RR KABEL LTD: Powering India's Electrical Revolution
From Wires to Wealth: A Compact Research Snapshot: Report Date: December 14, 2025
RR Kabel Ltd is a leading Indian wires & cables manufacturer with a growing presence in fast-moving electrical goods. After a sharp correction in 2024–25, the stock has staged a strong recovery, supported by record profitability, margin expansion, and a ₹1,450 crore multi-year capacity expansion plan. Structural tailwinds from infrastructure, housing, renewable energy, and electrification position the company for sustained medium-to-long-term growth.
Company Overview
Founded in 1995, RR Kabel operates across two segments:
• Wires & Cables (91% of revenue): house wires, power & control cables, solar and specialty cables; India’s largest exporter.
• FMEG (9% of revenue): fans, lighting, switches, and appliances under RR Signature and Arraystorm brands.
The company operates manufacturing facilities in Gujarat, Silvassa, Bangladesh, and Dubai, supported by a wide domestic distribution network of 300+ distributors and 10,000+ retail touchpoints. Balance sheet remains virtually debt-free.
Financial Performance Highlights
Q2 FY26 marked a strong inflection point:
• Revenue: ₹2,164 crore (+19.5% YoY)
• EBITDA: ₹176 crore (+106% YoY), margin at 8.1%
• PAT: ₹116 crore (+135% YoY)
FY25 Performance:
• Revenue: ₹7,618 crore (+16%)
• Net Profit: ₹312 crore (Up from 298 crore)
• ROE: 15.2%, ROCE: 19.8%
Profitability improvement has been driven by better product mix, operating leverage, and cost efficiencies.
Growth Drivers & Capex
Key growth catalysts include:
• ₹1,450 crore capex (FY26–FY28) to expand cable capacity by ~54%.
• Targeted W&C volume CAGR of 18% and FMEG revenue CAGR of 25%.
• Infra, real estate recovery, renewable energy (500 GW target), metros, and data centers.
• Export contribution ~30%, primarily Middle East & Europe; limited US exposure.
• FMEG expected to reach EBITDA breakeven by H1 FY26.
Technical & Market View
Current Price: ₹1,424 | 52-week range: ₹853 – ₹1,523
• Stock has recovered ~90% from lows and trades above 50 & 200 EMA.
• Consolidation zone: ₹1,350–1,450, indicating accumulation.
• Trend structure remains bullish with higher highs and higher lows since May 2025.
Valuation & Price Outlook
At ~38x trailing P/E, RR Kabel trades at a premium to the sector, justified by superior growth visibility and margin expansion.
Key Risks
• Commodity volatility (copper prices)
• High valuation multiples
• Execution risks in capex rollout
• Demand slowdown in infrastructure or housing
Technical Trend Snapshot
RR Kabel is in a confirmed bullish recovery, trading above all key moving averages with volume support and a consistent higher high–higher low structure since May 2025. Momentum remains constructive, reinforced by bullish MACD signals and multi-timeframe trend alignment, although RSI is neutral and the stock is yet to retest its prior high of ₹1,813. Overall, the chart structure indicates a continuation setup, keeping the technical bias positive with a favorable upside skew.
The Bottom Line
RR Kabel offers a compelling long-term investment opportunity aligned with India’s electrification and infrastructure growth. Despite elevated near-term valuations, the company’s strong execution, expanding margins, capacity-led growth, and debt-free balance sheet support a favorable risk–reward profile. At ₹1,424, the upside potential over a 2–3-year horizon outweighs the risks, though investors should be prepared for interim volatility and consolidation. Overall, RR Kabel remains well-positioned for sustained value creation for patient investors.
Disclaimer
This analysis is intended solely for informational purposes and does not constitute any investment or financial advice. All information is sourced from public company filings, analyst reports, and third-party sources believed to be reliable. In accordance with SEBI guidelines, market data is presented accordingly. Investors should conduct independent research, perform due diligence, and consult qualified financial advisors before making any investment decisions. The views expressed are personal and may be subject to errors or bias.
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