RR Kabel Limited has informed stock exchanges about penalty orders received from CGST authorities, totaling ₹34.12 lakhs across two separate proceedings. The disclosure was made in compliance with Regulation 30 of SEBI Listing Regulations.

Penalty Details and Authority

The Office of the Superintendent, Range-III, Division-VIII, CGST CE, Daman, Dadra and Nagar Haveli imposed the penalties through ex-parte orders. RR Kabel received two separate penalty orders with the following details:

Nature of Alleged Violations

The penalties were imposed under Section 122(1)(ii) and (x) of the CGST Act, 2017, read with corresponding sections of the UTGST Act, 2017 and the IGST Act, 2017. The CGST authorities alleged that RR Kabel conducted supplies of goods without actual movement of goods, which forms the basis for both penalty orders.

Company's Response and Impact Assessment

RR Kabel Limited has provided a detailed disclosure in the prescribed format as required under SEBI regulations. The company has stated that other than the payment of penalty amounts, there is no other impact on the financial, operational, or other activities of the company.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Regulations, with detailed information provided in Form A as required under Regulation 30(13). The company has also uploaded this information on its website at www.rrkabel.com as part of its transparency obligations.

Key Information Summary

The company secretary and compliance officer, Anup Vaibhav C. Khanna, has digitally signed the disclosure, confirming that the information provided is true, correct, and complete to the best of the company's knowledge and belief.

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

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.