How Is R R Kabel Strengthening Its Leadership Through Margin Expansion and Exports?
About R R Kabel
R R Kabel Ltd, a leading player in India’s electrical and cable manufacturing industry, continues to post robust financial growth on the back of operational leverage, efficient cost management, and a growing footprint across domestic and international markets. The company’s ongoing diversification into FMEG (Fans, Switches, Lighting, and Appliances) supports its long-term expansion goals.
In Q2 FY26, R R Kabel achieved all-time high profitability with over 100% YoY jump in EBITDA and more than 135% YoY growth in net profit. Its focus on premium cables and specialty exports has driven steady margin improvement and volume growth momentum.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY Change |
|---|---|---|
| Revenue | ₹2,163.8 Cr | +19.5% |
| EBITDA | ₹176.1 Cr | +106% |
| PAT | ₹116.3 Cr | +135% |
The company’s EBITDA margin improved to 8.1%, nearly doubling from 4.7% YoY, driven by better product mix, automation, and supply chain optimization. H1 FY26 also recorded record-high revenue of ₹4,127 Cr and PAT of ₹206 Cr (+81% YoY).
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Segmental Highlights
| Segment | Revenue (₹ Cr) | Growth (YoY) |
|---|---|---|
| Wires & Cables | 1,971.2 | +22.3% |
| FMEG | 192.6 | -3% |
The FMEG segment continues to stabilize with cost optimization and focus on premium products. The company targets breakeven by Q4 FY26, supported by expanding distribution and R&D initiatives.
SWOT Analysis
Strengths
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Weaknesses
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R R Kabel’s capex plan of ₹1,200 Cr primarily directed toward high-voltage cable expansion and automation underscores its commitment to strengthening market leadership.
Opportunities
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Threats
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Valuation & Investment View
- Short-term: Export growth and operational leverage sustaining margins.
- Medium-term: Focus on FMEG turnaround and market share expansion.
- Long-term: Target ROE >20% and EBITDA margin of 11% by FY28.
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Investor Takeaway
Indian-Share-Tips.com’s research team led by Gulshan Khera, CFP®, expects R R Kabel to maintain double-digit growth through its focused capex strategy and export-led expansion. More insights available at Indian-Share-Tips.com, a SEBI Registered Advisory Services.
Related Queries on R R Kabel performance
- What drives R R Kabel’s margin expansion in FY26?
- How is the export mix impacting profitability?
- When will the FMEG segment turn profitable?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
