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

Executive summary

• Q1 FY2026 delivered strong revenue and profit growth, driven by robust demand in the wires and cables market and operational resilience, with infrastructure expansion, housing construction, and electrification efforts supporting performance.

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

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

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

Financial highlights

• Revenue from operations reached ₹2,058.6 crore in Q1 FY2026, up 13.9% year-over-year from ₹1,808.1 crore; consolidated net profit was ₹89.8 crore, a 39.4% increase from ₹64.4 crore.

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

• Gross profit for Q1 FY26 was ₹374.3 crore, up 19.2% year-over-year, with gross margin at 18.2%.

• EPS for Q1 FY26 stood at ₹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 the wires & cables segment and improved operational efficiency.