RR Kabel Delivers Robust Q2 FY26 Performance with 19.5% Revenue Growth and 105.8% EBITDA Surge

2 min read     Updated on 07 Nov 2025, 10:46 PM
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Reviewed by
Naman SharmaScanX News Team
Overview

RR Kabel Limited posted robust Q2 FY26 results with revenue up 19.5% to ₹2,163.80 crore and PAT surging 134.7% to ₹116.30 crore. The wires and cables segment drove growth with a 22.3% revenue increase. EBITDA margin improved to 8.1%. H1 FY26 saw record revenue and PAT of ₹206.00 crore. Exports showed strong performance, particularly in Europe and the Middle East. Management expressed confidence in future growth, focusing on institutional, project, and retail sales. The company plans a ₹1,200.00 crore expansion, primarily in the cable segment.

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*this image is generated using AI for illustrative purposes only.

RR Kabel Limited , a leading player in the wires and cables industry, has reported strong financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

Metric Q2 FY26 Q2 FY25 YoY Growth
Revenue from Operations ₹2,163.80 crore ₹1,810.10 crore 19.5%
EBITDA ₹176.10 crore ₹85.60 crore 105.8%
EBITDA Margin 8.1% 4.7% 340 bps
Profit After Tax (PAT) ₹116.30 crore ₹49.50 crore 134.7%
PAT Margin 5.4% 2.7% 270 bps

The company's performance was primarily driven by robust growth in its core wires and cables segment, which saw a 22.3% increase in revenue to ₹1,971.20 crore, supported by a 16% volume expansion.

Segment Performance

Wires and Cables

The wires and cables segment continued to be the primary growth engine for RR Kabel. The segment reported a sharp rise in profit to ₹180.40 crore, more than doubling from ₹81.80 crore in the same quarter last year.

FMEG Segment

In contrast, the FMEG (Fast-Moving Electrical Goods) segment experienced a marginal decline in revenue, recording ₹192.60 crore compared to ₹198.30 crore in Q2 FY25. Despite challenges in the fans and appliances categories, the company noted better performance in switches and lighting products.

H1 FY26 Performance

For the first half of FY26, RR Kabel achieved its highest ever half-yearly revenue and reported a record H1 PAT of ₹206.00 crore, marking an 80.9% year-on-year increase. The company's revenue grew by 16.7% year-on-year during this period.

Export Performance

The company reported strong growth in exports, with Europe and the Middle East remaining the biggest markets, contributing 75% to 80% of export revenue. Management expressed confidence in normalizing U.S. market conditions and anticipates higher growth from these markets in the future.

Management Commentary

Mahendrakumar Kabra, Managing Director of RR Kabel, expressed confidence in the company's growth trajectory, stating, "We are focusing more on institutional sales, project sales, and retail sales, which is definitely going to help us grow further."

Rajesh Jain, newly appointed Chief Operating Officer, added, "We are quite hopeful that our H2 will be better than H1, what we have achieved." The management team expects to maintain sequential growth and aims to achieve EBIT margins of 10.5%-11% by FY28.

Future Outlook

RR Kabel remains optimistic about its growth prospects, supported by favorable market conditions including:

  • Government infrastructure initiatives
  • Ongoing formalization of the electrical sector
  • Increasing consumer preference for branded, energy-efficient products

The company plans to focus on:

  • Deepening its distribution reach
  • Expanding its export footprint
  • Introducing technologically advanced products catering to emerging sectors

The management has outlined a long-term expansion plan involving an investment of ₹1,200.00 crore, primarily focused on the cable segment. This investment aims to enhance the company's presence in:

  • Utility business
  • B2B infrastructure projects
  • Data centers
  • OEM business

As RR Kabel continues to execute its growth strategy, it remains well-positioned to capitalize on the positive trends in the Indian economy and the global demand for quality wire and cable products.

Historical Stock Returns for RR Kabel

1 Day5 Days1 Month6 Months1 Year5 Years
-1.54%-2.49%+8.56%+11.82%-11.07%+14.93%
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RR Kabel Promoter Mahendrakumar Kabra Gifts 2.17% Stake to Family Members

1 min read     Updated on 06 Nov 2025, 10:27 AM
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Reviewed by
Riya DeyScanX News Team
Overview

Mahendrakumar Rameshwarlal Kabra, a promoter of RR Kabel Limited, transferred 24,56,278 shares (2.17% stake) to family members Sumeet Kabra and Hemant Kabra on November 4, 2025. This off-market inter-se transfer reduced Kabra's personal holding from 8.00% to 5.83%. The overall promoter group holding remains unchanged at 61.76% (6,98,46,196 shares).

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*this image is generated using AI for illustrative purposes only.

In a significant insider transaction, Mahendrakumar Rameshwarlal Kabra, a promoter of RR Kabel Limited , has transferred a portion of his stake to immediate family members. The off-market inter-se transfer, conducted on November 4, 2025, involved the gifting of 24,56,278 shares, representing a 2.17% stake in the company.

Transaction Details

Aspect Details
Transferor Mahendrakumar Rameshwarlal Kabra
Transferees Sumeet Kabra and Hemant Kabra
Shares Transferred 24,56,278
Stake Percentage 2.17%
Transaction Date November 4, 2025
Transaction Type Off-market inter-se transfer (Gift)

Impact on Shareholding

The transfer has resulted in a reduction of Mahendrakumar Kabra's personal holding in RR Kabel Limited:

Holding Before Transfer After Transfer
Percentage 8.00% 5.83%

Promoter Group Holding

Despite the intra-family transfer, the overall promoter and promoter group holding in RR Kabel Limited remains unchanged:

Aspect Details
Total Promoter Group Shares 6,98,46,196
Percentage of Total Equity 61.76%

Company Equity Structure

Aspect Details
Total Equity Capital INR 56,54,38,585
Total Shares 11,30,87,717
Face Value per Share INR 5

This transaction demonstrates a reallocation of ownership within the promoter family of RR Kabel Limited. While it changes the individual holdings of the involved parties, it does not affect the overall promoter group's control over the company. Such intra-family transfers are common in Indian businesses and often serve purposes related to succession planning or wealth distribution within promoter families.

Historical Stock Returns for RR Kabel

1 Day5 Days1 Month6 Months1 Year5 Years
-1.54%-2.49%+8.56%+11.82%-11.07%+14.93%
like17
dislike
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