Synopsis: The shares of this cable company jumped almost 8% following the Q2 results that the company announced with increase in profit and other growth metrics.
The shares of this company engaged in providing consumer electrical products used for residential, commercial, industrial, and infrastructure purposes in two major segments, namely wires and cables including house wires, industrial wires, power cables, and special cables; and FMEG including fans, lighting, switches, and appliances.
With the market cap of Rs 15,980 crore, the shares of R R Kabel Ltd reached a high of Rs 1,523.15 in today’s trading session compared to its previous day closing price of Rs 1,410.75, which is a gain of about 8%. The shares are currently trading at a PE of 40, whereas its industry PE is 23.5.
Q2 FY26 Result & Dividend
The Revenue from operations for the company stood at Rs 2,164 crore when compared to Rs 1,810 crore in Q2 FY25, growing by about 19.5 percent YoY. QoQ growth is about 5 percent from Rs 2,059 crore in Q1 FY26.
The profit after tax grew by about 135 percent YoY when you compare the Q2 FY26 at Rs 116 crore to Rs 49.5 crore in Q2 FY25. QoQ, the profit has grown 29 percent from Rs 90 in Q1 FY26.
The EBITDA margin has increased from 4.7 % in Q2 FY25 to 8.1% in Q2 FY26 and the PAT margin has grown YoY from 2.7% to 5.4%.
The company has also declared an interim dividend of Rs 4 per share which is 80% of the face value of Rs 5 .
The H1 FY26 Revenue stood at Rs 4,222 crores compared to H1 FY25 of Rs 3,618 crore growing 16.7% YoY and the PAT in H1 FY26 stood at Rs 206 Crore compared to H1 FY25 of Rs 114 crore growing 81 % YoY. The Q2 FY26 Revenue mix stands at 91% from wires and cables and remaining 9% from fast moving electrical goods.
The company in the wires and cables segment has achieved 22% revenue growth, supported by 16% volume growth and higher value realization. It has also enhanced contribution margins through better operating leverage. In the FMEG segment the revenue is giving steady performance despite softer demand due to seasonal headwinds, and Segment loss remained steady, reflecting improved contribution margins and operational efficiencies.
Commenting on the Results, Mr. Mahendrakumar Kabra, MD said, ” Q2 FY26 was a landmark quarter for RR Kabel as we achieved our highest-ever half-yearly revenue along with strong profitability growth. This strong performance was primarily driven by the resilience and expansion of our core wires and cables business, which remains the backbone of our company’s growth strategy.
Wires & Cables business demonstrated robust performance driven by healthy demand across both domestic and international markets, while our FMEG segment withstood the seasonal challenges. With strong fundamentals, disciplined execution, and a committed team, we are confident of sustaining this growth momentum and creating enduring value for all stakeholders.”
About the company.
R R Kabel Limited is a leading consumer electrical company in India and has an operating history of over 26 years in the country. It is India’s largest exporter of wires and cables, offering a wide range of electrical products including wires & cables, fans, lighting, electrical accessories, and appliances for residential, commercial, industrial, and infrastructural purposes.
Utilising the most recent developments in wire design and engineering, the firm remains committed to producing high-quality goods. The line of wires and cables complies with the RoHS (Restriction of Hazardous Substances) and REACH (Registration, Evaluation, and Authorisation of Chemical Substances) regulations and has both national and international product certifications. In order to guarantee that its products meet international standards and rules, the company has also carried out a great deal of research and development.
Written by Leon Mendonca.
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