R R Kabel Limited (RRKABEL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q4 and FY26 earnings conference call of RR Cabell Ltd. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Ms. Darshini Desai from MUFG In Time, their investor relations. Thank you and over to you, Darshini.

Thank you. Good afternoon, everyone, and I extend a very warm welcome to all participants on the Q4 and FY26 earnings conference call of RR Kabul Limited. Today on this call, we have Mr. Mahindra Kumar Kabra, Managing Director, Mr. Rajesh Kabra, Executive Director, Mr. Rajesh Jain, Chief Operating Officer, and Mr. Jigar Mehta, Chief Financial Officer. Before we begin this call, I would like to give a short disclaimer. This call may contain some forward-looking statements which are completely based upon our beliefs, opinions, and expectations as of today. These statements are not guarantees of our future performance and involve unforeseen risks and uncertainties. With this, I hand over the call to Mahinda Kumar Kabraji. Over to you, sir. Thank you.

Hello, everyone, and good afternoon. On behalf of RR Kabul Limited, I warmly welcome all participants to our quarter 4 and financial year 26 financial results consent call. On this call, I have with me our Rajesh Kabul, Mr. Rajesh Jim, and Mr. Jigar Mehta. The quarter was marked by heightened geopolitical tension, which created some uncertainty in global trade conditions and volatility in input costs. Despite this, India continued to benefit from steady demand drivers led by infrastructure, housing, and industrial activity. Industry demand remained supportive, while export continued to perform well. Against this backdrop, we are pleased with the way the business performed in this record, as well as across the full year. We delivered our highest-ever quarterly and annual revenue, supported by steady demand and discipline execution. across the business. Our wires and cable business remain the key growth driver for the company and deliver a strong performance and recover profitability during the quarter and for the full year. In the FMG segment, market conditions remain competitive while demand trend continues to be selective. Revenue remains steady on a year-on-year basis, supported by stable demand across key categories and continued distribution expansion. We remain focused on optimizing the portfolio and improving profitability over time. In line with our history of creating value for our shareholders and considerably paying dividends, It pleases me to announce that the Board of Directors of the company has approved a dividend of Rs.550 per share, taking the total dividend to Rs.950 per share for FY2. With that, I would like to hand over the call to Mr. Rajesh Kabra for further insight. Thank you.

Thank you. The wires and cable segment maintained strong momentum during this quarter, supported by steady demand across domestic and export markets. While domestic business has shown healthy growth, export growth also remained encouraging despite the disruption in the Middle East. This performance was supported by a wide distribution network, strong brand equity, and diversified presence across retail. We continue to focus on scaling our B2B business by strengthening availability and distribution. Last year, we had set a three-year roadmap under Project RISE with targets of 18% Kaggle in wires and cables, along with 25% Kaggle in FME, leading to a cumulative 2.5 times EBITDA growth. Based on progress achieved so far and the performance delivered by the business, we remain on track towards these targets through focused execution. Looking ahead, we will continue to invest in our brand, deepen customer engagement, and pursue growth opportunities across the domestic and international markets, while creating sustainable long-term value. With that, I would now like to hand over the call to Mr. Rajesh Jain for further financial insights. Thank you.

Thank you, Rajaji. The quarter witnessed a mixed but supportive environment for the wires and cable industry. Domestic demand remained healthy while export demand was relatively stronger during the quarter, benefiting from our established global presence for quality and diversified market reach. At the same time, raw material prices, particularly copper, aluminum, and PVC remained volatile during the period, while currency movement and fair cost-added pressure across the value chain. In this environment, timely pricing actions, disciplined procurement, and effective, efficient execution remained critical for sustaining performance. Against this backdrop, RR Carbis delivered its highest ever quarterly and annually removed. Revenue for Q426 stood at Rs. 2,964.1 crore, up 33.7% year-on-year. Full-year revenue stood at Rs. 9,722.4 crore, reflecting growth of 27.6% over the previous year. Growth was supported by strong performance in the wires and cable business across both domestic and export markets. EBITDA for the Pater stood at Rs. 263.5 crores, up 34.6% year-on-year, while PET stood at Rs. 168 crores, up 30.1% year-on-year. Profitability improved on the back of operating leverage and disciplined cost management despite raw material volatility and global turmoil. For the full year, EBITDA stood at Rs. 789.1 crores, up 61.8% year-on-year, and PAT stood at Rs. 492.2 crores, up 58% year-on-year. Now, coming to segment performance, the wire and cable segment remains the cornerstone of our business, contributing significantly to revenue. In FY26, 90% of our revenue was generated from this segment, while the SMEG segment contributed the remaining 10%. Revenue for wire and cable in Q4 FY26 stood at Rs.2666.4 crore as compared to Rs.1966.2 crore in Q4 FY25, Good morning, thank you, everyone, and welcome to the call. For FY26, revenue stood at Rs. 8,753.7 crores as compared to Rs. 6,688.8 crores in FY25, reflecting 31% growth year-on-year. Segment profit for Q426 stood at Rs. 257.3 crores compared to Rs. 194.1 crores in Q4-FY25. Up 32.5% year-on-year. For FY26, segment profit stood at Rs. 775.6 crores compared to Rs. 496.5 crores in FY25, up 56.2% year-on-year, supported by scale benefits, effective management of price volatility, and operational efficiency. In the SMG segment, revenue for the cutter stood at Rs. 297.7 crores as compared to Rs. 261.6 crores in Q425 with growth of 13.8% year-on-year. For FY26, revenue stood at Rs. 958.6 crores as compared to Rs. 929.5 crores in FY25. A steady growth of 3% year-on-year, despite seasonal headwinds, performance was supported by stable demand across key categories and expansion and distribution. Importantly, FMEG losses have reduced as compared to last year, and we remain on track to achieve break-even in FA-27. Our balance sheet and working capital position remain healthy during the year. supported by tight control on inventory and receivables. Our Rs. 1,200 crore capex program for FI26 to FI28 is progressing as planned. The program is primarily focused on expanding cable capacity along with wire capacity and improving operating efficiency. Once fully commissioned, this expansion is expected. We support higher volumes, faster execution of cable loaders, and better operating leverage over time. Going forward, our focus remains clear to further strengthen our position in the wires and cables industry, improve margins through scaler and mechanics, and move the FMG business steadily towards profitability. We remain committed to delivering consistent operating performance while executing initiatives under Project Rise. Though, through disciplined execution, we remain confident of achieving the growth and profitability milestone set out in our strategic roadmap. With this, I now request to open the floor for the question and answer.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take our first question from the line of Manoj Ghori from Equirus Capital. Please go ahead.

Yeah, thanks for the opportunity. So, I just wanted to understand we have definitely clocked strong revenue growth in difficult business environment. If you can throw some light, like how the quarter panned out, especially on the export business, domestic, we were hearing that there was a lot of channel inventory correction. But if you look at the volume growth, it seemed to be still in double digits during the quarter. So probably how the quarter panned out and how should we look at from a near-term point of view, especially from 401Q, if you can highlight over there.

Thanks, Manoj. Actually, if you see, always Q4 in this industry remains with the higher volumes and the standard depicted this year also. And whatever initiatives we are taking to increase our volume growth, we were able to achieve this kind of volume growth. And in the future of it, it remains to be positive and we remain on our growth rate. Of course, since there were some disturbance in our export segment, and... Since now this war is also prolonging, so there may be some impact in short term, but in long term, they are quite positive.

But should we expect probably high single digit to low double digit volume growth to continue in the coming quarters as well?

So for particularly now quarter to quarter might be very tough to predict, but on yearly basis, whatever prediction we have given on our yearly basis, volume growth will always remain better than industry growth. And whatever we have projected in our enterprise, the range of 16-18%.

So, one bookkeeping question, if you can highlight inventory in absolute terms has gone up significantly from roughly around 10.1 billion to 17.7 billion. And so, if you can highlight, on the other hand, tables have also increased. So, if you can highlight what's happening over there, so that would be helpful.

So, one thing, like our SIT, many exports are remaining in transit during that period, and as you know, in international business, always till this material reaches to customer, it remains in my case in transit only, so my inventory is a bit high, and when you compare with last year figure, of course, you know, enterprises have, like, rise by almost 20-30%, so there is impact on value side also. But otherwise, in volumes, we are quite on track with our normal inventory records as per increasing volume side of the business.

Okay, because when I look at the number of days also in the presentation, we have highlighted like it has increased by only roughly around eight days. But, can you...

So that's what I am telling, since my SIT of exports have increased, so there may be some impact of 2-3 days in that term. And since we are export-heavy companies, always a major part of our inventory is covered through SIT also. Otherwise, only 8 days impact in my inventory days.

No, the reason why I was saying is when I calculate in at COGS or even at revenues, the number of days seems higher versus what we have highlighted in presentation. So just wanted to understand how we calculate this inventory days.

So inventory days are calculated on the basis of opening and closing inventory average days are calculated. And it is standard practice. Whatever we are counting till now, it's like concession practice. So, there's no change or, I feel like, accurate days.

Sure, sir. Got it, sir. And, sir, on the margin side, we have been aspiring to improve margins by roughly around 100 basis points on YY basis. And, from there, for FY28, we have been targeting 10.5% margin, especially to wires and cables business segment. If you can throw some light, probably that 100 basis point of margin expansion continues to remain on track and also on the FMEG side, if you look at, we were looking to achieve break even a bit earlier. There has been some delay. Obviously, the macro environment also remains a bit challenging. So if you can throw some light on both the business segment on segmental margins. That's my last question.

So, if you see in Project Rise, we have planned to have improvement of 300 basis points in my wire and cable margins by FI28, and like if you see currently already we are on track, we have achieved the almost 130 basis point improvement in margins, and even going forward, we are like quite positive to achieve our target of 10.5% The big margins in wire and cable segment by FI28. Same way, of course, in FMEG, there are some impacts what we have planned to achieve back in. Last 26 could not be achieved, and there were two major reasons. One, of course, like the volumes what we were expecting due to bad weather, and it could not be achieved. But at the same time, input cost, like there was a major impact even in FMG input cost, where in that industry it takes some more time to pass on, and therefore our gross margins are impacted in Q4 to some extent, and therefore now we have. And now we are targeting to achieve break-even in FY 2017.

Sure, sir. Very clear, sir. Thank you and wish you all the best for future performance. Thank you.

Thank you. Next question is from the line of Praveen Sahai from PL Capital. Please go ahead.

Yeah, thank you for the opportunity. So, my first question is related to the volume. If you can give some color on the overall wire and cable volume, how has it been, and especially the domestic one?

So, in this year, Carter, our volumes were like around 10% in volume terms. If I see in like wires, it will be in like single digits, but in cables, it was in the high teens. And if I see from domestic and export, then export volumes are a bit higher than domestic in this quarter.

So, on the export side, that's the revenue also up by 39% at all, if I calculate. So, even after a disruption or the, you know, the segment or the cost increase, even after that, you are delivered a very strong number. So, do we believe that the impact of the export, we will see in the Q1 more than the Q4?

The comparatively, when you will compare with Q4, of course, it seems there may be some more impact in Q1 of this year, the reason being that like in the month of March, we saw major impact, and since it is still continue, so there will be a higher impact in this quarter, it seems. But it depends how long this war will go on.

Next question is related to the expense, because if I look at your margin profile, it has been quite strong, and as a percent of sales, other expenses have gone down. So, is there any expense item in the other expenses which has been restricted in the quarter?

No, no, our business was as usual, and since there was more impact in... Value terms where prices have risen, so as a percentage, our expenses have come down, but at the same time, of course, we are working how efficiently we can increase our productivity, how can we have better controls of expenses. So these are normal exercises, but there is no one-off cut in my expenses or cut down in expenses. So these are business as usual.

And lastly, sir, how has been the, you know, the way forward 27, the CapEx plan for 27?

So, we are on track what we have planned, like investment of 1200 crores, out of which almost 350 crores we have invested in FI26 already, and in this year also, there will be like a major expansion during this year, where our capex also will be more.

Majority of 1200 would be in this financial year.

Yeah.

Yeah. Thank you, sir, and all the best. Okay. Thank you.

Next question is from the line of Achal Lohare from Nuwamba Institutional Equities. Please go ahead.

Yeah, good evening, sir. Thank you for the opportunity and congratulations for excellent learning. It's been very remarkable performance given the current headway. I just wanted a clarification. You said, you know, the inventory days went up because the goods are in transit for the exports, right? But at the same time, you also highlighted the impact will be more in this quarter. You know, if you could just clarify, is it because if we are assuming that it will be for the entire three months, the issues and hence the impact or have I understood wrongly?

So, there are two issues. One, like, I think export could not take effect from my factory in the month of March. So, whatever inventory we kept ready for those dispatches also increased my inventory. And at the same time, like in security and what exported we made, that could not reach to their destination. So, few of now, those consignments are on the way and will reach in this quarter also. But at the same time, since, like, physical sales was not possible in the month of March to some extent and even in April, particularly related to Middle East area, so there will be some impact on my sales or revenue side. I hope this clarifies.

Just to follow up on that, if I may, sir, you know, given it couldn't get delivered before 31st March, now that will also get accounted for in the month of April, right? And I presume that whatever volume loss or whatever issues we have on the West, in the Middle East, that much capacity or volume could get diverted to other global customers. So, in that case, the impact should not be very large. Is that understanding right?

Yes, yes, to some extent you are right, but see what happened, since like this month of March, suppose we could not make exports to Middle East. So this will now, will not come to my revenue in this quarter. At the same time, though we have diversified export market, one domestic market, and that is one of the reasons if you see in spite of really heavy like sales to Middle East, still the impact is very least on our top line. So, Sam, there will be some impact. I cannot deny it because it's one particular geographies. Contributing to great action to your revenues. So there will be some impact. Of course, this will be compensated through some different product category also and different geography of markets also, be it domestic or export.

Got it. The second question I had was, is there any inventory gain, etc. in the fourth quarter?

So, as you know, it's like always continuous process where you keep having some impact of inventory either in the game side or sometimes like negative side also. So, in this quarter, yeah, we had some positive impact in my profitability, but it is in normal course of business.

Would you be able to quantify, sir?

No, not specifically. It is not because it is continuous process, so not able to quantify.

No problem, sir.

But it is positive, in fact, marginally.

Got it. Sir, if you could call out, you know, the cable's capacity expansion, because wires, you know, given wires, we always have surplus capacity. I'm more curious to understand the cable's capacity expansion's timeline. Would it be possible to know, you know, since the project rise, you know, when and how much capacity got added or getting added?

Actually, like, we have planned our, this capacity in such a way that every, like, every six months, we will keep adding few capacities. It will be not like one overnight, I will get big capacity, and because overnight, neither I can build phase side and neither capacity also, and when we have targeted, like, 18% volume growth year on year, or in which also, like, majority will be through cable site, so it means. And since in cable already, we are at optimum utilization of more than 90%. So, to meet this my growth plan, we will keep adding capacity. In every six months, we will keep adding fuel capacity.

Understood. And just last question, if I may ask, you know, particularly on cable's front, how the demand supplies situation, do you see a risk of… Oversupply or because every single player is adding large capacity, so do you see a risk of excess capacity like in next 12-15 months? In cable?

No, no, no. No, no. Particularly for us, we do not see any such kind of challenge because overall, we have like, we are establishing our B2B business line and particularly growth plan in this area, and I don't find there will be excess capacity looking to the overall demand in cable side of the business.

Got it. Okay, I'll fall back. I have more questions, but I'll fall back in the queue. Thank you so much.

Thank you. Next question is from the line of Rahul Agarwal from Ikigai Asset. Please go ahead.

Yes, good evening. Thank you for the opportunity. Sir, just to get this number right, volume growth for cable and wire for fourth quarter was 10%. What was it for full year?

Full year, it is around 15%.

Okay. And just in terms of outlook for next year, for cable and wire and FMEG separately, cable and wire, we should look at double-digit volume growth between 10% to 15%. And FMEG, purely because F.26 was a weak year, and you've also mentioned that some price hikes will actually go through in fiscal 27. What should be the revenue growth number we should expect for FMEG?

So in wire and cable, already like we have projected a volume growth of around 18% on CAGR basis and we are on track like in this year also, we achieved on my target number also. So next year also. We are quite hopeful to achieve our targeted figures of 16% to 18% volume growth, and in FMEG, of course, last year was not very good, but still, I think it is like at par or better than industry, whatever growth we have done, if I see nine months figure of years also. So it seems in this year, if everything remains same, then we are targeting value growth of around 20% to 25% in FMEG.

Got it, sir. And, you know, because these new capacities come on stream in six months, it gets difficult for us to calculate, you know, what is the new capacity and new utilization for the company. So, let's say, for example, as on 31st March 2026, based on the capex we have done so far, What is the peak revenue for cable and wire for the entire company? Could we get that number? Assuming that we utilize 90-95% of capacity as of 31st March, based on current copper-aluminium pricing, what could be the peak revenue?

No, it becomes very difficult to calculate because revenue depends on so many things. Of course, one is raw metal prices, second is product mix also. So, like, it will be very tough to predict that kind of numbers.

Okay. Even if we assume current pricing, still, like, we did 9,000 crores cable and wire sales this year, 8,700 crores to be precise.

So, that's why we always say based on this figure also do not give annual revenue in rupees guidelines because on volumes what we are focusing and always we say like now we are having Estimates of 16 to 18 percent volume, then revenue we think about on same pricing terms also. So, because on month-on-month, our raw material prices keep changing, so it is very tough to price in financial terms.

Got it, sir. No worries. And just lastly, on April 2026, I know it's just 30 days into the business, but qualitatively, if you could just share what's really happening on cable and wire in the domestic market, how is it behaving purely because there's too much volatility on demand, on costs, everything, right? Just some qualitative statements on what's really happening with the industry or with RR Cable for April 26 for cable and wire technically.

So, business is like on normal, even in April, we have witnessed a normal, whatever it goes year-on-year basis. So, it's a normal business environment. Apart from the export, what we could not make to middle-ish, it's a quite normal business.

Thank you so much, and best wishes for Fiscal 27. Thank you.

Thank you. Before we take the next question, we would like to remind participants, to ask a question, please press the R&1 on your phone. Next question is from the line of Ashish Kanodia from Siri. Please go ahead.

Yeah, thank you for the opportunity. Sir, the first question is on the demand size. If you can highlight, you know, how was the demand for domestic in March? Because what we understand is that even domestic demand was impacted in March. So if you can, you know, kind of quantify that and also how the channel inventory was at the end of March. Have you seen any channel destocking? So that would be the first question.

Yes. So, Asish, if you see my numbers are already reflecting that March or particularly this quarter, we had a good growth and even March was also a normal month. Of course, we have seen so much volatility in prices, but if you see as an overall business as a whole, then we did not find any major de-stocking or demand even in domestic market.

Got it. And so, you know, when you look at April, again, just on the domestic side, when you say, you know, demand has been normal. So, is this more channel feeling led? Or do you see that even, you know, from an underlying demand point of view, from a Capex point of view, you know, the demand uptick has been kind of normal?

So, what feedback we have from secondary market also, it seems that demand is normal, and that is, like, if you see March or after that, April also, sales is going normal. So, I don't think there will be a major issue in domestic side of demand.

Got it, sir. And, sir, just on the payables day, right, I think that number has increased meaningfully this quarter. So, if you can just help us understand what led to this increase in the payable days?

So, like, we used a letter of credit facility and working, so that we can, if we effectively manage our working capital, we used this credit facility more effectively in this quarter.

Thank you for that, sir. And maybe just last question is on the pricing side. One, if you can highlight that in the 4Q, if we look at the gross margin profile, does it capture entire pricing? Because as you said, right, the RM prices was pretty volatile. And if I remember correctly, in 3Q, you know, the entire pricing was not passed on. So does the 4Q gross margin reflect entire pricing? And secondly, if you're going to also highlight in April, has there been any pricing action?

So, again, this pricing is continuous process in our business. So, if somebody says entire pricing done or not done, it will not be a right statement. Here, the more importantly, it is continuous process where we keep passing on this pricing either positive side or negative side. And same thing happens in April also where we came up with one price rise to match this price rise, whatever we are facing in my raw material side. So, it is continuous process. There is nothing extraordinary in last quarter or even in this month after.

Thank you. Next question is from the line of Yash Jain from Ambit Capital. Please go ahead.

Hi, sir. Thank you for the question.

I just wanted to get an understanding what was the contribution to exports from the Middle East region in FY26.

So, normally, like if I say, out of our total wire and cable business, 30% is our export, and within that, we have almost 40% is export to Merilist site. So, if I see by their figures, then, of course, like, it's around 12% in the overall top line on yearly basis, but since last year, the impact was only for 30-40 days, so, you can factor those percentage.

And this has continued in April so far, right?

Yes.

Okay, thank you, sir.

Thank you. Next question is from the line of Vidit Trivedi from Asian Market Securities. Please go ahead.

Yeah, hi, sir. Thank you for the opportunity. You just said, you know, you have a share of 40% of the Middle Eastern exports. So I just wanted your comment on the overall outlook for the exports, especially in the Middle Eastern region for FY27.

I think it will be very tough to predict in such a scenario because nobody is aware whether this war will finish tomorrow or maybe 15 days or one month. But of course, we know it will be not a very long problem and we can comfort it through other geography also. And this year also, whenever this war will finish, again, we will regain our sales from that reason.

And so, how's the overall shipping route in this region? I mean, you know, we have heard that the insurance costs have shot up, the freight have gone up. So, as of today, are we facing any issue with respect to the exports?

No. Apart from the list, we are not facing any issue. And since, in our case, freight and insurance and everything is passed through to our customers, so there is, like, direct impact, I will say.

Got it, sir. And lastly, on the overall pricing action, so if you could just give us some sense on the pricing action for the overall year and during this month as well, if there's any.

Yes, so as you know, in our case, in our raw market prices, we pass on to our customers by changing our selling price, and as a thumb rule, whenever there is plus or minus raw market prices by 2 or 3%, then we change our selling prices also. And since this is a continuous process, and we see average of last 15-20 days, so based on that changes, we keep changing our selling prices, and this is a continuous process.

Got it, sir. Thank you, sir. Very helpful.

Thank you. Next question is from the line of Natasha Jain from Phillip Capital. Please go ahead.

Thank you for the opportunity and congratulations, sir, on a good set of numbers, especially even the macro volatility. My first question is on wires and cables only. So, what we got to know from the ground was that, you know, there is continued stress in Morbi because of which, you know, ceramics is having a problem and then wires is an ancillary to that. So, when we spoke to Shuchani partners, they told us that there's de-stocking, down-trading, metal volatility problems and all of that. And despite that, you've clocked in a volume growth of 10%. And I think wires have seen more pressure than cables. So just want to know what is it that you're doing different? Are you indexing yourself to new markets where growth is coming out for you? So could you throw some detailed color on that? And I apologize for iterating this question.

No, but rightly said by you, of course, there are some impact and if you see in my 10% volume growth, like my wire growth is single digit, mid single digit, while cables is on high teams. So, in that sense, there was some pressure, but at the same time, we are doing so many initiatives to establish our business by B2B side also and YR side also, and this is, again, a continuous process where we keep looking to new geography or increasing our distribution or monitoring our secondary space. So, this is a regular process.

All right. So just a follow-up on that itself. You said definitely cables is doing better for you. So first off, could you just give a little detailed color as to how cables business is scaling up for you both on exports and domestic? And because we have a low base in terms of the trailing quarters for cables, can we expect you to beat industry growth for cables and can that drive strong growth for you in the coming quarters compared to incumbents?

Yes, so when you see our business plan in our commentaries also, we have said that we are planning to increase our B2B base and expanding our cable capacity also. It means that my growth will also come from cable side also, be it domestic market or export market. And at the same time, if you see, still, like, we are a small player in terms of cable and with this capacity expansion and with our already established network, we are quite confident to beat the industry average, and we are planning to grow more than industry average, particularly in cable side of the business.

Thank you, sir. Thank you, sir. Thank you. Next question is from the line of Chirag Muchalla from Centrum Brookings. Please go ahead.

Thank you, and congratulations for the excellent quarter and year. The first question is on the cable side. So, sir, after the CAPEX that we have done in FY26, until what cable range of cable portfolio is ready, and over the next couple of years, how is the, I mean, pipeline to scale it up further?

So, right now, we can make up to 66 cable of 7. And the new capex span will be able to achieve capability to build up to 220 KV, which is like lower end of EHV or higher end of HP side of the cable, with this capex span of 1,200 KV.

Correct, sir. So, partly it will be ready in 27 or this is likely to come up towards the end of 28?

No, it will be some part will come in mid of FI27 also, by end of FI27 also, so it is a continuous process, but it will get completed by FI28, but every half year, we will keep adding a few capacitors.

Okay. And, sir, for FI26, what was our capability and why would you use it?

Product mix.

Yeah, so, cables, contradiction of cables and wires in the cable and wire segment.

So, this year, my mix was around 73% in wire and 27% in cable. And reason being since copper prices have risen more, so it reflected more in the wind effect. So, this mix is, as of now, it is 73 versus 27.

Okay. And lastly, sir, on F&G, as you mentioned, we are targeting 20-25% growth in F&G 27. So, just a color on individual key product categories like strength and lighting regarding how the current summer season is panning out and outlook for overall F&G 27?

So, like we will achieve major growth in, of course, F&G is our major contributor, but apart from F&G also switch gears, appliances. And all segments are, still we are very small player, and we expected to achieve this kind of volume, value growth in FI country firm by focusing on all of these sectors where we are present in FMEG.

So specifically for fans, if you can highlight how the summer season is playing out and, you know, I mean, for the full year, what kind of growth are we targeting?

So in Fenn, like also if you see, like we have seen mixed season in April also. In few parts of the countries, there are like rain, but in few parts, there are summer also. So it's a mixed season. Now it is picking up Fenn season also. For initial few days, there were some disturbance, but now it is picking up. And for fully early basis, there will be good growth in Fenn side also. Okay. Okay.

Thank you, sir.

Thank you. We'll take our next question from the line of Namath Barbar from Neveshaya. Please go ahead.

Yeah, thank you so much for the opportunity. So, just wanted to know any new products that we are adding because currently seeing a very good traction on the data center and the best market. Any products that we are able to cater to that market?

So data center is one of the area where we are looking at the growth, but since our B2B still we are focusing on all product range and sectors also. So data center is one of them apart from infrastructure or wind and solar energy. But of course data center is one of the very big area. Maybe in the next three to four years, there will be huge demand, and we will target that market also.

Okay, so any timeline for that, when the product will be commercialized?

So in data center, the normal wire and cable only goes. Okay, not any specific detail.

Okay, understood. Thank you.

Thank you. We'll take our next question from the line of Tanisha from Dam Capital. Please go ahead.

Hi, sir. Good evening, and congratulations on the great set of numbers in Q4. So I just wanted to understand, you know, our margin improvement, which we're speaking about over the next couple of years. You know, given that we're entering FY27 with stable but elevated copper prices, and obviously now inventory gains would be diminishing on a quarter on quarter basis to some extent, and given the high base of last year as well. Not to mention in competition sort of entering in the second half of this year, you know, what are our thoughts on how we want to improve our margins? I do understand that we want to scale cables up to a greater extent in our portfolio. But, you know, what do we think about, you know, our efforts on increasing the margin from, you know, our current levels to the margin which we've guided?

Yeah, thanks, Tanaya. But if you see whatever margin guidelines we have given based on normal business environment, so when we say that in three years, our margins will improve by 300 basis points, and if you see last year already, we have done 130 basis points, but still, like, we are guiding for 9.5% for FY27. So it means considering that whatever business plan we have made based on our volume increase or better product mix or more efficient utilization or benefit of scale, this will improve our margins to this 9.5% this year. Sure.

And, sir, if I got the number correct, we spoke about a 16% to 17% volume growth for FY27, right?

Yeah.

16% to 18% rather. 16% to 18%. And FY26 for 4Q is what we did a 10% volume growth.

Yes. Because our base was quite high for Q425.

Yes. Makes sense. Makes sense. Okay, sir. Great. Thank you. Thanks for answering my questions.

Thank you. Ladies and gentlemen, to ask a question, please press R&1 on your phone. Next question is from the line of Khadija Mantri from Capri Global. Please go ahead.

Yeah, good evening, sir. My question is regarding data centers. So, I just wanted to know if we have the required products to cater to data centers and what would be, is it going to be distribution-led or we will be approaching the customers on our own? And does these approvals take a lot of time?

So it's like always mixed approach, where the approach to end customers, but we may supply through my distribution network also or direct also. And again, this is a continuous process where we'll keep approaching to data center, take approval, and start supplying. So since there is no new product for which we are waiting, but this is only existing product, so it is a continuous process where we are approaching to customers and quite helpful to enter the segment effectively.

And sir, is it true that the requirement of cables in our data center is much higher as compared to, let's say, putting up a factory?

No, you cannot compare directly because it depends on what kind of scale that factory is there. But of course, since data centers where like continuous power supply or electrical supply is very important, they cannot afford even 0.01% of the power failure. So they have four or five kind of power backup and therefore there is a lot of cables and wires are applied.

Okay, so is it a substantial part of our revenue as of now or no?

No, no, not as of now.

Yet. Okay. Okay, sir. Thank you so much.

Thank you. Next question is from the line of Somal Mehta from Kota KMC. Please go ahead.

Yeah, thanks for the opportunity. In terms of the... Prevailing April prices versus the quarter which went by, what would be the ballpark increase in spot markets or at least contracts where we'll be supplying in May or June?

No, again, this is like continuous process and wherever we have like PV close. It depends. If I have a big order, then that order may have PV close where we selling on the last month. And in our case, majority of our business is like on order basis only. And it is like continuous process in like in the month of June. I mostly will supply on the average of May or something like that. There is no relation between Q1 price.

It's fair to assume that the current prices would be higher than the Q4 average prices. Would there be a fair assumption or not really?

Mathematically, you may assume that it will be higher.

And versus the entire FY26, would there be a decent double-digit pricing which has happened?

So, you know,

ballpark, if I were to assume, you know, prices stay there, you know, there is stability, obviously, it will have a slightly up and down. But broadly, if there is not much meaningful increase or decrease in the commodity prices, FY27 as a year can be a 30% top line growth, assuming 16-18% volume growth is what you have highlighted in terms of guidance.

Again, it will be very tough to predict, but mathematically, if you go by like my volume growth versus size rise, what we have seen on average versus 30%, you can assume.

Sure. And in terms of the total mix of cables, and maybe for FY27 or FY28, once you commission the entire 1200 crore capex, ballpark in terms of range, what would be the cable contribution in the cable and wire segment?

So, like, though this year my contribution is around 27%, again, it depends on the pricing of copper and aluminum also, because both are moving in different direction. But by normal means, my cable contribution can increase by 3 to 4% in overall business. So, like, if this is 27%, on normalized basis, by year-end, it can become 31%.

And the overall contribution of cables would move towards more value added, as in, erstwhile, if you would have sold more LV, you would have, you will start now selling more HV cable. Would there be a fair assumption?

No, no, this is nothing very specific role in that terms, because it depends on product mix and... How you will quantify that, I don't know. But otherwise, that is fair assumption that my HV role will increase or HV contribution in my top line will increase. That is fair assumption.

Sure. Okay. Okay. Okay. Thank you, sir. Thank you.

Thank you. Next question is from the line of Deepak Lalwani from Unify Capital. Please go ahead.

Hello, sir. Thank you for the opportunity. Sir, I wanted to understand what is the... Buyers and cables mix in domestic and export separately. And a connected question to that is that I wanted to understand the macro, you know, the end market that we are servicing, the use cases that we're servicing, and what kind of growth that you're envisaging for both the products across geographies, domestic and export, if you can elaborate on the macro also, please. Thanks.

So, our product mix is largely the same in my export versus domestic, which I have shown like 73-27. Largely, it is quite similar to that only. But if you see at a smaller level, then in cable, we see higher growth when I compare to wire size for next two years, if I can figure out, like, in wire, our growth may remain around 11-12%, while in cable, since our base is small, so we are expecting growth of 25% in terms of volumes. And since we see a lot of opportunities in B2B side, be it infrastructure or data center or wind and solar, and at the same time in export market also, we have seen huge opportunities in cable side of the business.

Sure. And, sir, going, sir, this year, RR Cable has performed remarkably well. So, if you have to pick out... Two, three pointers as to what has exactly changed in the way we do business or the strategic changes that you brought in the company. If you have to pick up two, three pointers that has mainly driven this, can you please spell out the strategy that the company has undertaken? And also going forward, we see that this industry is going to have many new players. So how are we internally placed to tackle this? Thanks.

See, one of the biggest thing, if you see, we have planned our business to grow very structurally, in particularly in B2B side, where we are focusing few segments, like since this Y&K business is quite... We are focusing few segments, few geographies, so that we can achieve a structured growth. Sometimes, we have taken various operational operating projects also to improve our margins, and these are working well, what you have already seen, and we are confident to remain on track in the next few quarters and years also. And as much as your question regarding competition, so again, of course, there are new players, but we think the competition is always part of your business. So we will keep driving our business less on our quality business structure and focusing on sports and B2B side of the business.

Okay. Can you please elaborate on your strategy on expanding margins as to what exactly you've done so far and the outlook on margins of 100 dips expansion? You know, despite having the inventory gain this year, how will you be able to expand on the margin side?

So, if you see our project right, we have seen that based on our operational efficiencies. And product mix and expanding export business. So, there are multiple things which are working well and we have planned and even this future margin improvement will be achieved through this basis only.

Thanks. All the best.

Thank you. Ladies and gentlemen, we'll take that as the last question for today. I now hand the conference over to Mr. Rajesh Jain for closing comments. Over to you, sir.

Thank you, everyone, for taking some time out to participate in this call. In case of any queries, reach out to us or our investor relations agency, MUSG Investor Relations. We wish you all the best and hope to interact with you soon. Thank you so much.

Thank you, members of the management team. On behalf of RR Kabul Limited, that concludes this conference. Thank you for joining us, and even now disconnect your lines.