R R Kabel Ltd (RRKABEL)
🎯 Key Takeaways
- R R Kabel Ltd is in a high-growth phase driven by scale expansion in wires and cables and entry into profitable FMEG segments, supported by strong pricing power and volume growth. Management is executing a multi-year capex plan to boost capacity and target 10.
- Revenue grew 6.9% QoQ to ₹3,168 in Q1FY27.
- ⚠️ The pending GST demand of ₹13.19 crores, while currently non-material, requires ongoing compliance monitoring and could escalate if unresolved.
📖 The Story
R R Kabel Ltd is in a high-growth phase driven by scale expansion in wires and cables and entry into profitable FMEG segments, supported by strong pricing power and volume growth. Management is executing a multi-year capex plan to boost capacity and target 10.5% EBITDA margins by FY28, underpinned by 18% YoY volume growth and 20% FMEG growth. The company has transitioned from margin pressure to margin expansion, with EBITDA margins improving 205 bps YoY to 9% in Q1 FY27, reflecting operational leverage and premiumization. This growth trajectory is supported by record revenue of ₹31,682 crores in Q1 FY27, up 54% YoY, and PAT growth of 128-129% YoY to over ₹2,000 crores.
📰 What's Happening
In Q1 FY27 (reported 2026-08-03), R R Kabel achieved record revenue of ₹31,682 crores (+54% YoY), driven by 17% volume growth in wires and cables and breakeven in FMEG. PAT surged 128% YoY to over ₹2,052 crores, supported by 25% contribution from premium products and 40% YoY pricing growth. Export revenue rose 57% YoY with improved margins, and working capital remained stable at 50 days. Management highlighted capacity expansion at Silvassa and Waghodia plants, with ₹1,200 crores of capex planned over FY26-FY28, 80% allocated to cables. The company is targeting 18% YoY volume growth and 20% FMEG growth through channel expansion to 1.5 lakh retail touchpoints. A prior GST notice of ₹13.19 crores was received but deemed non-material. Management remains confident in sustaining profitability growth and creating long-term value, with investor focus on margin trajectory and export resilience.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 2,164 | 2,536 | 2,964 | 3,168 |
| Operating Profit | 154 | 180 | 236 | 254 |
| OPM % | 7.1% | 7.1% | 8.0% | 8.0% |
| Net Profit | 116 | 118 | 168 | 205 |
| EPS | ₹10.28 | ₹10.46 | ₹14.85 | ₹18.14 |
Revenue has grown consistently over the past four quarters, rising from ₹2,164 crores in Sep 2025 to ₹3,168 crores in Jun 2026, reflecting strong demand and execution. Operating profit margin improved from 7.1% in Dec 2025 to 8.0% in Jun 2026, driven by scale benefits and pricing gains. PAT growth accelerated, with Jun 2026 showing the highest EPS at ₹18.14, up from ₹10.28 in Sep 2025. EBITDA margin expanded to 9% in Q1 FY27 from 7.1% in the same period last year, signaling operational leverage. This margin expansion aligns with management’s commentary on scale benefits and pricing power, and is expected to support further profitability improvement as capacity comes online.
🔮 Management Outlook & What's Next
Management targets a 10.5% EBITDA margin by FY28, driven by 18% YoY volume growth, 20% FMEG growth, and capacity expansion at Silvassa and Waghodia. Capex of ₹1,200 crores over FY26-FY28, with 80% allocated to cables, is expected to support this trajectory. Management emphasized sustained pricing growth, export resilience, and channel expansion to 1.5 lakh retail touchpoints as key growth levers. They also noted improved margins from premium product mix and operational leverage. No specific timeline was provided for EPR obligation impact, but it is being monitored as a potential future risk.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 57 | 57 | 57 | 57 |
| Reserves | 1,952 | 2,096 | 2,283 | 2,518 |
| Borrowings | 474 | 290 | 393 | 232 |
| Total Liabilities | 3,241 | 3,517 | 3,678 | 4,621 |
| Fixed Assets | 635 | 769 | 952 | 1,173 |
| Investments | 445 | 239 | 224 | 255 |
| Total Assets | 3,241 | 3,517 | 3,678 | 4,621 |
The balance sheet shows a healthy equity base of ₹57 crores and reserves growing from ₹2,096 crores in Mar 2025 to ₹2,518 crores in Mar 2026, indicating retained earnings growth. Borrowings have increased slightly from ₹290 crores to ₹393 crores over the same period, but remain low relative to equity, with a D/E of 0.09. Total assets have grown from ₹3,517 crores to ₹4,621 crores, reflecting asset base expansion in line with capex plans. The company is not over-leveraged and appears to be financing growth through internal accruals and manageable debt, supporting a stable capital structure amid expansion.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +295 |
| Investing | -263 |
| Financing | -162 |
| Net Cash Flow | -130 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 61.8% | 61.7% | 61.6% | 61.4% |
| FII | 8.2% | 8.4% | 9.1% | 10.7% |
| DII | 13.9% | 13.9% | 13.3% | 11.9% |
| Public | 7.0% | 6.9% | 6.9% | 6.9% |
| # Shareholders | 1,35,711 | 1,28,337 | 1,30,587 | 1,43,418 |
Promoter holding has remained stable around 61.6% over the last four quarters, indicating confidence from the founding group. FII holding has increased from 8.18% in Q2FY26 to 10.67% in Q1FY27, while DII rose from 13.33% to 11.87%, suggesting institutional accumulation. The number of shareholders has grown from 1,28,337 to 1,43,418, indicating broadening retail participation. No pledging or significant dilution is evident, and the rising institutional interest aligns with the company’s strong financial performance and growth narrative.
⚖️ Peer Comparison — Cables
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| POLYCAB | 1.39 L Cr | 48.1 | 34.1% | 24.2% | 0.01 |
| KEI | 53,536 | 53.7 | 23.6% | 17.2% | 0.03 |
| STLTECH | 37,432 | 146.6 | 14.6% | 11.3% | 0.85 |
| RRKABEL | 32,857 | 54.1 | 32.1% | 23.6% | 0.09 |
| FINCABLES | 19,073 | 23.8 | 19.0% | 14.6% | 0.00 |
| DIACABS | 18,233 | 92.8 | -58.8% | -21.9% | -0.52 |
| UNIVCABLES | 5,729 | 28.6 | 12.5% | 10.6% | 0.62 |
| LASERPOWER | 4,575 | — | — | — | 1.14 |
| ADVAIT | 2,414 | 41.0 | 42.0% | 32.8% | 0.24 |
| DYCL | 2,364 | 25.9 | 26.9% | 19.9% | 0.09 |
⚠️ Risk Factors
1. The pending GST demand of ₹13.19 crores, while currently non-material, requires ongoing compliance monitoring and could escalate if unresolved. 2. The company’s FMEG segment posted a segment loss of ₹-93 crores in Q1 FY27, indicating that breakeven is still evolving and may pressure near-term profitability if not scaled efficiently. 3. EPR obligations for non-ferrous scrap recycling remain undefined, with potential financial impact yet to be determined, posing a regulatory uncertainty. 4. Global headwinds could affect export momentum, which management highlighted as a key growth driver, requiring careful execution to maintain margin resilience.
📋 Recent Filings
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🔴 Announcement 29 August 2026R R Kabel Ltd disclosed receipt of a Show Cause-cum-Demand Notice from GST intelligence regarding alleged tax liabilities of INR 13.19 crores for FY20...
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🔴 Announcement 11 August 2026R R Kabel Limited announced the resignation of Senior Management Personnel Mr. Vivek Dubey, effective 31 August 2026, following his submission of resi...
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🟡 Board Meeting 11 August 2026No summary available
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🔴 Financial Results 3 August 2026R R Kabel Limited reported record Q1 FY27 revenue growth of 54% YoY to **₹1,285 crores**, driven by 17% volume expansion in wires and cables and break...
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🔴 Financial Results 27 July 2026R R Kabel reported record Q1 FY27 revenue of **₹31,682 crores**, up 54% YoY, with PAT surging 129% to **₹2,052 crores** and margins expanding signific...
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🟡 Board Meeting 27 July 2026R R Kabel Limited announced the outcome of its 27 July 2026 board meeting, approving unaudited standalone and consolidated financial results for the q...
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Announcement 27 July 2026R R Kabel Limited announced that it held an earnings conference call on 27 July 2026 to discuss Q1 FY2026 results, and made the audio recording availa...
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🔴 Financial Results 27 July 2026R R Kabel reported record quarterly revenue of **₹31,682 crores** for Q1 FY27, up 54% YoY, driven by domestic demand and export growth. Operating EBIT...
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🔴 Financial Results 22 July 2026R R Kabel Limited announced an earnings conference call for Q1 FY27 results on 27 July 2026 at 4:30 PM IST, inviting analysts and institutional invest...
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share transfer 10 July 2026R R Kabel Limited received a SEBI-mandated compliance certificate from MUFG Intime India Private Limited confirming proper handling of dematerialized ...
🧠 Analyst's Read
R R Kabel is executing a disciplined growth strategy with strong volume, pricing, and margin expansion, supported by scalable operations and targeted capex. The company is transitioning into a more profitable phase with improving returns and institutional interest rising. Investors should monitor execution of FMEG profitability, GST resolution, and export resilience as key near-term catalysts.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.
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This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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