R R Kabel's profit slips sequentially as interest and other income weigh
Year-on-year growth remained strong, but costs grew faster than revenue sequentially and operating margin eased 0.30 percentage points.
Filed 28 Oct 2026, 19:25 IST · after market close · R R Kabel Ltd (RRKABEL)
Key takeaways
- Consolidated revenue grew 51.77% year on year, while operating margin expanded 0.52 percentage points to 8.64%.
- Sequential profit before tax fell 12.25% as other income dropped 55.12% and interest expense rose 23.95%.
- Operating margin remained 2.39 percentage points below the 11.03% median for 47 reported Industrials peers.
Price around the results
Strong year-on-year growth, softer sequential earnings
This consolidated quarter delivered 51.77% year-on-year revenue growth, with operating profit rising 61.32% as expenses grew slightly slower at 50.93%. Sequentially, revenue increased 3.66%, but profit before tax declined 12.25% because other income fell 55.12% and interest expense rose 23.95%. The results were filed after market close, so there has been no reported market reaction yet.
Margin gains year on year, but costs edged ahead sequentially
Operating margin improved 0.52 percentage points year on year because expenses grew more slowly than revenue, but narrowed 0.30 percentage points sequentially as costs grew 4.00% against revenue growth of 3.66%. Interest expense rose 100.74% year on year, adding pressure below operating profit. Other income contributed 9.04% of profit before tax, making the sequential fall in that line relevant to earnings quality; the lower tax rate, down 0.22 percentage points sequentially, only partly offset the pressure.
Margin is below peers after a pullback from Q1FY27
The operating margin has risen from 6.90% in Q1FY26 to 8.94% in Q1FY27, but eased to 8.64% this quarter. It remains above the 8.12% recorded in Q2FY26 and the 8.06% in Q3FY26, so the latest decline is a setback after two quarters of improvement rather than a three-quarter slide. The margin was 2.39 percentage points below the 11.03% median among 47 Industrials peers that had reported.
Management points to wires growth and FMEG losses
Management said wires and cables revenue growth in H1 FY27 was supported by higher volumes and realizations, while segment profit benefited from gross-profit improvement, operating leverage, commodity management and better cost absorption. The presentation said FMEG revenue growth was led by appliances and new products, but its H1 FY27 segment loss margin was still 2.2%, narrower than 4.5% a year earlier. Management targets full-year operating breakeven in FMEG in FY27.
No reaction yet; past result-day moves have been mixed
The stock has risen after four of its last eight results and fallen after four, with a median absolute move of 5.90%. Recent post-results moves ranged from -7.33% to +14.85%, so the historical response has been mixed and sometimes large. The current result was filed after market close, leaving the latest reaction to be established.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,284 cr | ₹3,168 cr | +3.66% | +51.77% |
| Other income | ₹22 cr | ₹49 cr | -55.12% | +27.55% |
| Expenses | ₹3,000 cr | ₹2,885 cr | +4.00% | +50.93% |
| Operating profit | ₹284 cr | ₹283 cr | +0.14% | +61.32% |
| Operating margin (%) | 8.64% | 8.94% | — | — |
| Interest | ₹33 cr | ₹26 cr | +23.95% | +100.74% |
| Depreciation | ₹31 cr | ₹30 cr | +3.37% | +40.44% |
| Profit before tax | ₹242 cr | ₹276 cr | -12.25% | +56.39% |
| Tax | ₹62 cr | ₹71 cr | -12.99% | +59.50% |
| Net profit | ₹181 cr | ₹205 cr | -11.99% | +55.34% |
| EPS (₹) | ₹15.97 | ₹18.14 | -11.96% | +55.35% |
Operating margin of 8.64% compares with a Industrials sector median of 11.03% across 47 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Wires and cables revenue growth in H1 FY27 was supported by volume growth and higher realizations.
- Wires and cables segment profit growth was driven by higher gross profit, operating leverage, commodity management and cost absorption.
Guidance & outlook
- The company targets achieving full-year operating breakeven in FMEG in FY27.
New products
- FMEG revenue growth was supported by strong performance in appliances and contributions from new products.
Problems & risks
- FMEG had a segment loss margin of 2.2% in H1 FY27, despite narrowing from 4.5% YoY.
What to watch
- Whether operating margin recovers from 8.64% after the 0.30-percentage-point sequential decline.
- Whether FMEG's 2.2% H1 FY27 segment loss margin moves toward management's FY27 operating-breakeven target.
- Whether interest expense growth moderates after rising 23.95% sequentially and 100.74% year on year.