RR Kabel’s stock fell sharply today—down over 7 %

RR Kabel’s stock fell sharply today—down over 7 % to ₹ 2,660—despite strong quarterly results showing a 29 % QoQ profit rise and 19 % YoY revenue growth. Analysts say short‑term selling pressure contrasts with the company’s long‑term bullish outlook driven by export expansion and infrastructure demand. 📊 Latest Financial Highlights (Q2 FY26) Metric Q2 FY26 (₹ Cr) QoQ Change YoY Change Notes Total Income 2,163.8 +5.1 % +19.5 % Steady revenue growth from cables & FMEG segments Operating Profit 153.9 +26.4 % +125 % Margins improved to 7.1 % Net Profit (PAT) 116.3 +29.5 % +135 % EPS ₹ 10.27 vs ₹ 4.38 last year Operating Expenses 2,009.8 +3.8 % +15.4 % Cost control aided margin expansion Interpretation: RR Kabel’s profitability surged on cost efficiencies and higher export volumes, though revenue growth was modest quarter‑on‑quarter. 📈 Market Performance (2 Sep 2026) NSE Price: ₹ 2,636 (−8.15 %) BSE Price: ₹ 2,638 (−8.01 %) Intraday Low: ₹ 2,660.2 52‑Week Range: ₹ 1,169.7 – ₹ 2,980.0 Volume: ≈ 1.15 million shares Technical View: Trading below 5‑day and 20‑day moving averages, signalling short‑term weakness. Still above 50‑, 100‑, and 200‑day averages, implying medium‑term bullish trend. MACD bullish, RSI neutral, OBV positive—suggesting accumulation despite price dip. 🏭 Growth Drivers & Strategy Industry CAGR: ≈ 15 % for wires & cables—nearly double India’s GDP growth. Volume Growth Target: 17–18 % annually for FY 26. FMEG Segment: Aiming 25 % CAGR over 3 years with EBIT margins of 5–6 % by FY 28. Capex Plan: ₹ 1,200 crore over 3 years (≈ 80 % for cables) to support 18 % volume growth. Export Focus: Expanding into new geographies and product lines; exports expected to outperform domestic sales. Project RISE: Operational efficiency initiative to lift EBITDA margins by ≈ 100 bps annually.