R R Kabel Q1 profit jumps 129% as wires and cables drive growth

R R Kabel reported Q1 FY27 PAT of ₹205.2 crore, with revenue up 53.9% to ₹3,168.2 crore. EBITDA rose 94% and margin expanded 200 bps to 8.9%, while its FMEG business reached operating break-even despite a ₹13.8 crore labour-code charge.

— Source publishedMon, 27 Jul, 2026, 16:36 IST·First seen Mon, 27 Jul, 2026, 16:41 IST·Source CNBC-TV18 · Companies

What happened

R R Kabel’s Q1 profit more than doubled on strong wires and cables demand, while margins expanded. Its FMEG unit reached operating break-even. The company

Key facts

  • Q1 FY27 PAT: ₹205.2 crore, up 128.8% YoY
  • Revenue from operations: ₹3,168.2 crore, up 53.9% YoY
  • EBITDA: ₹283 crore, up 94% YoY
  • EBITDA margin: 8.9%, up 200 bps
  • Wires and cables revenue: ₹2,880 crore, up 57% YoY
  • FMEG revenue: ₹288 crore, up 28% YoY
  • Exceptional labour-code charge: ₹13.8 crore

Why this matters

The strong core electricals performance and FMEG operating break-even make R R Kabel a more credible platform for selective adjacencies or capability-led expansion.

What to watch

  • Sequential revenue growth in wires and cables after the likely seasonal Q1 demand spike.
  • EBITDA margin sustainability above or near 8.9%, excluding labour-code and other exceptional charges.
  • Copper and aluminium price movements, inventory gains/losses and the speed of customer price pass-through.
  • FMEG segment revenue growth, gross margin and whether operating break-even becomes recurring.
  • Receivables, dealer inventory and operating cash-flow conversion versus reported PAT.
  • Management guidance on capacity additions, capex, utilisation and demand from housing, infrastructure and real estate projects.
  • Competitive pricing actions from other cable makers and electrical-goods brands.
  • Prioritise capacity expansion and debottlenecking in high-demand wire and cable categories.
  • Use improved cash generation to tighten dealer service levels, inventory availability and project-channel coverage.
  • Push FMEG from break-even toward scale profitability through selective distribution expansion and SKU rationalisation rather than broad discounting.
  • Strengthen commodity hedging and price-pass-through discipline to protect the 8.9% EBITDA margin.
  • Increase focus on premium and institutional/project sales, where specification-led demand can improve mix and reduce price sensitivity.