RR Kabel share price soars over 18% on strong Q4 numbers, biggest 1-day jump since listing

RR Kabel share price today: Shares of RR Kabel surged 18.4% in intraday trade on Monday, May 5, reaching ₹1,211 apiece after the company reported a stellar performance for the March-ended quarter (Q4FY25), with investors also cheering its capacity expansion plans. Today's rise in RR Kabel share price is also the biggest intraday jump since its listing

RR Kabel posted a 64% year-on-year jump in consolidated net profit to ₹129 crore in Q4FY25, compared to ₹79 crore in the same period last year.

Revenue from operations during the reporting quarter stood at ₹2,218 crore, up 26.6% from ₹1,754 crore reported in Q4FY24. The wires and cables segment, which contributes 88% of the company’s total revenue, grew about 28% year-on-year.

In the electrical goods segment, which sells appliances and contributes about 12% of overall sales, revenue grew by 13% in the fourth quarter, led by strong performance in fans and switches.

Favorable weather between January and March boosted construction activity, driving strong demand for high-margin cables and wires, the company said. Additionally, favorable copper prices—a key raw material—and capacity expansion supported profit growth.

The company has recommended a final dividend of ₹3.5 per equity share of face value ₹5 for the financial year ended March 31, 2025.

Meanwhile, RR Kabel share price shares have corrected 39% from their peak of ₹1,901 apiece touched in May. RR Kabel shares have debuted on Indian stock exchanges in September 2023, listing at ₹1,180 per share compared to the issue price of ₹1,035. At current levels, the stock is trading 12.3% above its IPO price.

Strategic capacity expansion to meet rising demand

The company has announced capacity expansion plans to meet rising demand, with investments targeted at both existing and new facilities. The company will add 36,000 MT per annum of capacity to its existing plant in Waghodia, Vadodara, Gujarat, by March 2028 in a phased manner.

This addition, aimed at catering to increased demand, will involve an investment of approximately ₹1,050 crore and will be financed through a mix of internal accruals and debt. The current facility, which operates at around 79% capacity utilization, has an existing capacity of 67,200 MT per annum for both wires and cables.

Additionally, RR Kabel plans to set up a new unit near its existing facility in Silvassa, Dadra & Nagar Haveli and Daman & Diu. The first phase of this project, with a capacity of 12,000 MT per annum, is expected to become operational by March 2026.

The total estimated investment for the Silvassa expansion stands at ₹400 crore, also aimed at supporting increasing market demand, as per RR Kabel regulatory filing.

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