In the fourth quarter of FY25, RR Kabel Ltd. reported a remarkable 64% increase in net profit, reaching ₹129 crore compared to ₹78.7 crore in the same quarter the previous year. This significant growth is attributed to robust demand in the company's core wires and cables segment, which constitutes approximately 88% of its total revenue. 

The company's revenue from operations rose by 26.4% year-on-year to ₹2,217 crore, up from ₹1,754 crore. Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) also saw a substantial increase of 68.6%, amounting to ₹193.5 crore. The EBITDA margin improved to 8.8% from 6.6% in the previous year, indicating enhanced operational efficiency. 

Capacity Expansion Plans

RR Kabel has unveiled a significant capacity expansion plan worth ₹1,050 crore, aimed at increasing its production capabilities in response to growing market demand. The expansion will be executed in phases by March 2028 and will be funded through internal accruals and debt.

The company plans to add 36,000 metric tonnes (MT) of capacity for both wires and cables at its existing Waghodia plant in Gujarat. Additionally, RR Kabel is set to augment its upcoming new units at Silvassa and Daman & Diu, with a proposed capacity addition of 6,000 MT, supplementing the 12,000 MT already initiated. This expansion is expected to be operational by March 2026 in a phased manner.

Project R Rise: A Vision for Growth

Under its strategic initiative "Project R Rise," RR Kabel aims to achieve a Compound Annual Growth Rate (CAGR) of 18% in its wires and cables business over the next three years. The company also targets a 1.8x increase in exports and a 1.7x enhancement in overall capacity. Furthermore, the Fast-Moving Electrical Goods (FMEG) segment is projected to grow at a CAGR of 25% during the same period.

Market Response and Share Performance

Following the announcement of its robust Q4 performance and ambitious expansion plans, RR Kabel's shares experienced a significant surge. On May 5, 2025, the company's stock price jumped by 17%, reaching ₹1,199 per share. This rally reflects investor confidence in RR Kabel's growth trajectory and strategic initiatives. 

Analyst Outlook

The company's strong financial performance and forward-looking strategies have garnered positive attention from market analysts. Out of nine analysts covering RR Kabel, eight have issued a "buy" rating, while one has recommended a "hold." This consensus underscores the market's optimistic outlook on RR Kabel's future prospects.

Conclusion

RR Kabel's impressive Q4 FY25 results, coupled with its substantial capacity expansion plans and strategic vision under Project R Rise, position the company for sustained growth in the wires and cables industry. The positive market response and analyst endorsements further reinforce the company's strong standing and potential for continued success.

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