R R Kabel on Wednesday said commercial production has begun at its new manufacturing unit in Silvassa, Dadra & Nagar Haveli and Daman & Diu, a development that coincided with a rise in its share price.
Immediate output and phased capacity expansion
The company reported that production at Unit 3, located at Village Karad close to its existing facilities in the region, commenced on 15 September 2026. The plant has a total planned capacity of 18,000 MT per annum, and initial operations have begun at 12,000 MT per annum. R R Kabel said the remaining capacity is expected to be brought online by December 2026.
- Commercial start date: 15 September 2026
- Initial operational capacity: 12,000 MT per annum
- Total planned capacity: 18,000 MT per annum (fully operational by December 2026)
Market response and recent financials
Following the announcement, R R Kabel’s shares rose 2.22% to close at ₹2,434.10. The share movement accompanied the company’s disclosure of strong quarterly performance: consolidated net profit rose to ₹205.20 crore in Q1 FY27 — an increase of 128.8% year-on-year and 22.2% quarter-on-quarter. Revenue from operations in the June quarter was reported at ₹3,168.20 crore, up 53.9% YoY and 6.9% QoQ.
| Item | Figure |
|---|---|
| Initial operational capacity | 12,000 MT per annum |
| Total planned capacity | 18,000 MT per annum |
| Net profit (Q1 FY27, consolidated) | ₹205.20 crore |
| Revenue (Q1 FY27) | ₹3,168.20 crore |
Why the Silvassa addition matters
The new Unit 3 will manufacture wires and cables, the company said, strengthening R R Kabel’s manufacturing footprint in a region where it already has operations. The increased capacity is likely to support both domestic supply and export commitments, given the company’s standing as one of India’s largest exporters in the wires and cables segment.
Manufacturing additions of this scale typically yield benefits on several fronts: higher throughput, improved lead times for customers, and economies of scale that can lower per-unit costs. The phased ramp-up to full capacity by December indicates the company is aligning production growth with demand expectations and commissioning schedules.
Local industrial context and logistics
Silvassa, part of the Union Territory of Dadra & Nagar Haveli and Daman & Diu, has been a manufacturing hub for electrical and allied industries owing to its proximity to Gujarat and Maharashtra and established industrial infrastructure. The new plant’s location adjacent to the company’s existing units is likely intended to leverage shared logistics, utilities and supply chains, though the company did not provide details on employment or capital expenditure specific to the unit in its announcement.
Company profile and product range
R R Kabel manufactures a broad range of electrical products including wires and cables, fans, lighting, electrical accessories and appliances serving residential, commercial, industrial and infrastructure sectors. The group’s export activities form a significant part of its business profile.
What remains to be disclosed
The company has stated that the balance capacity will be operational by December 2026, but it has not released further details on investment outlay for the unit, expected employment generation, or product mix planned for Unit 3. Analysts and stakeholders will watch subsequent operational updates and quarterly results for clarity on utilisation rates and margin impact as the new capacity is absorbed.
Investors generally monitor such capacity additions alongside demand trends in construction, infrastructure and electrification projects, which drive volumes in the wires and cables market. The company’s strong Q1 showing provides a recent performance backdrop as it brings the Silvassa unit online.
