Synopsis: RR Kabel, after reporting a stellar performance in Q2 FY26, has laid out a strong expansion plan and also gave a commentary on how it would like to perform in the years ahead.
The Indian wires and cables market is expected to grow from Rs 88,900 crore in 2025 to Rs 1.52 lakh crore by 2032, at a CAGR of 7.94 percent. And to capitalize on this industry, RR Kabel has already laid a strong foundation for growth, and in this article, we will dive more into it.
With a market capitalization of Rs 16,229 crore, the shares of R R Kabel Ltd made a day high of Rs 1460 per share, up by 5 percent from its previous day’s closing price of Rs 1390.65 per share. In the last one year, the stock has corrected by 6 percent, as compared to NIFTY 50’s positive return of 7 percent.
Guidance
RR Kabel targets scoring EBIT margins in double digits over the next two to three years. Last year, RR Kabel reported a margin of around 7.4 percent and is now aiming for an improvement of 100 to 110 basis points in the short term.
Furthermore, to justify this growth, RR Kabel has laid out a capex of about Rs 1,200 crore spread over the next three years. The management cited that its wire division is operating at a 70 percent capacity utilization, and the cable segment is operating at a high capacity utilization of 90 percent. This high utilization in the cable division has prompted the management to increase its capacity.
Moreover, the company is addressing the issue of copper price fluctuation (the most important raw material) by a two-pronged hedging strategy. One instrument is their B2B/export business, which is covered fully back-to-back; the B2C side is more variable, with list prices being adjusted when raw-material costs change by 2-3 percent.
Q2 Highlights
RR Kabel reported a revenue from operations of Rs 2,164 crore in Q2 FY26 when compared to Rs 1,810 crore in Q2 FY25, growing by about 20 percent YoY, QoQ growth is about 5 percent from Rs 2,059 crore in Q1 FY26.
Net Profit grew by a staggering 135 percent YoY when you compare the Q2 FY26 at Rs 116 crore to Rs 49.5 crore in Q2 FY25. QoQ, the profit has grown 29 percent from Rs 90 in Q1 FY26. Additionally, the company has announced an interim dividend of Rs 4 per share, which is 80 percent of the face value of Rs 5.
R R Kabel Limited is one of the top consumer electrical companies in India and has been operating for more than 26 years in the country. It is the largest exporter of wires and cables in India and provides a broad array of electrical products such as wires & cables, fans, lighting, electrical accessories, and appliances for residential, commercial, industrial, and infrastructural sectors.
Written by Satyajeet Mukherjee
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