R R Kabel Limited H1 PAT rises 87% as margin reaches 9.6%

R R Kabel Limited recorded its highest half-yearly revenue, operating EBITDA and profit after tax in H1 FY '27, with revenue rising 53% to Rs 6,452 crore and PAT rising 87% to about Rs 386 crore. R R Kabel’s wires and cables segment margin increased to 9.6% from 8.4% a year earlier.

How did R R Kabel perform in H1 FY '27?

R R Kabel grew profit faster than revenue in H1 FY '27. Consolidated revenue from operations rose 53% from Rs 4,222 crore in H1 FY '26 to Rs 6,452 crore, while operating EBITDA, or earnings before interest, tax, depreciation and amortisation, increased 79% from Rs 319 crore to about Rs 571 crore. Management described the revenue, operating EBITDA and PAT results as half-yearly records.

PAT rose 87% to about Rs 386 crore from Rs 206 crore, and the PAT margin increased to 6.0% from 4.9%. Operating EBITDA margin expanded by about 130 basis points to 8.9% from 7.6%. This shows that H1 profit growth exceeded sales growth, alongside the reported margin expansion.

R R Kabel also reported higher quarterly earnings in Q2 FY '27, although its first-half margin improvement was larger. Q2 revenue rose 52% to Rs 3,284 crore from Rs 2,164 crore, operating EBITDA rose 63% to about Rs 286 crore from Rs 176 crore, and PAT increased 55% to about Rs 181 crore from Rs 116 crore. The quarterly operating EBITDA margin rose to 8.7% from 8.1%.

What drove R R Kabel’s wires and cables margin increase?

R R Kabel’s wires and cables segment was the main contributor to H1 earnings growth, with revenue rising 55% to about Rs 5,890 crore and segment profit rising 78% to around Rs 568 crore. Segment margin increased to 9.6% from 8.4%, an expansion of approximately 124 basis points, according to management. Management attributed the improvement to higher gross profit, disciplined commodity management, operating leverage and better operating-cost absorption.

Volume growth supported the segment’s revenue increase. R R Kabel said total wires and cables volume grew in the low teens in H1 FY '27, while Q2 volume grew in the high single digits. In Q2, wire volumes grew in double digits and cable volumes grew in single digits; management cited quarter-specific factors, including the monsoon season, rather than a change in the industry’s underlying growth drivers.

Exports grew faster than domestic sales in Q2 FY '27, although R R Kabel did not disclose separate growth rates. Management said exports had historically represented about 25% to 30% of revenue and were moving towards approximately 35%. It added that most export growth was coming from cables after capacity additions eased earlier capacity constraints in that category.

How did R R Kabel’s FMEG loss narrow?

R R Kabel’s fast-moving electrical goods, or FMEG, business remained loss-making in H1 FY '27 but reduced its loss as revenue grew. FMEG revenue increased 35% to about Rs 562 crore, while the segment loss narrowed to about Rs 12 crore from about Rs 19 crore in H1 FY '26. The loss margin narrowed to 2.2% from 4.5%, which management linked to greater scale and improved operating-cost absorption.

The Q2 result showed revenue expansion without an improvement in the absolute loss. FMEG revenue rose 42% to about Rs 274 crore from Rs 193 crore, led by appliances, new products and growth across categories. The segment loss was about Rs 12 crore in both Q2 FY '27 and the corresponding quarter, but the loss margin narrowed to 4.5% from 6.1% because revenue increased.

Management’s stated objective is to achieve segment-profit breakeven for the full FY '27 year. Its plan is to build scale, improve cost absorption and maintain operating discipline. That target remains unresolved after H1 because the business generated about Rs 562 crore of revenue while reporting a Rs 12 crore segment loss.

Can R R Kabel meet its FY '27 volume and margin plans?

R R Kabel management expects wires and cables volume growth of around 14% to 15% in FY '27. This follows low-teens volume growth in H1 and high-single-digit growth in Q2. Management said second-half volumes have historically been higher and expressed confidence in meeting the full-year plan despite the higher comparative base.

Management retained its wires and cables earnings before interest and tax, or EBIT, margin target of 9.5% for FY '27 after reporting a 9.6% H1 segment margin. It also retained an approximate 10.5% EBIT margin target for FY '28, within an earlier plan for about 300 basis points of improvement across FY '26 to FY '28. Management said disciplined pricing, execution and cost management would remain important, while commodity prices could affect realisations and margins.

The portfolio’s two main businesses delivered materially different financial outcomes in H1 FY '27. Wires and cables revenue grew 55% and generated around Rs 568 crore of segment profit, while FMEG revenue grew 35% and reported a Rs 12 crore loss. The reported H1 result therefore depended principally on wires and cables growth and its 9.6% margin.

How is R R Kabel financing expansion plans?

R R Kabel’s net working-capital cycle improved to 46 days at September 2026, from 49 days in March 2026 and 50 days in June 2026. Management said rising commodity prices had increased trade-payable days as it balanced available capital, but it expects the net working-capital cycle to remain within 45 to 50 days. Cash conversion and working-capital management remain priorities.

Management retained its FY '27 capital-expenditure plan of Rs 550 crore to Rs 600 crore and said projects were being executed on time. The plan excludes the board-approved Rs 200 crore investment for land acquisition in Rajasthan, which management described as the first step in a new expansion plan. Management expects most of that land-acquisition outflow this year, with some potentially falling in the first half of the next year.

Separately, R R Kabel entered a business transfer agreement on 25 September 2026 with UM Cables Limited, a wholly owned subsidiary of Usha Martin Limited, for its optical-fibre and related-cables undertaking. The agreed consideration is approximately Rs 77 crore, subject to post-closing adjustments, and was not recognised in the September 2026 results. Management said the plant had low capacity utilisation and planned to provide a detailed business plan by the next quarter.

Conclusion

R R Kabel’s H1 FY '27 performance combined 53% revenue growth with an 87% rise in PAT and a 130-basis-point increase in operating EBITDA margin. Wires and cables delivered 55% revenue growth and a 9.6% segment margin, while FMEG’s 35% revenue growth helped narrow its segment loss from Rs 19 crore to Rs 12 crore.

The next disclosed measures to watch are management’s 14% to 15% FY '27 wires and cables volume-growth plan, its 9.5% FY '27 EBIT margin target and FMEG’s full-year breakeven objective. Management also plans to provide a detailed UM Cables business plan by the next quarter, while executing Rs 550 crore to Rs 600 crore of FY '27 capital expenditure and the separate Rs 200 crore Rajasthan land investment.