RR Kabel shares skyrocket 17% as investors cheer an all-round Q4 show

RR Kabel reported a 64 percent jump in net profit for the fourth quarter

Shares of RR Kabel skyrocketed 17 percent to Rs 1,199 per share on May 5 after the company delivered a blockbuster performance for the January–March quarter (Q4FY25).

The rally extends the stock's strong momentum in recent weeks. Over the past month, RR Kabel shares have soared more than 30 percent, significantly outperforming the 10 percent rise in the benchmark Nifty 50 index during the same period.

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RR Kabel reported a 64 percent jump in net profit for the fourth quarter, driven by robust demand in its core wires and cables segment. The company posted a bottom-line figure of Rs 129 crore for the January–March period of FY25.

Revenue for the quarter stood at Rs 2,217 crore, marking a 26.4 percent increase compared to Rs 1,754 crore in the same quarter last year. On the operating front, EBITDA surged 68.6 percent to Rs 193.5 crore from Rs 115.10 crore, while EBITDA margins improved to 8.8 percent from 6.6 percent.

The wires and cables business, which accounts for 88 percent of the company’s total revenue, recorded an impressive 28 percent year-on-year growth. This was driven by strong demand, favourable copper price trends, and recent capacity expansions.

The fast-moving electrical goods (FMEG) division—which includes consumer appliances such as fans and switches and contributes about 12 percent to overall sales—saw revenue growth of 13 percent in the fourth quarter, supported by rising consumer demand in that segment.

In a key shareholder update, the board of RR Kabel recommended a final dividend of Rs 3.5 per share for the financial year ending March 2025. This dividend is subject to shareholder approval at the upcoming annual general meeting (AGM). If approved, the payout will be made within 30 days from the date of the AGM.

Commenting on the outlook, Rajesh Jain, Chief Financial Officer of RR Kabel, expressed confidence in the company’s future growth. He highlighted sustained demand from sectors such as real estate, renewable energy, and automotive as key growth drivers. Jain stated that RR Kabel is targeting 20 percent annual growth in sales volume over the next 4-5 years and aims to expand its market share from 7 percent to low double digits during this period.

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