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HomeMarket NewsRR Kabel shares jump 12% on highest revenue in Q4, capacity expansion plans
RR Kabel has outlined a three-year vision called "Project R Rise", where it expects wires and cables business to grow at a Compounded Annual Growth Rate (CAGR) of 18%, wires & cables exports to be 1.8x the current size and capacity to be 1.7x of the current size.
Shares of wires and cables manufacturer RR Kabel Ltd. surged as much as 14% on Monday, May 5, after the company reported its highest-ever revenue in the fourth quarter and in financial year 2025.
For the March quarter, RR Kabel's operating revenue increased by 29.5% from last year to ₹2,271.83 crore, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew by nearly 70% on a year-on-year basis.
EBITDA margins for the quarter increased by over 200 basis points from last year to 8.83%.
However, volumes for the full year grew by 7.1% from last year, compared to the management's guidance of 15%.
What has boosted sentiment around the stock is the company's plans to announce capacity expansion, at a time when competition is intensifying within the wires and cables segment.
RR Kabel plans to at 36,000 MT in capacity for both wires and cables, at its existing Waghodia plant in Gujarat. This is likely to be added by March 2028 in a phased manager. This will entail an investment of ₹1,050 crore, which will be funded via internal accruals and debt.
The company also plans additions to its upcoming new unit at Silvassa, and Daman & Diu. The proposed capacity addition of 6,000 MT is in addition to the 12,000 MT already initiated, and which will be operational by March 2026 in a phased manner.
The new, proposed capacity addition is likely to be added in a phased manner by December 2026.
RR Kabel has outlined a three-year vision called "Project R Rise", where it expects wires and cables business to grow at a Compounded Annual Growth Rate (CAGR) of 18%, wires & cables exports to be 1.8x the current size and capacity to be 1.7x of the current size.
FMEG revenue of the company may grow at a CAGR of 25% over the next three years.
Out of the nine analysts that have coverage on RR Kabel, eight of them have a "buy" rating, while one has a "hold" recommendation.
Shares of RR Kabel are among the top gainers on the Nifty 500 index, gaining as much as 13% to ₹1,155.6.
