Cable and wire manufacturer RR Kabel‘s shares ended the special one-hour Muhurat Trading session on Sunday, November 8, with a solid 8% jump to settle at ₹2,073, even as the frontline indices closed in the red.
Although there was no immediate fundamental trigger behind the rally, a sharp spike in trading volumes helped the stock recover from its recent weakness. Around 1.4 million shares changed hands across the BSE and NSE during the session, nearly twice the stock’s weekly average trading volume, according to Trendlyne data.
RR Kabel shares recover after two consecutive monthly declines
The shares had suffered significant losses following the company’s September-quarter results, ending October with a 19% decline and extending their losing streak to a second consecutive month after falling 14% in September. Despite the recent weakness, the stock remains up 42% in 2026, supported by the gains accumulated during the first half of the year.
Although the company reported better-than-expected performance during the quarter, its subdued guidance has raised concerns on Dalal Street.
The company lowered its FY27F volume growth guidance to around 14-15%, from the earlier estimate of 16-18%, citing market volatility and quarterly fluctuations. However, it maintained confidence in outperforming the industry average.
In addition, the company acknowledged that competitive intensity could fluctuate but reiterated its confidence in delivering growth through efficient capacity utilisation and stronger sales and marketing execution.
RR Kabel Q2 results: Profit jumps 56%, revenue rises 52%
For the September quarter, RR Kabel reported a 55.7% year-on-year increase in consolidated net profit to ₹180.6 crore, compared with ₹116 crore in the year-ago period. The growth was driven by improved realisations and a favourable product mix, supported by a higher contribution from the cables segment as exports shifted towards cables.
Revenue from operations rose 51.8% to ₹3,284 crore from ₹2,164 crore in the corresponding quarter last year. This growth came despite overall volume growth in the wires and cables business remaining in the high single digits.
Improved gross profitability, cost efficiencies, and operating leverage resulted in an approximately 50-basis-point year-on-year expansion in EBITDA margin to 8.6%.
RR Kabel plans fresh capacity expansion
The company’s board approved an allocation of at least ₹200 crore towards land acquisition as the first step towards further expansion of its wires and cables manufacturing capacity. This investment is over and above the existing FY27 capital expenditure plan of ₹550-600 crore.
The management also broadly reiterated its FY28 capital expenditure plan of approximately R 300 crore, with further details of the proposed expansion expected to emerge over the next one or two quarters.
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