KEI Industries Limited
KEI
Quarterly Score
Showing the latest 12 quarterly points (newest to oldest).
Score context (latest 12 quarters)
Management maintained full-year FY25 revenue growth guidance of 16-17% and EBITDA margin guidance of 10.5-11%. The company aims for a long-term CAGR of 15-16%. INR900-1,000 crores capex is planned for FY25 for the Sanand greenfield expansion, with commercial production expected by Q1 FY26, followed by another INR600 crores in FY26. Working capital management is targeted to improve, with receivables coming down to 2.1 months and inventory normalizing to 2.25 months by Q3.
Quarter summary
- KEI Industries witnessed a significant shift in sales mix towards its B2C/dealer network, which became the primary growth driver, increasing its contribution to over half of total sales.
- The company is making substantial strategic investments in greenfield expansion at Sanand, alongside completing brownfield capex, to ensure adequate capacity for its ambitious long-term growth targets.
Rationale
- The company delivered strong H1 FY25 revenue growth of 16.5% (to INR4,340 crores) and PAT growth of 16.62% (to INR305 crores), consistent with its full-year guidance of 16-17% revenue growth.
- H1 FY25 EBITDA margin stood at 10.83% and PAT margin at 7.03%, both within management's full-year EBITDA guidance of 10.5-11% and indicating stable profitability.
Management guided for 17-18% growth in FY25-26, with an aim to achieve 20%. Long-term growth (FY26-27 onwards) is projected at 19-20%. Operating margins are expected to improve in FY25-26 due to EHV recovery and further from FY27-28 with Sanand plant's full impact. Phase 1 of the Sanand project (LT & HT cables) is expected to commence commercial production by the end of Q1 FY25-26.
Quarter summary
- Q4 FY25 witnessed strong financial performance driven by robust domestic B2C sales and exceptional export growth, despite a temporary decline in EPC and EHV segments.
- The company is actively executing its large-scale capacity expansion at Sanand, with the first phase of commercial production expected by end of Q1 FY26.
Rationale
- The company delivered exceptional Q4 FY25 performance with Net Sales growth of 25.1% YoY (Rs. 2,914.8 crore), EBITDA growth of 30.3% YoY (margin improved to 11.61% from 11.15% PY), and PAT growth of 34.2% YoY (Rs. 226 crore).
- Full year FY25 results showed strong growth: Net Sales up 19.9% YoY (Rs. 9,736 crore), EBITDA up 19.9% YoY (Rs. 1,062 crore), and PAT up 19.85% YoY (Rs. 696 crore), demonstrating consistent execution.
Management guided for 18% revenue growth and 10.5% to 11% EBITDA margins for FY26, expressing confidence that performance could be 'far better' than this conservative estimate. The long-term outlook targets a 20% YoY CAGR over the next 2-3 years after Sanand completion. Current order booking as on June 30, 2025, stands at Rs. 3,921 crores, providing strong visibility.
Quarter summary
- KEI Industries delivered robust Q1 FY26 performance with strong revenue and profit growth, driven by its core Wire and Cable segment and a significant surge in export sales.
- The company is actively deploying its QIP funds into the Sanand project, with the first phase of commercial production expected to commence by Q3 FY26, signaling future capacity and market expansion.
Rationale
- Delivered exceptional Q1 FY26 financial performance with robust growth across key metrics: Net Sales up 25.44% YoY to Rs. 2,590.32 crores, EBITDA up 28% YoY to Rs. 297.62 crores, and PAT up 30.28% YoY to Rs. 195.75 crores.
- Showcased expanding margins, with EBITDA margin improving to 11.49% from 11.25% YoY and PAT margin to 7.56% from 7.28% YoY.
Management raised FY26 revenue growth guidance from 17-18% to "definitely cross 20%". The long-term outlook for the next 3-5 years remains a 20%+ CAGR growth. Sanand Phase 1, representing over 50% of the total capacity (estimated at INR 3,000 crores revenue potential), is expected to be operational by November '25 (4-month delay). Sanand Phase 2 (for EHV/MV cables) is delayed by approximately 9 months. Management anticipates a 1-1.5% margin expansion once the entire Sanand capacity is fully commissioned and stabilized by FY28.
Quarter summary
- The company successfully executed its diversification strategy, resulting in record export sales and expansion into new global markets.
- Strategic reallocation of existing manufacturing capacity was undertaken to prioritize high-growth export opportunities in anticipation of new plant commissioning.
Rationale
- Q2 FY26 Net Sales grew 19.38% YoY to INR 2,726 crores, with H1 FY26 Net Sales up 22.25% to INR 5,316 crores, demonstrating robust top-line expansion well above previous guidance.
- EBITDA margin expanded significantly to 11.43% in Q2 FY26 (vs 10.4% YoY) and 11.46% in H1 FY26 (vs 10.81% YoY), leading to PAT growth of 31.47% in Q2 and 30.88% in H1, consistently outpacing revenue growth and indicating strong operational leverage.
Management maintained full year FY26 net sales growth guidance of 20%+ and raised Q4 FY26 growth guidance to 25%+ due to rising copper prices. Operating margins are expected to improve in FY26, targeting ~11% EBITDA for FY27. Long-term CAGR of 20%+ is projected for the next 3-4 years, driven by the Sanand facility, which is expected to contribute an incremental INR 2,700 crores in FY27 and INR 6,000 crores by FY29. The total order book as of Dec 31, 2025, stands strong at INR 3,928 crores, providing good revenue visibility.
Quarter summary
- Successful ramp-up and partial commissioning of the Sanand manufacturing facility has begun, with clear plans for full operationalization and significant revenue contribution over the next 3-4 years.
- The company has significantly expanded its presence in export markets, including pioneering EHV cable supplies to new geographies and qualifying for high-voltage frameworks with international utilities.
Rationale
- Delivered exceptional financial performance with Q3 FY26 net sales growth of +19.51% YoY, significantly outpaced by EBITDA growth of +39% YoY to INR 354 crores, leading to a substantial EBITDA margin expansion to 12% from 10.29% YoY.
- Reported robust Profit After Tax (PAT) growth of +42.5% YoY to INR 234.86 crores in Q3 FY26, with PAT margin expanding to 7.95% from 6.67% YoY, indicating strong operating leverage and cost management.
Future Growth Prospects
Catalysts (next 12-24 months)
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Sanand Plant Commercial Production & Ramp-up (LTHT & Solar Wires)
Timeline
- announcedNov 2024 · annual_report
QIP fund raising to fund capex... for Greenfield manufacturing facility for LT, HT and EHV Cables at Sanand, Ahmedabad
- announcedSep 2025 · annual_report
The first phase will go live by September, 2025, with full completion targeted by Q1 FY26-27.
Show full timeline (6)
- commissionedDec 2025 · concall
LTHT, we have just started trial production in December.
Phase 1 operational by Nov '25 was previous guidance
- commissionedDec 2025 · ppt
Company has started First Phase of Commercial Production for LT/HT Cables at its Green field unit located at Sanand, Ahmedabad (Gujarat)
- commissionedApr 2026 · concall
By April, we expect that our electron beam equipment to manufacture, electron beam pure solar wires will be commissioned
- scaledMar 2027 · concall
an extra high-voltage cable facilities will come up by March '27. So this is going to be the ramp-up. So in next financial year, this project will be complete in all respects.
Phase 2 (EHV) delayed by ~9 months from original Q1 FY27 target
Supporting evidence
• Q3 FY26 · concall · LTHT, we have just started trial production in December. And gradually in this quarter, January, February, March, we ramped up.
Show evidence (2)
• FY25 · annual_report · Once operational, Sanand will add approx. ` 5,500-6,000 crore in production capacity.
Export Market Expansion & EHV Capability
Timeline
- in progressQ3 FY26 · ppt
Exports accounted for... 17% in 9M FY26
- in progressFY26E · annual_report
US exports expected to double in FY 2025-26
Show full timeline (4)
- commissionedQ1 FY27 · annual_report
Sanand facility unlocking long-length EHV export capability in Q1 FY26-27.
- announcedFY28E · annual_report
We expect exports to contribute 15-18% of total sales over the period of next 3 years
Supporting evidence
• Q3 FY26 · concall · world markets are very, very good. I mean, from India, what we are exporting is just a peanut. It depends on how much we are able to explore and exert ourselves into large economies.
Show evidence (2)
• FY25 · annual_report · We expect exports to contribute 15-18% of total sales over the period of next 3 years, with the Sanand facility unlocking long-length EHV export capability in Q1 FY26-27.
Strong B2C Growth in Distribution Network
Timeline
- in progressQ1 FY26 · concall
B2C sale has contributed 51% in the first quarter as against 53% previous year same quarter. The growth in this sales through distribution network is 22%.
- in progressQ3 FY26 · concall
Sales through distribution network that is B2C was INR1,612 crores with a growth of 29%. B2C sale contribution is 55% in the third quarter
Show full timeline (3)
- in progressFY26E · ppt
Retail as a % of sales for 9M FY26: 53%
Supporting evidence
• Q3 FY26 · concall · Sales through distribution network that is B2C was INR1,612 crores with a growth of 29%. B2C sale contribution is 55% in the third quarter
Show evidence (2)
• FY25 · annual_report · Our retail business sustained its strong growth trajectory, contributing 52% to total sales, up from 46% in the previous year.
New Greenfield Capacity (Post-Sanand)
Timeline
- announcedFY25 · annual_report
we have acquired 18 acres land at Salarpur, Rajasthan and in the process of acquiring a sizeable land at Kheda, Nadiad, Gujarat.
- announcedNext 3-4 years · concall
in next 3 to 4 years, our planning is to invest another INR2,000 crores apart from Sanand.
Supporting evidence
• Q3 FY26 · concall · in next 3 to 4 years, our planning is to invest another INR2,000 crores apart from Sanand.
Show evidence (2)
• Q1 FY26 · concall · We bought the 2 land recently. One is in Rajasthan, another in Sanand also -- another land we bought in Sanand also for backward integration, but the capex will start only after the completion of the Sanand project.
Variant perception
Non-consensus viewManagement believes initial investor worries about new competition in the wires segment, particularly from outsourcing models, are overblown and expects continued growth despite new entrants.
- Outsourcing models in wires are unlikely to work, suggesting KEI's integrated model is a durable competitive advantage (Q3 FY26 Concall, P11).
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- The 'sky is the limit' for exports, indicating higher potential than current targets, especially with EHV unlocking (Q3 FY26 Concall, P14).
- US export market remains uncertain due to tariffs, which could affect future export growth (Q3 FY26 Concall, P14).
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- Construction complexities for EHV facilities at Sanand caused delays, potentially impacting timelines (Q2 FY26 Concall, P5).
Quick takeaway
Sanand capacity ramp-up, adding ~INR 6,000 Cr by FY29.
Risk watch: Further delays in Sanand project commissioning or ramp-up.
Show details (2 drivers, 2 risks)Hide details
Drivers
- Sanand capacity ramp-up, adding ~INR 6,000 Cr by FY29.
- Continued strong demand from infrastructure and energy sectors.
Risks
- Further delays in Sanand project commissioning or ramp-up.
- Intensified competition leading to price pressure.
Quick takeaway
Faster-than-expected Sanand ramp-up, especially EHV.
Risk watch: Major geopolitical shifts impacting international trade.
Show details (2 drivers, 2 risks)Hide details
Drivers
- Faster-than-expected Sanand ramp-up, especially EHV.
- Higher export growth, aiming for >20% share in next 2 years.
Risks
- Major geopolitical shifts impacting international trade.
- Significant fluctuations in raw material prices not fully passed on.
Quick takeaway
Robust underlying demand in domestic B2C and institutional segments.
Risk watch: Prolonged uncertainty in US export market due to tariffs.
Show details (2 drivers, 2 risks)Hide details
Drivers
- Robust underlying demand in domestic B2C and institutional segments.
- Order book conversion in 3-4 months providing sustained revenue.
Risks
- Prolonged uncertainty in US export market due to tariffs.
- Slower-than-expected pace of new capex projects post-Sanand.
Quick takeaway
Sanand capacity ramp-up, adding ~INR 6,000 Cr by FY29.
Risk watch: Further delays in Sanand project commissioning or ramp-up.
Show details (2 drivers, 2 risks)Hide details
Drivers
- Sanand capacity ramp-up, adding ~INR 6,000 Cr by FY29.
- Continued strong demand from infrastructure and energy sectors.
Risks
- Further delays in Sanand project commissioning or ramp-up.
- Intensified competition leading to price pressure.
Quick takeaway
Faster-than-expected Sanand ramp-up, especially EHV.
Risk watch: Major geopolitical shifts impacting international trade.
Show details (2 drivers, 2 risks)Hide details
Drivers
- Faster-than-expected Sanand ramp-up, especially EHV.
- Higher export growth, aiming for >20% share in next 2 years.
Risks
- Major geopolitical shifts impacting international trade.
- Significant fluctuations in raw material prices not fully passed on.
Quick takeaway
Robust underlying demand in domestic B2C and institutional segments.
Risk watch: Prolonged uncertainty in US export market due to tariffs.
Show details (2 drivers, 2 risks)Hide details
Drivers
- Robust underlying demand in domestic B2C and institutional segments.
- Order book conversion in 3-4 months providing sustained revenue.
Risks
- Prolonged uncertainty in US export market due to tariffs.
- Slower-than-expected pace of new capex projects post-Sanand.
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