R R Kabel (RRKABEL) Q1 25/26 earnings summary

Executive summary

• Q1 FY2026 saw strong revenue and profit growth, driven by robust demand in wires and cables, infrastructure expansion, and electrification efforts.

• Leadership transition with Mahendra Kumar Kabra as Managing Director, emphasizing a roadmap for sustained growth.

• Board approved unaudited standalone and consolidated financial results for the quarter ended 30 June 2025, with auditors issuing an unmodified review conclusion.

• Distribution network expanded in Tier 2 and Tier 3 cities, improving market presence and brand visibility.

Financial highlights

• Revenue from operations reached ₹2,058.6 crore in Q1 FY2026, up 13.9% year-over-year from ₹1,808.1 crore.

• EBITDA rose 50% to ₹143.1 crore from ₹95.4 crore in Q1 FY2025; EBITDA margin expanded to 7% from 5.3%.

• Profit after tax stood at ₹89.8 crore, a 39.4% increase from ₹64.4 crore year-over-year.

• EPS for Q1 FY26 was ₹7.8, up from ₹5.7 in Q1 FY25.

• Modest sequential revenue decline from Q4 FY2025 attributed to seasonal trends and inventory normalization.

Outlook and guidance

• Volume growth guidance for FY2026 remains at 18%, with a targeted 100 basis points margin improvement.

• Cable segment expected to drive high growth, with anticipated 25% volume growth in cables and 10-12% in wires.

• FMEG segment expected to achieve breakeven on a yearly basis and deliver 20-25% growth.

• CapEx of ₹1,200 crore planned over three years, with capacity expansion aligned to demand.

• Management highlights continued strong demand in wires & cables and operational efficiency improvements.