R R Kabel Q2 FY27 Results (NSE: RRKABEL)

28 Oct 2026 · Analysis by Alpha Inflection

Signal: Steady quarter

The read

The trajectory remains positive as revenue growth accelerated to 51.8% YoY and EBITDA margin expanded 30bps YoY to 9.2%, extending the margin expansion seen in the prior quarter; however, FMEG remained loss-making at ₹124 million and higher borrowings drove finance costs up 101.2% YoY.

P&L walk

Revenue accelerated to ₹32,840 million, up 51.8% YoY and 3.7% QoQ, with Wires & Cables driving the increase; EBITDA margin rose to 9.2% from 8.9% YoY, while PAT grew 55.3% to ₹1,806 million, helped by ₹26 million of joint-venture profit.

Segments

Wires & Cables drove the quarter with revenue of ₹30,103 million, up 52.7% YoY, and segment result of ₹2,824 million, up 56.5%; FMEG revenue grew 42.1% YoY but its loss widened to ₹124 million from ₹117 million.

Key positives

• Revenue rose 51.8% YoY to ₹32,840 million, led by Wires & Cables revenue growth of 52.7% to ₹30,103 million.
• Derived EBITDA increased 57.2% YoY to ₹3,029 million and EBITDA margin expanded 30bps YoY to 9.2%, although the growth gap versus revenue was only 5.4 percentage points.
• Wires & Cables segment result increased 56.5% YoY to ₹2,824 million, ahead of its 52.7% revenue growth.
• H1FY27 operating cash flow turned positive at ₹1,214 million versus ₹1,296 million used in H1FY26.

Key concerns

• FMEG remained loss-making, with segment loss widening to ₹124 million from ₹117 million YoY while revenue declined 5.0% QoQ.
• Finance costs rose 101.2% YoY to ₹326 million as borrowings increased to ₹4,734 million and cash fell to ₹189 million.
• Gross margin compressed 100bps YoY to 17.9%, and the filing does not disclose the reason for the deterioration.
• H1FY27 working capital absorbed ₹4,532 million through inventory and ₹2,790 million through receivables.

View original filing

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