RRKABEL's Q2 FY27 numbers came in mixed, with revenue of Rs. 3,284.00 Cr (+51.77% YoY) and PAT growth of +55.29% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 28, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 3,284.00 Cr (+51.77% YoY) |
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| PAT (Q2) | Rs. 180.60 Cr (+55.29% YoY) |
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| EBITDA margin | 8.64% (+52 bps YoY) |
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| EPS (Q2) | Rs. 15.97 (+55.35% YoY) |
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| Market cap | Rs. 24,146.86 Cr |
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| CMP | Rs. 2,134.90 |
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Quarter Snapshot
Q2 revenue grew 51.77% YoY to Rs.3,284.0 crore and PAT grew 55.29% YoY to Rs.180.6 crore, with EBITDA margin up 52 bps YoY to 8.64%. However, the quarter deteriorated sequentially — PAT fell 11.99% QoQ, FMEG slipped back to a Rs.12.4 crore loss after Q1 breakeven, and H1 CFO/PAT of 0.315x with net debt tripling to Rs.447.3 crore shows the copper-led topline is straining working capital. The FY27 9.5% EBITDA margin guidance now requires ~10.22% in H2, above anything printed in the five-quarter series.
Key Investment Insights
Key Positives
- Revenue grew 51.77% YoY to Rs.3,284.0 crore; H1 revenue grew 52.81% YoY to Rs.6,452.2 crore
- Q2 PAT grew 55.29% YoY to Rs.180.6 crore; H1 PAT grew 87.28% YoY to Rs.385.8 crore
- EBITDA margin expanded 52 bps YoY to 8.64% with cost of materials down 275 bps YoY to 79.67% of revenue
- Wires & Cables revenue grew 52.71% YoY to Rs.3,010.3 crore with segment EBIT margin of 9.38% (+23 bps YoY)
- FMEG revenue grew 42.11% YoY to Rs.273.7 crore
- Operating cash flow improved to Rs.121.4 crore in H1 from negative Rs.129.7 crore in the year-ago period
- Interim dividend of Rs.6.5/share declared (40.74% payout of Q2 PAT); India Ratings upgraded to IND AA/Stable
- Silvassa Unit 3 (12,000 MT p.a.) commenced 15 September 2026; CWIP rose to Rs.185.5 crore from Rs.72.2 crore
Risk Factors
- FMEG returned to a Rs.12.4 crore EBIT loss (−4.53% margin) after Q1 breakeven, on a 5.03% QoQ revenue decline
- QoQ PBT fell 7.88% and PAT fell 11.99% despite revenue rising 3.66%; EBITDA margin slipped 30 bps QoQ
- Finance costs rose 101.23% YoY and 23.95% QoQ to Rs.32.6 crore on working-capital build and new borrowings
- CFO/PAT was 0.315x in H1 with FCF of negative Rs.158.8 crore; net debt tripled to Rs.447.3 crore since March
- EPR recycling rules effective 1 April 2026 have unquantifiable financial impact as the CPCB portal is not yet operational
- W&C EBIT margin fell 53 bps QoQ to 9.38%