Current/ Expected Orderbook/ Pending Orders?

The company has a good order book for its export business, particularly in Europe and the Middle East. Despite some uncertainties in the U.S. market, export orders remain stable with no significant adverse impact observed so far. There was a spillover in the cable segment with some big orders planned for delivery in Q2, which affected Q1 volumes. The management is confident about achieving a 25% volume growth in cables over the next three quarters. Ongoing cable capacity expansions will support this growth, with approvals and order inflows continuing steadily. Overall, the company expects to m

Any current/future new fundraising through debt or equity?

The transcript from the Q1 FY26 earnings call does not mention any current or planned fundraising through debt or equity. There is detailed discussion about capex plans totaling around INR 1,200 crores over the next 3 years, but no specific comments on how this will be funded. Rajesh Jain and other management focus on operational growth and capacity expansion using internal accruals and existing resources, without reference to raising external capital. No explicit indications or statements about fresh equity or debt issuance were made during the call.

Any current/future capex/capital investment/strategic investment?

Total planned capex over next 3 years: Approximately INR 1,200 crores. Capex is a sequential, modular expansion process, not deployed all at once. Current capex range for this year: Around INR 300 crores. Recent quarterly capex (Q1): INR 50-75 crores. Major expansions happening at Silvassa and Waghodia plants. Objective: Nearly doubling cable capacity by end of this year compared to end of 2023. Expecting full operational revenue of around INR 4,500 crores post-capex. Capex aims to support planned volume growth, especially in cable segment (target 25% growth). Continuous addition of capacity a

Future growth expectations in sales/revenue/volumes?

Overall volume growth guidance for FY '26 is around 18%, with wire expected to grow ~12% and cable ~25%. Cable segment growth is anticipated to outpace wire; cable capacity is being doubled with ongoing expansions. Export business, particularly cable exports, is expected to grow with new approvals and capacity expansions. Revenue contribution from cables may increase from 30% to around 32-35% by year-end. FMEG business is expected to grow at 20-25% with reduced losses and breakeven targeted within the year. Industry growth for wire is around 10%, cable around 15-16%, with the overall sector pr

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R R Kabel LtdQ2 FY25Industrial Products

R R Kabel Ltd Q2 FY25 Earnings Call Analysis

Q: Future growth expectations in earnings/operating earnings/profits/EPS?

Future Growth Expectations for R R Kabel Limited: Volume growth guidance for FY ’26 remains at 18%, with wire expected to grow ~12%, cable ~25%, and FMEG 20-25%. EBIT margin improvement of around 100 basis points is anticipated for the year. Cable segment expected to increase revenue contribution from 30% currently to around 32-35% by year-end. Capex of approx. INR1,200 crores planned over next 3 years with modular capacity additions to support growth. FMEG segment expects to reach EBIT breakeven within the current fiscal year, with losses already reduced by 550-600 bps in Q1. Export business

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹2,488P/E: 43.6Market Cap: ₹22.1K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 2

Margin

Category 2

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Overall volume growth guidance for FY '26 is around 18%, with wire expected to grow ~12% and cable ~25%.
→Cable segment growth is anticipated to outpace wire; cable capacity is being doubled with ongoing expansions.
→Export business, particularly cable exports, is expected to grow with new approvals and capacity expansions.
→Revenue contribution from cables may increase from 30% to around 32-35% by year-end.
→FMEG business is expected to grow at 20-25% with reduced losses and breakeven targeted within the year.
→Industry growth for wire is around 10%, cable around 15-16%, with the overall sector projected at 13-14%.
→Export revenue currently at ~30%, expected to rise possibly up to 35%, balanced with domestic growth.
→Continuous capacity additions on a modular basis will support sustained volume and revenue growth over next 3 years.

Margin guidance

Category 2

Future Growth Expectations for R R Kabel Limited: - Volume growth guidance for FY ’26 remains at 18%, with wire expected to grow ~12%, cable ~25%, and FMEG 20-25%. - EBIT margin improvement of around 100 basis points is anticipated for the year. - Cable segment expected to increase revenue contribution from 30% currently to around 32-35% by year-end. - Capex of approx. INR1,200 crores planned over next 3 years with modular capacity additions to support growth. - FMEG segment expects to reach EBIT breakeven within the current fiscal year, with losses already reduced by 550-600 bps in Q1. - Export business to grow, especially in cables, supported by expanded approvals and capacity ramp-up. - Overall margin expansion driven by improved product mix, better cost absorption, and operational efficiencies. - Profit after tax grew 39.4% in Q1 FY ’26, signaling optimistic outlook for sustained earnings growth.

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Fundraise plans

→The transcript from the Q1 FY26 earnings call does not mention any current or planned fundraising through debt or equity.
→There is detailed discussion about capex plans totaling around INR 1,200 crores over the next 3 years, but no specific comments on how this will be funded.
→Rajesh Jain and other management focus on operational growth and capacity expansion using internal accruals and existing resources, without reference to raising external capital.
→No explicit indications or statements about fresh equity or debt issuance were made during the call.

Order book

Yes

→The company has a good order book for its export business, particularly in Europe and the Middle East.
→Despite some uncertainties in the U.S. market, export orders remain stable with no significant adverse impact observed so far.
→There was a spillover in the cable segment with some big orders planned for delivery in Q2, which affected Q1 volumes.
→The management is confident about achieving a 25% volume growth in cables over the next three quarters.
→Ongoing cable capacity expansions will support this growth, with approvals and order inflows continuing steadily.
→Overall, the company expects to meet its growth targets across both domestic and export markets, with order execution on track.

Capex plans

Yes

→Total planned capex over next 3 years: Approximately INR 1,200 crores.
→Capex is a sequential, modular expansion process, not deployed all at once.
→Current capex range for this year: Around INR 300 crores.
→Recent quarterly capex (Q1): INR 50-75 crores.
→Major expansions happening at Silvassa and Waghodia plants.
→Objective: Nearly doubling cable capacity by end of this year compared to end of 2023.
→Expecting full operational revenue of around INR 4,500 crores post-capex.
→Capex aims to support planned volume growth, especially in cable segment (target 25% growth).
→Continuous addition of capacity aligns with increasing approvals and demand.
→Focus on expanding export business and growing presence in domestic markets like infrastructure and data centers.

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