RR Kabel shares jump 10% as Q1 PAT surges 129% YoY, Ebitda doubles

RR Kabel reported a strong June-quarter performance, with profit after tax surging 129% year-on-year and Ebitda nearly doubling, driven by robust growth in its Wires & Cables business and improving profitability. The company also achieved operatio...

ETMarkets.com
RR Kabel surges after robust quarterly earnings, margin expansion and strong wires business growth.
Shares of RR Kabel jumped nearly 10% to an intraday high of Rs 2,775 on the NSE after the company posted a 129% year-on-year jump in PAT, while Ebitda nearly doubled in the first quarter of FY27.

According to the company's exchange filing, profit after tax (PAT) rose to Rs 2,052 crore in Q1 FY27 from Rs 897 crore in the corresponding quarter last year. On a sequential basis, PAT increased from Rs 1,679 crore in Q4 FY26.

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The PAT margin improved by 212 bps YoY, reflecting sustained profitability improvement. Operating Ebitda increased 99% YoY, while the Ebitda margin expanded by 205 bps YoY, driven by an improved business mix, margin expansion, cost discipline and execution efficiencies.

On a yearly basis, operating Ebitda increased from Rs 1,430 crore in Q1 FY26 to Rs 2,853 crore in Q1 FY27. The company also delivered its highest-ever quarterly revenue, which grew 54% YoY, led by healthy domestic demand and export growth.

In the Wires & Cables segment, revenue continued to outperform, growing 57% YoY on the back of impressive volume growth, strong execution and favourable industry dynamics.
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Segment profit increased 105% YoY, driven by margin expansion and effective cost management. The segment margin expanded by 232 bps YoY, reflecting an improved product mix, disciplined commodity management and operating efficiencies.

The FMEG segment also posted strong revenue growth, supported by continued demand for premium and new products across key categories, along with ongoing distribution expansion.

The segment achieved operational breakeven, marking a significant milestone in the FMEG business transformation. Its profitability improved substantially on a YoY basis, driven by premium products and operating leverage.

"We have started FY27 on a strong note with another quarter of record performance, reflecting the strength of our business model and disciplined execution across the organisation. Robust growth across our Wires & Cables business, coupled with healthy profitability, demonstrates our ability to capitalise on the strong demand environment while maintaining operational excellence," said Mahendrakumar Kabra, MD, RR Kabel.
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"Our strategic focus on expanding the cables portfolio, strengthening our distribution network and enhancing execution capabilities continues to yield encouraging results. We are also pleased to achieve operational breakeven in the FMEG business during the quarter, an important milestone that reflects the progress of our premiumisation strategy and sustained focus on improving operating efficiencies."

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"We remain confident in our ability to strengthen our market position, drive profitability growth and create long-term value for our stakeholders," Kabra added.

Over the last one year, the stock has gained 1.26%. It has risen 36.50% over the last three years and nearly 70.37% over the past five years.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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