Kabra says that the segment margins expanded materially over the year, advancing from 7.4 per cent in FY25 to 8.9 per cent in FY26
After the company posted a higher double-digit cumulative volume growth in the core wires and cables (W&C) segment in the financial year 2026, Mahendrakumar Kabra, Managing Director, RR Kabel, said that the management is targeting to continue volume growth momentum in this division going ahead.
“Wires & Cables segment margins expanded materially over the year, advancing from 7.4 per cent in FY25 to 8.9 per cent in FY26, with further improvement targeted as Project RRise progresses. This demonstrates the immense operating leverage inherent in our business model when scale is optimised,” Kabra highlighted in the latest annual report.
He noted that a central strategic priority is to lift the cables’ share within the company’s W&C mix, reflecting the structural business-to-business opportunity. This pivot is designed to capitalise on the B2B-driven cable market, which offers longer-term contract visibility, stickier institutional relationships and a more predictable cash flow profile compared to the retail-heavy wire segment, the MD explained.
“Accommodating this shift meant our cable lines ran at high utilisation through the year. This drove the execution of the initial phase of our Rs 1,200 crore three-year capital expenditure programme, with the first tranche deployed in FY26,” he highlighted.
He added that year-end inventory levels were elevated at Rs 1,771 crore, primarily attributable to Sales in Transit (SIT) caused by Middle East shipping disruptions late in the fiscal year.
Premiumisation in FMEG
He explained that while the core W&C segments drove substantial volume, the company’s approach within the Fast-moving Electrical Goods (FMEG) segment required a different strategic lens. Despite a constrained discretionary demand environment, a successful transition towards a higher-value product mix was achieved, he said.
We made a deliberate strategic choice to prioritise high-margin profitability over top-line volume alone. Today, approximately 25 per cent of our FMEG revenue is generated from premium and mid-premium categories,” the MD emphasised.
To accelerate this turnaround, in April 2026, the company expanded the RR Signature portfolio by introducing high-engagement kitchen essentials, including mixer grinders, electric cooktops and hand blenders, alongside industrial and semi-commercial air coolers.
“As RR Kabel powers into the subsequent phases of Project RRise, our strategic emphasis will remain firmly on capacity expansion, B2B portfolio augmentation, and sustained margin improvement,” the MD pointed out.
