RRKABEL Q3 FY26 earnings call.
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Revenue
₹2,536 Cr
verified against source
Revenue YoY
42.3%
reported change
EBITDA
₹206 Cr
latest reported figure
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Actual signal trajectory
Where this quarter sits.
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What the record says.
RR Kabel delivered its strongest-ever Q3 and 9-month performance in FY26, with consolidated revenue of ₹2,536 crore (up 42.3% YoY), EBITDA of ₹206 crore (up 86% YoY), and PAT of ₹118 crore (up 72.4% YoY). The wires and cables segment drove outperformance with 30% volume growth and 48.6% value growth, supported by robust domestic infrastructure demand and healthy export momentum. The FMG segment showed stabilization with losses curtailed to just ₹5 crore in Q3, positioning the company to achieve break-even this quarter. Management confirmed capex of ~₹280 crore for 9M FY26 toward its ₹1,200 crore three-year plan, with cable capacity utilization at 90%. The EU free trade agreement reducing tariffs from 3.7% to zero (covering 40% of exports) provides structural tailwind. Forward guidance targets 10.5% wire and cable EBITDA margins by FY28 and 5-6% FMG margins by FY28. Key risks include copper price volatility pressuring working capital and potential channel destocking if metal prices correct sharply.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets 100bps annual EBITDA margin improvement, reaching double-digit 10.5% margins in wire and cable by FY28, implying ~8.5% for FY26 annual guidance.
- FMG segment losses reduced to ₹5 crore in Q3 with management confident of achieving break-even at EBIT level in Q4 FY26, marking turnaround from ongoing losses.
- With break-even expected this quarter, management projects FMG margins will expand to 5-6% by FY28 as scale improves and portfolio rationalization continues.
- Management maintains industry volume growth expectation at 14-15% (double GDP growth of 7-8%), with RR Kabel tracking ahead at 17-18% volume growth for 9M FY26.
Risks flagged
- Copper prices moved 20-25% in a single quarter, creating channel working capital pressure. Management acknowledged channel inventory increased by 5-7 days in value terms, though noted maximum sustainable inventory is ~45 days given finance costs.
- Management admitted that if copper prices fall sharply back to ~$10,000/tonne levels, there could be a pause in demand at the stocking level (though not consumption), potentially impacting revenue in the near term.
- Segment margins declined slightly vs Q2 as the 25% copper price rise was not fully passed through in Q3. Management noted 0.5% margin impact from the lag, though claimed performance was better than industry peers.
- FMG segment revenue flat at ₹243 crore with ongoing losses despite cost reduction efforts. Discretionary demand remains selective, though management targets break-even this quarter.
Key quotes
- We are targeting around 8.5% on yearly basis so we'll be in line with that line only.
- If we talk about EU custom duty, the rate of tariff was around 3.7% in EU for wire and cable which will become zero. Still the details are not that much clear when it will be effective but ultimately it will be going to be beneficial for wire and cable industry.
- We are planning to improve by another 100 basis points on every year so like by FY28 we are targeting like double digit 10.5% kind of EBITDA margins in our wire and cable business so we are on track.
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