R R Kabel reported strong Q2 FY27 results with a 52% revenue surge to INR 3,284 crore and a 55% jump in net profit. The company declared an interim dividend of INR 6.50 per share and announced the acquisition of UM Cables' optical fibre business for INR 77 crore. While the Wires and Cables segment remains robust, management adjusted full-year volume growth guidance to 14%-15% amid market volatility.
R R Kabel Reports Strong Q2 Growth and Strategic Acquisitions
Revenue rose 52% to INR 3,284 crore while Profit After Tax (PAT) grew 55% to INR 181 crore.
Reader Takeaway: Robust cable demand drives double-digit growth; focus remains on achieving FMEG segment breakeven by year-end.
What just happened
R R Kabel posted a strong second quarter for FY27, marked by significant growth across key financial metrics. The company's Wires and Cables business remains the primary engine, contributing to the bulk of the revenue. Alongside the financial results, the board declared an interim dividend of INR 6.50 per share. To further boost its portfolio, the company signed a business transfer agreement to acquire the optical fibre business of UM Cables Limited for INR 77 crore.
Why this matters
The growth in consolidated revenue to INR 3,284 crore and a 60 bps expansion in EBITDA margins demonstrate strong operating leverage. The acquisition of the optical fibre unit aligns with the company’s goal to expand its footprint in the communication cable space. Investors will note that despite current market volatility, the company maintains a strong export market contribution of 32%-35%.
Strategic Developments
Management has committed an additional INR 200 crore toward land acquisition in Rajasthan, signaling confidence in long-term capacity building. This follows the company’s existing annual capex plan of INR 550–600 crore. The FMEG segment, while currently loss-making at INR 12 crore for the quarter, shows signs of narrowing losses compared to previous periods as management works toward a full-year breakeven target.
Risks to watch
Management lowered the full-year volume growth guidance from 16%-18% to 14%-15%, citing market volatility. Additionally, while the balance sheet remains healthy, debt levels are projected to rise to accommodate the ongoing aggressive capex and working capital requirements.
What to track next
Watch for the successful integration of the UM Cables acquisition and the progress on the new Rajasthan facility. The primary monitorable remains the FMEG segment's performance in the upcoming quarters as the company pushes for operational breakeven.