RR Kabel Aims for Double-Digit EBIT Margins, Plans Rs 1,200 Crore Capex

1 min read     Updated on 04 Nov 2025, 11:30 AM
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Reviewed by
Jubin VergheseScanX News Team
Overview

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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*this image is generated using AI for illustrative purposes only.

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:

  1. B2B and Export Business: 100% back-to-back coverage
  2. 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 Day5 Days1 Month6 Months1 Year5 Years
+2.24%+1.28%+12.20%+20.92%-6.40%+18.68%
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R R Kabel Targets 16-18% Volume Growth for FY26

1 min read     Updated on 03 Nov 2025, 05:09 PM
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Reviewed by
Radhika SahaniScanX News Team
Overview

RR Kabel, a major player in the cable and wire industry, has announced growth targets for FY26. The company expects 16-18% overall volume growth for the fiscal year, with a more ambitious target of approximately 21% growth in the second half. These projections reflect the company's optimistic outlook on market demand and its ability to increase market share.

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*this image is generated using AI for illustrative purposes only.

RR Kabel , a prominent player in the cable and wire industry, has set ambitious growth targets for the fiscal year 2026 (FY26). The company's executive recently announced their expectations for volume growth, signaling a positive outlook for the business.

Growth Projections

RR Kabel has outlined its growth strategy with the following key points:

Period Target Growth
FY26 Overall 16-18%
H2 FY26 ~21%

The company's executive has expressed confidence in achieving a volume growth of 16-18% for the entire fiscal year 2026. This projection demonstrates RR Kabel's optimistic stance on market demand and its ability to capture a larger market share.

Second Half Acceleration

Notably, RR Kabel is particularly bullish about its performance in the latter half of FY26. The company is specifically targeting approximately 21% growth in the second half of the fiscal year. This increased growth target for H2 suggests that the company anticipates stronger market conditions or the fruition of strategic initiatives in the latter part of FY26.

Implications for Investors

These growth projections provide valuable insights for investors and market watchers:

  1. Positive Outlook: The ambitious targets indicate management's confidence in the company's products and market position.
  2. Industry Trends: The growth expectations may reflect broader positive trends in the cable and wire industry.
  3. Strategic Focus: The higher growth target for H2 FY26 might suggest upcoming product launches, expansion plans, or favorable market conditions expected in that period.

While these projections are encouraging, investors should note that they represent the company's expectations and actual results may vary based on market conditions and other factors.

RR Kabel's growth targets for FY26 paint a picture of a company poised for expansion. As the fiscal year progresses, market observers will be keen to see how these projections translate into actual performance.

Historical Stock Returns for RR Kabel

1 Day5 Days1 Month6 Months1 Year5 Years
+2.24%+1.28%+12.20%+20.92%-6.40%+18.68%
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