R R Kabel (RRKABEL IN) – Q2FY27 Result Update – Cable growth holds up as volume outlook moderates – Upgrade to ‘BUY’
Published on 29 Oct 2026
RRKABEL reported a strong Q2FY27 performance, with revenue growing 52% YoY driven by robust execution in the W&C business, healthy demand across domestic and export markets, and higher realizations. Overall W&C volume grew at a high-single-digit rate, with wires recording double-digit growth while cables posted single-digit growth. Management reiterated its W&C EBIT margin guidance of 9.5% for FY27 and 10.5% by FY28, alongside an overall volume growth target of 14-15% for FY27. Capex plans remain on track, with INR6.0bn planned for FY27, while an additional INR2bn investment has been approved for land acquisition in Rajasthan to support future expansion. FMEG revenue grew 42% YoY, led by strong performance in appliances and new product launches. The segment reported margin of -4.5%, while management reiterated its target of achieving full-year breakeven in FY27, supported by scale benefits and improved cost absorption. The net working capital cycle improved to 46 days in Sep’26, supported by lower receivable days, while management expects it to remain within the 45-50 days. We estimate revenue/EBITDA/PAT CAGR of 22.2%/31.0%/30.5% over FY26-29E. We tweak our FY27/FY28 earnings estimates. We upgrade our rating to ‘BUY’ from ‘HOLD’ rating with revised TP of INR2,735 (earlier INR 2,725) based on 30x Sep’28 earnings.
