RR Kabel Shares Jump 8 Percent During Muhurat Trading Despite Weak Broader Market

RR Kabel shares jumped 8 percent to settle at ₹2,073 during the special one-hour Muhurat Trading session on Sunday, November 8, even as frontline indices closed in the red.

Trading Volume Surge

There was no immediate fundamental trigger behind the rally. A sharp spike in trading volumes helped the stock recover from recent weakness. Around 1.4 million shares changed hands across the BSE and NSE, which is nearly twice the stock's weekly average trading volume based on Trendlyne data.

Financial Results

For the September quarter, RR Kabel reported a 55.7 percent year-on-year increase in consolidated net profit to ₹180.6 crore, compared with ₹116 crore in the year-ago period. Revenue from operations rose 51.8 percent to ₹3,284 crore from ₹2,164 crore in the corresponding quarter last year. The profit growth was driven by improved realisations and a favourable product mix. EBITDA margin expanded by about 50 basis points year-on-year to 8.6 percent.

Guidance and Expansion

The company lowered its FY27 volume growth guidance to around 14 to 15 percent from the earlier estimate of 16 to 18 percent, citing market volatility. Meanwhile, the board approved at least ₹200 crore for land acquisition to expand manufacturing capacity, which is over and above the existing FY27 capital expenditure plan of ₹550 to 600 crore. The management also reiterated its FY28 capital expenditure plan of approximately ₹300 crore.

Context

Muhurat Trading is a special one-hour trading session held in India during Diwali, traditionally considered an auspicious time by investors to buy stocks for the new Hindu accounting year. Despite strong quarterly earnings, companies often face stock price corrections when they lower future growth guidance, making volume-driven recoveries during special sessions notable.