growth.

Supporting evidence

• unspecified · concall · EU trade deal... will be going to huge beneficial for wire and cable industry.

Show evidence (2)

• medium term · concall · export will do much better looking to even at India level, when you see the growth opportunities are many more there.

distributionongoingImpact: revenue

Domestic Distribution Expansion (South & East)

Timeline

  • in progressFY25 · ar

    retained its leadership in the Western and Northern regions of India, while pursuing expansion opportunities in Southern and Eastern markets.

  • in progressQ1 FY26 · concall

    slowly and steadily we are expanding our distribution base all over the India. And just now it is a matter of time how I improve the depth of my overall market.

Supporting evidence

• ongoing · concall · we are very strong in North and West part of the country, while yet we need to expand our business in East and South also.

Show evidence (2)

• FY25 · ar · The Company’s ongoing efforts to expand and strengthen its distribution network are driving improved market performance.

mixongoingImpact: marginQty: 100 bps

Product Mix Improvement (W&C & FMEG)

Timeline

  • in progressFY25 · ar

    Strategic initiatives such as capacity augmentation and the introduction of higher-margin offerings were central to its growth strategy.

  • in progressQ1 FY26 · concall

    improvement in margin is as we are trying to improve our product mix towards higher profit products.

Show full timeline (3)
  • unknownFY28 · concall

    targeting like double-digit, 10.5% kind of EBIT margins in our wires & cables business.

Supporting evidence

• Q1 FY26 · concall · improvement in margin is as we are trying to improve our product mix towards higher profit products.

Show evidence (2)

• Q2 FY26 · concall · we are focusing on our change in product mix also in exports, now we are having more focus where like products like cable or special wires where we have higher margins.

Variant perception

Non-consensus view
Consensus

Management's confidence in FMEG achieving breakeven by Q4 FY26 and delivering 5-6% EBIT margins by FY28 may be underappreciated, given past challenges and selective demand trends.

Upside
  • FMEG expected to achieve breakeven by Q4 FY26, signaling profitability turnaround (Q3 FY26 concall).
Show more (1)
  • EU trade deal is anticipated to be highly beneficial for W&C exports over medium term (Q3 FY26 concall).
Downside
  • Channel working capital pressure due to sharp copper price rises (Q3 FY26 concall), potentially leading to destocking.
Show more (1)
  • Persistent volatility in copper and aluminium prices could impact margins despite hedging (Q3 FY26 concall).
base case80% conf
Growth: 20

Quick takeaway

18% W&C and 25% FMEG revenue CAGR by FY28 (AR FY25)

Risk watch: Raw material price volatility affecting margins

Show details (2 drivers, 2 risks)

Drivers

  • 18% W&C and 25% FMEG revenue CAGR by FY28 (AR FY25)
  • INR 1,200 Cr capex to expand capacity by 1.7x (AR FY25)

Risks

  • Raw material price volatility affecting margins
  • Discretionary FMEG demand remains selective
upside case60% conf
Growth: 30

Quick takeaway

Strong domestic demand across all sectors (Q3 FY26 concall)

Risk watch: Intensifying competition

Show details (2 drivers, 2 risks)

Drivers

  • Strong domestic demand across all sectors (Q3 FY26 concall)
  • Faster realization from EU trade deal impact (Q3 FY26 concall)

Risks

  • Intensifying competition
  • Global economic slowdown
downside case20% conf
Growth: 10

Quick takeaway

Prolonged raw material volatility (Q3 FY26 concall)

Risk watch: Delays in capacity commissioning

Show details (2 drivers, 2 risks)

Drivers

  • Prolonged raw material volatility (Q3 FY26 concall)
  • Slowdown in construction-linked categories

Risks

  • Delays in capacity commissioning
  • Increased competitive aggression

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