KEI Industries Ltd. share price target

The company delivered a steady performance, driven by strong execution in core cable operations, deeper dealer-distribution penetration, rising export participation and improved project delivery capabilities. The management is focused on ramping up the newly commissioned Sanand facility, strengthening capabilities in highervoltage cables and scaling up priority dealers alongside sustained brand investment. Continued export market penetration, solar value-chain participation and execution in urban undergrounding projects could support medium-term growth, though...

Topline met estimates; margin outperformance drove EBITDA/PAT; KEI underperformed peers on capacity constraints

KEI Industries’ (KEII) 3QFY26 earnings were above our estimates, led by higherthan-estimated margin in C&W segment. Total revenue grew ~19% YoY to INR29.5b (in line), while EBITDA increased ~32% YoY to INR3.3b (~6% beat). OPM expanded 1.1pp YoY to ~11% (80bp above our estimates).

Among other segments, stainless steel wire revenue dipped 3.6% YoY to Rs. 52cr. Engineering, procurement and construction (EPC) project revenue significantly declined 56.0% YoY to Rs. 99cr, largely because of a high base effect due to the...

Q1 revenue/EBITDA beat our estimates by 7%/3%, though margin was slightly below expectations at 10.0%

KEI reported a healthy revenue growth of 26% y-o-y, reaching Rs. 2,590 crore (our estimate of Rs 2,411 crore). Revenue growth was in turn led by a 29% y-o-y growth in cables revenues. Within the cables segment, LT cable revenues rose up 23%, HT cables 50%, and housing wires 30%.

KEII has reported W&C revenue growth of 31.8% driven by strong domestic and export demand. KEII has guided for revenue growth of 18%/20%+ for FY26/FY27 driven by strong demand in domestic & export markets, and EBITDA margin of 11% in FY26 supported by commencement of commercial production at Sanand plant in H1FY26 and completion of the plant by end-H1FY27. Expansion of export markets beyond the Middle East, Australia, and Africa, particularly in the USA and Europe, is expected to help achieve the export contribution guidance of 1718%. The company aims to improve its EBITDA...

KEI Industries (KEII)’s 1QFY26 revenue increased ~26% YoY to INR25.9b (~9% beat, fueled by higher-than-estimated revenue in C&W).

KEI Industries delivered strong, 32% y/y, Q1 growth in its C&W category. It targets ~18% revenue growth in FY26 with ~10.5-11% margins and 20%+ growth from FY27.

At the operating level, EBITDA grew 30.3% YoY to Rs. 338cr in Q4FY25, while EBITDA margin increased a meagre 50bps to 11.6%. Reported PAT rose 34.5% YoY to Rs. 227cr in Q4FY25 from Rs. 168cr in Q4FY24, driven by robust top-line growth. KEI displayed robust financial performance in Q4FY25, marked by strong top-line and bottom-line growth. A favourable industry outlook, coupled with robust *over or under performance to benchmark index domestic and export demand, is expected to have a positive impact on the...

KEI reported a healthy revenue growth of 26% y-o-y, reaching Rs. 2,914 crore (our estimate of Rs 2,737 crore) for Q4FY2025 led by 35% y-o-y growth in C&W revenues.

KEI has guided for 20% revenue growth till FY28 supported by commercial production of LT and HT cables in Q1FY26 and completion of Sanand plant by end of FY26 driven by strong demand in domestic & export markets. Major driver for domestic demand are power generation sector (Solar and Wind) and power distribution and transmission companies, as per the management. The company aims to improve its EBITDA margin once Sanand plant becomes operational. KEI reported strong rev growth in HT cables (+65.6% YoY), LT cables (+38.5% YoY) & housing wires (+37.9% YoY) in Q4FY25. Exports saw a...

We met with KEII’s management to gain insights into near-term industry trends and the company’s growth outlook. Management indicated that demand remains strong for cables, led by an increase in government capex activities.

KEI Industries (KEII)’s 3QFY25 revenue grew 20% YoY (in line, as strong revenue growth in the C&W/SSW segment offset lower-than-estimated EPC revenue). Its EBITDA grew ~12% YoY to INR2.4b (3% miss). OPM contracted 70bp YoY to 9.8% (-70bp vs. our estimate) due to a lower margin in the C&W segment.

KEI Industries (KEII) is among the leading players in the Cable and Wire (C&W) industry in India. We believe KEII benefits from multiple growth drivers and business strategies, such as: 1) strong growth potential in the C&W industry over the long term; 2) focus on capacity expansion and gaining market share;

KEII reported a 17% YoY rise in Q2 revenue, but margins declined due to raw material price volatility and lower share of EHV sales and exports

KEI Industries (KEII)’s 2QFY25 earnings were below our estimate due to a lower-than-estimated margin in the Cables and Wires (C&W) segment led by RM cost volatility and lower EPC revenue.

KEI reported a 10% y-o-y growth in net earnings for Q2FY2025 led by a 17% y-o-y growth in
revenues.