RR Kabel delivered exceptional results for Q1FY27, achieving its highest-ever quarterly revenue of ₹3,168 crore, representing a 54% year-on-year growth from ₹2,059 crore in Q1FY26. According to the latest financial results, consolidated net profit surged 129% to ₹205 crore compared to ₹89 crore in the corresponding quarter last year. The market responded positively to these strong results, with shares surging 16% during the third straight trading day, hitting a new high of ₹2,750 on the BSE. The stock has zoomed 112% in the past three months, significantly outperforming the BSE Sensex's 7% rise. The Board of Directors approved the unaudited standalone and consolidated financial results at a meeting held on July 27, 2026, with the results reviewed by the Audit Committee and subjected to a limited review by B S R & Co. LLP. The disproportionate rise in net profit relative to revenue growth indicates substantial operating leverage, with EPS (Basic) improving to ₹18.14 from ₹7.93 year-on-year.
The company's operating EBITDA nearly doubled, increasing 99.5% YoY to ₹285.30 crore from ₹142 crore in the year-ago period, as reported in the latest financial results. EBITDA margins expanded by 205 basis points to 9.0% from the previous year, indicating significant operational efficiency improvements. Gross profit increased 56.8% YoY to ₹587.20 crore, with gross margin improving to 18.5% from 18.2% in Q1FY26, though marginally down from 18.6% in Q4FY26. The strong performance was driven by robust domestic demand, export growth, and improved operating leverage, with the improvement in segment profitability particularly notable in the Wires & Cables division. Revenue growth of 54% YoY significantly outperformed street estimates of 38%, demonstrating the company's strong execution capabilities. As per Choice Institutional Equities, the company reported 17% volume growth driven by healthy demand across domestic and export markets, with elevated copper prices boosting realisation through the industry's cost pass-through mechanism.
The Wires & Cables (W&C) segment contributed ₹2,880 crore to revenue, up 57% YoY, accounting for 91% of total revenue and demonstrating the company's core strength in this segment. According to the latest financial results, segment profit before tax and interest rose 105% YoY to ₹2,854 million, with segment PBIT margin expanding by 232 basis points to 9.9% from 7.6%, reflecting a better product mix, disciplined commodity management and operating efficiencies. As per Mahendrakumar Kabra, MD, RR Kabel, the company's strategic focus on expanding the cables portfolio, strengthening distribution network and enhancing execution capabilities continues to yield encouraging results. The wires and cables business posted 57% year-on-year growth, supported by higher volumes, strong execution and favourable industry dynamics. Notably, RR Kabel outperformed peers significantly, with its cables and wires business revenue growing 57% compared to peers like Polycab (38%) and Havells (27%), while RR Kabel's Cable & Wires margin expanded to 9.9% from 7.6% versus contraction reported by both competitors. The W&C business achieved impressive 17% volume growth, with cables growing over 25% and wires growing 12%, as reported by ICICI Securities.
The FMEG (Fast Moving Electrical Goods) business recorded strong revenue growth, driven by demand for premium and new products and continued distribution expansion. According to the latest financial results, the segment achieved operational breakeven during the quarter, with profitability improving significantly on a year-on-year basis due to premiumisation and operating leverage. This represents a significant milestone for the company's diversification strategy, as the FMEG segment accounted for the remaining 9% of Q1 FY27 revenue. As per Mahendrakumar Kabra, MD, RR Kabel, the operational breakeven achieved in the FMEG business is an important milestone that demonstrates the company's successful diversification efforts and operational execution capabilities. The segment also posted strong revenue growth, supported by continued demand for premium and new products across key categories, along with ongoing distribution expansion. The FMEG business achieved operational breakeven, supported by premiumisation and improving operating leverage, as noted by ICICI Securities.
Mahendrakumar Kabra, MD, RR Kabel, expressed confidence in the company's performance, stating that "We have started FY27 on a strong note with another quarter of record performance, reflecting the strength of our business model and disciplined execution across the organisation." He highlighted that "Robust growth across our Wires & Cables business, coupled with healthy profitability, demonstrates our ability to capitalise on the strong demand environment while maintaining operational excellence." The MD emphasized the company's strategic focus on expanding the cables portfolio, strengthening distribution network and enhancing execution capabilities. The management has retained its 18% FY27 volume growth guidance, reiterated its 10.5% W&C EBITDA margin target by FY28, and expects the FMEG business to grow 20% annually, supported by premiumisation, distribution expansion and new product launches. Choice Institutional Equities revised estimate upwards and expect Revenue/EBITDA/PAT to expand at a compound annual growth rate (CAGR) of 20%/24%/28% respectively over FY26–FY29E, driven by robust volume growth, commodity-led realisation, improving product mix, and operating leverage from capacity expansion.
CLSA analysts have initiated coverage on RR Kabel with a 'buy' rating and a target price of ₹2,930, representing a significant upgrade from previous estimates. The brokerage firm's DCF-based valuation implies a PE of 40x on FY28E EPS of ₹72.9 and PEG of 1.4, with the target price substantially higher than CLSA's earlier ₹2,850 estimate. Taking a DCF approach, Choice Institutional Equities values the company at ₹2,930 versus ₹1,910, driven by upward revision in estimates. The firm maintains its buy rating on RR Kabel, citing the company's distinguished moats of entrenched distribution network, influencer engagement, export leadership and integrated manufacturing that should drive growth and profitability. However, JM Financial Institutional Securities downgraded the stock to 'ADD' from 'BUY', citing the stock's over 80% run up over the last six months leaves limited upside, despite raising their target price to ₹2,800 from ₹2,050. With the company's project RRise providing a clear roadmap for the next phase of growth and profitability expansion, Choice Institutional Equities expects the company to deliver revenue and PAT compound annual growth rate (CAGR) of 18% and 24% respectively over financial year 2026-2030.
