admin
🧩 KEI Industries Q1FY26 Results: Revenue Growth Surpasses Estimates
KEI Industries Q1FY26 Results have surpassed expectations, delivering 25.44% YoY revenue growth, outpacing even the company’s own guidance of 17–18%. This performance was driven by strong export growth, institutional demand, and continued traction in the domestic distribution channel.
KEI Industries Q1FY26 Results: Strong Growth Across Segments
KEI Industries Ltd has posted a robust set of numbers for the first quarter of FY26, surpassing its own full-year growth guidance. With rising demand in real estate, infrastructure, and power segments, and consistent institutional orders, KEI has strengthened its market positioning in the cable and wire (C&W) space.
Let’s break down KEI’s Q1FY26 performance in detail.
🔍 Quick Snapshot – Q1FY26 Performance (YoY)
| Metric | Q1FY26 | Q1FY25 | YoY Growth |
|---|---|---|---|
| Revenue | ₹2,590 Cr | ₹2,065 Cr | 25.44% ↑ |
| EBITDA | ₹298 Cr | ₹233 Cr | 28.06% ↑ |
| EBITDA Margin | 11.49% | 11.25% | Slightly ↑ |
| Net Profit (PAT) | ₹196 Cr | ₹150 Cr | 30.28% ↑ |
| PAT Margin | 7.56% | 7.28% | Improved ↑ |
💡 Revenue Analysis – Growth Beats Guidance
KEI had earlier guided for a 17–18% revenue growth in FY26. However, the company has already delivered a 25.44% YoY topline growth in Q1FY26, signaling strong demand and business momentum.
📈 Revenue Contributors Breakdown:
- Domestic Cable & Wire (Institutional): ₹711 Cr (↑26.62%)
- Domestic EHV Cable: ₹116 Cr (↑46.83%)
- Exports (C&W): ₹332 Cr (↑122.09%) 🚀
- Dealer/Distribution C&W Sales: ₹1,326 Cr (↑22.21%)
- Export EPC: ₹14 Cr (vs ₹58 Cr YoY; lower base effect)
- SS Wire Sales: ₹27 Cr (vs ₹25 Cr YoY)
🏭 Business Segment Performance
1. Institutional & Export Business – 44.77% of Revenue
Strong growth in extra high voltage (EHV) and exports underpins the company’s future scalability. EHV cables, despite being a niche product, saw 47% YoY growth, indicating deeper infra project penetration.
2. Dealer/Distribution Channel – 51.18% of Revenue
- Dealer channel remains the mainstay, driven by strong brand recall.
- Active dealer count: 2,094 as of June 2025.
3. EPC and SS Wire Business – Minor But Stable
- EPC exports witnessed a YoY drop, but expected to bounce back with new infra orders.
- SS Wire is a consistent, small but profitable vertical.
🧪 Product Mix Details – Diversified Revenue Streams
| Product Type | Sales in Q1FY26 |
|---|---|
| LT Cable | ₹1,037 Cr |
| HW/WW Cable | ₹842 Cr |
| HT Cable | ₹480 Cr |
| EHV Cable | ₹126 Cr |
The mix shows KEI’s dominance in low-tension (LT) and high-voltage (HV) cables, key components for housing, infra, and industrial demand.
🧾 Financial Health & Capex Utilization
KEI has raised ₹2,000 Cr through QIP for expansion and strengthening its operations. As of June 30, 2025:
- ✅ Capex Incurred: ₹292.88 Cr
- ✅ Sanand Facility Expansion: ₹454.29 Cr (for LT/HT cables by Sep 2025)
- ✅ Repayment of Borrowings: ₹275.99 Cr
- ✅ Raw Materials & Testing: ₹149.26 Cr
- ✅ Total Used from QIP: ₹913.92 Cr
- ✅ Unutilized QIP Funds: ₹1,086.90 Cr
- ✅ Cash/Bank Balance: ₹1,699 Cr
Debt-Equity Ratio: 0.02 – Almost Debt-Free
This highlights strong financial discipline and cash-rich status.
🏗️ Order Book Strength
- Pending Order Book: ₹3,921 Cr
This reflects consistent execution visibility for the next 3–4 quarters.
🌐 Industry Comparison – KEI vs Polycab
| Parameter | KEI Industries | Polycab |
|---|---|---|
| Q1FY26 Revenue Growth | 25.44% | 26% |
| Wire & Cable Segment | Robust | Dominating (31%) |
| PAT Growth | 30.28% | Higher |
| Institutional Exposure | High | Moderate |
| Dealer/Distributor Network | Growing (2,094) | Larger Base |
Though Polycab leads in volumes and brand scale, KEI is catching up with better export traction, financials, and niche EHV capability.
💰 Stock Valuation & Target Outlook
| Metric | Value |
|---|---|
| CMP | ₹2,759 |
| Fair Entry Range | ₹2,150 – ₹2,350 |
| 12–18M Target | ₹3,200+ |
| PE Ratio (TTM) | 45x |
| ROE / ROCE | 19.2% / 25.7% |
| EBITDA Margin | ~10.2% |
Stop-loss suggested at ₹2,000 for medium-term investors.
📌 Growth Drivers Going Forward
- 🚧 Infra & Housing Boom: Urbanization & Smart City projects continue to drive demand.
- 🌍 Export Expansion: Global shift towards Indian manufacturers in the electrical ecosystem.
- 🧪 Sanand Facility: New plant by Q2FY26 to boost LT/HT output capacity.
- ⚡ EHV Cable Demand: Rising grid & transmission capex benefits this niche.
⚠️ Risks & Considerations
- 🔻 Raw Material Volatility: Copper & Aluminum prices can dent margins.
- 🧯 Competition: Price pressure from established players like Polycab and Havells.
- 🏗️ Execution Delays: Sanand expansion needs timely delivery for demand capture.
🧭 Investor Takeaway – Should You Buy KEI Stock?
KEI Industries has posted excellent Q1FY26 results, outpacing its guidance and industry growth. With consistent margin performance, high return ratios, and healthy financials, the company is on a sustainable long-term growth path.
For investors seeking a low-debt, export-oriented, infra-aligned cable player, KEI Industries remains a high-conviction midcap pick.
✅ Final Words
KEI Industries is proving itself not just as a domestic cable & wire manufacturer, but also as a global growth story with rising exports and strategic capex. The Q1FY26 performance adds strong credibility to its long-term roadmap, and its almost debt-free status makes it resilient in a volatile environment.
⚙️ Export & Infra Demand – Future Growth Triggers
- Government infra push = long-term tailwind
- Export opportunities amid China+1
- High-margin EHV cables gaining traction
- Sanand capacity to significantly boost volumes
⚠️ Risk Factors to Monitor
- Volatile input prices (copper, aluminum)
- High competition from Polycab, Havells
- Delays in Sanand facility commissioning
- Global trade slowdown
✍️ Conclusion
The KEI Industries Q1FY26 Results reflect not just strong earnings, but also a well-capitalized and future-ready business model. The focus on exports, capacity expansion, and high-voltage segments makes KEI a compelling long-term story in India’s electrification journey.
Disclaimer: The projections of potential returns are based on current market conditions and company performance. Actual results may vary due to various factors, including market dynamics, economic conditions, and changes in the competitive landscape. Investors should conduct their own research and consult with financial advisors before making investment decisions.
⚠️ Not SEBI Registered—just here to share insights | 🚫 No paid services—everything shared is entirely free! 🧠 Always Learning and excited to grow together in this journey of market exploration.
Multibagger Stocks breakout stocks
📲 Join Our Investor Communities
Stay updated with actionable stock insights, earnings analysis, and potential multibagger opportunities:
🔹 Join our Telegram Channel: Multibagger Hunts
🔹 Join our WhatsApp Channel: Click to Join
✅ Free access
✅ Instant alerts
✅ Curated research for serious investors
TwitterXWhatsAppThreadsTelegramFacebookLinkedInGmailEmailShare
