R R Kabel Q2 FY27 Earnings Call — Analysis (NSE: RRKABEL)
R R Kabel delivered 52% YoY revenue growth in Q2FY27 with 60bps EBITDA margin expansion, while fine-tuning full-year volume guidance to 14–15% and announcing a ₹200 Cr land acquisition in Rajasthan alongside the ₹77 Cr acquisition of UM Cables.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q2FY27 Consolidated Revenue from Operations ₹3,284 Cr ( +52% YoY ) .
Results
Revenue ₹3,284 Cr +52% YoY; Operating EBITDA ₹286 Cr +63% YoY (margin 8.7%, +60bps YoY); PAT ₹181 Cr +55% YoY.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue from Operations | ₹3,284 Cr | +52% | yoy · Q2FY27 |
| Consolidated Operating EBITDA | ₹286 Cr | +63% | yoy · Q2FY27 |
| Consolidated EBITDA Margin | 8.7% | +60bps | yoy · Q2FY27 |
| Profit Before Tax | ₹242 Cr | +56% | yoy · Q2FY27 |
| Consolidated Profit After Tax | ₹181 Cr | +55% | yoy · Q2FY27 |
| Wires and Cables Revenue | ₹3,010 Cr | +53% | yoy · Q2FY27 |
| Wires and Cables Segment Profit | ₹282 Cr | +57% | yoy · Q2FY27 |
| FMEG Revenue | ₹274 Cr | +42% | yoy · Q2FY27 |
| FMEG Segment Loss | ₹12 Cr | +flat | yoy · Q2FY27 · loss margin improved from 6.1% to 4.5% |
| H1FY27 Consolidated Revenue | ₹6,452 Cr | +53% | yoy · H1FY27 |
| H1FY27 Operating EBITDA | ₹571 Cr | +79% | yoy · H1FY27 |
| H1FY27 Profit After Tax | ₹386 Cr | +87% | yoy · H1FY27 |
| Net Working Capital Days | 46 days | point_in_time · Q2FY27 · Sep-2026 vs 49 days Mar-2026 |
Guidance
Targeting 14–15% full-year volume growth for FY27, W&C EBIT margin of 9.5% in FY27 and ~10.5% in FY28, with FMEG reaching segment-level breakeven in FY27.
Key themes
Capacity expansion and export-led scale
Operational commentary
- Approved ₹200 Cr investment for land acquisition in Rajasthan to support future long-term capacity expansion in wires and cables.
- Entered into a Business Transfer Agreement on 25 September 2026 to acquire UM Cables' optical fibre cable undertaking for ~₹77 Cr consideration.
- Exports outpaced domestic sales in Q2FY27, with export share reaching approximately 32–35% of total revenue, driven by cable demand in Europe and the Middle East.
- Overall volume growth in W&C was high single-digits in Q2 (wires double-digit, cables single-digit) and low teens in H1FY27.
- Shifting FMEG plant in Roorkee to leased premises with negligible capex and zero expected production disruption while expanding capacity.
Analyst Q&A
Q. Reason for fine-tuning FY27 volume guidance down from 16-18% to 14-15% and segment volume trends?
Explained that high single-digit Q2 growth had wires growing double-digit and cables single-digit due to monsoon seasonality, and guidance was trimmed slightly due to near-term market volatility rather than fundamental structural slowdown.
Q. Details on UM Cables revenue potential, capacity utilisation, and margin profile over next 3-4 years?
Declined to give specific revenue run-rate or multi-year margin guidance, stating control of the asset has yet to be finalized and a detailed business plan will be shared next quarter.
Q. Reason for rising creditor days and trade acceptances causing elevated finance cost?
Attributed increase to higher commodity prices and higher utilization of LC-backed facilities (LC-backed trade payables at ~₹1,290 Cr) to optimize working capital.
Q. Exact product and geography mix for exports in Q2?
Confirmed export share is around 32-35% with cables gaining share, but declined to provide the exact breakdown figures during the call.
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