R R Kabel (RRKABEL IN) – Q4FY26 Result Update – Cable expansion to boost growth trajectory – BUY

RRKABEL reported strong Q4FY26 performance with revenue growing by 33.7% YoY to INR 29.6bn, driven by robust domestic demand and healthy exports despite global disruptions. Volume growth moderated to ~10% in Q4FY26 (cables high-teens, wires single digit) and export volumes outpaced domestic volumes during the quarter. Export performance remained strong with ~33% growth in FY26; however, near-term headwinds are expected due to geopolitical tensions, particularly in the Middle East (~40% of FY26 exports). Management reiterated its margin expansion trajectory, targeting ~300bps W&C EBIT margin improvement to ~9.5% in FY27 and ~10.5% by FY28, while guiding for ~16-18% volume growth in FY27. Capex of INR 12bn planned over FY26-28 remains on track, with INR 3.5bn already incurred in FY26; majority of which is planned will be spend in FY27, along with phased cable capacity additions. FMEG segment delivered steady growth with improving operating efficiencies, leading to gradual reduction in losses with continued investments in distribution and brand building, the segment is expected to move towards breakeven in the near term with targeting value growth of 20-25% in FY27. We estimate revenue/EBITDA/PAT CAGR of 17.8%/21.5%/21.4% over FY26-28E. We upward revise our FY27/FY28 earnings estimates by 8.2%/8.5% factoring in strong cable volume growth and W&C margin expansion supported by operating leverage. We maintain ‘BUY’ rating with revised TP of Rs1,964 (earlier INR 1,844) based on 30x Mar’28 earnings