KEI - KEI Industries Ltd. Share Price

Management provided a strong outlook for KEI Industries, projecting more than 20% overall growth for FY '25-'26, despite some delays in scaling up new capacities. Key numbers shared include:

• Net sales for Q2 FY '26 reached INR 2,726 crores, showing a 19.38% growth year-over-year.
• The Wire and Cable segment grew by 22% compared to the previous year.
• EBITDA for this quarter was INR 311.63 crores, a 31.2% increase, with an EBITDA margin of 11.43% (up from 10.4%).
• Profit after tax (PAT) amounted to INR 203 crores, reflecting a growth of 31.47%, with a PAT margin of 7.4%.
• Domestic Institutional Cable sales were INR 581 crores, while Export sales hit a record high of INR 472 crores, a notable 96% increase year-over-year.

Management highlighted a robust order book totaling INR 3,824 crores as of September 30, 2025, indicating strong demand across both domestic and export markets. Although the Sanand plant's first phase faces a four-month delay, it is still expected to operationalize by November '25, significantly contributing to growth in Q4. The projected revenue from the new capacity is around INR 3,000 crores for the next financial year.

The management emphasized a sustained demand in the energy sector, driven by solar, wind, and infrastructure projects, ensuring continued growth for the wire and cable market. They indicated no expected slowdown in demand, indicating confidence in maintaining growth momentum despite capacity allocation shifts towards exports. Overall, KEI aims for a strategic balance between domestic and international markets to sustain growth even amidst emerging competition.

1. Natasha Jain: "Can you break the number, 22.5% in volume and pricing, please?"

Anil Gupta: "The volume increase in the Wire and Cable segment is 15%, with the remaining attributed to price increase."

2. Natasha Jain: "Have we been able to pass this pricing benefit or will it show in the third quarter?"

Anil Gupta: "Yes, we revise retail prices every 15 days. Since over 54% of sales are B2C, we maintain inventory for B2B orders with price variation clauses to protect our margins."

3. Natasha Jain: "Can you clarify the delay in Phase 1 and Phase 2 of the Sanand plant? Will this affect top line growth?"

Anil Gupta: "Phase 1 is delayed by 4 months due to weather and contractor challenges; operation starts in November. Phase 2 faces a 9-month delay due to construction complexities. Despite this, we expect to achieve over 20% FY '25-'26 growth."

4. Anupam Goswami: "What is the capacity mix post-Sanand?"

Anil Gupta: "Upon completion, the entire project will yield approximately INR 6,000 crores in revenue. The first phase will contribute around INR 3,000 crores, with substantial output slated for FY '26."

5. Praveen Sahay: "What are your expectations for exports?"

Rajeev Gupta: "Export revenues will reach around 18% to 19% of total sales as we target new geographies, helped by our strong performance."

6. Jai Chauhan: "What is your current order book for extra high-voltage (EHV) cables?"

Rajeev Gupta: "The current EHV order book stands at INR 636 crores, with a capacity of INR 650 crores."

7. Rahul Agarwal: "What are your margin expectations going forward?"

Anil Gupta: "Margins are expected to improve by 1% to 1.5% once the entire Sanand facility is operational."

8. Dhruv Jain: "What is the execution timeline for your order book?"

Anil Gupta: "Cable orders have a maximum execution time of 4 months, while EPC orders take about 18 months to complete."

9. Sandesh Shetty: "What are your key export markets currently?"

Anil Gupta: "We primarily export to Australia, the Middle East, and Europe, with recent efforts leading to notable sales in the U.S."

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