After months of market paranoia about commodity inflation, R R Kabel just pulled a “watch me do it” quarter. The company’s growth wires sparked, margins expanded, and management sounded as electrified as their products. Mahendra Kabra celebrated his Diwali with profit fireworks, not just diyas. “Faith without work is dead,” says the Bible — clearly, Kabel’s faith is backed by some serious operational hustle. Stick around, because what follows isn’t just numbers; it’s a high-voltage story. ⚡
At a Glance
- Revenue up 19.5%– Apparently, copper prices aren’t the only thing surging.
- EBITDA doubled (+106%)– CFOs everywhere just spilled their coffee.
- EBITDA margin at 8.1% (from 4.7%)– Cost efficiency: 1, Inflation: 0.
- PAT up 135%– Profits decided to do a cardio workout.
- FMEG revenue down 3%– Fans still cooling off after summer sales slump.
- Stock vibes positive– Traders saw “134% PAT” and skipped the rest.
Management’s Key Commentary
Mahendra Kabra:“Wires and cables remain our growth backbone.”(Translation: FMEG still needs yoga to find its balance.)😏
Rajesh Jain:“EBITDA rose 105.8% YoY to ₹176 crore; margin hit 8.1%.”(Translation: Efficiency met its gym goals this quarter.)
Kabra:“Market conditions in fans and appliances remained challenging.”(Translation: Our fans aren’t as enthusiastic as our investors.)
Jain:“We target 18% volume growth as part of Project Rise.”(Translation: If optimism were a stock, this would be it.)
Jain:“Export demand remains healthy, especially from Europe and the Middle East.”(Translation: Indian cables — now the Middle East’s newest luxury import.)
Kabra:“Succession is in place, and focus is sharper.”(Translation: The family’s still in charge — just more spreadsheets, fewer chai breaks.)
Numbers Decoded
| Metric (₹ Cr) | Q2 FY26 | Q2 FY25 | YoY % | Comment |
|---|---|---|---|---|
| Revenue from Operations | 2,163.8 | 1,810.1 | +19.5% | Copper wires and market fires 🔥 |
| EBITDA | 176.1 | 85.6 | +105.8% | Efficiency doubled up |
| EBITDA Margin | 8.1% | 4.7% | +340 bps | Sweat turned into profit |
| PAT | 116.3 | 49.5 | +134.7% | Diwali came early |
| Wire & Cable Segment Revenue | 1,971.2 | 1,611.8 | +22.3% | The star performer |
| FMEG Segment Revenue | 192.6 | 198.3 | -2.9% | Fans on holiday |
| Volume Growth | 16% | — | — | Momentum humming nicely |
Margins flexed muscle despite metal inflation — proving operating leverage isn’t just finance jargon anymore.
Analyst Questions
Manoj (Equirus):“Margins look good — can you sustain them?”Rajesh:“Yes, we’ve already achieved our 100 bps target early.”(Translation: Don’t jinx it, please.)
Praveen (PL Capital):“Any copper price impact?”Rajesh:“No LME magic, just better product mix.”(Translation: Copper’s hot, but we’re hotter.)
Achal (Nuvama):“Export mix shifting?”Rajesh:“Europe and Middle East drive 80% of exports.”(Translation: Uncle Sam’s tariff tantrums don’t scare us.)
Dhruv (Ambit):“Capacity utilization?”Rajesh:“90% in cables, 70% in wires.”(Translation: Expansion? Already on it.)
Vidit (Asian Markets):
