R R Kabel revenue jumps 51.8% in Q2 as it lowers volume growth guidance

Key Facts

R R Kabel reported results for the second quarter and first half of fiscal 2026-2027, ended September 30, 2026, with consolidated revenue from operations for the quarter rising 51.8% year on year to 3,284 crore rupees, compared with 2,164 crore rupees in the year-earlier period. Consolidated net profit increased 55.7% to 180.6 crore rupees from 116 crore rupees a year earlier. EBITDA rose 60.8% to 283 crore rupees from 176 crore rupees. EBITDA margin also widened to 8.6% from 8.1%. The results take on added significance as the company lowered its volume growth guidance for its wires and cables business for the fiscal year, while keeping its margin outlook unchanged.

The company attributed revenue growth to strong performance across categories, led by home appliances, alongside contributions from new products. This puts home appliances and recently added products at the center of the expansion drivers cited by the company for the quarter. In the consumer electricals segment, the loss margin narrowed to 2.2% in the first half of fiscal 2026-2027, from 4.5% in the corresponding period. The company linked the segment's improvement to revenue growth and cost efficiencies. It is targeting operating break-even for the segment during fiscal 2026-2027, and said the business should return to profitability.

On guidance, R R Kabel lowered its fiscal 2026-2027 volume growth outlook for the wires and cables business to the lower end of its previous guidance range, at 14%-16%. The adjustment concerns business volume growth and does not specify a reduction in revenue guidance. The coverage said the company kept its margin outlook unchanged. It also said the consumer electricals business should return to profitability. No reason was given for the change in volume growth guidance, so the company's announcement was limited to the new range and an unchanged margin outlook.

The board approved an interim dividend of 6.5 rupees per share on October 28 and set November 3, 2026, as the record date. The decision gives shareholders a declared cash return alongside the period's results and fiscal-year guidance. In trading before the results announcement, the company's shares closed at 2,207.40 rupees on October 28, up 0.59% for the day. This compared with a 0.22% decline in the Nifty 50 index. Management's call to discuss the second-quarter and first-half results was scheduled for October 29, 2026, at 1:00 p.m. India time.