RR Kabel , a prominent player in the Indian cable and wire industry, has reported a stellar performance for the second quarter, showcasing significant growth across key financial metrics.

Financial Highlights

Key Takeaways

1. Profit Surge: RR Kabel's net profit more than doubled, reaching ₹1.16 billion compared to ₹497.5 million in the same quarter last year, marking a substantial 133% increase.

2. Revenue Growth: The company's revenue saw a healthy 19% year-on-year growth, rising to ₹21.6 billion from ₹18.1 billion.

3. EBITDA Performance: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) showed remarkable improvement, more than doubling to ₹1.76 billion from ₹858.0 million in the previous year.

4. Margin Expansion: The EBITDA margin expanded significantly, reaching 8.13% compared to 4.74% in the same period last year, indicating improved operational efficiency.

The robust quarterly results demonstrate RR Kabel's strong market position and operational excellence. The substantial growth in net profit, coupled with a notable increase in revenue, suggests effective cost management and possibly an improved product mix. The significant expansion in EBITDA and EBITDA margin further underscores the company's ability to enhance its operational efficiency and profitability.

These results reflect positively on RR Kabel's performance during the quarter. Investors and analysts may look to management commentary for insights into the factors driving this growth and the company's outlook for future quarters.

RR Kabel Limited , India's leading exporter of wires and cables, has reported robust financial results for the second quarter of fiscal year 2026, while outlining ambitious growth plans for its core business segments.

Q2 FY26 Financial Highlights

RR Kabel has delivered impressive financial performance for Q2 FY26:

The company's revenue grew by 19.5% year-on-year, driven by strong demand in the wires and cables segment. Notably, the operating EBITDA more than doubled, reflecting significant improvement in operational efficiency.

Segment Performance

Wires & Cables

The wires and cables segment, which forms the backbone of RR Kabel's business, showed robust growth:

• Revenue increased by 22.3% YoY to ₹1,971.20 crores in Q2 FY26
• Segment profit before tax and interest surged by 120.5% to ₹180.40 crores
• Volume growth of 16.1% YoY

Fast-Moving Electrical Goods (FMEG)

The FMEG segment faced some challenges:

• Revenue declined by 2.9% YoY to ₹192.60 crores in Q2 FY26
• Segment reported a loss of ₹11.70 crores, remaining steady compared to the previous year

Growth Strategy and Outlook

Mahendrakumar Kabra, Managing Director of RR Kabel, commented on the results: "Q2 FY26 was a landmark quarter for RR Kabel as we achieved our highest-ever half-yearly revenue along with strong profitability growth. This strong performance was primarily driven by the resilience and expansion of our core wires and cables business, which remains the backbone of our company's growth strategy."

The company has outlined several key growth initiatives:

1. Sustained Double-Digit Expansion: RR Kabel aims to maintain strong growth in the wires and cables segment, with volume growth exceeding 16%.

2. Margin Improvement: The company plans to enhance margins through operational efficiencies and economies of scale.

3. FMEG Portfolio Scale-up: Despite current challenges, RR Kabel intends to expand its Fast Moving Electrical Goods portfolio.

4. Export Operations: Strengthening export operations to capitalize on global demand.

5. Working Capital Management: Optimizing working capital to improve financial efficiency.

6. Market Penetration: Increasing brand presence in tier-2 and tier-3 markets to capture growing demand.

Dividend Announcement

The Board of Directors has declared an interim dividend of ₹4 per equity share (80%) for the financial year 2025-26, with the record date set for November 7, 2025.

With its strong financial performance and focused growth strategy, RR Kabel appears well-positioned to capitalize on the increasing demand in the wires and cables industry, while also addressing challenges in its FMEG segment.

Investors and market watchers will be keen to see how the company executes its expansion plans and manages potential headwinds in the coming quarters.