R R Kabel’s shares rallied 9% to a high of Rs 2,775 on the NSE in intra-day trade after strong Q1 performance. Key brokerages raised the price target on the stock on the back of robust growth in Cables & Wires volume and based on the outlook ahead.
Motilal Oswal on RR Kabel
Motilal Oswal Financial Services raised the price target on RR Kabel to Rs 2,960 from Rs 2,800, implying an upside of over 17%. The brokerage maintained its ‘Buy’ rating on the stock on the back of robust volume growth in Cables & Wires and Fast-Moving Electrical Goods (FMEG) profitability being on track.
R R Kabel’s Q1FY27 earnings exceeded the brokerage’s estimates, driven by strong volume growth in C&W and healthy performance in FMEG segments. The company’s volume growth in C&W at 17% YoY was above the industry growth estimated at 10-12%. The management remains focused on outperforming industry growth in the C&W business by increasing its presence in the higher-value cables and B2B segments.
The margin improvement in the C&W segment was also encouraging, led by positive operating leverage and an improvement in product mix. The company’s management believes it will achieve sustainable break-even in FY27 in the FMEG business.
JM Financial on RR Kabel
JM Financial also raised the price target to Rs 2,800 from Rs 2,050, implying an upside of 11%. However, the brokerage said that the stock’s 84% run-up over the last six months leaves limited upside, driving a rating downgrade to ‘Add’ from ‘Buy’.
R R Kabel posted another strong quarter with net profit rising more than 2 times YoY, supported by volume growth of 17–18% (favourable base; Q1FY26 at 6.5%), beating estimates. Its performance also indicates market share gains as it pegs Q1FY27 industry volume growth at 10–12%.
As for exports, while some supply chain issues persist, inflow from export markets (including West Asia) continues. The company retained its volume growth guidance of 18% for FY27 and FY28 C&W margin guidance of 9.5% and 10.5%.
Lastly, cable capacities continue to be a challenge, operating at over 90%. Intended to ease these, the Rs 1,200 crore capex plan (80% towards cables) is on track. “We factor in R R Kabel’s Q1FY27 performance through a 10–15% increase in FY27–29 estimates and roll-forward to June 2028 (March 2028),” said JM Financial.
RR Kabel share price performance
The share price of RR Kabel has risen 6% in the last five trading days. The stock has surged 2% in the past one month and has given a whopping return of 89.3% in the last six months. RR Kabel has raised investors’ wealth by 86% over the past one year.
RR Kabel Q1FY27
The company’s net profit came in at Rs 191 crore (excluding the one-off adjustment relating to labour laws), reflecting strong underlying profitability. It reported a 54% year-on-year rise in revenue at Rs 3,168 crore in the first quarter of FY27.
Its Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) nearly doubled, increasing 99% YoY to Rs 285 crore (Rs 143 crore in Q1FY26), while the EBITDA margin expanded to 9% versus 7% in Q1FY26.
The W&C business grew 57% YoY on the back of impressive volume growth, strong execution and favourable industry dynamics, while the FMEG business achieved operational breakeven, supported by premiumisation and improving operating leverage.