Analyst Concall
R R Kabel aims 18% volume growth in FY27
This story was originally published at 18:57 IST on 27 July 2026
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--R R Kabel: Focus on products, team expansion to drive long-term growth
--CONTEXT: Comments by R R Kabel mgmt in a post-earnings conference call
--R R Kabel: Infrastructure, housing industry will support long-term growth
--R R Kabel: Focus on volume growth, maintain margins going ahead
--R R Kabel: A quarter of FMEG segment revenue coming from premium
--R R Kabel: Seeing shipment normalisation in West Asia in Q2
--R R Kabel: Expect 18% YoY volume growth in FY27
--R R Kabel: Plan INR-6.5-bln capex in FY27
--R R Kabel: Focus on increasing revenue from existing dealers
--R R Kabel: Plan to add more dealers in FY27
--R R Kabel: See opportunity in exports to US once tariff uncertainty settles
--R R Kabel: Aim 20% growth in fast moving electrical goods ops FY27
--R R Kabel: Aim break-even in fast moving electrical goods ops FY27
By Avishek Rakshit and Gunjan Rajput
KOLKATA/NEW DELHI – R R Kabel Ltd., which is investing around INR 6.5 billion in the current financial year to step up capacity, is eyeing around 18% sales volume growth in 2026-27 (Apr-Mar), a top company official said Monday. "If you see our long-term guidance and even overall volume growth, we are expecting to achieve growth of around 18% year-on-year... So, this year also, we are expecting around 18% volume growth," the official told sector analysts in a post-earnings conference call.
R R Kabel achieved a 17% year-on-year volume growth in its wires and cable segments in the June quarter, with similar growth in both domestic and export markets. Sales volume in cables grew more than 25% year-on-year, while that in wires rose 12% in the June quarter.
"We remain positive about the long-term demand outlook. Infrastructure development, housing, industrial investment, electrification and the shift towards organised and compliant products continue to support the industry," the official said, adding that the company is also looking at expanding its team for growth in the coming quarters.
At the same time, the company, which is India's largest exporter of wires and cables, remains watchful of metal prices, foreign exchange movements, inventory levels, and working capital requirements. "Our focus will be on maintaining healthy volume growth, protecting margins through timely pricing and procurement decisions, improving the product mix and sustaining the progress made in FMEG (fast moving electrical goods)," the official said.
In the June quarter, the company's electrical goods division, which contributes 9% to its top line, posted 28% revenue growth, with premium products accounting for a quarter of the division's revenue growth. The company is targeting 20% year-on-year growth in its electrical goods business in FY27 and aims to break even in the segment during the current financial year, after which it expects to accelerate growth further.
In its export markets, R R Kabel said business conditions and shipments to West Asia are returning to normal despite the ongoing conflict in the region. The company plans to expand exports to the US once there is greater clarity on the tariff regime. The tariffs imposed by the Trump administration were struck down by the US Supreme Court. However, US President Donald Trump has continued to use trade tariffs as a trade tool to advance US interests.
"The biggest contributor in our exports is Europe and the Middle East, and it is going to contribute at a higher pace; but at the same time in the US, we see new opportunities once this tariff type of thing settles," the official said.
R R Kabel has lined up a capital expenditure of INR 12 billion over 2026-2028 to expand its production capacity. The company has already invested INR 3 billion in FY26 and expects to incur capital expenditure of INR 6.5 billion in the current financial year, the official said.
While focused on exports and business-to-business sales, R R Kabel is also increasing its retail business and is eyeing to generate more revenue from its existing dealership base. At the same time, the company is planning to increase its dealer count to step up sales.
Monday, the company's shares closed 1.3% higher at INR 2,525.30 on the National Stock Exchange. The company announced its results during market hours on Monday. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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