R R Kabel

R R Kabel delivered a robust Q4 FY25, with revenue from operations growing 26.4% year-on-year to ₹2,218 crores. EBITDA surged by 69.4% year-on-year to ₹196 crores, achieving an 8.8% margin, which was the highest for the fiscal year. For the full FY25, consolidated revenue reached ₹7,618 crores, marking a 15.5% annual growth, while PAT increased by 4.5% to ₹312 crores. This strong quarterly performance significantly uplifted the overall FY25 results.

The Wires & Cables segment continued to be a primary growth driver, recording ₹1,956 crores in Q4 FY25 revenue, a 28.4% year-on-year increase. Segment profit for Q4 stood at ₹194 crores, up 47.1% year-on-year. The segment saw substantial volume growth of 24% sequentially and 14% year-on-year in Q4. For the full FY25, Wires & Cables contributed 88% of total revenue, growing 14.7% to ₹6,689 crores, with cables growing by almost 19% on a yearly basis.

The FMEG segment demonstrated clear progress in profitability and growth, with Q4 revenue reaching ₹262 crores (up 13.3%) and FY25 revenue at ₹929 crores (up 21.5%). The company successfully reduced FMEG losses by approximately 33% (₹23 crores) from FY24. Management reiterated its commitment to achieving breakeven in the FMEG segment by FY26, supported by enhanced advertising and a focused brand transition strategy, including new premium and mid-premium products.

R R Kabel unveiled 'Project Rise,' a focused 3-year strategic initiative aimed at accelerating growth and transforming its revenue and profitability profile. The company targets a Wires & Cables revenue CAGR of 18% and an FMEG revenue CAGR of 25% over the next three years, collectively driving a 2.5x growth in EBITDA. This strategy emphasizes organic expansion, export leadership, and an optimized product mix.

To support its ambitious growth trajectory, R R Kabel is investing significantly in manufacturing capacity. The company has initiated an INR1,200 crores capex plan for FY26 to FY28, primarily focused on increasing cable capacity to support 15-20% volume growth. This expansion includes a 1.7x increase in capacity at Silvassa (for wires) and Waghodia (for cables), adding a combined 54,000 tons (36,000 tons + 18,000 tons) to meet rising demand.

Management aims to achieve double-digit EBITDA margins of 10.5% by FY28, with a yearly sequential improvement of approximately 100 basis points. This will be driven by higher volumes, a better product mix, and improved profitability in the FMEG segment. The company also demonstrated strong operational efficiency by improving its working capital cycle from 88 days in FY22 to 56 days in FY25, with expectations to maintain it around 60 days.

R R Kabel significantly enhanced its brand visibility through high-impact sponsorships, including a multiyear principal partnership with Kolkata Knight Riders (KKR) and becoming the principal sponsor of UP Warriorz for the Women's Premier League (WPL) 2025. In recognition of its performance and commitment to shareholder value, the Board of Directors approved a dividend of ₹3.5 per share, representing 70% of the face value.