R R Kabel Q1 FY27 Earnings Call — Analysis (NSE: RRKABEL)

R R Kabel reports highest-ever quarterly revenue and EBITDA; Wires & Cables volume +17% YoY, FMEG reaches breakeven

3 Aug 2026 · Analysis by Alpha Inflection

The take

Q1FY27 Revenue from operations ₹3,168 Cr ( +54% YoY ) . New guidance — FY27 fmeg revenue growth ~20% . New story: Cable volume outperformance and B2B push .

Results

Revenue ₹3,168 Cr +54% YoY; Operating EBITDA ₹285 Cr margin 9.0% (+200 bps); PAT ₹205 Cr +128% YoY

Financial highlights

Guidance

FY28 Wires & Cables segment margin guidance maintained at 10.5%; FY27 volume growth expected ~18%

What management committed to

• Wires & Cables segment margin will reach 10.5% by FY28 — 10.5%, FY28
• Wires & Cables volume growth expected to be around 18% in FY27 — ~18%, FY27
• FMEG segment will achieve breakeven on a yearly basis in FY27 — breakeven, FY27
• FMEG business will become profitable on a continuous and sustainable basis within 2-3 years — profitable, in coming 2-3 years
• FMEG revenue growth targeted at around 20% year-on-year — ~20%, FY27
• Project RRise total capex will be ₹1,200 Cr over FY26-28, with ₹650 Cr deployed in FY27 — ₹1,200 Cr; ₹650 Cr in FY27, FY28
• New wire capacity at Silvassa will be added in Q2FY27 — Q2FY27
• Cable capacity at Waghodia will be added during FY27 — FY27
• Wires & Cables segment margin will improve by 100 basis points year-on-year in FY27 — 100 bps, FY27
• H2FY27 financial performance will be stronger than H1FY27 — FY27
• R R Kabel will not enter solar business and will focus on current FMEG categories — no plan in solar, ongoing

Key themes

Cable-driven growth and FMEG breakeven

How the narrative shifted

• Cable volume outperformance and B2B push: Management attributes strong growth to strategic focus on cables and B2B segments, with cable volume growing >25%, and expects this trend to continue.
• Margin expansion through scale and mix: Scale benefits, cost absorption, product mix and operating leverage are cited as key drivers for margin improvement; confident of achieving 100 bps YoY improvement.
• FMEG turnaround to breakeven: FMEG reaches operational breakeven for the first time; management frames this as a milestone driven by premiumization and cost control, with pathway to sustainable profitability.
• Resilient exports and geographic diversification: Despite Middle East disruptions, export growth kept pace with domestic due to diversification; visibility of recovery and new market entry (US, new geographies) highlights resilience.
• Capex cycle for capacity addition: Project RRise execution on track; new capacities in wires (Silvassa) and cables (Waghodia) being added to meet projected volume targets, with spend front-loaded in FY27.
• Channel consolidation and premiumization: Retail presence expanded to 1.5 lakh touch points; distribution focus shifting toward deeper penetration and premium product mix, especially in FMEG (25% premium revenue).
• Commodity and currency volatility: Management flags ongoing volatility in metal prices (LME) and forex, but positions hedging and procurement discipline as mitigants; adverse effect seen in Q1 end-of-period volume impact noted.
• Infrastructure demand tailwind: Strong demand cited from infrastructure, construction, industrial projects, electrification and shift to organized products; seen as multi-year driver.

Operational commentary

• Cables volume surged >25% YoY, wires volume grew ~12%; overall W&C volume growth 17%, driven by distribution and B2B push
• FMEG achieved operational breakeven for the first time, aided by premium products (~25% of FMEG revenue) and operating leverage
• Export growth kept pace with domestic despite Middle East disruption; other geographies offset the impact, and Middle East shipments normalized in May-June
• New wire capacity at Silvassa scheduled to come onstream in Q2FY27; cable capacity expansion at Waghodia underway as part of Project RRise
• Retail touch points exceed 1.5 lakh (20,000–25,000 added last year); distribution strategy shifting toward depth and revenue-per-dealer
• B2B emphasis on project, industrial, and power cables; data center orders have begun but remain a small fraction of revenue
• FMEG manufacturing mix: ~1/3 in-house (ceiling fans, switchgear), ~2/3 outsourced; appliances contribute 10–11% of FMEG; solar entry ruled out

Analyst Q&A

• Q. Thoughts on upgrading FY28 margin guidance given Q1 already close to 10%?

  We will remain there since it is early in the year; we continue to maintain our overall margin guidance of 10.5% by FY28.

• Q. How much of the margin expansion is from mix vs operating leverage vs commodity gains?

  Biggest benefit is scale… better cost absorption, plus many other initiatives – a combination of product mix, scale benefits.

• Q. Export performance and geographic mix amid Middle East disruption; cable approvals progress?

  We offset Middle East with other geographies; still early stage of larger journey for approvals, expanding in new geographies.

• Q. Data center opportunity: repeat orders and share of revenue?

  Data center is still more in announcement phase; we have a few orders, it is very less as part of wire and cable industry.

• Q. FMEG breakeven delay reason and sustainability?

  Earlier targeted Q4FY26 but high raw material fluctuation prevented it; now achieved, expect sustainable yearly breakeven in FY27, though Q2 may be lower.

• Q. Is there any stress in trade receivables or working capital?

  We have not seen any stress; receivables days reduced by 3 days this quarter.

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