Synopsis: Cabel stock shares surged 9% after the company reported record Q1 FY27 results, with revenue rising 54% and PAT jumping 129% YoY. Strong Wires & Cables growth and the FMEG business achieving operational breakeven boosted investor sentiment.
The shares of this electrical company that manufactures wires & cables and Fast Moving Electrical Goods (FMEG), including fans, lighting, switches, and appliances, are in the spotlight after it rose by 9 per cent in today’s market session after reporting robust Q1 results, along with its FMEG business turning operationally profitable.
With a market capitalisation of Rs. 29,404 cr, the shares of R R Kabel Ltd were trading at Rs. 2599.70 per share, jumping 9% in today’s market session, making a high of Rs. 2,750, up from its previous close of Rs. 2,522.25 per share.
Q1FY27 YoY Performance
R R Kabel reported a strong Q1 FY27 performance, with revenue rising 54% YoY to Rs. 3,168.2 crore from Rs. 2,058.6 crore in Q1 FY26. Operating EBITDA nearly doubled, increasing 99% YoY to Rs. 285.3 crore, while the EBITDA margin expanded by 205 basis points to 9.0%. Profit before tax (PBT) surged 130% YoY to Rs. 276 crore, and profit after tax (PAT) jumped 129% YoY to Rs. 205.2 crore, with the PAT margin improving by 212 basis points to 6.5%.
QoQ Performance
On a sequential basis, revenue increased 7% from Rs. 2,964.1 crore in Q4 FY26 to Rs. 3,168.2 crore in Q1 FY27. Operating EBITDA rose 8% QoQ to Rs. 285.3 crore, with the EBITDA margin improving marginally by 11 basis points to 9.0%. PBT grew 22% QoQ to Rs. 276 crore, aided by an exceptional gain of Rs. 13.8 crore, while PAT increased 22% QoQ to Rs. 205.2 crore. PAT margin also improved by 81 basis points from 5.7% to 6.5%.
Wires & Cables (W&C) Segment
The Wires & Cables (W&C) segment continued to be the company’s primary growth driver, delivering a 57% YoY revenue growth. The strong performance was supported by robust volume growth, efficient execution, and favorable industry demand.
The W&C segment’s profit surged 105% YoY, while segment margins expanded by 232 basis points. This improvement was driven by a better product mix, disciplined commodity cost management, and enhanced operational efficiencies.
FMEG business performance
The Fast Moving Electrical Goods (FMEG) segment recorded strong revenue growth, supported by healthy demand for premium and newly launched products across key categories. Continued expansion of the company’s distribution network also contributed to the segment’s growth.
The FMEG business achieved operational breakeven during the quarter, marking a significant milestone in its transformation. Segment profitability improved substantially on a year-on-year basis, aided by premiumisation, better operating leverage, and improved cost efficiencies.
The Wires & Cables (W&C) segment remained the company’s dominant business, contributing 91% of Q1 FY27 revenue, while the Fast Moving Electrical Goods (FMEG) segment accounted for the remaining 9% of the overall revenue mix.
Management Commentary
Management informed that the company started FY27 with the best quarterly performance because of effective execution and growth in the Wires & Cables business. It also mentioned that the company made steady progress in diversification of cable range, improvement in the distribution network, and execution.
It also mentioned that the FMEG business recorded operational breakeven for the period due to its success in the premiumisation strategy and operating efficiency, as well as expressed confidence about the sustained profitable growth in the future.
Brokerage Commentary
CLSA
Global brokerage CLSA initiated coverage on R R Kabel with an ‘Outperform’ rating and a target price of Rs. 2,850 per share, which is an upside of 10% from its current levels. The brokerage believes the company’s growth ambitions are supported by expanding manufacturing capabilities, a strong execution track record, and favorable industry demand. It expects revenue and PAT CAGR of 18% and 24%, respectively, over FY26–FY30, while noting that the entry of new players remains a key industry risk.
Citi
Citi maintained its ‘Buy’ rating on R R Kabel and raised its target price to Rs. 3,000 from Rs. 2,650, which is an upside of 15% from its current levels. The brokerage highlighted the company’s improving execution momentum over recent quarters and believes consistent delivery on its growth and margin guidance could lead to further valuation re-rating.
R R Kabel Limited is one of the major consumer electrical firms in India, and it has an operating experience of more than 27 years in the country. It is the largest exporter of wires and cables in India, providing a variety of electrical goods, including wires & cables, fans, lighting, electrical accessories, and appliances for both personal and industrial uses.
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