R R Kabel Ltd. delivered an excellent financial performance during the first quarter of FY2026-27, and a more than two-fold improvement in consolidated net profit was led by strong revenue growth, significantly higher operating margins, and a large inventory write-back.
The company also saw strong growth in its core Wires & Cables (W&C) business, and its Fast-Moving Electrical Goods (FMEG) segment also grew in a good way with constant demand across all major product lines.
Net Profit Surges 128.5%
R R Kabel reported a net profit of ₹205 crore (compared to ₹89.7 crore in the previous quarter) for the quarter ending June 2026.
The 128.5% year-on-year growth in sales, improved operational efficiency, and better profitability in business segments contributed to the increase.
Revenue Crosses ₹3,100 Crore
The company recorded revenue from operations of ₹3,168 crore in the first quarter, up from ₹2,059 crore in the same quarter of the previous year.
This is a healthy 53.9% year-on-year increase and speaks to the strong demand for wires, cables and electrical products in the domestic markets.
EBITDA Jumps Over 310%
And operating performance also remained very strong in the quarter.
R R Kabel’s EBITDA increased by 310.6% to ₹583 crore, from ₹142 crore a year ago.
The company’s EBITDA margin increased sharply to 18.4% from 6.9% in the same quarter last year.
The large margin improvement demonstrates effective cost management, good product mix and improved operational efficiencies.
Inventory Write-Back Boosts Earnings
Another factor that played a role in the quarterly performance was a higher inventory write-back.
The company reported an inventory write-back of ₹169 crore in Q1 FY2026-27, much higher than the ₹62 crore recorded in Q1 FY2025-26.
This additional gain further enhanced the profitability of the business in the quarter.
Q1 FY2026-27 Financial Highlights
Q1 FY2026-27 Q1 FY2025-26 Growth. Revenue ₹3,168 crore ₹2,059 crore 53.9%. Net Profit ₹205 crore ₹89.7 crore 128.5%. EBITDA ₹583 crore ₹142 crore 310.6%. EBITDA Margin 18.4% 6.9% Wires & Cables Business Continues to Drive Growth
The company’s main Wires & Cables (W&C) division remained the main growth engine.
Key highlights include:
- Revenue increased 57% year-on-year.
- Segment profit more than doubled, growing 105%.
- Segment margin improved by 232 basis points.
Management attributed the strong performance to:
- Robust volume growth.
- Better product mix.
- Disciplined commodity price management.
- Solid project execution.
- Improved operational efficiencies.
The company benefited from industry conditions favourable for the company and the demand from infrastructure, residential and industrial projects.
FMEG Business Maintains Healthy Momentum
R R Kabel’s Fast-Moving Electrical Goods (FMEG) business also saw some encouraging growth throughout the quarter.
Revenue was supported by:
- Great demand for premium electrical products.
- Successful launches of new products.
- Expansion of the company's distribution network.
- A wider penetration of key markets.
The FMEG segment is still a key component of the company’s long-term diversification strategy.
Management Commentary
R Kabel's Managing Director, Mahendrakumar Kabra, told us that the company’s strategic initiatives are continuing to yield good performance in the quarter, and we are happy with the results of our business.
According to management, the key growth drivers include:
- Expansion of the cables portfolio.
- Strengthening the nationwide distribution network.
- Better execution capabilities.
- Greater focus on operational excellence and efficiency.
These initiatives will lead to sustainable growth in the next quarters.
Outlook
R R Kabel has started FY2026-27 on a strong note as revenue, profitability and margins have all been growing strongly. The strong wires and cables business, operational efficiency and continued growth of FMEG are positioning the firm for future growth.
Investors will be closely monitoring commodity prices, infrastructure spending and demand trends in the electrical sector in the near future and therefore the company’s performance in the coming quarters.
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