Overview
RR Kabel has announced plans to achieve double-digit EBIT margins within the next 2–3 years, up from 7.40% last year. The company reported strong H1 FY26 performance, with 22% year-on-year (YoY) growth in its core business and 16% volume growth. A ₹1,200 crore capex plan over three years will focus on expanding capacity in the cable segment. Current utilisation levels stand at 70% for wires and 90% for cables. The company also follows a dual hedging strategy to mitigate copper price volatility.
Margin Improvement and Growth Targets
- Targeting double-digit EBIT margins within 2–3 years.
- Planned margin improvement of 100–110 basis points from current levels.
Financial Performance (H1 FY26)
| Metric | Performance |
| Core wires and cables business growth | 22% YoY |
| Volume growth | 16% YoY |
| Profit After Tax (PAT) | ₹116.3 crore (134.7% YoY increase) |
| Q3 volume growth target | 18% YoY |
Capacity Expansion and Capital Expenditure
| Capex Details | Amount / Timeline |
| Total Allocation | ₹1,200 crore |
| Time Frame | 3 years |
| Primary Focus | Cable segment expansion |
| Capacity Utilisation | Wires – 70%, Cables – 90% |
Risk Management Strategy
- B2B and Export Business: 100% back-to-back coverage for copper price fluctuations.
- B2C Business: Price adjustments triggered when copper prices move 2–3%.
Investor Communication
RR Kabel conducted its Earnings Conference Call on November 3, 2025, covering performance for the quarter and half-year ended September 30, 2025. The audio recording has been made available on the company’s website in line with SEBI regulations.
Summary
RR Kabel plans ₹1,200 crore capex over three years to expand cable capacity and targets double-digit EBIT margins within 2–3 years. In H1 FY26, revenue from its core business grew 22% YoY, while PAT surged 134.7% to ₹116.3 crore. Capacity utilisation stands at 70% for wires and 90% for cables.
Disclaimer:
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