Submission Details

R R Kabel Limited (Scrip Code: 543981, Symbol: RRKABEL) submitted the transcript of its Q1 FY27 Earnings Conference Call held on 27 July 2026 to BSE and NSE pursuant to Regulations 30 and 46 of SEBI LODR Regulations. The transcript was digitally signed by Anup Vaibhav C. Khanna, Company Secretary and Compliance Officer, on 3 August 2026.

Management Participants

  • Mr. Rajesh Kabra – Joint Managing Director
  • Mr. Rajesh Jain – Chief Operating Officer
  • Mr. Jigar Mehta – Chief Financial Officer
  • Moderator: Mr. Chirag Bhatiya – MUFG Intime

Q1 FY27 Financial Performance

Overall Performance:

  • Revenue from operations: ₹3,168 crores (54% YoY growth)
  • Operating EBITDA: ₹285 crores (100% YoY growth from ₹143 crores)
  • Operating EBITDA margin: 9% (vs 7% in Q1 FY26)
  • Profit after tax: ₹205 crores (vs ₹90 crores last year)
  • Exceptional item: ₹14 crores reversal of provision for new labor codes impact

Segment Performance:

Wires & Cables Business:

  • Revenue: ₹2,880 crores (57% YoY growth)
  • Volume growth: 17% YoY (both domestic and export markets)
  • Cable volumes: >25% growth
  • Wire volumes: ~12% growth
  • Segment profit: ₹285 crores (from ₹139 crores in Q1 FY26)
  • Segment profit margin: 9.9% (vs 7.6% in Q1 FY26)

FMEG Business:

  • Revenue: ₹288 crores (28% YoY growth)
  • Reached operational breakeven position (vs loss of ₹7 crores in Q1 FY26 and ₹9 crores in Q4 FY26)
  • 25% of revenue from premium products
  • Strong growth in lights, appliances, and switches
  • Fan volumes flat YoY but realization improved with better product mix

Operational Highlights

Working Capital:

  • Net working capital days remained stable at 50 days
  • Receivables days reduced by 3 days in the quarter

Capacity Expansion:

  • New capacities expected in Silvassa during current quarter
  • Capex plan: ₹1,200 crores for FY26-FY28 period
  • FY26 capex: ₹300 crores completed
  • FY27 capex: ₹600-650 crores planned (80% focused on cable business)
  • Current utilization: Cables ~90%, Wires 65-70%

Market Performance:

  • Domestic markets: West and North contribute 65% of domestic revenues
  • Strong progress in South market
  • Export markets: Similar growth pace as domestic despite Middle East disruptions
  • Middle East recovery seen in May-June 2026
  • Key export regions: Europe and Middle East
  • US market identified as future opportunity pending tariff clarity

Management Guidance & Outlook

Volume Growth: Expecting 18% YoY volume growth for FY27

Margin Guidance: Maintaining Wires & Cables margin target of 10.5% by FY28

FMEG Business: Targeting 20% YoY growth and sustainable breakeven for FY27

Industry Outlook:

  • Industry growth estimated at 10-12%
  • Continued shift from unorganized to organized sector (2-3% annually)
  • H2 traditionally stronger than H1
  • Supportive infrastructure development, housing, industrial investment, and electrification trends

Q&A Session Key Points

Product Mix & Margins: Margin improvement driven by scale benefits, better cost absorption, and operational efficiency initiatives rather than inventory gains

Geographic Expansion: Focus on increasing depth of distribution rather than just adding touch points

New Products: Exploring opportunities in HV cables and specialized cables; no immediate plans for solar products

FMEG Manufacturing: Current mix - 1/3 in-house (ceiling fans, switchgear), 2/3 outsourced (lighting, appliances); model to continue

Data Center Business: Still in early stages with minimal revenue contribution; supplying conventional cables

Premiumization: 25% of FMEG revenue from premium products driving better realizations

Labor Code Impact: ₹14 crore exceptional item represents reversal of provision made in Q3 FY25 due to clarity on new labor code rules