1. At a Glance – Blink and You’ll Miss the Numbers
R R Kabel is currently flexing like a gym bro who just discovered creatine. Market cap of ₹16,464 crore, stock chilling around ₹1,456, and Q3 FY26 numbers that made the Street sit up straight. Quarterly revenue clocked ₹2,536 crore, up 42% YoY, while PAT jumped a ridiculous 93% YoY to ₹118 crore. ROCE stands at ~20%, ROE at 15%, and debt-to-equity a polite 0.17 (not zero, but behaves well).
But here’s the twist: the stock trades at 35x P/E while industry average is ~18x. So the market is clearly saying, “Boss brand hai, growth hai, premium toh dena padega.” The wires & cables segment still contributes ~88% of revenue, while FMEG is the ambitious younger sibling at 12%, asking for pocket money to grow faster.
In short: great numbers, clean balance sheet, aggressive capex story, and valuation that assumes management won’t mess up even on a bad Monday. Curious already? Good. Let’s open the DB.
2. Introduction – From Wires to Why-Is-It-So-Expensive?
R R Kabel is not a startup pretending to be a legacy company. It’s actually a 1995-born, old-school wires business that woke up one day and decided: “Why should Polycab have all the fun?”
The company plays across residential, commercial, industrial, and infra electrical demand. Basically, if electricity flows through it and doesn’t explode, RR wants to sell it. Over the years, it built a strong branded presence in wires & cables and then said, “FMEG bhi try karte hain.” Fans, lights, switches, heaters—full electrical thali.
Post IPO (Sep 2023), the company cleaned up debt, sharpened focus on higher-margin cables, and announced a ₹1,200 crore capex to make analysts busy for the next three years. Exports now form ~27% of revenue, and RR Kabel controls ~10% of India’s W&C exports.
But—and this is important—the company is also juggling management
exits, GST penalties, and a brand transition away from Luminous Fans & Lights to RR Signature. So while numbers look hot, governance-watchers are keeping one eyebrow raised.
Question for you: is this a classic “premium brand compounding story” or just an expensive wire with good insulation?
3. Business Model – WTF Do They Even Do?
Let’s simplify this for a lazy but smart investor.
Segment 1: Wires & Cables (The Money Machine)
House wires, industrial wires, power cables, solar cables, control cables, special cables—basically everything that sits behind walls and never gets Instagram fame. RR Kabel claims ~74% share in branded W&C, which is insane if true and explains pricing power. This segment runs on volume + brand trust + distribution muscle.
Segment 2: FMEG (The Aspirational Teenager)
Fans, lights, switches, appliances. Lower margins, brutal competition, and every brand shouting “premium” louder than the other. RR licensed Luminous Fans and Lights temporarily but is now pushing its own RR Signature brand. Translation: short-term confusion, long-term margin hope.
The secret sauce? Distribution. Over 1.44 lakh retailers, 4,000+ dealers, and 4.5 lakh electricians pushing RR products. In India, electricians are more powerful than Instagram influencers. Never forget that.
Simple model:
- Cables = cash cow
- FMEG = option value
- Exports = growth kicker
So far,
