R R Kabel Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript R R Kabel Ltd filed with BSE on 03 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
R R Kabel reported its highest ever quarterly revenue, EBITDA and profit after tax in Q1 FY27, with revenue of Rs 3,168 crores growing around 54% year-on-year. Wires & Cables volumes grew 17% year-on-year, with cables growing more than 25% and wires growing approximately 12%, while the FMEG segment reached operational breakeven compared to losses in prior periods. Management attributed the improvement to scale benefits, better cost absorption, product mix and disciplined commodity management.
Numbers mentioned
Revenue from operations: INR3,168 crores (Q1 FY27)
p. 4
“Revenue from operations stood at INR3,168 crores, representing growth of around 54% over Q1 of last year.”
Rajesh Jain, page 4 of the filed PDF · View the filing
Operating EBITDA: INR285 crores (Q1 FY27)
p. 4
“Operating EBITDA stood at INR285 crores, almost double the INR143 crores recorded in the corresponding quarter last year.”
Rajesh Jain, page 4 of the filed PDF · View the filing
Operating EBITDA margin: 9% (Q1 FY27)
p. 4
“The operating EBITDA margin improved to 9% compared to 7% in Q1 FY '26.”
Rajesh Jain, page 4 of the filed PDF · View the filing
Profit after tax: INR205 crores (Q1 FY27)
p. 4
“Profit after tax stood at INR205 crores compared with INR90 crores last year.”
Rajesh Jain, page 4 of the filed PDF · View the filing
Wire & Cable revenue: INR2,880 crores (Q1 FY27)
p. 4
“Wire & Cable revenue stood at INR2,880 crores, growing at approximately 57% year-on-year on the back of impressive volume growth, strong execution and favorable industry dynamics.”
Rajesh Jain, page 4 of the filed PDF · View the filing
Wire & Cable segment profit margin: 9.9% (Q1 FY27)
p. 4
“The segment profit margin improved to 9.9% compared with 7.6% in the corresponding quarter last year.”
Rajesh Jain, page 4 of the filed PDF · View the filing
FMEG revenue: INR288 crores (Q1 FY27)
p. 4
“In the FMEG business, revenue stood approximately INR288 crores, growing by 28% year-on-year, supported by continued demand for premium and new products across key categories, along with ongoing distribution expansion.”
Rajesh Jain, page 4 of the filed PDF · View the filing
Wire & Cable volume growth: 17% (Q1 FY27 vs Q1 FY26)
p. 3
“Overall, Wires & Cable volumes grew by 17% year-on-year with similar growth seen both in domestic and export markets.”
Rajesh Kabra, page 3 of the filed PDF · View the filing
Net working capital days: 50 days (Q1 FY27)
p. 5
“Net working capital days remained broadly stable at 50 days.”
Rajesh Jain, page 5 of the filed PDF · View the filing
Exceptional item: INR14 crores (Q1 FY27)
p. 4
“The quarter also included an exceptional item of approximately INR14 crores relating to reversal of the provision for the statutory impact of the new labor codes.”
Rajesh Jain, page 4 of the filed PDF · View the filing
North and West contribution to domestic revenue: 65%
p. 8
“I do not have exact breakup, but North and West contribute almost 65% in our domestic revenues.”
Rajesh Jain, page 8 of the filed PDF · View the filing
Retail touch points: more than 1.5 lakh
p. 11
“At the same time, we have more than 1.5 lakh retail touch points and it will keep growing so that our increase, and we can achieve the expected growth in Wire & Cable as well as FMEG segment.”
Rajesh Jain, page 11 of the filed PDF · View the filing
Capex plan: INR1,200 crores (FY26-FY28)
p. 12
“If you see overall, we had a capex plan of around in 1,200 crores, in which almost 80% is focused towards cable side of business.”
Rajesh Jain, page 12 of the filed PDF · View the filing
Wire capacity utilization: 65% to 70%
p. 12
“Wires, it's around 65% to 70%, yes.”
Rajesh Jain, page 12 of the filed PDF · View the filing
Premium product revenue share in FMEG: almost 25%
p. 7
“Almost 25% of our revenues are coming from premium product side.”
Rajesh Jain, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Wires & Cables margin — 10.5% · FY28
stated firmly by Rajesh Jain
p. 5
“So we'll remain there because while we endeavor to touch our double-digit margins for the year, but since it is early in the year, we continue to maintain our overall margin guidance of 10.5% by FY '28.”
Rajesh Jain, page 5 of the filed PDF · View the filing
Wire & Cable volume growth — around 18% · FY27
stated firmly by Rajesh Jain
p. 12
“If you see our long-term guidance and overall volume growth, we are expecting to achieve growth of around 18% year-on-year what we have guided at the beginning of FY '26.”
Rajesh Jain, page 12 of the filed PDF · View the filing
H2 vs H1 performance — FY27
stated as an aspiration by Rajesh Jain
p. 9
“Normally, historically, we have always seen H2 is always better than H1, so we expect the similar thing in this year also.”
Rajesh Jain, page 9 of the filed PDF · View the filing
Capex deployment — INR600 crores to INR650 crores · FY27
stated firmly by Rajesh Jain
p. 12
“Out of which, like last year, we did around INR300 crores, and this year, major of that expansion will be executed and as of INR600 crores to INR650 crores will be deployed in this year.”
Rajesh Jain, page 12 of the filed PDF · View the filing
FMEG breakeven — sustainable yearly breakeven · FY27
stated conditionally by Rajesh Jain
p. 11
“But on sustainable basis, we are expecting to achieve breakeven on a yearly basis in this year and then we'll keep going.”
Rajesh Jain, page 11 of the filed PDF · View the filing
FMEG revenue growth — around 20% · medium term
stated as an aspiration by Rajesh Jain
p. 16
“So first of all, we are targeting growth of around 20% in FMEG business and also achieving breakeven on sustainable basis for this year and then make this business profitable in coming 2, 3 years on continuous and sustainable basis with top line growth of around 20% year-on-year.”
Rajesh Jain, page 16 of the filed PDF · View the filing
Wire & Cable margin improvement — 100 basis points year-on-year
stated firmly by Rajesh Jain
p. 14
“So if you see our overall guidance, like we had targeted to improve our margins by 100 basis points on a year-on-year basis.”
Rajesh Jain, page 14 of the filed PDF · View the filing
Domestic cable margin — 10% to 11%
stated conditionally by Rajesh Jain
p. 14
“But going forward and if we achieve the scale, improve the availability, then we also will be in the range of 10% to 11% in domestic cable also once we achieve the scale and a sizable market share also.”
Rajesh Jain, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said it is early in the year and they continue to maintain the existing guidance.
Answered by Rajesh Jain
Asked by Dhruv Jain: Given cable margins are near 10%, will the FY28 margin guidance of 10.5% be upgraded?
p. 5
“So we'll remain there because while we endeavor to touch our double-digit margins for the year, but since it is early in the year, we continue to maintain our overall margin guidance of 10.5% by FY '28.”
Rajesh Jain, page 5 of the filed PDF · View the filing
Management estimated industry growth at 10% to 12%.
Answered by Rajesh Jain
Asked by Achal Lohade: What was the industry growth rate for Wires & Cables in the quarter?
p. 6
“It may be tough to call out at industry level, but I think it may be around -- between 10% to 12% at most.”
Rajesh Jain, page 6 of the filed PDF · View the filing
Management said there was a negative impact on volume growth toward the end of the quarter.
Answered by Rajesh Jain
Asked by Umang Mehta: Was there channel stocking or destocking impact from commodity price correction at quarter end?
p. 8
“So if I consider only last part of Q2, then there was negative impact in volume growth.”
Rajesh Jain, page 8 of the filed PDF · View the filing
Management said it was linked to favorable dollar movement given export exposure, not called a normal run rate.
Answered by Rajesh Jain
Asked by Sandesh Shetty: Was the rise in other income a one-off or a normal run rate?
p. 9
“I will not say it is normal run rate, but since we have seen there was like positive or rather dollar was impacted in this quarter, and since we are export heavy company, so we have seen good impact, but it is part of our business only.”
Rajesh Jain, page 9 of the filed PDF · View the filing
Management attributed the delay to a sharp rise in raw material prices.
Answered by Rajesh Jain
Asked by Disha: Why did the FMEG breakeven timeline slip from the original Q4 FY26 target?
p. 11
“So at the beginning of the year, like earlier, we were targeting for the breakeven in Q4 of FY '26, but there were like very high fluctuation or increase in our raw material prices, so we were not able to achieve that breakeven, but now we are able to achieve.”
Rajesh Jain, page 11 of the filed PDF · View the filing
Management said Q2 may not sustain breakeven due to seasonality but full-year breakeven is expected.
Answered by Rajesh Jain
Asked by Vivek Gupta: Is FMEG breakeven likely to sustain every quarter?
p. 15
“But at the same time, since Q2 is a little bit lower in FMEG side, this quarter may not be possible, but we are -- we'll try to achieve it, but on a yearly basis, we are quite sure to achieve breakeven in this year.”
Rajesh Jain, page 15 of the filed PDF · View the filing
Management confirmed there was no inventory gain or loss and the improvement was from organic margin gains.
Answered by Rajesh Jain
Asked by Achal Lohade: Is the 9.9% Wire & Cable margin driven by inventory gains or purely operating performance?
p. 13
“Yes, yes. This is correct because inventory is a continuous process, which is like continuous for every quarter, but this is purely organic level margin improvement and growth.”
Rajesh Jain, page 13 of the filed PDF · View the filing
Risks flagged
Volatility in metal prices and foreign exchange along with global market uncertainty
p. 3
“The quarter continued to see volatility in metal prices and foreign exchange, along with uncertainty across global markets.”
Rajesh Kabra, page 3 of the filed PDF · View the filing
Disruption in the Middle East export market
p. 3
“The disruption in the Middle East was partially offset by other export markets.”
Rajesh Kabra, page 3 of the filed PDF · View the filing
Ongoing supply chain issues
p. 3
“However, supply chain-related issues still remain, but we are confident of overcoming those challenges.”
Rajesh Kabra, page 3 of the filed PDF · View the filing
Uncertainty around U.S. tariffs affecting export scale-up
p. 7
“But as you know, still things are not clear on tariff fronts and still people are not aware how the things will process.”
Rajesh Jain, page 7 of the filed PDF · View the filing
Watchfulness needed on metal prices, forex, inventory and working capital
p. 5
“At the same time, we will remain watchful of metal prices, foreign exchange movement, inventory levels and working capital requirements.”
Rajesh Jain, page 5 of the filed PDF · View the filing
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