R R Kabel jumps 10% after Q1FY27 profit surge; CLSA starts outperform
R R Kabel reported Q1FY27 standalone PAT of ₹203.1 crore, up from ₹88.7 crore a year earlier, with cables and wires revenue growing 57%. CLSA initiated coverage with an outperform rating and a ₹2,850 target, citing distribution, manufacturing and export strengths.
What happened
R R Kabel reported a sharp Q1FY27 profit increase and 57% cables-and-wires revenue growth, outperforming Polycab and Havells. CLSA initiated coverage with an
Key facts
- R R Kabel shares rose 10%
- Stock traded at ₹2,597 at 10.31 am
- Fresh high of ₹2,775
- Previous close ₹2,525.30
- Q1FY27 standalone PAT ₹203.1 crore
- Q1FY26 standalone PAT ₹88.7 crore
- Cables and wires revenue growth 57%
- Polycab cables and wires revenue growth 38%
- Havells growth 27%
- CLSA target price ₹2,850 per share
- FY26-30CL expected revenue CAGR 18%
- FY26-30CL expected PAT CAGR 24%
Why this matters
R R Kabel’s expanding distribution, manufacturing scale and export capabilities make it a stronger strategic player, increasing its appeal for partnerships, channel expansion and adjacent-category opportunities.
What to watch
- Q2FY27 revenue growth and whether cable-and-wire growth remains materially above the broader industry rate.
- EBITDA/gross-margin trend after copper and aluminium price movements, including the speed of raw-material pass-through.
- Volume growth versus realization growth, which will distinguish underlying demand from commodity-linked pricing.
- Dealer additions, export contribution, capacity-utilization levels and commissioning timelines for new plants.
- Working-capital days, receivables and operating cash-flow conversion following rapid sales growth.
- Further analyst target revisions, institutional shareholding changes and management guidance upgrades or caution.
- Demand indicators from residential construction, renewables, transmission-and-distribution projects and private industrial capex.
- Management is likely to emphasize capacity additions, distribution expansion and export-market penetration to validate the growth runway.
- Sell-side coverage may broaden, increasing attention on segment margins, cable-and-wire mix and return on new manufacturing investments.
- Competitors may accelerate dealer incentives, capacity plans and product launches, raising the risk of pricing competition in wires and electricals.
- A higher share price can improve R R Kabel's strategic flexibility for capex, acquisitions or lower-cost fundraising, but also raises expectations for continued earnings delivery.