R R Kabel Ltd Q4 FY26 Earnings Analysis
Published 17 Aug 2026 | Industrial Products | Market Cap: ₹31.6K Cr
Price
₹2,786
Market Cap
₹31.6K Cr
P/E Ratio
51.7
Earnings Summary
FY2027 volume growth guidance for cable and wire business is 16%-18%. RR Kabel targets a 16%-18% CAGR volume growth in wires and cables for FY27 and FY28.
📊 Revenue & Sales Performance
- →FY2027 volume growth guidance for cable and wire business is 16%-18%.
- →Revenue growth for FY2027 expected around 30%, driven by a combination of volume growth and price increases.
- →Export volumes have recently been higher than domestic, contributing significantly to growth.
- →For FMEG segment, targeting 20%-25% value growth in FY2027, focusing on fans, lighting, switch gears, and appliances.
- →Cable contribution in the cable and wire segment expected to increase from 27% to around 31% by FY2027/FY2028 due to capacity expansion.
- →New cable capacities (up to 220 KV) coming online by end FY2028, enabling higher-end HV cable production.
- →Business plans include expanding B2B base and export markets, aiming to outperform industry average growth especially in cables.
- →Growth in emerging sectors like data centers anticipated over next 3-4 years, though not yet substantial.
📈 Profitability & Margins
- →RR Kabel targets a 16%-18% CAGR volume growth in wires and cables for FY27 and FY28.
- →Revenue growth driven by volume increases and price rises; potential 30% top-line growth assuming price stability.
- →Wire & cable segment margins expected to improve by 100 bps YoY, aiming for 10.5% EBIT margin by FY28 (from current ~9.5%).
- →FMEG segment targets 20%-25% value growth in FY27 and aims for breakeven in FY27, delayed from initial FY26 estimate.
- →Project RRise operational efficiencies and product mix improvements to drive margin expansion.
- →EBITDA growth for FY26 was 61.8% YoY, PAT growth 58% YoY, signaling strong profitability momentum.
- →Ongoing INR1,200 crore capex to enhance capacity (up to 220 KV cables by FY28) supports volume and margin expansion.
- →Confident in beating industry average growth, especially in cable business through expanded B2B and export markets.
🏗️ Capital Expenditure Plans
- R R Kabel planned a capex of INR 1,200 crore as part of Project RRise.
- Approximately INR 300 crore was already invested in FY2026.
- Major capex outflows are expected in FY2027, with the majority of the INR 1,200 crore spent in this financial year.
- The capex aims to expand cable manufacturing capacity, increasing capability from up to 66 KV cables currently to up to 220 KV by FY2028.
- Capacity additions are planned every six months to support targeted volume growth of 16%-18% CAGR.
- The continuous capacity ramp-up supports growth in B2B business and expanding the cable segment domestically and exports.
- No anticipated risk of excess cable production capacity due to demand growth outlook.
This strategic capex supports margin improvement, higher volume growth, and expansion into higher voltage cable segments.
💰 Fundraising & Capital Structure
- →The transcript does not mention any current or planned fundraising through debt or equity.
- →The company has ongoing capex plans involving an investment of INR 1,200 crore mainly for capacity expansion.
- →Rajesh Jain mentions that INR 300 crore has already been invested in FY26 and the majority of the capex outflow will occur in FY27.
- →No specific details on how this capex is being financed (whether through debt, equity, or internal accruals) are provided in the transcript.
- →No announcements or discussions about raising fresh funds via debt or equity rounds appear in the Q4 FY26 earnings call transcript.
📋 Order Book & Pipeline
The transcript does not explicitly mention the current or expected order book or pending orders for R R Kabel Limited. However, some insights related to business outlook and growth areas include:
- The company is experiencing robust demand, with volume growth guidance of 16%-18% for FY2027.
- Strong momentum in cables segment with expected volume growth of around 25%.
- Growth driven by export and domestic B2B segments including infrastructure, data centers, wind and solar energy.
- Some short-term export disruptions due to geopolitical issues impacting Middle East shipments, expected to affect Q1 more than Q4.
- Continuous new customer engagement especially in data center markets, though approvals and supply is an ongoing process with existing product mix.
- Capacity expansion underway with INR 1,200 crore capex planned by FY27 to support increasing order volumes.
No exact figures for order book or pending orders were detailed in the available transcript.
Key Metrics
Frequently Asked Questions
What were R R Kabel Ltd Q4 FY26 results?
FY2027 volume growth guidance for cable and wire business is 16%-18%. RR Kabel targets a 16%-18% CAGR volume growth in wires and cables for FY27 and FY28.
What is R R Kabel Ltd share price analysis?
R R Kabel Ltd currently shows a neutral. The stock trades at a P/E of 51.7 with a market cap of ₹31,590 Cr. Investors should review the full earnings analysis for detailed insights.
Is R R Kabel Ltd planning capital expenditure?
R R Kabel planned a capex of INR 1,200 crore as part of Project RRise.
This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.