R R Kabel Ltd. announces an acquisition

U M Cables contributed Rs 78.19 Crores of revenue in FY26, equivalent to approximately 0.80% of R R Kabel’s FY26 revenue. Its FY26 EBITDA was not reported in the transaction disclosure, so a defensible EV/EBITDA multiple cannot be calculated. U M Cables represented 2.12% of Usha Martin’s FY26 consolidated revenue. ^[1]

Valuation bridge

The Rs 77 Crores consideration therefore equates to roughly one year of U M Cables’ FY26 revenue and about one-third of R R Kabel’s current EV/Revenue multiple. Put differently, the transaction’s sales multiple is approximately 66% below R R Kabel’s reported current trading multiple, derived from 0.98x versus 2.92x.

EV/EBITDA: U M Cables’ EBITDA is not separately reported in the cited transaction material. The only valid expression is:

`Implied EV/EBITDA = Rs 77 Crores / U M Cables FY26 EBITDA`

For reference, an EBITDA of approximately Rs 2.08 Crores would make the acquisition trade at R R Kabel’s current 36.99x EV/EBITDA multiple; this is a break-even threshold, not U M Cables’ reported EBITDA. ^[3]

The comparison also has a basis limitation: the target multiple uses FY26 revenue, while R R Kabel’s quoted current multiples are market-data multiples based on its latest trailing metrics. The Rs 77 Crores is subject to working-capital adjustments, so 0.98x should be treated as a purchase-price-to-sales proxy, not a fully specified enterprise-value multiple. ^[1]

Yes, but the disclosed scope is broad rather than capacity-specific. R R Kabel is acquiring U M Cables’ optical-fibre and related-cable business undertaking through a Rs 77 Crores slump sale on a going-concern basis, rather than acquiring shares in U M Cables. The transaction is subject to working-capital adjustments and conditions to be documented in the Business Transfer Agreement. ^[4]

• Product scope: The undertaking covers manufacturing and sale of optical fibre and related cables. ^[5]
• Capacity detail: The filing does not quantify installed manufacturing capacity, throughput, plant-wise capacity, machinery, or individual product-line capacities. Therefore, the disclosed evidence supports transfer of a specialized communication-cable product business, but not a precise capacity addition.
• Integration timeline: No expected closing date or timetable for integrating the assets into R R Kabel’s existing supply chain has been disclosed. Completion remains conditional on executing the Business Transfer Agreement and satisfying its conditions precedent. ^[4]

Analytical implication: The acquisition should be treated as an operating-business transfer that gives R R Kabel entry into optical-fibre and related communication cables, not yet as a clearly quantified capacity expansion. The timing and economic impact will depend on the closing conditions, asset handover, production continuity, and subsequent integration plan—none of which has been dated publicly in the cited filing.