RR Kabel share price surged over 18.4% to ₹1,211 in intraday trading on May 5, 2025, marking its biggest single-day gain since listing. The rally was fueled by strong Q4FY25 results, driven by robust demand in the cables and wires segment, improved margins, and aggressive expansion plans.
Q4FY25 Highlights: Profit Soars 64% YoY
RR Kabel reported a 64% year-on-year (YoY) increase in net profit, rising to ₹129 crore in the quarter ending March 2025, compared to ₹79 crore in the same period last year. This surge was backed by operational efficiency and strong revenue growth across business segments.
- Revenue from operations rose 26.6% YoY to ₹2,218 crore, up from ₹1,754 crore in Q4FY24.
- The wires and cables segment, which constitutes 88% of total revenue, grew 28% YoY.
- The electrical consumer durables segment, contributing 12% of sales, posted a 13% growth, mainly driven by higher fan and switch sales.
Favorable weather in Q4 helped boost construction activities, which increased the demand for high-margin wires and cables. Additionally, lower copper prices (a key raw material) and optimized utilization of capacity further improved profitability.
Biggest One-Day Gain Since IPO
RR Kabel, which was listed in September 2023 at ₹1,180 per share against an IPO price of ₹1,035, saw its biggest intraday jump since debut. Although the stock had previously corrected 39% from its peak of ₹1,901, today’s gains have pushed it 12.3% above IPO levels, signaling renewed investor confidence.
Strategic Capacity Expansion Announced
To sustain growth momentum and meet rising demand, RR Kabel announced a massive expansion plan involving two major capacity upgrades:
1. Waghodia (Vadodara) Plant Expansion
- Capacity Addition: 36,000 MT per annum (phased till March 2028)
- Current Capacity: 67,200 MT (79% utilization)
- Investment: ₹1,050 crore
- Funding: Through a mix of internal accruals and debt
2. New Plant in Silvassa
- Phase 1 Capacity: 12,000 MT per annum
- Operational Timeline: March 2026
- Investment: ₹400 crore
Combined, the company plans to invest around ₹1,450 crore in capacity expansion, significantly strengthening its position in the highly competitive wires and cables industry.
Dividend Update
The company has recommended a final dividend of ₹3.5 per equity share (face value ₹5) for the financial year ended March 31, 2025.
Outlook: Re-Rating Opportunity or Temporary Surge?
With infrastructure demand, housing growth, and government electrification programs expected to boost sector-wide consumption, RR Kabel is well-positioned for long-term growth. The capacity expansion, coupled with improving margins and a healthy product mix, sets a strong foundation for future earnings.
However, competition remains a key risk, especially with Adani Group’s recent entry into the cables and wires segment, which has already led to stock corrections in peers like Polycab, KEI, and Havells.
Stock Performance Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹1,211 |
| 52-Week High | ₹1,901 |
| 52-Week Low | ₹880 |
| IPO Price (Sept 2023) | ₹1,035 |
| Market Cap (Approx.) | ₹13,000 crore |
Conclusion
RR Kabel’s Q4 performance has not only restored investor confidence but also sets the tone for a growth-driven FY26. With strategic investments, strong fundamentals, and a solid pipeline, the company is poised to capture market share in India’s growing infrastructure and housing ecosystem. Investors and analysts will be closely watching execution of expansion plans and competitive dynamics in the sector.
