R R Kabel543981Earnings call transcript
Q2 FY27 call: record half-year revenue, EBITDA and PAT; interim dividend of INR 6.50 per share
Transcript of the Q2 and H1 FY '27 earnings conference call held on 29 October 2026.
By ScoutQuest · · 3 min read
- Q2 Revenue
- INR 3,284 crores, up 52%
- H1 Revenue / PAT
- H1 revenue INR 6,452 crores, up 53%; PAT about INR 386 crores, up 87%
- Interim Dividend
- INR 6.50 per equity share
How the quarter looked
- Consolidated revenue from operations was INR 3,284 crores, against INR 2,164 crores a year earlier, a growth of 52%.
- Operating EBITDA was approximately INR 286 crores, against INR 176 crores, up 63%.
- EBITDA margin improved to 8.7% from 8.1%, an expansion of approximately 60 basis points.
- Profit before tax was approximately INR 242 crores, up 56%.
- Profit after tax was approximately INR 181 crores, against INR 116 crores, up 55%. PAT margin was 5.5% against 5.4%.
The management described this as the company's highest ever half yearly revenue, operating EBITDA and profit after tax.
First half at a glance
- Revenue rose 53% to INR 6,452 crores from INR 4,222 crores.
- Operating EBITDA grew 79% to approximately INR 571 crores from INR 319 crores; margin expanded by around 130 basis points to 8.9% from 7.6%.
- Profit after tax increased 87% to approximately INR 386 crores from INR 206 crores; PAT margin improved to 6% from 4.9%.
Wires and cables segment
- Q2 segment revenue was approximately INR 3,010 crores, against INR 1,971 crores, a growth of 53%.
- Segment profit before tax and interest was approximately INR 282 crores, against INR 180 crores, up 57%; margin improved to 9.4% from 9.2%.
- H1 segment revenue was approximately INR 5,890 crores, growing 55% year-on-year; segment profit grew 78% to around INR 568 crores, with margin expanding to 9.6% from 8.4%.
- Volumes grew by high single-digit in Q2 and by low teens in H1.
- Exports grew faster than the domestic business in Q2.
FMEG segment
- Q2 revenue was approximately INR 274 crores, against INR 193 crores, a growth of 42%; H1 revenue was approximately INR 562 crores, up 35%.
- The segment reported a loss of approximately INR 12 crores in Q2, similar to the year-earlier quarter, while the loss margin narrowed to 4.5% from 6.1%.
- H1 segment losses reduced to approximately INR 12 crores from approximately INR 19 crores, with the loss margin narrowing to 2.2% from 4.5%.
- Growth was broad-based, led by appliances and contribution from new products.
Dividend and expansion spending
- The board declared an interim dividend of INR 6.50 per equity share.
- The board also approved an investment of INR 200 crores towards land acquisition in Rajasthan to support a future expansion plan.
Proposed acquisition
- On 25 September 2026 the company entered into a business transfer agreement with UM Cables Limited, a wholly owned subsidiary of Usha Martin Limited, for the proposed acquisition of the UM Cables business undertaking engaged in manufacturing and selling optical fibre and related cables.
- The agreed consideration is approximately INR 77 crores, subject to post-closing adjustments.
- The transaction remains subject to fulfilment of conditions precedent and was not recognised in the results as of September 2026.
What management guided for
- Full year breakeven at segment profit level in FMEG for FY '27.
- Continued focus on volume growth in wires and cables, operating cost efficiencies, working capital management and margin improvement across both businesses.
- Net working capital cycle improved to 46 days as of September '26, from 49 days in March and 50 days in June.
Overall, the call points to strong revenue and profit growth led by wires and cables, improving margins, a shareholder payout alongside fresh capacity-related spending, and a small proposed acquisition in optical fibre cables that is yet to complete.
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More numbers
- Q2 consolidated revenue from operationsINR 3,284 crores
- Q2 profit after taxINR 181 crores
- H1 consolidated revenueINR 6,452 crores
- H1 profit after taxINR386 crores
- Interim dividend per equity shareINR 6.50 per equity share
- Board approved investment for land acquisition in RajasthanINR 200 crores
- Agreed consideration for UM Cables business undertakingINR 77 crores
- Net working capital cycle as of September '2646 days
Source: BSE · 4 Nov 2026
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