RR Kabel Falls 8% Despite Strong Q2 Earnings

RR Kabel’s stock fell sharply today (16 Oct 2026), closing at around ₹ 2,392 on NSE — down over 8 % intraday — despite strong Q2 FY26 results showing net profit up 29.5 % QoQ and revenue growth of 19.5 % YoY. Analysts remain long‑term bullish, but valuation pressure and short‑term volatility are weighing on prices. 📊 Current Market Snapshot (16 Oct 2026) NSE Price: ₹ 2,392.55 (−8.10 %) BSE Price: ₹ 2,388.00 (−8.29 %) Day Range: ₹ 2,365 – ₹ 2,644 52‑Week Range: ₹ 1,230 – ₹ 2,980 Market Cap: ~₹ 30,100 crore P/E (TTM): ~49.6x vs sector ~37.5x Dividend Yield: 0.36 % (below industry average) Debt‑to‑Equity: 0.13 (low leverage) 📰 Q2 FY26 Results Highlights Total Income: ₹ 2,163.8 crore (+5.1 % QoQ, +19.5 % YoY) Operating Profit: ₹ 153.9 crore (+26.4 % QoQ, +125 % YoY) Net Profit (PAT): ₹ 116.3 crore (+29.5 % QoQ, +135 % YoY) EPS: ₹ 10.27 vs ₹ 4.38 last year (+134 % YoY) Operating Margin: 7.1 % (improved from 3.8 % last year) 📈 Technical & Market Trends Short‑term trend: Moderately bearish — stock has fallen in consecutive sessions. Medium‑term trend: Still bullish, trading above 50‑, 100‑, and 200‑day averages. Volume: ~1.03 million shares traded today, well above 20‑day average (~358k). Analyst Ratings: 4 “Strong Buy”, 3 “Buy”, none “Sell”. Mutual fund holdings rose to 9.7 % and FII holdings to 12.5 % as of Sep 2026. 🚀 Growth Drivers Industry CAGR: ~15 % for wires & cables, nearly double India’s GDP growth. Capex Plan: ₹ 1,200 crore over 3 years, 80 % for cables, targeting 18 % volume growth. FMEG Segment: Targeting 25 % CAGR with EBIT margins of 5–6 % by FY28. Exports: Expected to outperform domestic sales, expanding into new geographies. ⚠️ Risks & Watchpoints Valuation Pressure: High P/E (~50x) limits upside until earnings catch up. Execution Risk: Large capex and export expansion need disciplined implementation. Sector Sensitivity: Dependent on infrastructure and housing cycles.