RR Kabel shares surged 9% to hit a fresh high of ₹2,775 on Tuesday following exceptional Q1FY27 results that exceeded brokerage estimates. According to The Financial Express, the stock rallied after the company delivered standalone PAT of ₹191 crore in Q1FY27, compared with ₹88.7 crore in Q1FY26, representing a remarkable 123% year-on-year growth. The strong performance was driven by the company's cables and wires business, which grew 17-18% YoY, significantly outperforming industry peers who estimated Q1FY27 industry volume growth at 10-12%. The company reported revenue growth of 54% year-on-year to ₹3,168 crore and EBITDA nearly doubled to ₹285 crore with margin expansion to 9%. As per Motilal Oswal's latest research report dated July 27, 2026, revenue was up ~54% YoY to ₹31.7 billion (~12% beat), while EBITDA almost doubled YoY to ₹2.8 billion (~10% beat).
Multiple brokerages have raised price targets on RR Kabel following the strong Q1FY27 performance. Motilal Oswal Financial Services raised the price target to ₹2,960 from ₹2,800, implying an upside of over 17%, while JM Financial increased the target to ₹2,800 from ₹2,050, suggesting an 11% upside. According to The Financial Express, Motilal Oswal maintained its 'Buy' rating citing robust volume growth in Cables & Wires and FMEG profitability being on track. However, JM Financial downgraded the rating to 'Add' from 'Buy' noting that the stock's 84% run-up over the last six months leaves limited upside. The brokerage expects RR Kabel to deliver 18% revenue CAGR and 24% PAT CAGR over FY26-30. As per Motilal Oswal's latest report, the stock is trading at 37x/30x FY27E/28E EPS, with the brokerage valuing the company at 35x FY28E EPS to arrive at the revised target price of ₹2,960.
RR Kabel's Wires & Cables (W&C) business delivered exceptional performance in Q1FY27, with revenue growing 57% year-on-year driven by robust execution and healthy domestic demand. As reported by The Financial Express, W&C segment EBIT grew by 105% YoY, supported by margin expansion to 9.9% (+230bps) led by improved product mix and operating efficiencies. Overall volume grew 17% YoY, with similar growth across domestic and export markets, while cable volumes grew 25% and wires 12%, reflecting stronger traction in cables. Management reiterated its guidance of W&C EBIT margin of 9.5% for FY27 and 10.5% by FY28, with future growth expected to be driven primarily by the cable business. The company retained its volume growth guidance of 18% for FY27 and FY28. According to Motilal Oswal's latest analysis, the brokerage estimates RRKABEL's revenue/EBITDA/PAT CAGR at ~25%/36%/40% over FY26-28, with OPM at 9.2%/9.6% in FY27/FY28 versus 8.1% in FY26.
The company is addressing capacity constraints through a ₹1,200 crore capex plan, with 80% allocated towards cable capacity expansion. According to The Financial Express, cable capacities continue to be a challenge, operating at over 90%. The management believes this significant investment will help ease capacity constraints and support future growth. The company has ₹6-6.5bn planned for FY27, of which approximately 80% will be allocated towards cable capacity expansion. Management continues to focus on outperforming industry growth in the C&W business by increasing its presence in the higher-value cables and B2B segments.
The company's Fast Moving Electrical Goods (FMEG) business achieved a significant milestone by achieving operational breakeven during Q1FY27, with revenue growing 28% YoY. According to The Financial Express, FMEG revenue grew 28% YoY and achieved operational breakeven, aided by premiumisation with premium products contributing 25% of FMEG segment. The business showed healthy growth across lighting, appliances and switches, while management continues to target ~20% FMEG growth in FY27. Capex plans remain on track, with ₹3.0bn incurred in FY26 and ₹6-6.5bn planned for FY27, of which approximately 80% will be allocated towards cable capacity expansion.
