Why did RR Kabel share rally 8% during Muhurat Trading despite weak market sentiment — what triggered the surge?

Cable and wire manufacturer RR Kabel's shares ended the special one-hour Muhurat Trading session on Sunday, November 8, with a solid 8% jump to settle at ₹2,073, even as the frontline indices closed in the red.

Although there was no immediate fundamental trigger behind the rally, a sharp spike in trading volumes helped the stock recover from its recent weakness. Around 1.4 million shares changed hands across the BSE and NSE during the session, nearly twice the stock's weekly average trading volume, according to Trendlyne data.

The shares had suffered significant losses following the company's September-quarter results, ending October with a 19% decline and extending their losing streak to a second consecutive month after falling 14% in September. Despite the recent weakness, the stock remains up 42% in 2026, supported by the gains accumulated during the first half of the year.

Although the company reported better-than-expected performance during the quarter, its subdued guidance has raised concerns on Dalal Street.

The company lowered its FY27F volume growth guidance to around 14-15%, from the earlier estimate of 16-18%, citing market volatility and quarterly fluctuations. However, it maintained confidence in outperforming the industry average.

In addition, the company acknowledged that competitive intensity could fluctuate but reiterated its confidence in delivering growth through efficient capacity utilisation and stronger sales and marketing execution.

For the September quarter, RR Kabel reported a 55.7% year-on-year increase in consolidated net profit to ₹180.6 crore, compared with ₹116 crore in the year-ago period. The growth was driven by improved realisations and a favourable product mix, supported by a higher contribution from the cables segment as exports shifted towards cables.

Revenue from operations rose 51.8% to ₹3,284 crore from ₹2,164 crore in the corresponding quarter last year. This growth came despite overall volume growth in the wires and cables business remaining in the high single digits.

Improved gross profitability, cost efficiencies, and operating leverage resulted in an approximately 50-basis-point year-on-year expansion in EBITDA margin to 8.6%.

The company's board approved an allocation of at least ₹200 crore towards land acquisition as the first step towards further expansion of its wires and cables manufacturing capacity. This investment is over and above the existing FY27 capital expenditure plan of ₹550-600 crore.

The management also broadly reiterated its FY28 capital expenditure plan of approximately R 300 crore, with further details of the proposed expansion expected to emerge over the next one or two quarters.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.

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