• RR Kabel initiated a ₹1,700 crore capacity expansion starting in FY24, with ₹500 crore already spent and ₹1,200 crore planned until FY27, allocating 80% to power cables.
• This expansion is projected to generate ₹4,800-5,400 crore in additional revenue at optimal capacity.
• The power cables segment is expected to increase from 27% to 36% of Cables and Wires revenue by FY28E, driven by tailwinds like renewable energy and the China+1 shift.
• RR Kabel's EBIT margins have been lower than peers due to cross-subsidization, but are expected to expand by 370bps to 9.8% due to an improving product mix and operating leverage.
