How is R R Kabel powering its growth story with strong Q2 FY26 results?
about R R Kabel and its business performance
R R Kabel, one of India’s leading wire and cable manufacturers, continues to gain market share through operational excellence, product diversification, and steady demand from construction, infrastructure, and renewable energy sectors. Its Q2 FY26 performance reaffirmed its position as a high-growth player in India’s electrical goods segment.
The company also benefits from the formalization trend in building materials, government-led infrastructure expansion, and sustained residential demand recovery across Tier-2 and Tier-3 cities.
The quarter highlighted consistent margin improvement, increased profitability, and robust cash generation. Management emphasized a focus on mix improvement and brand-led expansion as it transitions from a pure manufacturing company to a consumer-facing electrical brand.
financial highlights for Q2 FY26
| Parameter | Q2 FY26 | YoY Change |
| Revenue | ₹2,163.8 Cr | +19.5% |
| EBITDA | ₹176.1 Cr | +106% |
| EBITDA Margin | 8.1% | vs 4.7% |
| PAT | ₹116.3 Cr | +135% |
| H1 Revenue | ₹4,300 Cr | +16.7% |
| H1 PAT | ₹206 Cr | +80.9% |
Revenue ₹2,163.8 Cr reflected continued demand from construction, infrastructure, and renewables. The company saw higher volumes in both wires and cables, with a 16% overall increase.
EBITDA ₹176.1 Cr doubled year-on-year due to efficiency gains and optimized product mix. The management noted the absence of inventory-led gains, confirming structural profitability improvements.
EBITDA Margin 8.1% highlights a significant expansion from last year’s 4.7%, driven by cost efficiency and stronger realizations.
PAT ₹116.3 Cr rose sharply, aided by better working capital management and steady exports to Europe and the Middle East.
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peer comparison with industry players
| Company | Revenue (₹ Cr) | EBITDA Margin |
| R R Kabel | 2,164 | 8.1% |
| Polycab India | 4,432 | 12.7% |
| KEI Industries | 2,208 | 10.5% |
While Polycab and KEI maintain a higher EBITDA margin due to larger scale, R R Kabel’s rapid expansion and diversification into FMEG will gradually bridge the margin gap over the next few years.
strengths and weaknesses
✅ Strong brand recall in wires & cables; expanding distribution footprint.
✅ Record-high profitability backed by efficiency improvements.
⚠️ Margin gap vs larger peers remains; sustained improvement needed.
⚠️ FMEG business yet to achieve breakeven profitability.
Despite these challenges, R R Kabel continues to show resilience, with consistent cash flows and a disciplined approach toward R&D and premiumization.
opportunities and threats
💡 Expansion in high-voltage cables (up to 220 KV) expected to lift volumes.
💡 Premiumization and stronger export markets to enhance brand visibility.
📉 Commodity volatility in copper and aluminum could affect near-term margins.
📉 Rising competition from unorganized players in Tier-3 regions remains a risk.
With Project RISE and capex investments of ₹1,200 Cr underway, R R Kabel aims to reach double-digit margins and 20% ROE by FY28, solidifying its long-term positioning in the sector.
valuation and investment view
The stock trades at a reasonable valuation considering its growth trajectory and upcoming capacity expansions. Management’s focus on operational leverage, margin stability, and exports could yield sustained re-rating potential.
- ✅ Short term: Volatility possible due to commodity price movements.
- 💡 Medium term: Rising share of exports and FMEG to lift profitability.
- 🎯 Long term: Project RISE execution and product mix expansion to drive consistent returns.
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investor takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Registered Investment Adviser, believes that R R Kabel’s growth story is underpinned by structural tailwinds from housing, infrastructure, and industrial demand. The company’s improving profitability, diversified portfolio, and R&D-led strategy make it an attractive long-term compounder. Explore more expert insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
related queries on R R Kabel growth outlook
• How is R R Kabel expanding its high-voltage cable capacity?
• What role will the FMEG segment play in future earnings?
• Can operational leverage sustain margin expansion through FY28?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
