R R Kabel Ltd (RRKABEL) Q1 FY27 Results Analysis: PAT Jumps 128.8%, FMEG Breakeven Ahead

R R Kabel Ltd reported Q1 FY27 numbers with revenue of Rs. 3,168.20 Cr (+53.90% YoY) and PAT growth of +128.80% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

RRKABEL delivered a strong quarter with revenue up 53.9% YoY and PAT up 128.8% YoY, driven by volume recovery and copper price pass-through. EBITDA margin expanded 204 bps YoY to 8.94%, and the FMEG segment achieved breakeven ahead of schedule. Multiple guidance beats on revenue growth, margin improvement, and segment profitability reinforce execution quality.

Key Investment Insights

Key Positives

• Revenue grew 53.9% YoY to Rs.3,168.2 Cr, with PAT up 128.8% YoY to Rs.205.2 Cr
• EBITDA margin expanded 204 bps YoY to 8.94%, with W&C EBIT margin at 9.91% (highest in the series, up 232 bps YoY)
• FMEG segment achieved breakeven (EBIT Rs.0 Cr) in Q1 FY27, ahead of full-year guidance
• FMEG revenue grew 28.0% YoY, exceeding the 20-25% guidance range
• Normalized PAT (excluding exceptional items) grew 117.3% YoY to Rs.194.94 Cr
• W&C revenue grew 8.0% QoQ despite management's warning on Middle East export disruption

Risk Factors

• Finance costs increased 74.2% YoY to Rs.26.3 Cr, driven by higher borrowings for working capital and capex
• Depreciation rose 46.3% YoY to Rs.29.7 Cr, reflecting the ongoing capex programme
• FMEG revenue declined 3.2% QoQ, partly seasonal but indicating sequential slowdown