Shares of R R Kabel Ltd. gained 2.3 per cent in Monday’s trade ahead of the company turning ex-dividend on June 16 for its final dividend of Rs 5.50 per share. The move comes amid strong investor interest, as shareholders look to lock in eligibility for the payout, with the ex-dividend date marking the cutoff for qualifying to receive the shares.
To receive the dividend, investors need to pay close attention to the ex-dividend date, as this is when the stock price adjusts to account for the upcoming payout. Under India’s T+1 settlement system, buying shares on the record date does not make an investor eligible for the dividend, since the transaction is settled the next day. Instead, investors must own the shares before the ex-dividend date, which precedes the record date and determines eligibility.
Dividends represent a portion of a company’s earnings distributed to its shareholders. They serve as a way for companies to share profits and provide a return on the capital invested by shareholders in the business.
The company delivered strong financial performance over the past four years, with consistent growth across key metrics. Revenue rose from Rs 5,599 crore in FY23 to Rs 9,722 crore in FY26, marking a robust 27.6 per cent year-on-year increase in FY26 over FY25. Profit after tax (PAT) grew sharply to Rs 492 crore in FY26 from Rs 312 crore in the previous year, registering a 57.7 per cent rise, while EBITDA surged 61 per cent to Rs 784 crore.
Margins also improved, expanding to 8.1 per cent in FY26 from 6.4 per cent a year ago, up by 170 basis points. Higher other income, which increased from Rs 51 crore to Rs 56 crore.
The growth was driven by healthy demand across both domestic and export markets, along with steady institutional ordering and favourable momentum in the wires and cables (W&C) segment. The company reported record highs in revenue, EBITDA and PAT on both a quarterly and annual basis. Exports accounted for around 26 per cent of total revenue in FY26, reflecting strong traction in overseas markets.
Operationally, the wires segment outperformed the cables segment, contributing to the overall improvement in performance. Looking ahead, management remains optimistic about growth prospects. It is targeting margins of around 10.5 per cent in the W&C segment by FY28, supported by operational efficiencies, a better product mix and expansion in export markets. For FY27, volume growth is projected at 16–18 per cent. The company is also focusing on new opportunities such as the data center segment and expects to enter this space leveraging its existing portfolio.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
