RR Kabel has demonstrated strong technical momentum with its RSI reaching 58.84 compared to the previous reading of 48.54, indicating strengthening price momentum. The stock is currently trading at ₹2,648, showing significant improvement from its recent levels. According to StockEdge data, the RSI trending up scan identified five Nifty500 stocks that gained over 5% on October 5, with RR Kabel being one of them. An uptrend signal occurs when the RSI crosses above 50 from below, suggesting the stock's price is gaining strength and momentum in the market.
The two companies have significantly different revenue compositions and growth strategies. RR Kabel's FY26 revenue of ₹9,722 crore was driven by wires and cables contributing ₹8,764 crore (90%) and fast-moving electrical goods (FMEG) adding the rest. In contrast, Finolex Cables reported ₹6,321 crore revenue with electrical cables contributing ₹5,490 crore (87%) and communication cables adding ₹500 crore. RR Kabel's revenue grew from approximately ₹5,600 crore in FY23 to ₹9,700 crore in FY26, while cable volumes specifically grew more than 25% in Q1 FY27 compared to 17% growth in wires.
RR Kabel is executing an aggressive expansion strategy with cable plants running at around 90% utilisation compared to 65-70% for wires, justifying the ₹1,200 crore Project RRise capital expenditure plan aimed at cables. The company's wires-and-cables EBIT margin improved from 7.4% in FY25 to 8.9% in FY26, with management targeting 10.5% by FY28. In contrast, Finolex is pivoting toward optical fibre and specialised cables, with the optical fibre segment generating ₹500 crore revenue but only ₹14 crore profit in FY26, though Q1 FY27 saw segment profit cross ₹50 crore with 62% revenue growth to ₹176 crore.
The companies show contrasting export strategies with RR Kabel getting about 26% of revenue from exports while Finolex got only about 1% in FY26, though Q1 FY27 exports of roughly ₹50 crore almost matched the previous full year's ₹55 crore. RR Kabel maintains a well-diversified presence across Europe and the Middle East, with ongoing expansion in the US to reduce dependence on the Middle East amid ongoing conflicts. Finolex's export strategy remains in early stages, with the company focusing on domestic growth through power cables (21% volume growth), industrial flexible cables (17%), and automotive cables (nearly 30%).
RR Kabel's FMEG segment generated ₹959 crore of FY26 revenue but remained loss-making, though it reached operating breakeven in Q1 FY27. With approximately two-thirds of production outsourced, better margins here should require less capital than cable expansion. Finolex's FY27 capital expenditure is about ₹300 crore, focusing on optical fibre, exports, and specialised cables. The key challenge for both companies is capital allocation - RR Kabel is spending ₹1,200 crore while competitors are also adding capacity, while Finolex faces the question of whether optical fibre, exports, and specialised cables will become large enough to change earnings meaningfully.
