R R Kabel delivered impressive third-quarter results that exceeded analyst expectations, prompting Motilal Oswal to maintain its Neutral rating while raising the target price to Rs 1,530. According to Motilal Oswal's research report dated February 2, 2026, the company's consolidated revenue increased approximately 42% year-on-year to Rs 25.4 billion, representing a 14% beat over estimates. The strong performance was driven by higher-than-estimated revenue growth in both the Cables & Wires (C&W) and Fast Moving Electrical Goods (FMEG) segments.
The company's profitability metrics demonstrated substantial year-on-year growth across key parameters. As reported by Motilal Oswal, EBITDA increased approximately 85% year-on-year to Rs 2.0 billion, marking a 15% beat over estimates. The operating profit margin (OPM) expanded 1.9 percentage points year-on-year to approximately 8%, which was in line with expectations. Most notably, adjusted profit after tax surged approximately 94% year-on-year to Rs 1.3 billion, representing a 18% beat over analyst estimates.
R R Kabel has announced ambitious expansion plans with Rs 1,200 crore capex over the next three years to support global expansion. As per latest market reports, the company is planning significant investments to strengthen its manufacturing capabilities and global market presence. This substantial capital expenditure program reflects the company's confidence in long-term growth prospects and its commitment to expanding its operational footprint across international markets.
According to Motilal Oswal's analysis, the stock is currently trading at 30x and 24x FY27E and FY28E earnings per share respectively. The brokerage values R R Kabel at 28x FY28E EPS to arrive at the target price of Rs 1,530. The research report indicates that the company's strong quarterly performance, driven by robust growth in both core business segments, supports the maintained Neutral rating despite the positive results. The stock has shown strong momentum with a 72.70% gain from 52-week low, reflecting positive investor sentiment towards the company's expansion strategy.
