R R Kabel (RRKABEL IN) – Q3FY26 Result Update – Strong volume growth led by domestic demand – BUY
Published on 02 Feb 2026
RRKABEL reported strong volume growth of 30% YoY, with cables/wires segments recording ~25%/~30% growth driven by a stronger domestic demand alongside healthy export growth. The company’s capex plans are in line with its long-term growth strategy, supporting timely capacity expansion plans. The company has guided for 100bps W&C EBIT margin improvement every year and to reach ~10.5% by FY28. Exports grew by 37.0%, driven by strong volume growth and momentum from all regions. It has implemented price hikes in Dec’25 and Jan’26 in response to volatility in input costs. RRKABEL remains on track to achieve 18% volume growth in FY26, supported by capacity expansion plans to cater to domestic as well as export demand, and expects the FMEG segment to break even by Q4FY26. We estimate revenue/EBITDA/PAT CAGR of 17.1%/20.0%/18.1% over FY26-28E. We upward revise our FY27/FY28 earnings estimates by 2.5%/3.1% factoring in margin improvement in the W&C segment. We maintain ‘BUY’ rating with revised TP of Rs1,844 (earlier Rs1,788) based on 30x Mar’28 earnings.
