RR Kabel Aims for Double-Digit EBIT Margins, Plans Rs 1,200 Crore Capex
RR Kabel aims to achieve double-digit EBIT margins in 2-3 years, up from 7.40% last year. The company reported strong H1 performance with 22% YoY growth in core business and 16% volume growth. A Rs 1,200 crore capex plan over three years will focus on expanding cable segment capacity. Current utilization is 70% for wires and 90% for cables. The company uses a dual hedging strategy for copper price volatility.

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RR Kabel , a prominent player in the wire and cable industry, has outlined ambitious plans for margin improvement and capacity expansion, according to recent statements from company executives and financial results.
Margin Improvement and Growth Targets
Chief Operating Officer Rajesh Jain revealed that RR Kabel is targeting double-digit EBIT (Earnings Before Interest and Taxes) margins over the next two to three years. This represents a significant improvement from the company's wire and cable EBIT margins of 7.40% in the previous year. The company aims to enhance these margins by 100-110 basis points.
Financial Performance
RR Kabel has demonstrated strong financial performance in recent periods:
| Metric | Performance | 
|---|---|
| Core wires and cables business growth (H1) | 22.00% YoY | 
| Volume growth (H1) | 16.00% YoY | 
| Profit After Tax | Rs 116.30 crore (134.70% YoY increase) | 
| Q3 volume growth target | 18.00% YoY | 
Capacity Expansion and Capital Expenditure
To support its growth objectives, RR Kabel has announced a substantial capital expenditure plan:
| Capex Details | Amount | 
|---|---|
| Total allocation | Rs 1,200.00 crore | 
| Time frame | Over three years | 
| Primary focus | Expanding cable segment capacity | 
The company's current capacity utilization stands at:
- Wire segment: 70.00%
 - Cable segment: 90.00%
 
Risk Management Strategy
RR Kabel employs a dual hedging strategy to manage copper price volatility:
- B2B and Export Business: 100% back-to-back coverage
 - B2C Business: Price adjustments when copper prices move by 2-3%
 
Investor Relations
In compliance with SEBI regulations, RR Kabel hosted an Earnings Conference Call on November 3, 2025, to discuss the company's performance for the quarter and half-year ended September 30, 2025. The audio recording of this call has been made available on the company's website, demonstrating transparency in its communications with investors and analysts.
RR Kabel's strategic focus on margin improvement, coupled with its robust growth and expansion plans, positions the company for potential strong performance in the coming years. However, investors should note that these targets are forward-looking and subject to various market factors and execution risks.
Historical Stock Returns for RR Kabel
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years | 
|---|---|---|---|---|---|
| +2.24% | +1.28% | +12.20% | +20.92% | -6.40% | +18.68% | 



































