Revenue and Profit Growth
Over the four-year period ending March 2025, R R Kabel’s net sales surged from ₹4,386 crores in 2022 to ₹7,618 crores in 2025, reflecting a robust compound annual growth rate. This steady increase underscores the company’s expanding market presence and demand for its products. Correspondingly, total operating income mirrored this upward trajectory, with no other operating income reported, indicating core business strength.
Operating profit before depreciation and interest (PBDIT) excluding other income rose from ₹303 crores in 2022 to ₹486 crores in 2025, while overall operating profit including other income increased to ₹537 crores in the latest fiscal year. Despite rising raw material and other expenses, the company maintained a healthy operating profit margin, albeit with a slight dip from 7.0% in 2024 to 6.37% in 2025.
Profit before tax remained relatively stable around ₹407 crores in 2025, marginally higher than the previous year, while profit after tax increased to ₹310 crores, reflecting effective tax management and operational efficiency. Earnings per share (EPS) also showed a significant rise, reaching ₹27.56 in 2025 from ₹11.18 in 2022, signalling enhanced shareholder value.
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Balance Sheet Strength and Asset Growth
R R Kabel’s balance sheet reflects a solid foundation with shareholder’s funds rising from ₹1,250 crores in 2022 to ₹2,153 crores in 2025. This growth was supported by a substantial increase in reserves, which nearly doubled over the period, indicating retained earnings and capital accumulation. The company successfully reduced its long-term borrowings to zero by 2025, signalling a strategic deleveraging effort and improved financial stability.
On the asset side, total assets expanded from ₹2,051 crores in 2022 to ₹3,517 crores in 2025, driven by investments in gross block and capital work in progress, which grew significantly. Net block assets increased to ₹708 crores, reflecting ongoing capital expenditure to support business expansion. Current assets also rose, with inventories and sundry debtors showing healthy increments, supporting operational liquidity.
Notably, the company’s book value per share improved markedly from ₹87.27 in 2022 to ₹190.37 in 2025, highlighting enhanced net asset value per equity share and reinforcing investor confidence.
Cash Flow and Financial Management
Cash flow analysis reveals a positive trend in operating cash flows, which increased from ₹98 crores in 2022 to ₹494 crores in 2025. This improvement indicates stronger cash generation from core operations, supporting both investment and financing activities. Investing cash outflows rose due to capital expenditure, while financing activities reflected repayments and reduced borrowings, consistent with the company’s deleveraging strategy.
Net cash inflow improved substantially to ₹134 crores in 2025, compared to marginal inflows in previous years, strengthening the company’s liquidity position. Closing cash and cash equivalents surged to ₹215 crores, providing a comfortable buffer for operational needs and contingencies.
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Profitability Margins and Operational Efficiency
While R R Kabel’s operating profit margin excluding other income slightly declined from 7.0% in 2024 to 6.37% in 2025, it remains within a healthy range for the sector. Gross profit margin followed a similar pattern, easing to 6.27% in 2025 from 7.13% the previous year. The profit after tax margin also saw a modest reduction to 4.09% in 2025, reflecting increased costs and interest expenses.
Interest costs rose moderately, consistent with the company’s financing activities, but were effectively managed to sustain profitability. The company’s ability to maintain stable profit before tax and net profit levels despite rising raw material and other expenses demonstrates operational resilience and cost control.
Overall, R R Kabel’s historical performance reveals a company on a steady growth path, balancing expansion with prudent financial management. Its increasing earnings, improving book value, and strong cash flow generation position it well for future opportunities and challenges in the competitive telecommunication sector.
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