RR Kabel Q1 FY27: Record Revenue, Stronger Cable Mix, and FMEG Break-even

RR Kabel started FY27 with its highest ever quarterly revenue, and the profitability step-up was even sharper than the top line. In Q1 FY27, revenue from operations came in at INR 3,168.2 crore, up 54% year on year. Operating EBITDA almost doubled to INR 285.3 crore, and the EBITDA margin expanded to 9.0% from 7.0% a year ago. Profit after tax rose 129% to INR 205.2 crore, with PAT margin improving to 6.5%.

Management attributed the quarter’s performance to a combination of scale benefits, improved business mix, disciplined commodity management, and operating efficiencies. The operating environment, however, remained volatile due to metal price swings and foreign exchange movement. Even with those uncertainties, the company reported that demand stayed supportive across infrastructure, construction, industrial projects, and power-related applications.

Wires and Cables leads growth, with cables pulling ahead

The Wires and Cables segment was the main growth driver. Q1 FY27 segment revenue was INR 2,880.0 crore, up 57% year on year, and segment profit before tax and interest rose to INR 285.4 crore. The segment margin expanded to 9.9% versus 7.6% in Q1 FY26.

Management highlighted that volumes in Wires and Cables grew 17% year on year. Within this, cables grew faster, with more than 25% volume growth, while wires grew around 12%. This aligns with the stated strategic direction to strengthen the cable franchise and expand B2B capabilities across project, industrial, and power cables.

Exports remained resilient even with disruption in the Middle East. Management said the initial disruption was offset by other export markets, and Middle East shipments normalized in May and June, though supply-chain issues still remain. The quarter’s revenue mix was 71% domestic and 29% exports.

FMEG reaches operational break-even, but management flags seasonality

FMEG revenue in Q1 FY27 was INR 288.2 crore, up 28% year on year. The segment reached operational break-even, compared with a segment loss in Q1 FY26 and Q4 FY26. Management called this a milestone in the transformation of the FMEG business and linked it to premiumization and operating leverage.

Category-wise, management pointed to good growth in lights, appliances and switches. In fans, volumes were broadly flat year on year, but revenue improved due to better realizations and a higher premium mix. Management stated that about 25% of FMEG revenues are coming from premium products. It also clarified that appliances contribute around 10% to 11% of overall FMEG revenue.

Importantly, management also cautioned that Q2 is typically softer for FMEG, and quarterly break-even may not be sustained every quarter. The stated goal is to achieve break-even on a full-year basis in FY27 and make the segment profitable over the next 2 to 3 years.

Capex and capacity: cable-focused expansion under Project RRise

The quarter’s narrative also reinforced that RR Kabel is moving from strategy to execution on capacity expansion. Management reiterated the Project RRise capex plan of INR 1,200 crore across FY26 to FY28, with about 80% focused toward the cable side. It said about INR 300 crore was invested last year and around INR 600 crore to INR 650 crore is expected to be deployed in FY27.

On timelines and locations, management stated that new capacities are expected to be added during the current quarter at Silvassa, focused on the wires side. It also said that during FY27, additional capacities will be added at Waghodia with a stronger focus on cables.

The company also shared utilization levels, which help contextualize why the capex is skewed toward cables. Management indicated cable capacity utilization is around 90%, while wires utilization is around 65% to 70%.

What management guided and what to track

On guidance, management maintained its longer-term target of 10.5% margin in Wires and Cables by FY28, despite the Q1 FY27 segment margin reaching 9.9%. It reiterated the long-term volume growth expectation of around 18% year on year.

The call also offered a few practical signposts for investors. Management expects H2 to be stronger than H1, consistent with historical industry seasonality. It said the company remains watchful on metal prices, foreign exchange movement, inventory levels, and working capital requirements.

For exports, management highlighted Europe and the Middle East as the largest contributors currently. It also described the U.S. as a major opportunity, noting that some approvals are already in place and customer onboarding has started. However, it also flagged that tariff-related clarity is still evolving, which may affect how quickly the opportunity scales.

Closing takeaways

Q1 FY27 showed a clear step-up in scale and profitability for RR Kabel. Wires and Cables delivered strong growth with meaningful margin expansion, supported by a faster-growing cable mix. FMEG reaching operational break-even is a notable milestone, even as management highlighted seasonality and the need for sustained full-year performance.

The medium-term direction is anchored in a cable-heavy capex program under Project RRise, alongside efforts to build B2B capabilities and expand presence in HV cables. Going forward, the most important watch points remain commodity and FX volatility, export market disruptions, working capital discipline, and whether FMEG can convert break-even into steady profitability.