R R Kabel Ltd. shares jumped nearly 8% in early trade on Tuesday after the company posted a strong set of June-quarter results, with consolidated net profit more than doubling from a year ago.
The stock was trading at around Rs 2,700 on the NSE at 9.24 am, up over 7% from its previous close of Rs 2,525.30. In comparison, the Nifty 50 was up just 0.07%.
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The rally came after the company reported a sharp improvement in profitability, supported by higher margins and robust revenue growth during the quarter. An inventory write-back also boosted its earnings.
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Net Profit Jumps Over 128%
R R Kabel's consolidated net profit surged 128.5% year-on-year to Rs 205 crore in the June quarter, compared with Rs 89.7 crore in the corresponding period last year.
Revenue rose 53.9% to Rs 3,168 crore during the quarter from Rs 2,059 crore in the year-ago period, reflecting strong top-line growth.
The company's operating performance showed an even sharper improvement with Ebitda rising 310.6% year-on-year to Rs 583 crore, compared with Rs 142 crore in the same quarter last year.
Operating margins expanded largely alongside the rise in operating profit. The Ebitda margin stood at 18.4% during the quarter, up from 6.9% a year earlier.
Also Read: R R Kabel Q1 Results: Profit More Than Doubles To Rs 205 Crore, Margins Expand
Inventory Write-Back Rises
R R Kabel also reported an inventory write-back of Rs 169 crore during the quarter. This was substantially higher than the Rs 62 crore inventory write-back recorded in the corresponding quarter last year.
The higher inventory write-back comes alongside the sharp year-on-year increase in Ebitda and the expansion in operating margins during the quarter.
Share price movement
R R Kabel shares climbed nearly 8% as investors cheered the company's strong June-quarter performance, marked by sharp growth in profit, revenue and operating earnings.
However, today is not a one-off rally that the stock is experiencing, as in the past year it has surged over 97.7%, and 84.3% since the beginning of 2026.
In fact, in the past week itself, the stock has surged close to 15.5%, which also incorporates today's rally.
The stock is currently trading at a price-to-earnings multiple of 47.5 times.
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