Summary:
KEI Industries Ltd reported its Q2 FY26 results with net profit rising 31.3% YoY to ₹204 crore, supported by strong revenue growth. However, the company missed analysts’ estimates on revenue and EBITDA margins, leading to a share price decline of up to 8%. Healthy demand in the Cables & Wires segment drove growth, while operating efficiency pressures kept EBITDA margins slightly below expectations.
Q2 Financial Highlights
KEI Industries reported a net profit of ₹204 crore for Q2 FY26, up from ₹155 crore in the year-ago quarter, slightly surpassing the CNBC-TV18 analyst estimate of ₹201 crore.
Revenue from operations rose 19.4% YoY to ₹2,726 crore, compared with ₹2,284 crore in Q2 FY25, though slightly below the street estimate of ₹2,772 crore.
EBITDA came in at ₹269.1 crore, a 20% increase YoY from ₹224.4 crore, but fell short of the expected ₹283 crore, while EBITDA margin remained flat at 9.9%, versus the estimated 10.2%. For the first half of FY26, the EBITDA margin stood at 9.9%, down from 10.2% in H1 FY25, reflecting marginal pressure on operating efficiency.
Business Segment Performance
The revenue growth was primarily driven by the Cables & Wires segment, which benefitted from strong domestic demand amid rising copper prices:
- Cables business: Revenue increased 23% YoY
- SS Wires: Revenue declined 10% YoY
Overall, H1 revenue growth reached 22% YoY, surpassing the 18–19% guidance shared after Q1 FY26.
The order book as of September 30, 2025, stood at ₹3,824 crore, providing visibility on near-term business activity.
Analyst Commentary
Brokerage views on KEI Industries remain mixed amid growth and competition concerns:
- Morgan Stanley retained its “overweight” rating with a price target of ₹4,825, expecting volume growth of 12–15% in the Cables & Wires segment.
- Investec noted KEI as one of the best-managed wires & cables companies, but warned that significant capacity additions by incumbents and new players over the next 12–18 months could pressure business economics, leading to a “hold” rating.
Market Reaction
Following the announcement, KEI Industries shares fell up to 8%, reflecting investor concern over the slight revenue and margin miss, despite strong growth in net profit and key business segments.
Outlook
KEI Industries is expected to continue leveraging strong domestic demand in the Cables & Wires segment, while keeping a close watch on rising input costs and competitive pressures. Strategic capacity expansion and operational efficiency improvements will be critical for sustaining margin growth and meeting street expectations in the coming quarters.
Disclaimer:
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