R R Kabel profit rises 30% as operating margin recovers sequentially
Revenue growth outpaced expense growth in Q4FY26, but interest expense rose 61.27% year on year and operating margin remained below the Industrials peer median.
Filed 01 May 2026, 11:21 IST · after market close · R R Kabel Ltd (RRKABEL)
Key takeaways
- Consolidated net profit rose 30.06% year on year to Rs 167.95 cr, with the 25.46% tax rate virtually unchanged.
- Operating margin improved 0.77 percentage points sequentially as revenue grew 16.89%, faster than expenses at 15.91%.
- The stock gained 13.00% on the first trading day after the results, well above its 4.78% median absolute move after the past eight results, though a corporate-action overlap limits attribution.
Price around the results
Revenue growth lifted Q4FY26 operating profit
R R Kabel reported consolidated revenue growth of 33.65% year on year to Rs 2,964.14 cr, while operating profit rose 34.61% to Rs 261.66 cr. Management said Wires and Cables revenue grew 36.3% year on year on domestic and export demand, with prudent price-volatility management supporting the performance. The company also said FMEG revenue growth was supported by stable demand and continued distribution expansion.
Sequential margin recovery came despite higher interest cost
Operating margin expanded 0.77 percentage points sequentially because revenue grew 16.89%, faster than expenses at 15.91%; year on year, the near-match between revenue growth of 33.65% and expense growth of 33.56% limited the margin improvement to 0.07 percentage points. Interest expense rose 32.10% sequentially and 61.27% year on year, which restrained the conversion of operating profit into pre-tax profit. Other income contributed 6.57% of pre-tax profit, so reported earnings included a modest non-operating contribution rather than being entirely operating-led.
Margin is recovering, but remains below sector peers
The 8.83% operating margin improved from 8.06% in Q3FY26 and 6.90% in Q1FY26, reversing the sequential decline seen in the previous quarter. It was 6.83 percentage points below the 15.66% median for the 71 Industrials peers that had reported the same quarter, placing R R Kabel 11th from the bottom. FMEG profitability remains a constraint: management said segment losses were broadly in line with the previous year despite continued investments in growth and brand building.
Post-results rally was unusual against the stock's history
The stock rose 13.00% on the first trading day after the results and was up 22.34% after five sessions. That compares with only two up moves versus six down moves across the past eight result reactions and a median absolute move of 4.78%, making this response unusually large. A corporate-action overlap was recorded, so the move is not a clean read of the results alone; the filing was made after market close.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,964 cr | ₹2,536 cr | +16.89% | +33.65% |
| Other income | ₹15 cr | ₹-3 cr | — | +11.19% |
| Expenses | ₹2,702 cr | ₹2,332 cr | +15.91% | +33.56% |
| Operating profit | ₹262 cr | ₹204 cr | +28.08% | +34.61% |
| Operating margin (%) | 8.83% | 8.06% | — | — |
| Interest | ₹25 cr | ₹19 cr | +32.10% | +61.27% |
| Depreciation | ₹26 cr | ₹24 cr | +9.41% | +37.52% |
| Profit before tax | ₹225 cr | ₹159 cr | +41.91% | +30.11% |
| Tax | ₹57 cr | ₹41 cr | +41.51% | +30.24% |
| Net profit | ₹168 cr | ₹118 cr | +42.03% | +30.06% |
| EPS (₹) | ₹14.85 | ₹10.46 | +41.97% | +29.92% |
Operating margin of 8.83% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +13.00% | +12.49% |
| Next session | +13.65% | — |
| 5 sessions | +22.34% | +23.10% |
| 15 sessions | +26.61% | — |
| 30 sessions | +40.11% | — |
Volume on the results session was 13.85× its 20-day average.
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 grew 36.3% year on year, led by healthy domestic and export demand.
- FMEG reported steady year-on-year revenue growth, supported by stable demand across key categories.
Expansion
- FMEG revenue growth was supported by continued distribution expansion.
New initiatives
- FMEG continued investments towards growth and brand building.
Problems & risks
- FMEG segment losses remained broadly in line with the previous year.
- Wires and Cables managed price volatility prudently.
What to watch
- Whether consolidated operating margin holds above 8.83% after the Q4FY26 recovery.
- Whether interest expense stays below Rs 24.98 cr after rising 61.27% year on year.
- Whether Wires and Cables revenue growth remains above the reported 36.3% year-on-year rate.