R R Kabel delivered exceptional financial results for the September quarter, with consolidated net profit jumping 56% year-on-year to ₹181 crore compared to ₹116 crore in the corresponding quarter last year. According to reports from CNBC TV18 and NDTV Profit, this growth was driven by operating leverage and improved cost efficiencies. Revenue from operations rose 52% to ₹3,284 crore from ₹2,164 crore in the same period last year, attributed to strong performance across categories led by appliances and contributions from new products. The company's H1 FY27 revenue reached ₹64,522 million with consolidated profit of ₹3,858 million, marking significant half-yearly performance. Choice Institutional Equities has now issued a buy rating with a target price of ₹2,870, while Prabhudas Lilladher has upgraded their rating to 'BUY' from 'HOLD' with a revised target price of ₹2,735 based on 30x Sep'28 earnings.
The company demonstrated strong operational performance with EBITDA increasing 61% year-on-year to ₹284 crore from ₹176 crore, while EBITDA margin expanded to 8.6% from 8.1%. As reported by CNBC TV18 and NDTV Profit, this improvement reflects the company's focus on operating efficiencies and strong volume growth across cable and appliance divisions. The margin expansion of approximately 50 basis points year-on-year was driven by improved gross profitability, cost-efficiency and operating leverage. The company also declared an interim dividend of ₹6.50 per share, reflecting confidence in its financial position. With H1 FY27 EBITDA of ₹526 crore, the company maintained its operational momentum throughout the first half.
The wires and cables segment emerged as a key growth driver, with revenue rising 55% year-on-year in the first half of FY27, supported by volume growth and higher realisations. According to CNBC TV18, segment profit increased 78% year-on-year, while margins expanded by 124 basis points. This strong performance in the core business segment contributed significantly to the overall revenue growth and profitability improvements, with the segment maintaining its position as the primary revenue driver for the company. The growth was primarily driven by improved realisation and a favourable product mix, supported by a higher contribution from cables as exports shifted to the cable segment, despite overall wires and cables volume growth remaining only in high single digit. Management has 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.
The fast-moving electrical goods (FMEG) business showed significant improvement with revenue growth across categories, led by appliances and contributions from new product launches. As reported by CNBC TV18, the segment's loss margin narrowed to 2.2% in the first half of FY27 from 4.5% a year earlier, supported by revenue growth and cost efficiencies. The company is targeting full-year operating break-even for the FMEG business in FY27, indicating management's confidence in achieving profitability in this segment. This turnaround demonstrates the company's successful diversification strategy beyond traditional wires and cables. Prabhudas Lilladher notes that FMEG revenue grew 42% YoY, while the segment reported margin of -4.5%, with management reiterating its target of achieving full-year breakeven in FY27, supported by scale benefits and improved cost absorption.
Prabhudas Lilladher has upgraded their rating to 'BUY' from 'HOLD' with a revised target price of ₹2,735, citing the company's strong fundamentals and growth trajectory. According to their research report dated October 29, 2026, the brokerage estimates revenue/EBITDA/PAT CAGR of 22.2%/31.0%/30.5% over FY26-29E. The target price is based on 30x Sep'28 earnings, reflecting confidence in the company's ability to maintain its operational momentum and achieve its strategic objectives. The company's net working capital cycle improved to 46 days in Sep'26, supported by lower receivable days, with management expecting it to remain within the 45-50 days range. Choice Institutional Equities maintains their buy rating with a target price of ₹2,870, while Prabhudas Lilladher's positive outlook adds to the bullish sentiment following the company's strong quarterly performance.
R R Kabel shares responded positively to the strong quarterly results, with the stock gaining 0.59% to settle at ₹2,207.40 at the end of trading, outperforming the NSE Nifty 50's 0.22% decline. As of October 28, 2026, the stock has gained 57.23% on a year-on-year basis and has a market capitalisation of ₹14,102.98 crore with a P/E ratio of 94.90. The record date for the interim dividend of ₹6.50 per share is November 3, 2026, providing shareholders with additional value from the company's strong financial performance. With both Choice Institutional Equities and Prabhudas Lilladher maintaining bullish recommendations, the stock has significant upside potential based on the brokerages' positive assessment of the company's growth prospects and operational improvements.
