R R Kabel Q2 FY27 results: net profit up 55.3% to ₹180.60 crore, revenue up 51.8%

How did R R Kabel perform in Q2 FY27?

R R Kabel reported consolidated revenue of ₹3,284 crore for the July–September 2026 quarter, up ₹1,120 crore or 51.8% from Q2 FY26 and ₹115.80 crore or 3.7% from Q1 FY27. EBITDA rose to ₹283.60 crore from ₹175.80 crore a year earlier, while margin increased 0.5 percentage points to 8.6% from 8.1%. Against Q1 FY27, EBITDA was ₹0.40 crore higher and margin was 0.3 percentage points lower at 8.9%.

Consolidated profit before tax was ₹239.60 crore, up ₹84.73 crore or 54.7% from Q2 FY26 but down ₹34.30 crore or 12.5% from Q1 FY27. Net profit was ₹180.60 crore, up ₹64.34 crore or 55.3% year on year and down ₹24.60 crore or 12.0% sequentially. Basic EPS was ₹15.97, compared with ₹10.28 a year earlier and ₹18.14 in Q1 FY27. On a standalone basis, revenue was ₹3,284 crore and net profit was ₹178 crore.

The company filed unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026, with a limited review by B S R & Co. LLP. The quarterly figures used here are consolidated unless stated otherwise.

What changed in R R Kabel's costs and profit?

Cost of materials was ₹2,616 crore in Q2 FY27, up ₹832.92 crore or 46.7% from Q2 FY26, while total expenses rose ₹1,038 crore or 51.2% to ₹3,064 crore. Employee cost increased ₹26.58 crore or 26.3% to ₹127.80 crore, finance costs rose ₹16.36 crore or 100.7% to ₹32.60 crore, and depreciation increased ₹8.84 crore or 40.4% to ₹30.70 crore.

Other expenses increased ₹46.52 crore or 35.4% to ₹177.90 crore from Q2 FY26. Other income rose ₹2.43 crore or 14.4% to ₹19.30 crore, and there was no exceptional item in Q2 FY27 against a gain of ₹0.30 crore in the year-ago quarter. Tax expense increased ₹22.98 crore or 59.5% to ₹61.60 crore.

Against Q1 FY27, other income fell ₹13.60 crore to ₹19.30 crore and finance costs rose ₹6.30 crore to ₹32.60 crore. Total expenses increased ₹122.70 crore, while tax expense fell ₹9.20 crore to ₹61.60 crore. Q1 FY27 included a gain of ₹13.80 crore from the statutory impact of new labour codes, while Q2 FY27 had no exceptional item.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹6,452.2 crore, up ₹2,229.84 crore or 52.8% from H1 FY26. Total income rose 53.0% to ₹6,504.4 crore, while profit before tax increased 86.8% to ₹513.5 crore and net profit rose 87.3% to ₹385.8 crore. Basic EPS increased from ₹18.22 to ₹34.11.

The company’s investor presentation attributed the first-half revenue growth to domestic and export markets and higher realisations. It said operating EBITDA and profit grew by 79% and 87%, respectively, with margin expansion of 130 bps and 110 bps, driven by higher gross profit, operating leverage and improved cost efficiencies.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹5,804.9 crore, compared with ₹4,621.38 crore on 31 March 2026. Total equity rose to ₹3,038.1 crore from ₹2,574.4 crore, while borrowings increased to ₹473.4 crore from ₹232.32 crore. Cash declined to ₹18.9 crore from ₹85.53 crore; inventories rose to ₹2,223.7 crore from ₹1,770.53 crore, trade receivables to ₹1,279.2 crore from ₹997.99 crore, and trade payables to ₹1,811 crore from ₹1,364.21 crore.

H1 FY27 operating cash flow was ₹121.4 crore, compared with an outflow of ₹129.61 crore in H1 FY26. Investing cash flow was an outflow of ₹297 crore versus ₹101.35 crore, while financing cash flow was ₹109 crore versus ₹26.5 crore. Capital expenditure was ₹280.2 crore, compared with ₹167.29 crore in H1 FY26.

How has R R Kabel done over the last 8 quarters?

Revenue rose in each of the last eight quarters on a year-on-year basis. It reached ₹3,284 crore in Q2 FY27, after ₹3,168.2 crore in Q1 FY27, while the EBITDA margin slipped from 8.9% to 8.6%. Net profit fell from ₹205.2 crore to ₹180.6 crore over the same period.

Among the reported quarters, revenue was lowest at ₹1,782.15 crore in Q3 FY25 and highest at ₹3,284 crore in Q2 FY27. Net profit was lowest at ₹68.57 crore in Q3 FY25 and highest at ₹205.2 crore in Q1 FY27. The EBITDA margin bottomed at 6.2% in Q3 FY25 and peaked at 8.9% in Q1 FY27.

Which businesses drove the quarter?

Wires & Cables generated revenue of ₹3,010.3 crore in Q2 FY27, up 52.7% from ₹1,971.16 crore in Q2 FY26. Segment EBIT rose to ₹282.4 crore from ₹180.4 crore, while EBIT margin was 9.4%. The company’s presentation said the first-half segment revenue growth was supported by volume growth and higher realisations.

Fast-Moving Electrical Goods recorded revenue of ₹273.7 crore, up 42.1% from ₹192.61 crore in Q2 FY26. Segment EBIT was a loss of ₹12.4 crore, compared with a loss of ₹11.68 crore in the year-ago quarter, and the segment margin was -4.5%. Management still targets full-year FY27 segment-profit or EBIT breakeven.

What else did the company announce?

The board approved an interim dividend of ₹6.5 per share, or 130%, on equity shares of face value of ₹5 each, for FY27. It is to be paid within 30 days, subject to tax deduction at source, with 3 November 2026 fixed as the record date.

The board also approved shifting the company’s existing Roorkee manufacturing unit to Khasra No. 253, Village Laksheri, for operational efficiency and additional production capacity, with operations to move gradually. It separately approved investment of up to ₹200 crore for land acquisition in Rajasthan for future expansion and business requirements.

What did R R Kabel's management say?

Management reduced FY27 wires-and-cables volume-growth guidance to around 14%-15% from the earlier 16%-18% expectation. It maintained the EBIT-margin roadmap at 9.5% for FY27 and approximately 10.5% for FY28, and said FY27 core capex was planned at INR 550-600 crore. The company also approved a separate INR 200 crore Rajasthan land investment, partly payable in FY27 and partly in H1 FY28.

Management said net working capital was expected to remain within 45-50 days and that FY27 FMEG segment-profit or EBIT breakeven remained the target. It said the UM Cables consideration was about INR 77 crore, with closing pending and the transaction planned to complete next quarter. The Managing Director said, “The agreed consideration is approximately INR 77 crores, subject to post-closing adjustments.”

The earnings call identified commodity-price volatility, competition, FMEG seasonality and low scale absorption, UM Cables integration and initial capacity utilisation, and uncertainty around FY28 demand and expansion plans as risks. The Chief Operating Officer said, “Yes, there will be some increase in debt.”

How did R R Kabel shares react?

The filing appeared after market hours. RR Kabel was down 1.4% after five minutes, 2.6% after 15 minutes and 3.3% after 30 minutes. From the pre-results close of ₹2,253, the stock finished the first tradable session down 4.8%; by the next day’s close, it was down 5.9% from that pre-results close.

On the reaction day, the Cables - Electricals industry median was up 0.4%, while the Nifty Smallcap 250 was up 0.7%. RR Kabel therefore underperformed the industry median by 5.2 percentage points. By the next day’s close, the industry median was down 3.5% and the Nifty Smallcap 250 was down 1.3%, leaving RR Kabel 2.3 percentage points behind the industry median.

Earlier results-day moves were mixed. RR Kabel rose 2.7% on 27 July 2026 and fell 2.8% on 30 April 2026, 1.5% on 31 January 2026 and 2.3% on 31 October 2025. Its largest move in the listed history was a rise of 13.1% on 2 May 2025, while it fell 7.5% on 31 July 2025.

How did other Cables - Electricals companies do?

Five other Cables - Electricals companies that had filed for the quarter were compared with R R Kabel. Their median revenue growth was 30.9%, below R R Kabel’s 51.8% growth in the quarter. Four peers grew slower than the company, while one grew faster.

Among the four peers for which profit was compared, four reported higher profit. The peer comparison was recorded as of 4 November 2026.