RR Kabel Ltd posted a strong set of numbers for the March quarter, driven by steady demand in its core wires and cables business. The company also announced a final dividend, offering an additional boost for shareholders even as the stock reaction remained subdued.
Net profit for the quarter came in at Rs 168 crore, registering a 30.2 per cent rise compared to the year-ago period. Revenue grew sharply by 33.6 per cent year-on-year to Rs 2964 crore, indicating sustained business momentum. At the operating level, EBITDA increased 35 per cent to Rs 261 crore, although margins remained largely flat at 8.8 per cent.
The wires and cables (W&C) segment continued to drive overall growth, with revenue rising 36.3 per cent. The segment saw healthy traction across domestic and export markets, supported by a steady pipeline of institutional orders. Profit from this segment increased 32.5 per cent, aided by higher sales and better handling of input cost fluctuations. Margins also improved by 143 basis points compared to last year.
The fast-moving electrical goods (FMEG) segment delivered stable growth, backed by consistent demand and ongoing expansion of the company’s distribution reach. While profitability remained broadly unchanged due to continued investments in brand building and future growth initiatives, gains in operational efficiency helped limit losses.
Managing Director Mahendrakumar Kabra said the company recorded its highest-ever quarterly revenue, reflecting strong execution and demand visibility. He added that the wires and cables segment remained the key growth driver, with exports performing particularly well during the quarter.
On the dividend front, the board has proposed a final dividend of Rs 5.5 per equity share for FY26, which is equivalent to 110 per cent of the face value. This is in addition to the interim dividend already paid during the financial year. The company has set Tuesday, June 16, 2026, as the date for determining shareholders eligible to receive the final dividend, subject to approval at the upcoming annual general meeting.
Following the results announcement, the stock came under pressure, with shares of RR Kabel declining nearly 5 per cent during intraday trade on the NSE.
(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)
