Shares of RR Kabel soared by an impressive 18.4% during intraday trading on May 5, hitting ₹1,211 each, following the company’s remarkable financial results for the quarter ending March 2025. This surge marks the most significant single-day increase since the stock’s debut. Investors are not only excited about the robust earnings but are also optimistic about the company’s ambitious expansion strategies.

Strong Financial Performance in Q4FY25

In its latest quarterly earnings report, RR Kabel announced a 64% year-on-year increase in consolidated net profit, totaling ₹129 crore compared to ₹79 crore in the same quarter last year. The company’s revenue from operations reached ₹2,218 crore, reflecting a 26.6% rise from ₹1,754 crore in Q4FY24.

Key Highlights:

• Wires and Cables Segment: Contributed 88% of total revenue, achieving an impressive 28% growth year-on-year.
• Electrical Goods Segment: This division, which encompasses appliances, saw a 13% increase in revenue, largely driven by strong sales of fans and switches.

According to the company, favorable weather conditions from January to March significantly boosted construction activities, leading to heightened demand for high-margin cables and wires. Additionally, lower copper prices, a crucial raw material, along with strategic capacity expansions, played a vital role in enhancing profitability.

Dividend Announcement and Stock Performance

RR Kabel has proposed a final dividend of ₹3.5 per equity share, with a face value of ₹5, for the financial year concluded on March 31, 2025. Despite today’s strong performance, it’s noteworthy that RR Kabel shares have experienced a 39% decline from their peak of ₹1,901 reached in May. Since its listing on Indian stock exchanges in September 2023 at ₹1,180, the stock is currently trading 12.3% above its initial public offering price of ₹1,035.

Strategic Capacity Expansion Initiatives

In response to the increasing demand for its products, RR Kabel has unveiled plans for expansive capacity enhancements. The company intends to invest approximately ₹1,050 crore to boost its existing plant in Waghodia, Vadodara, Gujarat, by adding 36,000 MT per annum by March 2028. This investment will be financed through a combination of internal funds and debt. Currently, the facility operates at 79% capacity utilization with an existing capacity of 67,200 MT per annum.

New Developments in Silvassa

Moreover, RR Kabel is set to establish a new manufacturing unit near its existing site in Silvassa, located in Dadra & Nagar Haveli and Daman & Diu. The first phase of this project, which will add a capacity of 12,000 MT per annum, is anticipated to commence operations by March 2026. The estimated investment for this expansion is around ₹400 crore, aimed at meeting rising market demands.

With these strategic moves and a robust financial position, RR Kabel is well-poised for continued growth in the competitive wires and cables sector.