Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
R R Kabel Ltd (NSE: RRKABEL) Q4 2026 Earnings Call dated Apr. 30, 2026
Corporate Participants:
Darshini Desai — Investor Relations Associate
Mahendrakumar Kabra — Managing Director
Rajesh Jain — Chief Operating Officer
Presentation:
Operator
Ladies and gentlemen. Good day and welcome to the Q4 and FY26 earnings conference call of RR Kabil Limited. 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 touchstone phone. I now hand the conference over to Ms. Darshani Desai from mufg in time their investor relations. Thank you.
And over to you, Darshani.
Darshini Desai — Investor Relations Associate
Thank you. Good afternoon everyone. And I extend a very warm welcome to all participants on the Q4 and FY26 earnings
Operator
Conference call of RR Kabul Limited today. On this call we have Mr. Mahendra Kumar Kabra, Managing Director, Mr. Rajesh Kabra, Executive Director, Mr. Rajesh Jain, Chief Operating Officer and Mr. Jigga 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 Mahindra Kumar Sabraji. Over to you, sir. Thank you.
Mahendrakumar Kabra — Managing Director
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 Conference call. On this call I have with me our Rajesh Kabak, Mr. Rajesh Jin and Mr. Jigar Mehta. The quarter was marked by heightened geopolitical tension which created some uncertainty in global trade conditions and volatility in input cost. Despite this, India continued to benefit from steady demand drivers led by infrastructure, housing and industrial activity.
Industry demand remained supportive while export market continued to perform well. Against this backdrop, we are pleased with the way the business performed during the quarter as well as across the full year. We delivered our highest ever quarterly and annual revenue supported by steady demand and disciplined execution across the business. Our wires and cable business remained the key growth driver for the company and delivered a strong performance and record profitability during the quarter and for the full year.
In the FMG segment, market conditions remained 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 dividend, it pleases me to announce that the Board of Directors of the company has approved a dividend of INR rupees 550 per share taking the total dividend to rupees 9 rupees 50 paisa per share for FFI tools.
With that I would like to hand over the call to Mr. Rajesh Kabra for further insights. 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, institutional and international markets.
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% Cagrade in FME leading to a cumulative 2.5x 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.
Rajesh Jain — Chief Operating Officer
Thank you Rajesh Ji. The quarter witnessed a mixed but supportive environment for the wireframe cable industry. Domestic demand remained healthy while export demand was relatively stable during the quarter, benefiting from our stabilized global presence, oil 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 freight cost added pressure across the value chain. In this environment, timely pricing actions, disciplined procurement and effective efficient execution remain critical for sustaining performance.
Against this backdrop, RR Carbon delivered its highest ever quarterly and annual revenue revenue for Q4.26 stood at Rupees 2964.1 crore up 33.7%. Year on year, full year revenue stood at Rs. 9724 crore reflecting growth of 27.6% over the previous year. Growth was supported by strong performance in the last and cable business across both domestic and export markets. EBITDA for the quarter stood at rupees 263.5 crores up 34.6% year on year while tech stood at rupees 168 crores up 30.1% year on year.
Profitability improved on the back of operating leeway and disciplined cost management despite raw material volatility and global turmoil. For the full year, ebita stood at rupees 789.1 crores up 61.8% year on year and PAT stood at rupees 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 FMIG segment contributed by remaining 10%.
Revenue for Wire and Cable in Q4FY26 stood at Rupees 2666.4 crore as compared to Rupees 1956.2 crore in Q4FY25 growing 36.3% year on year. For FY26, revenue stood at Rs. 8763.7 crores as compared to Rupees 6688.8 crores in FY25 reflecting 31% growth year on year. Segment profit for Q4.26 stood at Rupees 257.3 crores compared to Rupees 194.1 crores in Q4FY25 up 32.5% year on year. For FY 26 segment, profit stood at Rupees 775.6 crore 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 SME segment, revenue for the quarter stood at Rupees 297.7 crore as compared to Rupees 261.6 crore in Q4.25 with growth of 13.8% year on year. For FY26, revenue stood at Rs. 958.6 crore 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 in distribution. Importantly, SMSG losses have reduced as compared to last year and we remain on track to achieve backeven in FY27.
Our balance sheet and working capital position remained healthy during the year supported by tight control on inventory and receivables. Our rupees 1200 crore capex program for FY26 to FY28 is progressing as planned. The progress primarily focused on expanding cable capacity along with wire capacity and improving operating efficiency. Once fully commissioned, this expansion is expected to support higher volumes, faster dilutions of cable orders and better operating leases over time. Going forward, our focus remains clear to further strengthen our position in the wires and cables industry, improve margins through scale mix and move the FMC 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.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one 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 Equitas Capital. Please go ahead.
Mahendrakumar Kabra
Yeah, thanks for the opportunity. So 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 exports business domestic we were hearing that there was a lot of channel inventory correction but if you look at the volume growth seem to be still in double digits during the quarter so probably how the quarter panned out and how how should we look at from a near term point of view especially from 4.1Q if you can highlight over there.
Rajesh Jain
Thanks Manoj. Actually if you see always Q4 in this industry remains with the higher volumes and the same repeated this year also and whatever initiatives we are taking to increase our volume growths we were able to achieve this kind of volume growth and in future of it remains to be positive and we remain on our growth track. Of course 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 we are quite positive.
Mahendrakumar Kabra
But should we expect probably high single digit to low double digit volume growth to continue in the coming quarters as well.
Rajesh Jain
So for particularly now quarter to quarter might be very tough to predict but on a yearly basis whatever prediction we have given on like our yearly basis volume growth will be like always remain better than will have better than industry growth. And whatever we have projected in our right the range of 1618%.
Mahendrakumar Kabra
Sure sir. 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.
Rajesh Jain
So one thing like our fit many exports are remaining during the period. And as you know international business always till this material reaches to customer it remains in my sales in transit only. So my inventory is a bit high. And when you compare with last year figures of course you know methods have like rise by almost 2030%. 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.
Mahendrakumar Kabra
Okay. Because when I look at is number of days also in the presentation we have highlighted like it has increased by only roughly around eight days. But
Rajesh Jain
So that’s what I’m telling since my sip of exports have increased so there may be some impact of two, three days in that terms. And since we are export heavy companies always measure part of our like inventory is covered through SIP also. So otherwise you also only 8% 8 days impact in my inventory.
Mahendrakumar Kabra
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.
Rajesh Jain
So inventory days are calculated on the basis of opening and closing inventory. Average days are calculated and it is extended. Whatever we are counting till now, it’s like consistent practice. So there’s no change or it’s like accurate days.
Mahendrakumar Kabra
Sure, sir. Got it sir. And so on the margin side we have been aspiring to improve margins by roughly around 100 basis point on yu y basis. And somewhere 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 we 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 segmented margins. That’s my last question.
Rajesh Jain
So if you see in project rise we had planned to have improvement of 300 basis point in my wire and cable margins by FY28. And like if you see currently already we are on track. We have achieved the almost 130% kind of 130 basis point improvement in margin. And even going forward we are like quite to achieve our target of 10.5% margins in Y&K segment by FY28. Same way of course in FMEG there are some impact what we have planned to achieve back even in March 26th 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 at the same time input cost like there was in fmg input cost in that industry takes some more time to pass on. And therefore our gross margins are impacted in Q4 to some extent. And therefore now we have, now we are targeting to achieve that even in FY27. Sure
Mahendrakumar Kabra
Sir, very clear sir.
Rajesh Jain
Thank
Mahendrakumar Kabra
You and wish you all the best for future performance.
Rajesh Jain
Thank you.
Operator
Thank you. Next question is from the line of Praveen Sahai from PL Capital. Please go ahead.
Mahendrakumar Kabra
Yeah, thank you for 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 been and especially the domestic one.
Rajesh Jain
So in this year quarter our volumes were like around 10% in volume terms. And if I see in like wires it will be like single digit and in cables it was in high teens. And if I see some domestic and export then export volumes will be higher than domestic in this quarter.
Mahendrakumar Kabra
So on the export side that’s the revenue also up by 39% around if I calculate so even after destruction or the, you know, the shipment or the cost increase even after that you have 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
Rajesh Jain
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 month of March we saw major impact and since it is still continue. So there will be higher impact in this quarter it seems. But it depends how long this will war will go on.
Mahendrakumar Kabra
Next question is related to the expense because if I look at your margin profile has been quite strong and as a percent of sales other expenses has gone down. Is there anything any expense item in the other expenses which has restricted in the quarter?
Rajesh Jain
No, no, our business was as usual and since there was more impact in value terms like prices rises. So as a percentage our Expenses have gone 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 exercise. But there is no like one off cut in my expenses or curtail down in my expenses. So these are businesses.
Mahendrakumar Kabra
And lastly sir, how has been the you know the way forward 47 the capex plan is
Rajesh Jain
We are on track. What we have planned like investment of 1200 crores out of which almost 300, 350 crores. We have invested in F506 already. And this like in this also there will be like a major expansion during this year where our CapEx outflow will be more.
Mahendrakumar Kabra
Okay. Majority of 1200 would be in this financial year.
Rajesh Jain
Yeah.
Mahendrakumar Kabra
Thank you sir. And all the best.
Rajesh Jain
Okay,
Operator
Thank you. Next question is from the line of Achel Lohare from Nuama Institutional Equities. Please go ahead.
Mahendrakumar Kabra
Yeah. Good evening sir. Thank you for the opportunity and congratulation for excellent earnings. Very remarkable performance even the current headwind. I just wanted a clarification. You said the inventory days went up because the goods are in transit for the export, 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 it we are assuming that it will be for the entire three months the issues and hence the impact or have I understood wrongly?
Rajesh Jain
So there are two issues. One like export could not take effect from my factory in the month of March or 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 the 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 revenue side. I hope this clarified.
Mahendrakumar Kabra
Just a follow up on that. If I miss as you know, given it couldn’t get delivered before the 31st of 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?
Rajesh Jain
Yeah. Yes, to some extent you are right. But see what happened since like month of March suppose we could not make exports to Middle East. So this will like now will not come to my revenue in the month 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 sales to Middle east still the impact is very least on our top line. So there will be some impact, I cannot deny because it’s one particular geography is 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.
Mahendrakumar Kabra
Got it. The second question I had was is there any inventory gain etc. In the fourth quarter?
Rajesh Jain
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. So in this quarter, yeah, we had some positive impact in my profitability, but it is in normal course of business.
Mahendrakumar Kabra
Would you be able to quantify, sir?
Rajesh Jain
No, not specifically. It is not because it is continuous process. So not able to quantify.
Mahendrakumar Kabra
No problem, sir. But it
Rajesh Jain
Is positive impact marginally.
Mahendrakumar Kabra
Got it. Sir, if you could call out, you know, the cables capacity expansion because wires, you know, given wires we always have surplus capacity. I’m more curious to understand the cables capacity expansion 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
Rajesh Jain
Actually like we have planned our capex planning such a way that every like every six months we will keep adding few capacities. It will be not like one overnight I will big capacity and because overnight neither I can build sales side and measure capacity also. And when we have targeted like 18 volume growth year on year or in which also like majority will be through cable side. So it means. And since in cable already we are at optimum utilization of more than 90%. So to meet this might growth plan, we will keep adding capacity in every six months, we’ll keep adding fuel capacity.
Mahendrakumar Kabra
Understood. In this last question, if I may ask, particularly on cable front, how the demand supply 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?
Rajesh Jain
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 that there will be excess capacity looking to the overall demand in cable side of the business.
Mahendrakumar Kabra
Got it. Okay, I’ll fall back. I have more questions But I’ll fall back in the future. Thank you so much.
Operator
Thank you. Next question is from the line of Rahul Agarwal from Ikigai Asset. Please go ahead.
Rajesh Jain
Good evening. Thank you for the opportunity. So just to get this number right, volume growth for cable and wire for fourth quarter was 10%. What was it for
Mahendrakumar Kabra
Full year?
Rajesh Jain
Full year it is around 16%.
Mahendrakumar Kabra
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 FY26 was a weak year. And we’ve also mentioned
Rajesh Jain
That
Mahendrakumar Kabra
Some
Rajesh Jain
Price hikes will actually go through in fiscal 27. What should be the revenue growth number we should expect for fmeg?
Mahendrakumar Kabra
So in Wyatt Cable
Rajesh Jain
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 targeted number also. So next year also we are quite hopeful to achieve our targeted figures of 16 to 18% volume growth. And in Smeg 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 a year of years also. So it seems in this year if everything remains same then we are targeting daily growth of around 20 to 25% in.
Mahendrakumar Kabra
Got it sir. And you know, because these new capacities come on stream
Rajesh Jain
Every six months it gets difficult for us analyst to calculate, you know what is the new capacity and new utilization for the company. So let’s say for example as on 31 March 2026, based on the capex you’ve 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, what could based on current copper aluminum pricing, what could be the list becomes very difficult to calculate because revenue depends on so many things.
Of course one is raw material prices, second is product mix also. So like it will be very tough to predict that kind of numbers.
Mahendrakumar Kabra
Okay. Even if you assume current pricing still like we did 9,000 crores cable and wire sales this year, 8,700 crores to be precise.
Rajesh Jain
So that’s why we always say based on this figure also do not give annual in revenue in rupees guidelines. Because on volumes what we are focusing and always we say like now we if we are having estimates of 16 to 18% volume growth then revenue we can 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 place in financial terms.
Mahendrakumar Kabra
Got it sir, no worries. And just lastly on April 2026, I know it’s a just 30 days into the business,
Rajesh Jain
But qualitatively, if you could just share what’s really happening on cable and wire in the domestic market, you know, how is it behaving? Purely because too much volatility on demand, on costs, everything. Right, Just some qualitative statements
Mahendrakumar Kabra
On
Rajesh Jain
What’s
Mahendrakumar Kabra
Really happening with industry or with RR Cable for April 26 for cable and wire technically.
Rajesh Jain
So this is like on normal, even in April we have witnessed 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 East. So right now, thank you so much and best wishes for fiscal 27. Thank you.
Operator
Thank you. Before we take the next question, would like to remind participants to ask a question. Please press the RN1 on your phone. Next question is from the line of Ashish Kanodia from Citi. Please go ahead.
Mahendrakumar Kabra
Yeah, thank you for the opportunity. Sir, the first question is on the demand side, if you can highlight how was the demand for domestic in March? Because at least what we understand is 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.
Rajesh Jain
Yeah, if you see my numbers are already reflecting that much or a particular quarter. We had a good crop and even March was also a normal month. Of course we have seen so much volatility in prices. But if you see as a overall business as a whole, then we did not find any major destocking or demand side even in domestic market.
Mahendrakumar Kabra
Got it. And sir, 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 filling rate or do you see that even you know, from a underlying demand point of view, from a capex point of view, you know, the demand uptick has been kind of normal.
Rajesh Jain
So what feedback we have from secondary market also it seems so 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 major issue in domestic demand.
Mahendrakumar Kabra
Got it sir. And so 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.
Rajesh Jain
So like we used a letter of credit facility and working so that we can if we effectively manage our working capital so we use this great facilities more effectively in the this quarters.
Mahendrakumar Kabra
And maybe just last question is on the pricing side. One if you can highlight that in the, in the 4Q if you look at the gross margin profile does it capture entire pricing? Because as you said 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 cross margin reflects entire pricing. And secondly if you can also highlight in April has there been any pricing action.
Rajesh Jain
So again this pricing is continuous process in our business. So if, 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 tiring 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 of.
Mahendrakumar Kabra
Got it. Thank you. That is all,
Operator
Thank you. Next question is from the line of Yash Jain from Ambit Capital. Please go ahead.
Mahendrakumar Kabra
Hi sir, thank you for the opportunity. Just wanted to better understanding what was the contribution to exports from the Middle east region in FY26.
Rajesh Jain
So normally like if I said out of our total iron cable business 30% is our export and within that we have almost 40% is export to Middle east side. So if I say if I see by that figures then of course like it’s around 12% in overall top line on a yearly basis. But since last year the impact was only for 3040 days. So you can factor those percentage
Mahendrakumar Kabra
And this has continued in April so far, right?
Rajesh Jain
Yes.
Mahendrakumar Kabra
Okay. Thank you sir.
Operator
Thank you. Next question is from the line of Vidit Trivedi from Asian Market Securities. Please go ahead.
Mahendrakumar Kabra
Yeah. Hi sir, thank you for the opportunity. You just said you know you have a share of 40% of the middle east exports. So I just wanted your comment on the overall outlook for the exports especially in the Middle eastern region for FY27.
Rajesh Jain
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 there will be, it will be not very long problem and we can comfort it through other geography also and this year also whenever this war will finish again we’ll regain our sales from that region.
Mahendrakumar Kabra
And so how’s the overall shipping routes in this region? I mean you know we have heard that the insurance costs are shot up, the freights have gone up. So as of today are we facing any issue with respect to the exports?
Rajesh Jain
No, apart from Middle east we are not facing any issue. And since in our case state and insurance and everything is passed through to our customers, so there is like direct impact, I will say.
Mahendrakumar Kabra
Got it. So and lastly on the overall pricing action, so if you could just give us a few some sense on the pricing action for the overall year and during this month as well if there’s any.
Rajesh Jain
So as you know, in our case, whatever prices in raw material prices we pass on to our customers by changing our selling price. And as a thumb rule like whenever there is plus or minus raw material prices by 2 or 3% then we change our selling prices also. And since this is continuous process and we see average of last 15, 20 days, so based on that changes we keep changing our selling ties and this is continuous process.
Mahendrakumar Kabra
Got it sir, Thanks a lot. Very helpful.
Operator
Thank you. Next question is from the line of Natasha Jain from Philip Capital. Please go ahead.
Darshini Desai
Thank you for the opportunity and congratulations on a good set of numbers, especially given the macro volatility. My first question is on buyers and cables only. So what we got to know from the ground was that there is continued stress in Moz because of which ceramics is having a problem and then buyers is ancillary to that. So when we spoke to a few channel partners they told us that there’s destocking 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 newer markets where growth is coming out for you? So could you throw some detailed color on that And I apologize for iterating this question.
Rajesh Jain
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 teens. 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 wire 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.
Darshini Desai
All right, so just a Follow up on that as well. So you said definitely cables is doing better for you. So first of 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?
Rajesh Jain
So when you see our business plan in earlier our commentaries also we have said that we are planning to increase our B2B base and expanding our capital capabilities capacity also it means 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 these small players in terms of cable and with this capacity expansion and with our established, already established network, we are quite confident to meet the industry areas and we are planning to grow more than industry linkable side of the business.
Operator
Thank you sir. Thanks so much. Thank you. Next question is from the line of Chirag Machella from Centum Brokings. Please go ahead.
Rajesh Jain
Yeah, thank you and congratulations
Mahendrakumar Kabra
For the excellent quarter in year. The first question is on the cable side. So sir, after the CapEx that we have done in FY26 but in what ready and over the next couple of years how is the I mean pipeline to scale it up further?
Rajesh Jain
So right now we can make up to 66kvs7 and with new CAPEX plan we’ll be able to achieve capability to build up to 220kV which is like lower end of ESV or higher end of HP side of the cable with this capex span of 1200 crore.
Mahendrakumar Kabra
Correct sir. So partly it will be ready in 27 or this is likely to come up towards the end of 28.
Rajesh Jain
No, it will be some part or will come in mid of FY27 also by end of FY27 also. So it is a continuous process but it will get completed by FY28 every half year. We will keep adding few capacities.
Mahendrakumar Kabra
Okay, in terms of FY26 what was our cables and wire fields? Mix.
Rajesh Jain
Product mix.
Mahendrakumar Kabra
Yeah. So cables contribution of cables and wires in the cable and wire segment.
Rajesh Jain
So this year my mix was around 23% in wire and 27% in cable. And reason being since copper prices have risen more so it reflected more in revenue side. So this mix is as of now it is 73 versus 27.
Mahendrakumar Kabra
Okay. And lastly sir on F and E G as you mentioned we are targeting 2025% growth in FY27. So just a color on individual key product categories like Sense and lighting regarding how the current summer season is coming out and outlook for overall FY27.
Rajesh Jain
So like we actually measure both in. Of course Fane is our major contributor but apart from Fin also switch gears, appliances and all segments are still we are very small player and we expected to achieve this kind of value growth in FY27 by focusing on all of these sectors where we are present in fmg.
Mahendrakumar Kabra
So specifically for Sense, 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
Rajesh Jain
In fan? Like also if you see like we have seen mixed season in April also in few part of the countries there are like rain but in few parts there are summer also. So it’s a mixed season. I say now it is picking up. For initial two days there was some disturbance but now it is picking up and for full yearly basis there will be good growth in client side also. Okay, thank you sir.
Operator
Thank you. We’ll take our next question from the line of Naman Parmar from Nivishai. Please go ahead.
Mahendrakumar Kabra
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.
Rajesh Jain
So data center is one of the area where the science cable we are looking at the growth. But since our B2B still we are very like 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. So but of course data center is one of the very big area. Maybe in next three to four years there will be huge demand and we’ll target that market also.
Mahendrakumar Kabra
Okay, so any timeline for that when the product will get commercialized.
Rajesh Jain
So in that center the normal wire and cable only goes.
Mahendrakumar Kabra
Okay, understood. Thank you sir.
Operator
Thank you. We’ll take our next question from the line of Tanay Shah from Dam Capital. Please go ahead.
Rajesh Jain
Hi sir. Good evening and congratulations on a great set of numbers in Q4. So 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 highways of last year as well, not to mention 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
Mahendrakumar Kabra
Think about our efforts on increasing the margin from current levels to the margin which we guided?
Rajesh Jain
Yeah, thanks, Sana. But if you see whatever the margin guidelines we have given based on normal business environment. So when we say that from in three years our margins will improve by 300 basis points. And if you see last year already we have done 130 basis points. Points, but still like we are guiding for 9.5% for FY27. So it means this, considering that whatever business plan we have made based on our volume increase of better product mix or more efficient utilization or benefit of scale, by this, we will improve our margins to this 9.5% and this year.
Mahendrakumar Kabra
Sure. And so if I got the number correct, we spoke about a 16 to 17% volume growth for FY27, right?
Rajesh Jain
Yeah, 16 to 18%. 16
Mahendrakumar Kabra
To 18%. And FY26 for 4Q is what we did a 10% volume growth.
Rajesh Jain
Yes. Because our base was Quite high for Q4. 25. Yes. Makes sense. Makes sense. Okay, so great. Thank you. Thanks for asking my questions.
Operator
Thank you. Ladies and gentlemen. To ask a question, please press star N1 on your phone. Next question is from the line of Khadija Mantri from Capri Global. Please go ahead.
Darshini Desai
Yeah, good evening sir. My question is regarding data center. So I just wanted to know if we have the required products to
Operator
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?
Rajesh Jain
It’s like always mixed approach where we approach to end customers. But we may supply through my distribution network also 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 only existing products. So it is continuous process where we are approaching two customers and quite helpful to enter the segment effectively.
Operator
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
Rajesh Jain
Cannot compare directly because it depends on what kind of scale that factory is there. But of course, since data center where like continuous power supply or electrical supply is very important, they cannot afford 1.01% of our failure. So they have four or five kind of power backup and therefore there is lot of cables and wires. Are like.
Operator
Okay, so is it a substantial part of our revenue as of now or. No,
Rajesh Jain
No, no, not
Mahendrakumar Kabra
Great.
Darshini Desai
Okay. Okay sir, thank you so much.
Operator
Thank you. Next question is from the line of sawmill Mehta from Kotak. Please go ahead.
Mahendrakumar Kabra
Yeah, thanks for the opportunity sir. 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.
Rajesh Jain
This is like continuous process and wherever we have like TV close, it depends if I have a big order then that order may have TV close where we selling on the last month. Right. And in our case majority of the 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. So there is no relation between Q1 price.
Mahendrakumar Kabra
Fair to assume that the current prices would be higher than the Q4 average prices. Would there be a fair assumption or not really
Rajesh Jain
Mathematically you may assume that it will be higher
Mahendrakumar Kabra
And versus the entire FY26 would there be a decent double digit pricing which has happened
Rajesh Jain
Till now? Yeah, we have seen more than double digit price.
Mahendrakumar Kabra
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, you know, highlighted in terms of guidance
Rajesh Jain
Again it will be very tough to break. But mathematically if you go by like my volume growth versus price rise, what we have seen on average basis 30% you can assume.
Mahendrakumar Kabra
Sure. And in terms of the total mix of cables in maybe for FY27 or 28 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?
Rajesh Jain
So like though in 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%
Mahendrakumar Kabra
And the overall contribution of cables would move towards more value added. As in erstwhile if you would have sold more lb, you would have you’ll start now selling more HP cable. Would that be a fair assumption?
Rajesh Jain
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 actually increase.
Mahendrakumar Kabra
Okay. Okay. Okay. Thank you sir. Thank you.
Operator
Thank you. Next question is from the line of Deepak Lalwani from Unified Capital. Please go ahead.
Rajesh Jain
Hello sir. Thank you for the opportunity. So I wanted to understand what is the wires and cables mix in domestic and export
Mahendrakumar Kabra
Separately. And a connected question to that is that I wanted to understand the macro, you know, the end markets that we are servicing, the use cases that we’re servicing and what kind of growth that you’re emphasizing for both the products across geographies domestic and export. If you can elaborate on the macro also please. Thanks.
Rajesh Jain
So product mix is largely same in my export versus domestic which I have shown like 73, 27 largely it is quite similar to that only. But if you get a smaller level than in cable we see higher growth. When I compare to wire side for next two years if I can figure out like why our growth may remain around 1112 percent while in cable since our base is small, so we are expecting growth of 25% in terms of volumes and since we see many opportunities in B2B side 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 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 is undertaken? And also going forward we see that this industry is going to have many new players. So how
Mahendrakumar Kabra
Are we internally placed to tackle this? Thanks.
Rajesh Jain
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 this wire and cable business is quite big and we are focusing few segments, few geographies so that we can achieve structured growth. Sometimes we have taken various operational operating projects also to improve our margin and these are working well. What you have already seen our this year’s results and we are confident to remain on track in next few quarters and years also.
And as much as your like question regarding competition, so again of course there are new players and but we think the competition is always part of our business. So we will keep driving our business based on our quality business structure and focusing on exports 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 100bps 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 size, 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 these basis only. Thanks. All the best.
Operator
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.
Rajesh Jain
Thank you everyone for taking some time out to participate in this call. In case of any queries, reach out to us for our investor relations agency, MUSC Investor Relations. We wish you all the best and hopefully to interact with you soon. Thank you so much.
Operator
Thank you members of the management team, on behalf of RR Kabel Limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.