R R Kabel Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

R R Kabel Ltd trades at ₹2,528, in a confirmed uptrend and 45 weeks into that stage. That is +22.6% against its own 200-day average. It sits at 76% of a 52-week range of ₹1,315 to ₹2,919. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 1 straight week.

Today the stock is in a confirmed uptrend — week 45 of stage 2, confirmed. At ₹2,528 it trades +22.6% versus its 200-day average and sits at 76% of its 52-week range (₹1,315–₹2,919).

Against the market, two honest reads. Cumulative: over the last 3.0 years the stock moved +114% while the NIFTY 500 moved +30% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 1 straight week — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

R R Kabel Ltd's story is on track against the markers our research file set on 22 August 2026. Where it sits in its own cycle: MID_EXPANSION. Marker count: 1 met, 1 partly met, 2 not due yet, 1 flagged. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. Cable scale and mix are lifting earnings, but the valuation already assumes that elevated margins persist.

From the numbers. The current trailing PE is near the company’s median snapshot, but the normalised PE is materially higher because reported operating margin is near its historical high. The deeper read is therefore not a cheap-multiple…

From the price. Price stage 2, week 45 — above its 200-day line, relative strength falling.

From the research. Cable scale and mix are lifting earnings, but the valuation already assumes that elevated margins persist.

🚨 Where they disagree. The current trailing PE is near the company’s median snapshot, but the normalised PE is materially higher because reported operating margin is near its historical high. The deeper read is therefore not a cheap-multiple opportunity: current earnings embed peak profitability. The operating cycle remains in mid expansion because earnings are rising and the multiple has compressed, but the value case requires proof that capacity, mix and pricing can hold margin above its through-cycle level.

What is proven. Cable scale and mix are lifting earnings, but the valuation already assumes that elevated margins persist.

What is not proven yet. A sustained fall in cable utilisation or a missed capacity commissioning that coincides with operating margin moving back toward its through-cycle level would break the thesis.

🚨 What would change our mind. A sustained fall in cable utilisation or a missed capacity commissioning that coincides with operating margin moving back toward its through-cycle level would break the thesis.

Layer 1 read, 22 August 2026 — KEEP. The holding has done its job — up 98.7% since April — and the cheapness we bought it for is now entirely gone. The business itself is still compounding hard: operating profit almost doubled year on year to Rs 283 crore last quarter with the profit margin improving from 7% to 9%, and per-share profit is now more than four times its September 2024 low. The problem is price, not performance. We bought on 20 April at Rs 1,469 specifically because the shares cost 35.7 times profit, near the cheapest they had ever been; they now cost 54 times, near the dearest, and sit exactly at their all-time high after rising 140% in twelve months. Add that the profit margin is at the 94th percentile of its own short history and that management has already pushed back its promise to make the appliances business break…

What would change Layer 1’s mind. Cable utilisation falling from the stated ~90% in either of the next two quarters, OR the Project Rise cable capacity missing its commissioning window while operating margin slips back toward the 6.9% through-cycle level — because at 54 times profit the entire holding now depends on volume and mix holding a 94th-percentile margin. A separate, faster breaker: a second FMEG loss quarter after the Q1 FY27 break-even, which would show that the deferral in was a pattern rather than a one-off.

🚨 Layer 2 read, 22 August 2026 — DROP. RR is adding cable capacity while peers add supply faster than proven unit demand. RR's latest quarter and mix strategy are genuinely stronger, but the external sector read says unit growth trails reported revenue while everyone adds capacity. RR's own Project Rise adds directly to that supply, and the peer asset build trips The Capex Inflection Point's explicit failure test.

What would change Layer 2’s mind. Two consecutive quarters showing RR's cable volume staying strong after new capacity starts, with sector unit growth matching reported growth and sector CWIP no longer rising, would reverse DROP to ADVANCE.

🚨 CIO read, 22 August 2026 — EXIT. EXIT (story_complete) · forward-asymmetry 38/100 · CONTESTED. CONTESTED — judged EPS growth of 20% falls short of the 27.2% implied rate, a −7.2-point sustain gap. The price rose 102.4% in four months, while the margin is near its own peak and new industry capacity is coming.

The test written in advance. A sustained fall in cable utilisation or a missed capacity commissioning that coincides with operating margin moving back toward its through-cycle level would break the thesis. — the thesis as written as stated by the next result.

The test written in advance. Peak-margin valuation trap — Peak-margin valuation trap Wires-and-cables margin versus the normalised operating-margin reference by the next result.

The test written in advance. Commodity pass-through and channel de-stocking — Commodity pass-through and channel de-stocking Operating margin and reported exceptional items after a commodity-price move by the next result.

What the company does. The latest quarter combined revenue growth with a larger profit increase, supported by cable scale, mix and cost absorption. The cable expansion has an identifiable execution path, but the current operating margin is above its through-cycle level. The central question is whether capacity additions and pricing discipline can prevent margin mean reversion while FMEG reaches full-year break-even.

🚨 What the surface reading misses. The surface reading is: The reported profit increase indicates rapid acceleration. The research reads it further: The result combines higher revenue and operating leverage, but reported PAT also includes an exceptional reversal.

🚨 What the surface reading misses. The surface reading is: A high operating margin suggests improved business quality. The research reads it further: The margin is at the top of its own band, so part of current earnings may reflect peak-cycle profitability rather than a permanent cost reset.

Lever 1 · Operating leverage — BUILDING. The latest quarter shows cable scale, mix and cost absorption supporting earnings growth faster than revenue growth. What proves it keeps working: Cable-led operating leverage. It stops working if Cable utilisation falls before the new capacity is commissioned, or commodity pass-through lags a material cost move.

Lever 2 · Value-added mix — BUILDING. Project Rise directs most planned spending to cables, with capacity additions intended to support specialised and higher-voltage products. What proves it keeps working: Cable capacity and product-mix climb. It stops working if Silvassa or Waghodia commissioning slips, or higher-value cable products fail to obtain customer approvals.

Lever 10 · New geographies — BUILDING. Other geographies offset Middle East disruption, while the United States opportunity remains dependent on tariffs and approvals. What proves it keeps working: Export normalisation and diversification. It stops working if Middle East disruption broadens or export approvals take longer than management expects.

Lever 12 · New product launch — BUILDING. FMEG reached quarterly operational break-even, but full-year profitability still needs delivery after an earlier deferral. What proves it keeps working: FMEG contribution option. It stops working if FMEG returns to losses beyond seasonal softness or premiumisation does not translate into a full-year result.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

R R Kabel Ltd reported ₹3,168 Cr of revenue in the Jun 26 quarter, +53.9% year on year. That is the 12th straight quarter of year-on-year growth. Over 6 years it has compounded at 25.6% a year. The last full year, FY26, came in at ₹9,722 Cr. The last four reported quarters add to ₹10,832 Cr.

Why this happened. Management reported that other markets offset the Middle East disruption and that shipment recovery became visible late in the quarter. This is diversification rather than a completed United States growth case because tariff clarity, approvals and customer onboarding remain unresolved.

FY26 revenue came in at ₹9,722 Cr (+27.6% on the year), capping 6 years at 25.6% compound. The latest quarter (Jun 26) printed ₹3,168 Cr, +53.9% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +37.4% growth against the decade's 25.6% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +37.7% over the last 4 quarters against +26.2%/yr over the last 8 — accelerating; TTM profit +79.6% vs +45.2%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

R R Kabel Ltd's operating margin is 9.0% in the Jun 26 quarter, +2.0 percentage points against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 6.0% to 9.0%. The current quarter sits inside that band.

Why this happened. Management linked the latest margin improvement to scale, product mix, disciplined commodity management and operating efficiencies. The mechanism is operating leverage, but it is conditional: cable utilisation is already near capacity, so the next margin step requires new capacity to commission and fill rather than merely repeating the current run rate.

The latest quarter's operating margin is 9.0%, +2.0 pp against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 6.0%–9.0%.

Why the margin moved: operating margin went +2.0 pp year on year while gross margin went +0.4 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

R R Kabel Ltd earned ₹205 Cr of net profit in the Jun 26 quarter, +127.8% year on year. It is the 6th consecutive quarter of growth. Full-year FY26 profit was ₹492 Cr. The 6-year compound rate is 26.2%. That is 6.5% of the quarter's revenue. The same quarter a year earlier earned ₹90.0 Cr.

Jun 26 profit was ₹205 Cr, +127.8% year on year — the 6th consecutive quarter of growth. On the full year, FY26 printed ₹492 Cr (+57.7%), and the 6-year compound rate is 26.2%.

Why profit moved: revenue contributed +53.9% and the margin +2.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +90.3% vs revenue +37.4%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 102% of R R Kabel Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹295 Cr of operating cash against ₹492 Cr of profit. After ₹333 Cr of capital spending, ₹−38.0 Cr was left as free cash.

FY26: operating cash of ₹295 Cr against reported profit of ₹492 Cr, leaving free cash of ₹−38.0 Cr after ₹333 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 102% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 102%: the cash cycle tightened 72 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 4.0× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

R R Kabel Ltd's cash conversion cycle runs 56 days in FY26, down from 128 days in FY21. Capital spending ran ₹911 Cr over the last 3 years. At FY26 sales of ₹9,722 Cr each day of that cycle holds about ₹26.6 Cr, so roughly ₹1,492 Cr sits inside the business at any moment.

FY26: debtors at 37 days, inventory at 81 days — roughly 2.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 56 days, tighter than FY21's 128.

The full loop: cash goes out to suppliers and production on day 0; stock waits 81 days to sell; customers pay about 37 days after that; and suppliers themselves are paid at 63 days — netting out to the 56-day cycle.

In money terms: at FY26 sales of ₹9,722 Cr, each day of the cycle holds about ₹26.6 Cr — so the 56-day loop keeps roughly ₹1,492 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹911 Cr over the last 3 fiscal years against ₹227 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹72.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

R R Kabel Ltd earns a ROCE of 28% in FY26. That is up from a trough of 15% in FY21. Return on invested capital clears the cost of that capital by +10.1 percentage points, so growth here adds value rather than only size. The wiring behind it is 5.1% net margin on 2.10× asset turns.

FY26 ROCE is 28%, recovered from a FY21 trough of 15% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 5.1% net margin × 2.10× asset turns × 1.79× balance-sheet leverage ≈ 19.2% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 22.1% − 12.0% = a +10.1 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

R R Kabel Ltd carries total debt of ₹337 Cr against shareholder equity of ₹2,574 Cr as of Mar 26, a debt-to-equity of 0.13 — effectively unlevered. On the annual view that ratio went from 0.43 in FY22 to 0.13 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹337 Cr against shareholder equity of ₹2,574 Cr — a debt-to-equity of 0.13. On the annual view, debt-to-equity went from 0.43 (FY22) to 0.13 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions added 4.1 points of R R Kabel Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 10.7% of the company. Domestic institutions moved −1.7 points over the same window, to 11.9%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +4.1 points over 8 quarters to 10.7%; Domestic institutions: −1.7 points over 8 quarters to 11.9%; Promoters: −0.5 points over 8 quarters to 61.4%.

Why the register moved: rotation — foreign institutions +4.1 points against domestic institutions −1.7 points over 8 quarters, with promoters −0.5 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

R R Kabel Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

R R Kabel Ltd trades at 46.8× P/E, mid-range by its own standards (43rd percentile). Its long-run median P/E is 49.5×, measured across 3.0 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 46.8× is mid-range by its own standards (43rd percentile), against a long-run median of 49.5× measured over 3.0 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +57.9% against a +107.5% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 3y, of the +28.9%/yr price move, ~+40.3%/yr came from earnings growth and ~−11.4 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 26 August 2026 price, R R Kabel Ltd was paying for profit growth of about 27.2% a year. Profit itself has compounded 26.2% a year over the past 6 years. Today the market pays 46.8× P/E, the 43rd percentile of its own 3-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is close to what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 26 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 25 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

R R Kabel Ltd reads as improving on its fundamental arc. Improving — EPS growth bottomed 7 quarters ago at −46.3% and has held its recovery at +80.3%, ROCE lifting at 29.4%. The read is built from 11 quarters across 4 curves, on full evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

4-Factor Sector Score

No sector-relative score — R R Kabel Ltd is score temporarily unavailable — [mlaSectorData] ambiguous sector slug "cables-power": Cables - Power, Cables Power for undefined.

The score is a rank WITHIN a peer set: every metric is scored by percentile against the other members. Without the peer set there is no score to state, so none is invented here.

Quarterly scorecard

5 markers came out of our R R Kabel Ltd research file of 22 August 2026, and each results season scores every one of them. 4 quarters scored so far; the latest reads on track. A row is permanent: a miss stays on the record after it is fixed.

Click any quarter above to read its full record — the numbers, every marker’s score, and why the numbers moved. A dashed chip is a quarter not yet checked.

M1 — partly met. The bar: Volume growth gets back to the 18% a year management guided (wire and cable volume growth >= 18%). Where it stands: Volume growth is still short of the 18% a year management guided; the FY26 exit rate was 10% in the March quarter.

M5 — flagged. The bar: Targets stay stated on the same measure, with no quiet move from one profit line to a lower one (consistency of the guided measure no unexplained change of measure). Where it stands: The earlier move of the same 10.5% target to a lower profit line has still not been reconciled, so the flag stays raised.

FY26-Q2 — on track. A recovery quarter after a soft June: revenue ₹2,164 Cr, up 19.6% on the year, profit ₹116 Cr, up 132%, and margin back to 8%. First-half volume ran at 12% against the 18% management had promised — behind, not broken. The fans, lights and appliances arm was still loss-making, with management holding its line that it would be profitable at the operating level this year. Management blamed the soft June quarter on projects slipping into this one, a claim it downplayed one call later; that contradiction is on the said-versus-delivered record.

FY26-Q3 — on track. A record quarter: revenue ₹2,536 Cr, up 42.3%, profit ₹118 Cr, margin 8%. Cable-segment operating profit rose 64% — the operating-leverage story working exactly as promised — and the margin programme reported 100 basis points in the first half. Two things went on the record against it: the fans, lights and appliances arm was flat at the nine-month mark against a 20–25% growth promise, and the 18% volume promise was quietly reframed as a multi-year average rather than an FY26 number.

FY26-Q4 — watch. Revenue ₹2,964 Cr, up 33.6%, profit ₹168 Cr, up 30%, margin 9%. The core delivered: FY26 closed at 27.6% revenue growth and 58% profit growth, above the company's own guidance, and the margin programme banked 130 of its promised 300 basis points in year one. But break-even in fans, lights and appliances was missed and pushed a full year to FY27, for reasons — weather and input costs — never flagged before. And the FY28 target of 10.5% had by now moved from one profit line to a lower one with no explanation. Middle East disruption touched about 12% of revenue.

FY27-Q1 — on track. The strongest quarter on record: revenue ₹3,168 Cr, up 53.9%, profit ₹205 Cr, up 128%, and margin held at 9% for a third straight quarter. The margin programme stands at 130 of the promised 300 basis points. Volume growth is still short of the 18% guided. Break-even in fans, lights and appliances has been reset to FY27 — that carried miss is the thing to check next quarter. One new flag: the price has re-rated, so the cheap read in our June-2026 research file no longer applies.

Said versus delivered

What R R Kabel Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

FY27 Margin Guidance Appears to Have Moved Above 9.5% · 27 July 2026. In Apr 2026, management explicitly guided to a 9.5% wires and cables margin for FY2027, with 10.5% positioned as the FY28 target. In Jul 2026, management said it intended to touch double-digit margins for the year while retaining 10.5% by FY28; because the latest call is for Q1 FY27, this appears to imply an upward revision to the FY27 target that was not reconciled.

🚨 FMEG Breakeven Milestone Pushed by One Full Year · 30 April 2026. In both the Nov 2025 and Feb 2026 calls, management clearly committed to EBIT-level breakeven in the FMEG segment by Q4 FY26, with the Feb 2026 call expressing high confidence just two months before year-end and citing Q3 FY26 losses of only INR5 crores as direct evidence of being on track. The Apr 2026 call reveals the milestone was missed and the timeline pushed to FY27 - a full year slip - with management citing bad weather and input cost pressures that were never flagged as meaningful risks in either prior call, raising questions about the credibility of near-term FMEG profitability guidance going forward.

🚨 FMEG Profitability Target Downgrade · 2 February 2026. In the August 2025 call, management explicitly guided that the FMEG segment would achieve positive EBIT on a full-year basis for FY26. However, in the February 2026 call, they admitted that losses have persisted year-on-year and downgraded the target to merely reaching break-even by Q4 FY26. Earlier call (Aug 2025): “now we are expecting that within this year, on yearly basis we will be at EBIT positive in FMEG.” Later call (Feb 2026): “As a result, while losses persisted on a year-on-year basis... we planned to reach break-even at the EBIT level by Q4 FY26.”

🚨 FMEG Growth Guidance Miss · 2 February 2026. Management guided for 20-25% growth in the FMEG business for the year during the August 2025 call. In stark contrast, the February 2026 call revealed that performance has been flat at the nine-month level with Q3 showing merely steady revenue, significantly missing the double-digit growth projection. Earlier call (Aug 2025): “Around anything between 20% to 25% growth we are expecting in our FMEG business.” Later call (Feb 2026): “That is why we are flat at the nine-month level... Revenue for Q3 FY26 stood at 243 crores... reflecting a steady year-on-year performance”.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions