RR Kabel Reports Strong Q2 FY26 Results: Net Profit Surges to ₹116.25 Crore, Revenue Up 19.5%

RR Kabel Ltd has posted impressive financial results for the second quarter of the fiscal year 2026 (Q2 FY26), ending September 30, 2025. The net profit recorded was ₹116.25 crore, more than doubling from ₹49.52 crore in the corresponding quarter of the previous fiscal year. Revenue from operations demonstrated strong growth, climbing 19.5% to ₹2,163.8 crore from ₹1,810.1 crore.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose significantly to ₹175.56 crore, compared to ₹86.14 crore in Q2 FY25. This growth was accompanied by an improvement in EBITDA margins, which stood at 8.1%, up from 4.8% in Q2 FY25. The company attributed this performance to value and volume growth across its segments and enhanced operational efficiencies.

The core Wires & Cables segment was a major contributor, recording 22% revenue growth driven by 16% volume growth and better pricing. Improved contribution margins were achieved through effective operating leverage. The Fast-Moving Electrical Goods (FMEG) segment, despite seasonal demand softness, maintained stable segment losses due to better contribution margins and operational efficiencies.

Furthermore, the board of directors has declared an interim dividend of ₹4 per equity share for FY26. The record date for this dividend is November 7, 2025.

Impact: These strong results, particularly the substantial increase in profit, revenue, and margins, along with the dividend payout, are highly positive indicators for RR Kabel. Investors are likely to view this performance favorably, potentially leading to increased investor confidence and a positive impact on the company's stock price. The robust performance in the core Wires & Cables business highlights its strong market position and growth potential. Rating: 8/10

Heading: Difficult Terms EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's operating performance. Margins: The profit a company makes on its sales, often expressed as a percentage. Volume Growth: An increase in the number of units sold. Value Realisation: The average price at which products are sold. Operating Leverage: The degree to which a company uses fixed costs in its operations. Higher operating leverage means higher fixed costs, leading to amplified changes in profit with changes in sales. Contribution Margins: The revenue remaining after deducting variable costs associated with making and selling a product. Operational Efficiencies: Improvements in processes that reduce waste and increase productivity. Interim Dividend: A dividend paid out to shareholders between annual dividend payments. Record Date: The date on which a shareholder must be registered on the company's books to be entitled to a dividend.