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R R Kabel Ltd. Posts Record Quarter Driven by Wires & Cables Segment
R R Kabel Limited has announced its strongest nine-month performance on record, with the third quarter of FY26 (Q3 FY26) marking a significant milestone. The company reported a consolidated revenue of INR 2,536 crore, representing a substantial 42.3% year-on-year (YoY) increase from INR 1,782 crore in Q3 FY25. For the nine months ended December 31, 2025, consolidated revenue reached INR 6,758 crore, up 25.1% YoY.
📉 The Financial Deep Dive
The Numbers:
- Q3 FY26 Revenue: INR 2,536 crore (+42.3% YoY)
- 9M FY26 Revenue: INR 6,758 crore (+25.1% YoY)
- Q3 FY26 EBITDA: INR 206 crore (+86% YoY)
- 9M FY26 EBITDA: INR 526 crore (+80% YoY)
- Q3 FY26 PAT: INR 118 crore (+72.4% YoY)
- 9M FY26 PAT: INR 324 crore (+77.7% YoY)
EBITDA margins saw significant improvement, expanding by approximately 189 basis points YoY in Q3 FY26 to 8.12%, driven by operating leverage and cost efficiencies.
The Quality:
The Wires & Cables segment was the primary growth engine, with revenue climbing 48.6% YoY to INR 2,293 crore in Q3 FY26, supported by a robust 30% overall volume growth and strong demand from both domestic and export markets. Segment profit grew by an impressive 84.9% YoY to INR 199 crore.
In contrast, the FMEG (Fast Moving Electrical Goods) segment showed steady revenue at INR 243 crore YoY. However, significant efforts are underway to curtail losses in this segment through cost reduction and portfolio rationalization, with management targeting breakeven at the EBIT level by Q4 FY26.
The Grill:
No specific analyst grill points were detailed in the provided earnings update.
🚩 Risks & Outlook
Management expressed cautious optimism, highlighting strong medium-term fundamentals for India's electrical industry. Key growth drivers identified include sustained infrastructure spending, a burgeoning housing sector, and a market shift towards organized and compliant products.
The company is committed to capital expenditure, with approximately 80% of its planned INR 1,200 crore capex over three years allocated to enhancing cable manufacturing capacity and efficiency. Current capacity utilization stands at around 70% for wires and 90% for cables.
Management Guidance:
- Targeting an 8.5% yearly EBITDA margin.
- Aiming to improve EBIT margins by 100 basis points annually.
- Targeting 10.5% EBIT margins in the wires & cables business by FY28.
- FMEG segment expected to grow at 25% over three years, targeting 5-6% EBIT margins by FY28.
An additional tailwind is anticipated from the EU trade deal, which is expected to reduce import tariffs to 0% from the current 3.7%, boosting export potential.