Detailed Narrative
Strong Q4 and FY26 Financial Performance
R R Kabel reported its highest ever quarterly and annual revenue, with Q4 FY26 revenue reaching ₹2,964.1 crores, a 33.7% YoY increase. For the full year FY26, revenue stood at ₹9,722.4 crores, growing 27.6% YoY. Profitability also saw significant gains, with Q4 FY26 EBITDA up 34.6% to ₹263.5 crores and full-year EBITDA surging 61.8% to ₹789.1 crores. PAT for Q4 and FY26 grew by 30.1% and 58% respectively, reaching ₹168 crores and ₹492.2 crores.
Wires & Cables Segment Drives Growth
The Wires & Cables segment remained the cornerstone of the business, contributing 90% of the total revenue in FY26. This segment delivered strong performance, with Q4 FY26 revenue growing 36.3% YoY to ₹2,666.4 crores and full-year revenue up 31% to ₹8,763.7 crores. Segment profit for Q4 FY26 increased by 32.5% to ₹257.3 crores, and for FY26, it grew 56.2% to ₹775.6 crores. The company achieved a 16% volume growth for FY26, with cables growing in high teens and wires in mid-single digits.
FMEG Segment Performance and Path to Breakeven
The FMEG segment contributed 10% to the total revenue, with Q4 FY26 revenue at ₹297.7 crores (up 13.8% YoY) and FY26 revenue at ₹958.6 crores (up 3% YoY). While market conditions remained competitive and demand selective, FMEG losses have reduced. The company is now targeting breakeven for the FMEG segment in FY27, a revision from the earlier target of March 2026, primarily due to lower volumes from bad weather and input cost pressures in Q4.
Strategic Capex and Capacity Expansion
R R Kabel is executing a ₹1,200 crores capex program for FY26 to FY28, with ₹300 crores already invested in FY26. The majority of the remaining capex is planned for FY27. This investment is focused on expanding cable and wire capacity and improving operating efficiencies. The expansion will enable the company to manufacture cables up to 220 KV (from the current 66 KV) and is being implemented in phases, with new capacities added every six months, aiming for full completion by FY28.
Export Market Challenges and Mitigation
The export segment, particularly to the Middle East (which constitutes about 40% of total exports or 12% of overall topline), faced disruptions due to heightened geopolitical tensions. While the company managed to deliver strong export growth in Q4, management anticipates a higher impact in Q1 FY27. They are confident in mitigating these challenges by diversifying across other geographies and product categories, and maintaining a strong global presence.
Margin Outlook and Cost Management
Despite raw material price volatility and increased freight costs, R R Kabel improved profitability through operating leverage and disciplined cost management. The company aims for 10.5% EBIT margins in the Wires & Cables segment by FY28, targeting a 300 basis points improvement from Project RRise initiatives. For FY27, the company is guiding for an overall margin of 9.5%, driven by operational efficiencies and a better product mix.
Shareholder Returns and Working Capital
The Board of Directors approved a final dividend of ₹5.50 per share for Q4 FY26, bringing the total dividend for FY26 to ₹9.50 per share. The company maintained a healthy balance sheet and working capital position, with an increase in inventory primarily attributed to exports in transit and higher metal prices. Effective use of letter of credit facilities also contributed to managing working capital efficiently.