R R Kabel reported a strong second quarter for FY27 with revenue up 51.8% to Rs 3,284 crore and profit after tax rising 53.4% to Rs 178 crore. The company declared an interim dividend of Rs 6.5 per share and unveiled a strategic expansion plan, including an acquisition of U M Cables' business for Rs 77 crore and a Rs 200 crore land investment in Rajasthan.
R R Kabel Q2 FY27 Results: Revenue Up 51.8%, Profit Surges 53.4%
Revenue grew 51.8% to Rs 32,840 million while Profit After Tax (PAT) climbed 53.4% to Rs 1,780 million.
Reader Takeaway: Strong revenue growth and aggressive capacity expansion are tempered by ongoing regulatory uncertainty regarding EPR obligations.
What just happened
R R Kabel has posted impressive financial results for the quarter ended 30 September 2026. The company’s Board of Directors has declared an interim dividend of Rs 6.5 per equity share of face value Rs 5, with 3 November 2026 set as the record date. Alongside the financial results, the company announced a significant strategic pivot, including the acquisition of the optical fibre business from U M Cables for Rs 770 million and a planned investment of up to Rs 200 crore in Rajasthan for future capacity expansion.
Why this matters
The double-digit growth in both top-line and bottom-line figures signals robust demand across the company's product portfolio. The decision to relocate the Roorkee manufacturing unit suggests management is prioritizing operational efficiency to support higher production volumes. Furthermore, the acquisition of U M Cables represents a clear move to diversify the company's product mix into the optical fibre space, a high-growth segment linked to telecom infrastructure.
Risks to watch
Investors should keep a close watch on the completion of the U M Cables deal, which remains subject to customary closing conditions. Additionally, the company has flagged regulatory ambiguity regarding Extended Producer Responsibility (EPR) obligations for non-ferrous metal scrap. Because the Central Pollution Control Board (CPCB) has yet to launch an operational portal or framework, the eventual financial impact of these obligations remains unquantified.
What to track next
Shareholders should monitor the timeline for the Roorkee unit relocation and the effective date of the U M Cables acquisition. Any updates from the CPCB regarding the EPR framework will also be critical, as they could impact future operational costs.