RR Kabel Ltd. (NSE: RRKABEL), a leader in electrical solutions, delivered a blockbuster Q4 FY25 and capped off the year with record revenues and profits. With a strategic push into both domestic and export markets, the company posted:
- Revenue: ā¹2,217.8 Cr in Q4 FY25 (ā²26.4% YoY)
- Net Profit: ā¹129.1 Cr (ā²64.0% YoY)
- EBITDA: ā¹195.8 Cr (ā²69.5% YoY)
The full-year performance was equally solid with consolidated revenue crossing ā¹7,618 Cr. The company is now setting the stage for exponential growth under “Project Rise,” aiming for a 2.5x increase in EBITDA over the next three years.
š Q4 & FY25 Financial Highlights
| Particulars | Q4 FY25 (ā¹ Cr) | Q4 FY24 (ā¹ Cr) | YoY Change (%) | FY25 (ā¹ Cr) | FY24 (ā¹ Cr) | YoY Change (%) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 2,217.8 | 1,754.1 | 26.4% | 7,618.2 | 6,594.6 | 15.5% |
| Operating EBITDA | 195.8 | 115.5 | 69.4% | 487.7 | 462.8 | 5.4% |
| Net Profit (PAT) | 129.1 | 78.7 | 64.0% | 311.6 | 298.1 | 4.5% |
| EBITDA Margin | 8.8% | 6.6% | ā220 bps | 6.4% | 7.0% | ā60 bps |
| PAT Margin | 5.8% | 4.5% | ā130 bps | 4.1% | 4.5% | ā40 bps |
Key Takeaway: Strong Q4 surge in profitability driven by operational efficiency, favorable product mix, and robust volume growth.
š Segment-Wise Performance Analysis
š Wires & Cables (W&C)
| Metric | Q4 FY25 | Q4 FY24 | YoY Change | FY25 | FY24 | YoY Change |
|---|---|---|---|---|---|---|
| Revenue (ā¹ Cr) | 1,956.2 | 1,523.1 | 28.4% | 6,688.8 | 5,829.6 | 14.7% |
| Segment PBT (ā¹ Cr) | 194.1 | 132.0 | 47.1% | 496.5 | 504.3 | -1.5% |
| Segment Margin (%) | 9.9% | 8.7% | ā120 bps | 7.4% | 8.6% | ā120 bps |
| Volume Growth | +14% QoQ | ā | +7% YoY | ā |
The W&C segment, contributing 88% of revenue, remains RR Kabel’s backbone. Despite annual margin compression, the strong Q4 rebound is promising for FY26.
š” FMEG (Fast-Moving Electrical Goods)
| Metric | Q4 FY25 | Q4 FY24 | YoY Change | FY25 | FY24 | YoY Change |
|---|---|---|---|---|---|---|
| Revenue (ā¹ Cr) | 261.6 | 231.0 | 13.3% | 929.5 | 764.9 | 21.5% |
| Segment PBT (ā¹ Cr) | -9.1 | -19.4 | Lossā53% | -45.9 | -68.5 | Lossā33% |
| Segment Margin (%) | -3.5% | -8.4% | ā490 bps | -4.9% | -9.0% | ā410 bps |
While FMEG remains loss-making, operational improvements and product mix optimization hint at breakeven potential in FY26.
š§¾ Balance Sheet Deep Dive
| Particulars | FY25 (ā¹ Cr) | FY24 (ā¹ Cr) |
|---|---|---|
| Shareholder Funds | 2,153.0 | 1,829.0 |
| Non-Current Liabilities | 102.0 | 99.0 |
| Current Liabilities | 1,262.0 | 942.0 |
| Total Equity & Liabilities | 3,517.0 | 2,869.0 |
| Non-Current Assets | 1,264.0 | 874.0 |
| Current Assets | 2,253.0 | 1,995.0 |
| Total Assets | 3,517.0 | 2,869.0 |
Asset expansion by ā¹648 Cr is driven by capex in Silvassa and Waghodia, aligned with “Project Rise.”
š° Cash Flow Analysis
| Metric | FY25 (ā¹ Cr) | FY24 (ā¹ Cr) |
|---|---|---|
| Cash from Operations | 494.4 | 339.0 |
| Cash used in Investing | -169.0 | -83.5 |
| Cash used in Financing | -191.2 | -205.0 |
| Net Increase in Cash | 134.2 | 50.5 |
| Cash & Cash Equivalents (EOY) | 215.7 | 81.5 |
Strong operational cash flow supports future capex and dividend payouts without excessive debt.
āļø Operational Efficiency & Working Capital Management
| Metric (Days) | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Inventory | 63 | 63 | 60 | 56 |
| Debtors | 39 | 36 | 34 | 35 |
| Creditors | 14 | 24 | 30 | 35 |
| Working Capital Cycle | 88 | 75 | 64 | 56 |
Optimizing inventory and credit terms reduced the working capital cycle by 32 days over 3 years.
šļø Project Rise: 3-Year Strategic Vision
Key Goals (FY26āFY28):
- W&C Revenue CAGR: 18%
- FMEG Revenue CAGR: 25%
- EBITDA Growth: 2.5x
- Domestic W&C Growth: 1.6x
- Export W&C Growth: 1.8x
- Capacity Expansion: 1.7x
Levers for Growth
- Entering new export markets
- Scaling medium voltage (MV) cables
- Premiumization in FMEG
- Supply chain efficiency
š Market Opportunity & Industry Outlook
- W&C Industry Size FY25: ā¹90,000 Cr
- Expected Size by FY31: ā¹2,00,000 Cr
- Key Tailwinds:
- Real estate growth
- Data center expansion
- Renewable energy adoption
- Govt infra push
Despite rising competition, RR Kabel is well-placed to gain share through capacity, exports, and brand visibility (e.g., IPL sponsorship with KKR).
š Valuation Metrics & Investor Takeaways
| Metric | FY25 | FY24 |
|---|---|---|
| EPS (ā¹) | 27.6 | 26.6 |
| ROE (%) | 19.4% | 21.5% |
| ROCE (%) | 15.6% | 18.3% |
| Debt-to-Equity | 0.1x | 0.2x |
| Dividend (ā¹/share) | 6.0 | NA |
Conclusion: With low leverage, strong cash flow, and sustained EPS growth, RR Kabel is showing classic traits of a high-quality compounder.
Technical Analysis: Is RR Kabel a Buy?
Key Indicators (as of 7 May 2025)
| Indicator | Value | Zone |
|---|---|---|
| RSI (Daily) | 81.08 | Overbought |
| MACD | 54.82 | Positive |
| Bollinger %B | 1.10 | Overbought |
| Debt-to-Equity Ratio | 0.1x | Low Risk |
Verdict: Short-term caution due to overbought signals, but long-term bullish on fundamentals.
ā ļø Risks & Challenges
- Margin volatility due to commodity prices
- Slow FMEG turnaround could hurt profitability
- Capex execution risk
- Competitive intensity in cables segment
š Conclusion: Is RR Kabel the Next Growth Engine?
RR Kabel’s Q4 FY25 has electrified the market with its stellar performance and bold 3-year plan. The company is not only scaling efficiently but doing so profitably. With strong fundamentals, a lean balance sheet, and smart segment bets, RR Kabel could well be the next ā¹10,000 Cr revenue playerāand a potential multibagger in the making.
Disclaimer:Ā This analysis is for informational purposes only. It should not be construed as investment advice. Please consult with a financial advisor before making any investment decisions.
