R R Kabel Ltd Management Discussions

Economic Overview

Global: A Transition Phase

The global economy in 2026 has entered a phase of measured stability, as outlined in the International Monetary Funds April 2026 World Economic Outlook. The resilience seen in the previous fiscal year helped cushion stagflationary risks. However, the global scenario now reflects shifting geopolitical alignments, particularly rising tensions in West Asia. It also points to the complex normalisation of monetary policies across major central banks. Global growth is expected to remain steady at around 3.1% in 2026. This marks a slight moderation as advanced economies approach the end of their inflation cooling cycles.

Despite ongoing disruptions, including supply chain shifts and localised geopolitical tensions, economies have shown strong structural adaptability. As monetary policy moves gradually from restrictive to neutral, businesses and investors are adjusting capital allocation strategies, reinforcing a sense of cautious optimism.

Growth in advanced economies is likely to stabilise at around 1.8%. The US is expected to moderate to 2.3% as fiscal stimulus declines and consumer savings normalise. Meanwhile, the Euro Area continues a fragile and uneven recovery at 0.9%. This is constrained by high energy transition costs and structural labour shortages. Emerging Market and Developing Economies (EMDEs) remain key drivers of global demand. However, they face rising vulnerability to external shocks and volatile capital flows. Chinas growth is projected to hold at 4.5%. This reflects its ongoing shift from property-led growth to high-tech manufacturing, green energy, and domestic consumption.

Commodities

The global commodity space in FY 2025-26 reflects geopolitical volatility, aggressive decarbonisation policies, and persistent supply-side constraints. Industrial metals, in particular, have become central to national security and energy transition strategies. This shift has increased price sensitivity and driven strategic stockpiling by major economies.

Copper

Often called the metal of electrification, copper reached record highs in early 2026. This was driven by a structural demand surge from energy transitions and rapid growth in Al-ready data centres. Prices saw temporary corrections due to trade barriers and evolving US tariff policies. However, the long-term outlook remains structurally bullish. The average prices have traded at around USD 10,800/MT range during FY 2025-26. Global demand is expected to grow by 3.8% in 2026.

Aluminium

Aluminium prices in 2026 have navigated a volatile path, influenced by capacity expansions in India and Southeast Asia counterbalancing supply caps in China. The average prices have stabilised around USD 2,700/MT. The market shows clear regional divergence. European demand remains tepid, while the US and Indian consumption stay resilient. The metal continues to support lightweight automotive components and sustainable packaging. However, regional trade policies and carbon border adjustments continue to create periodic uncertainty.

Sources:

World Bank Commodity Markets Outlook, April 2026 International Copper Study Group (ICSG) 2026 Forecast

India: A Steady Rise in Economic Strength

India continues to strengthen its position as a global lighthouse of growth and macroeconomic stability. The RBI April 2026 Monetary Policy Report estimates real GDP growth at 7.6% for FY 2025-26, outperforming major global peers. This performance reflects a virtuous cycle driven by sustained public capital expenditure and a revival in private investment.

Moreover, the economy shows strong structural resilience to external volatility. Strategic policy measures, including a USD 6.2 Billion buffer fund, have helped shield domestic growth from recent global oil price shocks. As a result, the overall GDP trajectory continues its upward momentum.

Manufacturing Momentum Backed by Policy and Infrastructure Demand

The manufacturing sector, a key pillar of the governments Atmanirbhar Bharat vision, is projected to grow by 6.5% in FY 2025-26. This growth is supported by parallel expansion in the construction and electricity sectors.

Despite a strong annual trajectory, the sector experienced a late-year moderation. The HSBC India Manufacturing PMI declined to 53.9 in March 2026, reflecting the impact of the ongoing West Asia crisis on critical input costs, specifically steel, fuel, and aluminium.

Nevertheless, underlying business sentiment remains strong despite these short-term supply chain pressures. Looking ahead, around 30% of manufacturing firms expect significant output expansion over the coming year. This optimism is driven primarily by robust domestic tailwinds, including the continued success of Production-Linked Incentive (PLI) schemes and demand from infrastructure initiatives such as the PM Surya Ghar programme. Sources:

RBI Monetary Policy Report, April 2026

Ministry of Finance, Government of India - Economic Review 2026 HSBC India Manufacturing PMI Press Release, March 2026 PIB: Progress of PM Surya Ghar: Muft Bijli Yojana, 2026

Overview of the Wires Market

The Indian domestic wire market has undergone a fundamental rerating from a utility commodity into a safety-critical infrastructure input. The Indian wires and cables industry was valued at approximately INR 985 Billion in FY 2024-25 and is estimated to reach INR 1.84 Trillion by FY 2029-30, growing at a CAGR of 13%-14%. The industry is also expected to see increasing formalisation, with the organised segments share projected to rise from 76% at present to 82% by FY 2029-30. Within this environment, the wires segment, anchored by housing wires, commands outsized strategic importance. It is the category where distributor cash flows are built, brand equity is established, and the consumers daily encounter with electrical safety is decided.

Two structural forces are reshaping the market simultaneously.

First, there is a clear shift in purchasing behaviour, a flight to quality is steadily reducing the unorganised sectors share. Mandatory BIS certification is pushing buyers towards organised suppliers. At the same time, state electricity board compliance audits are limiting shelf space for non-IS-marked products at trade counters. Second, the residential boom is driving sustained, volume-led demand. Approximately 6 Lakh new urban homes were completed in FY 2025-26. Developers continue to report strong booking momentum across Tier-I and Tier-II cities.

Sources:

https://www.expertmarketresearch.com/reports/india-wires-and-cables-market

https://economictimes.indiatimes.com/markets/digital-real-estate/realty-news/housing-sales-in-top-75-cities-rise-16-pc-to-rs-9-33-lakh-cr-in-fy26-liases-foras/articleshow/131312008.cms?from=mdr

Axis Capital Research

Key Sub-Categories

Housing Wires

The housing wires segment, the largest sub-segment, held a ~32% share of the wire and cable market in FY 2024-25. It generated approximately INR 320 Billion in revenue and remained the primary anchor of distributor cash flows. Demand is structurally tied to residential completions, which correlate directly with wiring installation activity.

Critically, the premium mix is deepening and rising per-capita income is driving adoption of FR-LSH (Flame Retardant Low Smoke Halogen-free) and energy-efficient variants, while builders at the premium end are specifying 180-metre rolls to reduce jointing losses, lifting value per unit. Smart home penetration is an additional demand accelerant. Modern automated residences now require nearly 30% more wiring content than conventional homes, driven by decentralised power points, home automation systems, and integrated EV charging provisions. Public-sector housing agencies are also inserting sustainability clauses that favour halogen-free compounds, nudging the supply chain up the technology curve.

Source:

https://www.mordorintelligence.com/industry-reports/india-wire-and-cable-market

Flexible Wires

This sub-segment serves consumer durables, industrial machinery, and automotive sectors, all seeing strong volume growth.

This is driven by rising domestic consumption and expanding manufacturing capacity. Flexible wires are also gaining preference in data centres and commercial office fit-outs. Here, cable management and fire safety standards require high-performance, low-smoke products over commodity alternatives.

Real Estate Upcycle and PMAY Expansion

The residential sector remains the primary volume engine. Indias urban population is forecast to surge to 600 Million by 2031, creating sustained structural demand for new housing and, by extension, for electrical wiring. The Governments PMAY programme, which received a 66% budgetary increase to over INR 79,000 Crores in the Union Budget 2023-24, continues to add completions at scale, particularly in the affordable and mid-market segments where housing wires see the highest volume intensity. Additionally, housing sector completions are projected to contribute an incremental +2.10% to the industrys CAGR through 2026.

Source:

https://www.mordorintelligence.com/industry-reports/india-wire-and-cable-market

Formalisation and the Organised Sector Premium

The wire market is formalising at pace, driven by BIS certification mandates, GST compliance pressure, and rising consumer awareness of fire risks. Organised players already hold a significant market share, leaving meaningful headroom as the unorganised segment continues to retreat. This shift is structural rather than cyclical, as consumers who adopt branded, safety-assured products rarely return to unbranded alternatives.

Enhanced Safety Standards and National Building Code Compliance

Stricter enforcement of the National Building Code (NBC), which mandates higher fire-safety standards for high-rise residential and commercial construction, is creating a compliance-driven pull for FR (Flame Retardant) and LSZH (Low Smoke Zero Halogen) wires. State electricity board compliance audits are reinforcing this shift, creating a regulatory tailwind that benefits organised players with certified product ranges and penalises those relying on substandard, non-compliant stock.

Source:

https://www.mordorintelligence.com/industry-reports/india-wire-and-cable-market

Infrastructure and Energy Capex Cycle

Beyond housing, the broader capex environment is providing multiyear demand visibility. The Government has allocated INR 9.12 Lakh Crores in FY 2025-26, marking a 25% year-on-year increase, to upgrade power systems, railways, and real estate infrastructure. Capital expenditure by wire and cable manufacturers is also expected to rise significantly. This trend signals that the industry is investing ahead of demand and remains confident in a sustained multi-year growth runway.

Sources:

https://www.mordorintelligence.com/industry-reports/india-wire-and-cable-market

https://www.energetica-india.net/news/indias-cables-and-wires-sector-set-to-exceed-usd-10-billion-by-2033

Overview of the Cables Market

The Indian cable industry has moved well beyond its traditional role in power distribution. Today, it underpins three of India?s most critical national programmes, energy transition, digital infrastructure, and urban grid modernisation. The Indian wires and cables industry was valued at approximately INR 985 Billion in FY 2024-25 and is estimated to reach INR 1.84 Trillion by FY 2029-30, growing at a CAGR of 13%-14%. The industry is also expected to see increasing formalisation, with the organised segments share projected to rise from 76% at present to 82% by FY 2029-30. Within this, the cables segment is seeing the sharpest growth, driven by rising demand for high-voltage transmission cables, optical fibre, and specialty cables for renewable energy and data infrastructure.

Source:

https://www.expertmarketresearch.com/reports/india-wires-and-cables-market

Key Sub-Categories

Power Cables (LV/MV/HV)

Low-voltage power cables remain the largest segment, with consumer applications contributing ~69% of FY 2024-25 revenue. However, growth is accelerating at higher voltage levels, reflecting evolving infrastructure needs. The medium-voltage underground distribution cable market is projected to grow faster, as cities replace overhead lines with underground networks to improve reliability and safety.

At the top of the voltage curve, HVDC cables are gaining traction as India builds long-distance transmission corridors to carry renewable power from generation-rich states like Rajasthan and Gujarat to consumption centres in the north and west. Installed renewable capacity reached 217.62 GW by January 2025, and the grid needs thousands of circuit-kilometres of DC cables to make that capacity usable.

Sources:

https://www.mordorintelligence.com/industry-reports/india-wire-and-cable-market

https://www.technavio.com/report/electric-wire-and-cable-market-in-india-industry-analysis

https://mobilityforesights.com/product/india-medium-voltage-underground-distribution-cable-market

Solar, Wind and EV Specialty Cables

A single 1 MW solar project requires approximately 50 km of solar cable. Scaled up to Indias 500 GW renewable target, the implied cabling requirement runs into millions of kilometres. Solar-grade cables are UV-stabilised, weather-rated, and built for 1,500 V DC operation. Meanwhile, the PM Surya Ghar rooftop solar scheme has crossed 1 Million installations, strengthening distributed demand. In parallel, offshore wind development off the coasts of Gujarat and Tamil Nadu will introduce demand for submarine and marine cables. Additionally, EV charging infrastructure is emerging as a steady demand source, requiring dedicated medium-voltage feeders for depots and fast-charging networks.

Sources:

https://www.fortunebusinessinsights.com/india-wires-and-cables-market-109992

https://www.mordorintelligence.com/industry-reports/india-wire-and-cable-market

Communication, Fibre Optic and Data Cables

Fibre-optic cables are the fastest-growing sub-segment and are projected to expand at around 12%-13% CAGR through 2031. Two demand streams drive this growth.

On the telecom side, only 44% of I ndias 7,95,000 mobile towers are currently fibreised, well below the 85-90% levels in China, the US, and South Korea. Increasing fibre connectivity remains essential for 5G to deliver its promised speed and reliability. Telecom operators are targeting near-100% fibre backhaul and 1 Gbps connectivity for 120 Million households. This will sustain long-term demand for armoured and ribbon cables.

On the data infrastructure side, domestic fibre output exceeded 100 Million fibre-kilometres in FY 2023-24. In parallel, data centre operators are expected to invest approximately USD 2 Billion in fibre over this decade. Additionally, NHAIs planned optical fibre network along 1,46,000 km of national highways, estimated at over INR 35,000 Crores, will further strengthen the fibre deployment cycle.

Sources:

https://www.mordorintelligence.com/industry-reports/india-wire-and-cable-market

https://www.communicationstoday.co.in/indias-fiber-optic-revolution-weaving-a-web-of-influence/

Specialty and Industrial Cables

Indias specialty wire and cable market is projected to grow from USD 0.98 Billion in FY 2024-25 to USD 2.14 Billion by FY 2032-33, at a CAGR of ~10%. This makes it the fastest-growing sub-segment in the wire industry. Growth is driven by accelerating industrialisation across high-complexity sectors. Manufacturing automation, led by Industry 4.0, robotics, and process automation, is a key contributor. The rapid expansion of data centres and pharmaceutical manufacturing zones also drives demand for chemical-resistant, high-temperature cabling. On the energy side, India added a record 24.5 GW of solar capacity in 2024. This directly increases demand for solar-grade cables and medium- and high-voltage grid-tie products.

Sources:

https://www.marketsandata.com/industry-reports/india-specialty-wire-and-cable-market

Key Growth Drivers

The 500 GW Green Energy Mandate

Indias target of 500 GW of non-fossil fuel capacity by 2030 is the largest single driver of cable demand for the foreseeable future. High-voltage AC corridors and green hydrogen clusters are being planned through 2034, each with dedicated budget support. The National Electricity Plan estimates India will invest about INR 9.16 Trillion in power transmission infrastructure by 2032. This pipeline extends well beyond the decade and provides strong long-term revenue visibility for cable manufacturers with HVDC capabilities.

Sources:

https://www.mordorintelligence.com/industry-reports/india-wire-and-cable-market

https://globaltransmission.info/transforming-transmission-trends-shaping-the-indian-cables-and-conductors-market/

National Transmission Grid Expansion

Indias national grid is set to add about 26,988 circuit km of transmission capacity by FY 2024-25 under the PM Gati Shakti Master Plan. It also targets an additional 24,400 circuit km of AC transmission lines in FY 2025-26. This steady expansion of transmission infrastructure will directly drive sustained, multi-year demand for high-voltage cables and accessories.

Source:

https://www.expertmarketresearch.com/reports/india-wires-and-cables-market

RDSS: Upgrading the Distribution Grid

The Revamped Distribution Sector Scheme is the governments primary vehicle for modernising Indias power distribution network. It has a total outlay of INR 3,037.58 Billion, including INR 976.31 Billion in central budgetary support from FY 2021-22 to FY 2025-26. Execution is well underway: one major utility installed over 700 km of underground cables, along with 2,000 ring main units and 1,000 distribution transformers. Maharashtra, Karnataka, Telangana, Delhi, and Tamil Nadu are among the states running active underground cabling programmes under the scheme.

Sources:

https://globaltransmission.info/transforming-transmission-trends-shaping-the-indian-cables-and-conductors-market/

https://www.tndindia.com/underground-cabling-strengthening-indias-power-infrastructure-for-a-resilient-future/

Hyperscale Data Centres and the AI Build-Out

Indias data centre expansion is creating a high-value demand channel for structured and fibre-optic cabling. Installed capacity is projected to reach 1.7-2.0 GW by the end of 2026, backed by nearly USD 30 Billion in investments. In addition, total hyperscaler commitments exceed USD 126 Billion. Microsoft, Amazon, and Google alone account for about USD 67.5 Billion.

As a result, capacity is expected to reach 4-5 GW by 2030 under base-case projections. Each gigawatt of data centre capacity requires thousands of kilometres of high-density fibre, structured copper cabling, and medium-voltage power feeds. This demand sits outside the traditional utility procurement cycle and commands premium specifications.

Source:

https://www.expertmarketresearch.com/reports/india-wires-and-cables-market

Overview of the FMEG Market

The Fast-Moving Electrical Goods (FMEG) sector in India has undergone a fundamental shift. What was once a seasonal, price-driven market is now a lifestyle and technology-led category. Consumers increasingly choose products based on energy efficiency, design, and smart connectivity, alongside price. The market is expected to surpass INR 1,46,500 Crores in the near term. This growth is driven by rising household incomes, stricter energy efficiency mandates, and rapid adoption of smart home ecosystems across urban and semiurban India.

The organised segment is the primary beneficiary of this transformation. As consumers shift away from unbranded local products to certified, energy-rated offerings from established players, branded manufacturers are gaining both volume and margin. This formalisation trend, already well established in wires and cables, is equally evident in FMEG. As a result, it is reshaping distribution, product development, and competitive positioning across sub-categories.

Key Sub-Categories

Fans

Fans remain the highest-volume sub-category in the FMEG segment, with shipments projected at 9.5 Crore units in FY 2025-26. The key technology shift is the rapid adoption of BLDC (Brushless DC) motors, which consume up to 65% less electricity than conventional induction fans. What began as a premium offering has quickly become the category standard, driven by Bureau of Energy Efficiency (BEE) star-rating mandates and rising electricity costs that make savings more tangible for households.

At the same time, smart fans are gaining traction. These fans offer app or voice control, along with variable speed and scheduling. Adoption is strongest in metro cities. Meanwhile, the replacement cycle for the estimated 38 Million fans sold annually is increasingly shifting towards BLDC models. This trend is creating sustained upgrade demand and favouring technology-led brands.

Switches, Switchgear and Wiring Accessories

This sub-category has witnessed significant premiumisation in recent years. Modular switches with designer finishes, such as brushed metal, glass, and minimalist white, are now standard in mid-range and premium homes. As a result, purchase decisions are shifting from electricians to consumers.

At the same time, smart switchgear is emerging as the next layer of innovation. MCBs and distribution boards now feature energy monitoring, remote trip capability, and integration with building management systems. These features allow users to track real-time electricity consumption, which is increasingly valuable as tariffs rise. In parallel, commercial and industrial switchgear demand remains strong, supported by data centre expansion and manufacturing growth under PLI schemes.

Lighting

Indias lighting market has largely completed its LED transition and is now moving towards connected and professional-grade solutions. At the consumer level, basic LED lamps have become commoditised. As a result, growth is shifting to connected lighting systems that integrate with smart home platforms, enabling remote control of brightness, colour temperature, and schedules.

On the commercial side, demand remains strong. Premium offices, airports, stadiums, and large-format retail developments are driving growth in architectural and professional lighting. This segment offers higher value and better margins, despite longer sales cycles. Additionally, government programmes such as UJALA and SLNP continue to generate bulk demand, although competition remains intense.

Appliances (Heaters, Geysers, Air Coolers and Small Domestic Appliances)

Rising temperatures and longer summers have reshaped demand across this sub-category. Products once seen as seasonal, such as air coolers, geysers, and heaters, are now essential and used year-round.

Air coolers are seeing strong growth, particularly in Tier-II and Tier-III cities and rural markets, where they serve as an affordable alternative to air conditioning. At the premium end, connectivity trends are also emerging. Wi-Fi-enabled geysers, smart air coolers with humidity control, and app-connected heaters are now available, catering to specific consumer demands.

Bureau of Energy Efficiency (BEE) Mandates

BEEs star-rating framework remains the most powerful structural driver in the FMEG market. Mandatory minimum energy performance standards (MEPS) are steadily raising efficiency benchmarks across products such as fans, air conditioners, and refrigerators. This shift is phasing out non-compliant products and accelerating replacement demand.

For manufacturers with strong R&D and certified portfolios, this creates a clear advantage. However, for those reliant on low-efficiency products, it presents significant pressure. The mandate-driven upgrade cycle is expected to continue through the decade, as BEE tightens standards across categories.

The Q-Commerce and D2C Channel Shift

The rise of quick commerce has reshaped how smaller FMEG products are discovered and purchased. Items such as fans, LED bulbs, switches, and small appliances are now available within 10-15 minutes in most Tier-I cities. This has shortened purchase cycles and increased convenience-driven buying.

At the same time, direct-to-consumer channels are helping brands build closer relationships with end users. These platforms enable companies to present their complete product portfolio, reduce dependence on intermediaries and capture meaningful first-party consumer insights. In the process, they are both supporting and, in certain areas, reshaping traditional electrician-led and dealer-led distribution models.

Rural Electrification and Rising Incomes

Rural India has emerged as a key growth frontier for FMEG. Improved grid reliability under schemes such as SAUBHAGYA, along with rising incomes and aspirational consumption, has expanded demand across categories. As a result, rural households are now purchasing fans, lighting, and small appliances at scale.

Rural demand accounts for approximately 36% of total FMEG spending and continues to grow. Importantly, consumers are not defaulting to the lowest-priced products. Instead, they are becoming more brand-aware and quality-conscious, creating opportunities for organised players with strong distribution and brand recognition.

Smart Home and loT Integration

The integration of FMEG products with smart home ecosystems, such as Google Home, Amazon Alexa, and Apple HomeKit is creating new avenues for differentiation beyond energy efficiency. A household that adopts a smart fan also becomes a potential buyer of smart lighting, switches, and connected geysers. This creates cross-sell opportunities across the FMEG portfolio, which brands with diverse product ranges are well placed to capture.

While the smart home category remains in early adoption in India, urban penetration is steadily increasing. At the same time, the price premium for smart features is narrowing, driven by falling component costs and rising consumer familiarity with IoT devices.

Business Review

Company Overview

R R Kabel Limited (also referred to as RR Kabel or The Company) was founded in 1995 with a singular focus: making safe, reliable wires for Indian homes. Three decades on, the Company has grown into one of Indias leading consumer electrical solutions providers, manufacturing and marketing a comprehensive range of wires, cables, and fast-moving electrical goods (FMEG) under the RR Kabel and RR Signature brands.

Wires and cables remain the core of the business, with FMEG spanning fans, lighting, switches, and appliances accounting for the balance. Within the wire and cable segment, RR Kabel is one of the leading companies in housing wires, making it one of the most recognised names at the retail counter. The Company is also Indias largest exporter of wires and cables.

Project ‘RRise and Strategic Pillars

RR Kabels medium-to-long-term growth trajectory remains anchored in Project RRise, an initiative targeting an 18% volume CAGR and double-digit EBIT margins in wires and cables. During the year, the Company navigated a dynamic market landscape through four strategic pillars:

Premiumisation at Scale: The Company steadily shifted its product mix towards high-margin, safety-first products such as Firex & LSOH wires and MV/HV cables, anticipating regulatory changes. In the FMEG portfolio,

RR Kabels focused R&D investments enabled premium and mid-premium categories to contribute a healthy mix of annual segment revenue.

B2C Retail Dominance and Geographic Expansion:

RR Kabel deepened its penetration across Tier-II,

Tier-III, and rural markets. During the year, the Company also targeted market share gains in underpenetrated Southern and Eastern states, where its presence remained relatively low, supported by focused brand-building initiatives.

B2B Infrastructure Play: The Company leveraged the governments Capex cycle by expanding its Medium Voltage (MV) and High Voltage (HV) capabilities, to serve mega-projects across rail, metro, utilities, and hyperscale data centres.

Operational Excellence and Digital Integration:

RR Kabel deployed Industry 4.0 IoT sensors across its manufacturing plants to optimise yield and reduce energy consumption.

Manufacturing Capabilities and Capex Plan

RR Kabel continues to operate 5 world-class, integrated manufacturing facilities across Waghodia, Silvassa, Roorkee, Bengaluru, and Gagret. To support its ambitious B2B and export growth, the Company plans to execute an INR 1,200 Crore modular Capex plan over a 3-year period. Notably, a major part of this annual investment was directed towards expanding cable capacities.

By adding capacity in a phased, modular manner, the Company ensured optimal utilisation throughout the fiscal year.

Distribution Strength and the ‘Electrician Ecosystem

The Companys distribution moat rests on one of the countrys widest networks, scaling to over 7,200+ distributors and dealers and more than 2,15,000+ retail touchpoints pan-India by year-end. While the core W&C business operates entirely through this traditional channel, the FMEG business leveraged omnichannel strategies, with e-commerce contributing approximately 5.4% of FMEG annual sales. Crucially, growth was driven by the proprietary Electrician Ecosystem. During the year, the Company engaged 6,65,000+ trained electricians through its digital loyalty platforms. These professionals act as primary brand advocates, technical consultants, and quality validators at installation, creating a strong pull-demand model that remains difficult to replicate.

International Presence and Strategic Trade Tailwinds

RR Kabel maintained its position as Indias leading exporter of wires and cables. Its export footprint spanned 66+ countries, supported by over 42 international certifications, including BASEC (UK), LPCB (UK), UL (USA), CSA (Canada), VDE (Germany), TUV Rhineland (Germany), CE (Europe), REACH compliant, RoHS, SII (Israel), and Intertek, among others. These certifications ensured compliance with some of the worlds most stringent quality standards. The Company effectively managed export commodity risk through a strict 100% back-to-back procurement mechanism.

While Europe and the Middle East significantly contributed to export revenue, the Company continued to diversify its geographic footprint. The export business is expected to benefit from structural tailwinds, particularly the upcoming EU Free Trade Agreement.

This agreement is likely to eliminate the existing customs tariff on wire and cable imports by them. As a result, it should enhance the Companys pricing competitiveness and strengthen its market share in its largest export market.

Financial Review

The fiscal year marked a defining period for the Company, with record annual and quarterly revenues led by the Wires & Cables segment, which delivered historic profitability. Despite input cost volatility and geopolitical disruptions, strong revenue momentum translated into higher operating profit and net income, supported by disciplined pricing, efficient procurement and operating efficiencies from scaled capacities. In FMEG, the Company maintained steady revenues while narrowing losses through portfolio optimisation and wider distribution. Project RRise remained on track, with volume targets met and margins improving. Backed by a healthy balance sheet, better working capital and a strong dividend payout, the Company is well placed to sustain growth and create long-term value.

Key Financial Ratios

Particulars	31 March 2026	31 March 2025	% of variance	Explanation for Change in the Ratio by More than 25%
Current Ratio (times)	1.65	1.78	(7.50%)	Not Applicable
Debt-Equity Ratio (times)	0.09	0.10	(12.28%)	Not Applicable
Net Profit Ratio (%)	4.98%	4.04%	23.38%	Not Applicable
Return on Equity Ratio (%)	20.67%	15.58%	32.67%	Increase is due to an increase in net profit
Trade Receivables Turnover Ratio (times)	10.7	10.4	2.66%	Not Applicable
Inventory Turnover Ratio (times)	5.70	6.55	(12.92%)	Not Applicable
Interest Coverage Ratio (times)	9.7	7.9	22.35%	Not Applicable
Operating Profit Margin (%)	6.1%	4.7%	31.37%	Increase is due to an increase in net profit

Segment Performance

Wires and Cables

The Wires and Cables (W&C) segment remains the primary growth engine for RR Kabel. In FY 2025-26, it delivered exceptional, record-breaking performance across all key metrics. Segment revenue surged 31.0% to a historic high of INR 8,764 Crores, while Segment Profit grew 56.2% year-on-year.

Despite extreme volatility in raw material prices, particularly copper (which fluctuated significantly in the last quarter of FY 2025-26), the Company sustained strong performance. It achieved this through dynamic, real-time price pass-throughs in the B2C channel and a disciplined 100% back-to-back procurement model for B2B export orders. As a result, the Company delivered its stated goal of a 150 basis-point margin improvement for the year.

Wires

The domestic wire segment delivered strong volume growth. The Company operated at an optimal capacity utilisation, ensuring sufficient headroom to meet rising retail demand.

RR Kabels continued focus on the premium Firex range and eco-friendly Superex Green wires resonated with safety-conscious consumers. This aligned well with the recovery in the residential real estate market. Geographically, the Company maintained leadership in the Northern and Western regions while strengthening its presence in the Southern and Eastern markets, where market share was relatively low. Targeted local marketing and active channel expansion in these regions drove consistent volume growth during the year.

Cables

The cable business is structurally transforming to capture the ongoing shift towards B2B infrastructure spending. The Company has strongly aligned its strategic pivot to this segment.

The expansion is significantly towards cable business, which strengthened capabilities to enable service across utility grids, defence, metro rail, and hyperscale data centres. RR Kabels strategic focus on cables is aligned with stringent CEA safety norms.

Exports

The export segment continued to play a vital role in the Companys revenue profile, contributing approximately 26% to total turnover in FY 2025-26. In a dynamic global trade environment shaped by geopolitical developments and evolving logistics conditions, the segment continued to perform with consistency, supported by proactive customer engagement, agile supply chain management and strong execution discipline.

The Company actively pursued key product certifications across core and emerging markets to expand its portfolio of higher-value cable offerings. While the export mix historically mirrored the overall portfolio, the Company increased its focus this year on specialised, high-margin cable exports as new capacities came online. In addition, the segment is expected to benefit from the recently announced EU Free Trade Agreement, which may eliminate the existing tariff on wire and cable imports. Supported by prudent 100% back-to-back procurement policies and effective hedging mechanisms, the export business remained well insulated from commodity price volatility and foreign exchange fluctuations.

Business Outlook

The Company remains optimistic about the outlook for its Wires and Cables segment, supported by a projected recovery in domestic infrastructure and residential construction, driven by sustained public and private investment. A planned investment of INR 1,200 Crore over three years, with significant allocation to cables.

These investments align with the Companys long-term strategy to increase the share of value- added products, including export cables, solar cables, and industrial specialty cables. With scale efficiencies, an optimised product mix, and a favourable demand environment supported by structural supply constraints, the Company is well positioned to achieve its Project RRise ambitions: double-digit EBIT margins and a sustained volume CAGR of 18% in its Wires and Cables business over the long term.

Fast-Moving Electrical Goods (FMEG)

The FMEG segment delivered a resilient performance in FY 2025-26 despite a challenging discretionary demand environment. The Company prioritised quality of earnings over volume growth. Operating under the RR and RR signature brand, it executed a strong turnaround and significantly reduced segment losses year-on-year. Margin improvement was driven by a favourable product mix, increased contribution from premium products, and disciplined cost control. During the year, the Company focused on portfolio rationalisation, expanding geographical reach, and targeted brand-building investments.

Fans

The fans category remains the anchor of the FMEG portfolio, a major contributor to annual segment revenues. Growth was supported by a rapid shift towards energy-efficient BLDC technology and new premium product launches. The Company witnessed strong traction in the premium segment, which, along with mid-premium categories, now contributes a healthy 25% of overall FMEG revenues. To support demand, the Company maintained an installed capacity of 3.3 Million units.

In parallel, the Company strengthened its go-to-market strategy through deployment of dedicated field sales officers, modernisation of the channel mix, and expansion of digital reach, with e-commerce contributing 5.4%. It also improved retail presence in semi-urban markets, enhancing accessibility and visibility.

Lighting

The lighting segment, which is the second biggest contributor to annual segment revenues, recorded healthy volume growth during the year. This growth was driven by strategic product placement and distribution expansion and focus on premium lighting fixtures. However, value growth remained under pressure due to industry-wide pricing corrections and ongoing price rationalisation. Despite these challenges, lighting continues to play a critical role in the FMEG portfolio and supports the segments overall market presence.

Switches and Appliances

Switches and appliances together delivered steady growth. The switches category saw consistent demand across key real estate markets. Meanwhile, appliances recorded strong growth, supported by new product launches and rising consumer adoption. The Company also forayed into the Kitchen Appliances segment with a soft launch in the second half of the year. With an installed capacity of 15.30 Million units, the switch and switchgear segment remains a key driver of future high-margin growth.

Business Outlook

The Company remains confident about the long-term potential of its FMEG business. It has a clear roadmap to achieve break-even EBIT margins by FY 2026-27. This outlook is supported by continued momentum in product innovation, premiumisation, and channel expansion.

Threats and Opportunities

Opportunities

5G fiberisation drive and the boom in hyperscale data centres

Massive demand for specialised solar cables via the PM Surya Ghar scheme

Rapid consumer transition towards BLDC fans and Smart Home technology

Expansion of metro rail and smart city infrastructure projects

Threats

Intense price competition from both large organised peers and unorganised local players

West Asia conflict potentially disrupting global trade routes and energy pricing

Extreme volatility in LME copper and aluminium benchmarks impacting margins

Potential changes in global trade policies and tariff structures in key export markets

Risk Management

RR Kabel employs a proactive, enterprise-wide risk management framework to identify, assess, and mitigate internal and external threats.

Risk Category	Potential Impact	Mitigation Strategy
Price Volatility of Raw Materials	Fluctuations in raw material prices may impact profitability and margins	Use long-term procurement contracts, diversified suppliers, and pricing strategies to reduce the impact of price fluctuations
Currency	Changes in foreign exchange rates may affect revenue and procurement costs	Manage exposure through hedging and forward contracts
Geopolitical and Supply Chain- Related	Freight spikes and transit delays due to global conflicts	Strategic diversification of export gateways and freight partners An optimised working capital safety buffer for critical imported raw materials
Supplier	Supply disruptions, delays, quality issues, or vendor instability may affect operations	Maintain multiple suppliers, monitor vendor performance, and implement contingency plans and contractual safeguards
Regulatory	Sudden tightening of environmental or safety norms (e.g., mandatory LSOHs)	Maintain an industry-leading R&D pipeline, viewing regulatory tightening as an opportunity and utilising early-stage investments in Zero Halogen and e-beam technology to capture market share
Operational and Execution-Related	Growth constraints due to capacity bottlenecks or Capex delays	Accelerated, modular execution of the INR 1,200 Crore Capex plan, managed by a dedicated internal PMO to ensure on-time, on-budget commissioning

Human Resources

People-Centric

Philosophy: Relationships and Respect

The Companys philosophy is rooted in the core values of "Relationships and Respect," fostering a collaborative, safe, and inclusive culture. It honours long-serving employees who have been with the organisation for over 20 years as Saarthis, the charioteers of its success. In March 2026,

RR Kabel appointed Mrs. Kamaljeet Kaur as CHRO to align its human capital with its ambitious growth trajectory and oversee its 6.65 Lakh+ electrician ecosystem.

Aatmanirbhar Talent Development

Through this initiative, the Company identifies high-potential talent using objective, competency-based assessments. It aims to fill at least 75% of critical leadership roles internally through its customised LEAD

(in partnership with SP Jain) and LIFT (in partnership with NMIMS) management development programmes.

Diversity, Equity, and Inclusion (DEI)

RR Kabel remains committed to building a diverse workforce across the organisation. A prime operational example is its all-women assembly line at the Silvassa plant, which has delivered notable success. This inclusive culture encourages diverse thinking, strengthens internal control processes, and promotes adherence to global best practices.

Sustainability and ESG Initiatives (Environmental, Social, Governance)

As a manufacturer enabling the green energy transition, the Company remains committed to sustainable operations. In FY 2025-26, RR Kabel accelerated its ESG roadmap across key areas:

Environmental

The Company increased its overall renewable energy usage to 33% through rooftop solar installations and hybrid solar-wind power. Its focus on lead-free, RoHS-compliant manufacturing also reduces environmental impact at the end of product life.

sis Social

Alongside robust internal HR policies, RR Kabels electrician training programmes enhance skills and earning potential for thousands of unorganised workers, supporting social mobility.

? Governance

The Company maintains an independent board structure to ensure transparent disclosures and ethical conduct across its domestic and international operations.

Internal Control Systems and Their Adequacy

RR Kabel maintains a culture of rigorous accountability and transparency. Its internal financial control (IFC) framework is integrated into ERP systems to ensure accurate financial reporting, asset protection, and compliance with statutory regulations.

An independent and active Audit Committee oversees this framework, monitoring segregation of duties, healthcare compliance, and cybersecurity protocols. The Company regularly benchmarks its internal audit processes with Big-4 external auditors against evolving SEBI (LODR) regulations and global standards. A robust Whistleblower Policy enables employees to report concerns without fear, further strengthening corporate governance.

Cautionary Statement

The statements made in this Management Discussion and Analysis describing the Companys objectives, projections, and expectations may be forward-looking within the meaning of applicable securities laws. Actual results could differ significantly from those expressed or implied due to factors such as global economic shifts, changes in government regulations, and extreme commodity price volatility.