RR Kabel Limited, a leading player in the Indian cables and wires industry, announced its Q1 FY26 results on 31st July 2025, posting robust revenue and profit growth. The company reported double-digit top-line growth and near 40% bottom-line expansion, reflecting strong operational efficiency and sustained market demand across its key segments.
Q1 FY26 Financial Snapshot
RR Kabel delivered revenue of ₹2,058.59 crores in Q1 FY26, 13.85% higher than ₹1,808.11 crores in Q1 FY25. Profit After Tax (PAT) jumped to ₹89.77 crores, reflecting 39.44% YoY growth, compared to ₹64.38 crores in the same period last year.
This demonstrates strong operational leverage, as profit growth significantly outpaced revenue growth.
Table 1: RR Kabel Q1 FY26 vs Q1 FY25 (Consolidated)
| Particulars | Q1 FY26 (30-Jun-2025) | Q1 FY25 (30-Jun-2024) | YoY Change (%) | Absolute Change (₹ Cr) |
|---|---|---|---|---|
| Revenue from Operations | ₹2,058.59 Cr | ₹1,808.11 Cr | 13.85% | +₹250.48 Cr |
| Profit Before Tax (PBT) | ₹154.48 Cr | ₹113.47 Cr | 36.17% | +₹41.01 Cr |
| Profit After Tax (PAT) | ₹89.77 Cr | ₹64.38 Cr | 39.44% | +₹25.39 Cr |
| PAT Margin (%) | 4.36% | 3.56% | +0.80% | – |
Key Takeaways:
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Revenue grew by ₹250.48 crores YoY.
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PAT increased by ₹25.39 crores, marking 39.44% YoY growth.
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PAT margin improved by 80 basis points (bps), reflecting better operational efficiency.
Table 2: RR Kabel Q1 FY26 vs Q1 FY25 (Standalone)
| Particulars | Q1 FY26 (30-Jun-2025) | Q1 FY25 (30-Jun-2024) | YoY Change (%) | Absolute Change (₹ Cr) |
|---|---|---|---|---|
| Revenue from Operations | ₹2,058.59 Cr | ₹1,808.11 Cr | 13.85% | +₹250.48 Cr |
| Profit Before Tax (PBT) | ₹154.48 Cr | ₹113.47 Cr | 36.17% | +₹41.01 Cr |
| Profit After Tax (PAT) | ₹88.76 Cr | ₹63.89 Cr | 38.92% | +₹24.87 Cr |
| PAT Margin (%) | 4.31% | 3.53% | +0.78% | – |
The standalone results mirror the consolidated performance, indicating that core domestic operations remain the primary growth driver.
Quarterly Performance Analysis
1. Revenue Growth Drivers
RR Kabel achieved double-digit revenue growth in Q1 FY26, mainly driven by:
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Higher sales volumes in the cables and wires segment.
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Stable pricing strategy despite moderate raw material fluctuations.
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Increased demand from housing and infrastructure projects.
Absolute Revenue Growth:
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Q1 FY25: ₹1,808.11 Cr
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Q1 FY26: ₹2,058.59 Cr
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Increase: ₹250.48 Cr
2. Profitability and Margins
The company’s Profit After Tax surged 39.44% YoY, indicating strong bottom-line performance. Key factors:
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Operational cost optimization reduced expenses relative to revenue growth.
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Improved PAT margin, which rose to 4.36%, from 3.56% a year earlier.
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Economies of scale contributed to higher profitability despite modest revenue growth.
3. RR Kabel Share Price Movement
On 1st August 2025, following the results:
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Opening Price: ₹1,447.90 per share
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Current Price (Intraday): ₹1,334.30 per share
This reflects initial enthusiasm followed by market correction.
Long-term performance remains solid:
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1-Year Return: 24.80%
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5-Year Return: 13.31%
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All-Time Return: 22.02%
The short-term price correction reflects broader market volatility, rather than fundamental weakness.
4. Earnings Trend Comparison (YoY)
| Metric | Q1 FY25 | Q1 FY26 | Growth (%) |
|---|---|---|---|
| Revenue | ₹1,808.11 Cr | ₹2,058.59 Cr | 13.85% |
| PAT | ₹64.38 Cr | ₹89.77 Cr | 39.44% |
| PAT Margin | 3.56% | 4.36% | +0.80% |
Observation:
The profit growth is nearly 3x the revenue growth rate, reflecting strong operational leverage.
Key Highlights of Q1 FY26
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Double-Digit Revenue Growth – Driven by robust domestic and industrial demand.
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PAT Jumped Nearly 40% YoY – Highlighting efficient cost management.
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Improved Margins – PAT margin improved by 80 bps YoY.
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Stock Performance – Despite a short-term dip, the stock has delivered over 24% annual returns.
Factors Behind the Strong Performance
1. Demand Surge in Infrastructure and Housing
India’s real estate and infrastructure boom is driving higher demand for electrical wires and cables. RR Kabel benefits directly from new housing projects, commercial spaces, and industrial facilities.
2. Efficient Supply Chain and Cost Control
The company focused on efficient inventory management and raw material cost optimization to protect margins against commodity price fluctuations.
3. Diversified Product Portfolio
RR Kabel’s broad product offerings across domestic wiring, industrial cables, and export markets helped cushion revenue against market volatility.
Market Outlook for FY26
The outlook remains bullish for RR Kabel due to:
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Government push for infrastructure – Smart city projects and industrial corridors.
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Urbanization and housing growth – Increasing wiring needs in new residential projects.
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Export opportunities – Global infrastructure demand opens new revenue streams.
If the company continues strong cost management, Q2 FY26 may see further margin improvement.
Investment Perspective
From an investor’s standpoint:
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RR Kabel displays strong fundamentals – steady revenue growth, expanding margins, and improved PAT.
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Stock remains a good long-term bet for those seeking exposure to the electrical and infrastructure sector.
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Short-term volatility may continue, but long-term trajectory is positive.
Conclusion
RR Kabel delivered a powerful Q1 FY26 performance, with 13.85% revenue growth and 39.44% profit growth. The company’s focus on operational efficiency, cost management, and diversified market presence reflects in its enhanced margins and investor confidence.
