KEI Industries Limited (NSE: KEI) Q1 2026 Earnings Call dated Jul. 23, 2025
Corporate Participants:
Unidentified Speaker
Anil Gupta — Chairman, Managing Director and Chief Executive Officer
Rajeev Gupta — Director of Finance and Chief Financial Officer
Analysts:
Unidentified Participant
Achal Lohade — Analyst
Natasha Jain — Analyst
Jayshree Bajaj — Analyst
Vidit Trivedi — Analyst
Naushad Chaudhary — Analyst
Pravin Sahay — Analyst
Raman KV — Analyst
Akash Jha — Analyst
Keyur Pandya — Analyst
Shirom Kapur — Analyst
Charanjit Singh — Analyst
Rahul Maheshwari — Analyst
Dhruv Jain — Analyst
Amit Agicha — Analyst
Nikhil Purohit — Analyst
Balasubramanian A — Analyst
Presentation:
operator
Your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Archer from Nuvama Institutional Equities. Thank you. And over to you, sir.
Achal Lohade — Analyst
Yeah. Thank you, Shruti. Good afternoon everyone. On behalf of Nuvama Institutional expertise we are glad to host the senior management of Kei Industries Limited. We have with us Mitra Anil Gupta, Chairman and Managing Director of the company. Mr. Rajesh Gupta, Executive Director, Finance and CFO. We will start the call with the opening remarks from the management and then move to Q and A. Thank you. And over to you, sir.
Anil Gupta — Chairman, Managing Director and Chief Executive Officer
Yeah. So. Good morning. I am Anil Gupta, CMD, Kei Industries Limited. I’ll give a brief about Q1 or. You must have seen gone through the figures. The net sales in Q1 of FY26 is 2590.32 crore. The growth in net sales is 25.44%. EBITDA in this quarter is 297.62 crore against 232 crore last year. The growth in EBITDA is 28%. And EBITDA oblique net sales margin is 11.49% against 11.25% in the same period previous year. Profit after tax in this quarter is 195.75 crore against 150.25 crore in the same quarter last year. Growth in the PAT is 30.28%.
Profit after tax oblique net sales margin is 7.56% versus 7.228% in the previous year. Domestic institutional cables sale Wire and cable is Rupees 701. 11 crore against 574 crore last year. Growth is approximately 24%. Domestic institutional cable sale of extra high voltage cable is 116 crore again 79 crore last year. The growth is approximately 47%. Export sale in this quarter is rupees 374 crore in which cable and wires is 323 crore against 149 crore last year. So the overall growth in the export is 61%. But the overall growth of cable and wire growth in this is 122% as compared to previous years.
The decline in the export is because of the one contract which we have been doing last year in Gambia which is not there this year. Total cable institutional field contribution is 45% as against 39% in the previous year. And sales through distribution network I.e. b2C is 1326 crore against 10. 85 crore last year. The growth in this sales through distribution network is 22%. The B2C sale has contributed 51% in the first quarter as well as 53% previous year same quarter Overall wire and cable segment has grown in this quarter approximately 32% over previous year same quarter.
EPC sale other than cable is 61 crore against 131 crore last year decline is approximately 53%. I just mentioned because of the one project which we were executing last year in Gambia is not there this year. Out of the total sale of EPC EHV EPC sale is 18 crore against rupees 45 crore in the same quarter previous year. Sales of stainless steel wire in first quarter is 51 crore against rupees 53 crore previous year decline is approximately 4%. We have around total active working dealers of the company as on 30 June was approximately 2094. Order booking as on 30 June 25 is 3921 crore out of which 540 crore are pending orders of EPC 538 crore is for extra high voltage cables and domestic Cable booking is 2,140 crore, export order spending is 703 crore so total wire and cable segment booking is 3,381 crore and including EPC it is 3,921 crore.
The company has got long term rating from CARE India rating and the church and ICRA as AA and that of short term is A1 plus. The book value per equity share of the company is 626 as against 605.5 on 3-31-2020. Company has booked an expenditure of 50.95 crore in quarter one towards CFR activities so I can total borrowings as on 30-06- is 203 crore. It is mostly against channel finance and acceptance creditors as on 30th June is 448crore against 246crore on 31st March 25th so net cash is Rupees 1048crore includes 1106crore of QIP as on 30th June.
Now the QIP Fund Status Company has raised Rupees 2000crore through QIP on 28th November to 2024 to fund our Sanand project, repayment of outstanding debt and for general corporate purposes out of which rupees 1450 crore was for Sanand rupees 240 crore for general corporate purposes and rupees 276 crore for repayment of Term loan and working capital demand loan and rupees 34 crore was QIP expensive company has utilized UIP fund of rupees 913 crore up to 30 June 2025. Now the future outlook the company has incurred in this financial year an expenditure of 410 crore out of which standand rupees 296 crore.
We bought two lands in Chalarpur and Sanan for 95 crore and other plants and locations which are existing 19 crore capex till 30 June 2025. Total capex payment incurred for Sanand is 880 crore and another 6 to 700 crore will be spent in next nine months and balance approximately 3 to 400 crore will be spent in next financial year. First half commercial production of first phase of LT&HT cable in Sanand will commence in quarter two of by 9-25-26 September 25 and total project will be completed in first half of FY26 27. Company is hopeful to achieve 18% growth in this financial year or even.
We will definitely aim to achieve more and improve our operating margins during FY25 26. Considering phase one commercial production at Sanand and strong order book position of domestic institutional and cable sales, export order for cable fields and XI voltage cable as of today after completing the Sanan project and strong demand in the domestic and overseas markets, we are hopeful to grow by 20% in year on year CAGR in next two to three years. Industry demand now the major sectors where we see strong demand in India domestically is solar and renewable sector. Solar and renewable power development and data centers, transmission and distribution projects by power companies whether in the government sector or in the private sector.
Electric vehicle recharging stations, infrastructures like railways, metros and tunnel ventilation projects, highways and also the manufacturing sector which where you know the demand is emerging from the new manufacturing factories coming up. So even similar scenario exists in the export sector where we are catering to major demand in the renewable side solar and wind power projects and also in the oil and gas industries in India as well as overseas. So this is from my side and thank you very much for listening. I’m available for answering your queries. Please go ahead with your queries. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Thank you. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while Asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Natasha Jain from Philip Capital. Please go ahead.
Natasha Jain
Thank you for the opportunity and congratulations on a good set of numbers. My first question is. So you had mentioned today in the TV interview that you are aiming to close this year with 11% EBITDA margin. Now if I just see the highest growth category for you in the past couple of years has been wires, housing wires which is a high margin business. Assuming that going forward salience will be higher for cables as cables have more tailwinds the margin should adjust on the downside. So from current 10% can you just walk us in a little bit of detail? How will you achieve this 11% given that cables will increase more than buyers? So first question is that.
Anil Gupta
Madam, definitely the growth in cable segment should be higher this year but even wires will also grow reasonably. And so far as EBITDA margin are concerned, maybe the how we always count even the other income also in our operational margins because ultimately any, you know, income out of Exchange fluctuation or etc. Are operational profits. I’m not talking of interest earned out of UIPBANI except that rest all is operational profits because exchange fluctuation is a part and parcel of our business and in several years we have seen always the earning from exchange fluctuation by better managing our orders and export business, export and import business.
So as we are guiding definitely we will aim to achieve 11%. But we always say that there can be a range of 10 and a half to 11% because nobody can exactly predict the margin profile because of the ups and downs of the industry.
Natasha Jain
Understood sir. So what I understand is 11% will be a mix of even your treasury the hedging part of your numbers. And so you also mentioned logistic cost.
Rajeev Gupta
Whenever we say, we always say the EBITDA margin of close to 11% that the analges has already revealed that 10 and a half to 11%. So we always maintain that kind of guidelines.
Anil Gupta
Actually foreign exchange fluctuations are not treasury income. We are not doing it for Treasury. It is, it is, it is how we manage our export and imports, you know, business.
Natasha Jain
Understood sir. And you mentioned logistic cost saving. So can you just quantify how much of logistic cost will be saved because of the farming plan?
Anil Gupta
I mean as of now I will not be able to quantify it. Let the project start and we will be able to say something about it by end of this year. See it is a simple logic that if Your plant is located within 350 km from a port. And today I am exporting from my north Indian plants which are around 1400 km. There will be saving in logistic cost in inward and outward trade. So.
Rajeev Gupta
But it will be a little bit.
Anil Gupta
Not heavy but it will take time to bring it into the margins.
Natasha Jain
Got it. And so just one last question. You said approximately 1100 crores is what remains from your QIP proceeds. So can you just quantify how much of that will be capex led?
Rajeev Gupta
It is all. It will be capex.
Anil Gupta
It is all capex.
Natasha Jain
Got it. Thank you sir. I’ll get back in the queue.
operator
Thank you. The next question is from the line of Jai Sri Bajaj from three Netra asset managers. Please go ahead. May I request you to unmute your line and see the question.
Jayshree Bajaj
Hello. Yeah, thanks for the opportunity. As you said sir, that EBITDA margin will remain free for the FY26. And we can see that very new competitors are entering in the market. So how does Ki intend to sustain its current growth trajectory and defend the market share across its diverse segments and. Sustain the growth which currently it has achieved?
Rajeev Gupta
Madam, in the past in so many years we were operating in ebitda margin of 10 and a half to 15% with a growth rate of 17 to 20% year after year. And every year or within two year with the small, small manufacturers has already come for the manufacturing of iron cable. It is not the new case when the new players are coming, their name are big. So that’s why most of the investor was worried initially. But now everybody has understood that the business of the wire and cable because of the approval process going on and the industry itself is growing close to 12 to 13%.
So it get automatically adjusted. So it will not impact any kind of margin here.
Jayshree Bajaj
Okay. And as you can see there is a remark remarkable growth in the export institutional cable. So is it sustainable in the next 3/4 of FY26?
Rajeev Gupta
Ultimately our purpose is to sell our capacity. What we having whether we will be selling to export market, to retail market or to domestic institutional market. It does not matter to us. Because ultimately we have to fully utilize our capacity. Because we need to take care all the markets. So that we don’t know which market will be in future which market will go strong. So that’s why our focus will be in a diversified geographical range. That’s how we were maintaining in the past also.
Jayshree Bajaj
Okay sir, got it. Thank you.
operator
Thank you. The next question is from the line of Vidit Trivedi from Asian Market securities. Please go ahead.
Vidit Trivedi
Yeah. Hi sir. Thanks for the opportunity and pretty strong set of numbers. First question is with respect to the exports. We have registered close to 122% yearly growth. So I wanted to know what’s your vision for exports for the coming months next two years down the line. And what’s the spread in margins between domestic and exports.
Rajeev Gupta
So normally in domestic and export the margin difference is only half percent. But as Anilji has spoken earlier also that his vision is to go with the export range of 17 to 20% in next two to three years. Mainly because of addition of the few new geography like USA and Europe. So because of that these are the new geography. And the earlier base was not there. That’s why the export is growing like this. There this way.
Vidit Trivedi
Sure, sir. Thanks. And what’s the volume during the quarter? And yeah that’s the other questions are.
Rajeev Gupta
Stable since last year. Even in the. Whatever the copper price and aluminum price was last year. The same was continuing in this quarter. So all the relevant volume will be close to same.
Vidit Trivedi
Any. Any number on that. Like 15, 20%. Anything like that?
Anil Gupta
I think the volume growth is close to 28 to 30%. We have not been able to quantify so far.
Vidit Trivedi
Got it, sir. Thanks a lot. All the best.
operator
Thank you. The next question is from the line of. From Aditya Birla Mutual funds. Please go ahead.
Naushad Chaudhary
Yeah. Hi. Thanks for the opportunity. And congrats on a good set of number two clarification. Sir. Firstly on tannin plant, if I had it correctly this will start contributing from 2Q FY27. Right?
Anil Gupta
Yeah, but you. Exactly. Actually from Q3. Because the likely operationalization will be accepted end of September 25th. So the actual contribution should come from quarter Q3.
Naushad Chaudhary
Okay. And ramp up outlook remains in three years. Should require to reach full utilization.
Anil Gupta
Correct.
Naushad Chaudhary
And second on the export business, what is the mix of distributor the business through distributor versus direct to client. And in terms of nature of the business are these short term contractual business or long term contractual business?
Anil Gupta
We are mostly targeting projects overseas. And our 90% of the business is coming directly with the EPC contracting companies or the utilities. Only 10 to 15% comes through distributors. So the in exports business through distributors is there only in usa. Otherwise we are using agents network to target direct customers.
Naushad Chaudhary
And contacts are typically short term in nature for these business.
Anil Gupta
Or long term mostly short term in nature.
Naushad Chaudhary
Okay.
Rajeev Gupta
We are supplying the projects. So whenever the projects are there we are bidding and we are getting the contact.
Anil Gupta
But now. Now we are there in the. You Know as a regular vendor for many very many, many large EPC companies and utilities. So they have regular requirement, regular projects like in India. So new inquiries being quoted every month and every day.
Naushad Chaudhary
And average length of contract would be how much.
Anil Gupta
Normally most. Most orders are completed maximum within four to five months.
Naushad Chaudhary
Four to five months. Okay. And the payment cycle are same as the domestic market or. Yes.
Rajeev Gupta
Two and a half months only in the case of few customer overseas where we get the letter of credit.
Naushad Chaudhary
Okay.
Rajeev Gupta
Or when the financing.
Naushad Chaudhary
Thanks for the clarification and all the best for the future. Thank you.
Rajeev Gupta
Thank you.
operator
Thank you. The next question is from the line of Shilpi Sharma from Prabhudas Leeladhar Capital. Please go ahead.
Pravin Sahay
Yeah. Hi sir. Praveen from PL Capital. Thank you for taking my question. The first question is related to the. Housing wire and winding wire segment which. Where the contribution in the last three years has reached to around 30% of your total number. If you can give some color on. Separately like a housing wire and the vending wire which has outpaced, you know in terms of the growth in the last couple of years. Because if I look at both the businesses is a quite different margin profile.
Anil Gupta
One reason is the higher growth is because our base in this house wire was very low earlier. And hence we have got substantial growth. But I think now the growth in the wires and cables will be normalized. And I think we should be growing at the similar pace.
Pravin Sahay
So winding wire also did very well for you.
Anil Gupta
Sir, winding wire is a very side business. It’s only related to agriculture. So it is being mixed with the house wire. But it is a very small segment.
Pravin Sahay
Okay, got it sir. And next question is related to the order book. So if I look at, you know, order book related to the tri voltage which is on the sequential side. If I look at that as a little down. So do you believe this numbers to improve in the latter in the quarter from here.
Rajeev Gupta
Around full year business we will achieve the top line of close to 550 to 600 crore. In next I power cable as we have the capacity.
Pravin Sahay
Okay. And these numbers to improve with the commissioning of a SAN facility. Is it fair understanding that that will. That will be only next year? Yeah, right. Thank you sir. And all the.
operator
Thank you. The next question is from the line of Raman KV from Sequent Investment. Please go ahead.
Raman KV
Hello sir, can you hear me?
operator
Yes sir. You’re audible.
Raman KV
Sir, I have two questions. One is on the export fund you said export margin. The difference between export margin and domestic margin is 0.5%. So as the Sanand plant operates in. Q3 starts operating in Q3 coming to FY27 do we expect this margin to between domestic and export to increase?
Rajeev Gupta
It will increase little bit. As an earlier told that it will take some time at least for one year time to ramp up the capacity utilize the capacity capacity to absorb the depreciation over there. So it will take time. So by 2728 financial year when the we will be utilizing almost 50 60% capacity or or may plus so then little bit EBITDA margin will get improved.
Raman KV
Okay sir and my second question is with respect to the SAN facility what was the total CAPEX spend on this facility and what was the what are. The. At optimum utilization?
Rajeev Gupta
Total capex will be close to 1900-2000 crore in Sanam. And in that in the initially we will be having the top line capacity of 6,000 crore over there. Because of extra high voltage power cable will be close to 1200 crore and 4800 crore will be for low voltage and millivoltic power cable capacity over there. Sir, you said 6,000 crores of revenue. You will be able to generate. I didn’t get the second part of.
Anil Gupta
It initially I meant like. Out of 6000 crore. 1200 crore will be for EHV capacity and 4800 crore will be for low voltage and medium voltage capacity. And this you will be able to generate in FY27. It will take three years to ramp up now because whatever capacity we tend it will take not for one year. It will take at least three and a half years. Increase the capacity. It takes two years now. Yes.
Rajeev Gupta
Hello.
Anil Gupta
Hello Kenny.
operator
Yes sir.
Anil Gupta
Yes sir. Also I have noticed that in May you put out a notice that you purchased around 74,000 square meter land in Rajasthan.
Raman KV
Can you give any like any development. With respect to that? Is it for the expansion capacity?
Rajeev Gupta
So. So that CAPEX we will start only after the completion of the panam. We bought the two land recently. One is in Rajasthan, another also technical land. We we bought in also for backward integration. But the CAPEX will start only after the completion of the project.
Anil Gupta
Answer. You said by September 2025 phase one will be started in phase one. How much are you expecting to utilize.
Rajeev Gupta
By September? Has spoken that the by September we will start phase one. So from the third quarter the sales reflection will be there and extra ivotech will start only end of Q1 of the next financial year.
Raman KV
Okay, thank you.
Rajeev Gupta
Thank you.
operator
Thank you. The next question is from the line of Akash Jha from KJ Belt. Please go ahead.
Akash Jha
Hi sir. Congratulations for a great settlement. So I want to know our Capex plan sir.
Rajeev Gupta
So I think. I mean given the strong cash position what expansion we are looking over the next three to five years and I mean with the majority of Capex directed. Towards cables or wires. We will remain in the wire and cable but every year we need to invest another 600 to 700 crore to increase the cross capacity to maintain the 20% top line. So as just we will be completing the project and after that we will be starting another project because we are buying the land for that also. And the a few parcel of land we have already in the Baroda. So we will be continuing focusing on the addition of the capacity to enable us to grow at least 19 to 20% year after year. And what is the revenue growth target for this year?
Akash Jha
And EBITDA margins?
Rajeev Gupta
So this year revenue target growth we have already given that 18 to 19% growth will be there because the capacity is there according to the capacity. But the next year onwards we will be growing 20% plus. And margins outlook. EBITDA margin will be close to 11%. We always talk of EBITDA margin.
Akash Jha
Okay and last one on depreciation sir. So I mean as a Sun facility. Begins commissioning I think from September.
Rajeev Gupta
And by the time the sale will also be there in FY27. Because the EHV project will get commissioned only in Q1 next year. Okay. Okay.
Akash Jha
Okay. Got it. Thank you. Thank you.
operator
Next question. Okay, the next question is from the line of Kur Pandya from ICICI Prudential Life Insurance Corporation Ltd. Please go ahead.
Keyur Pandya
Thank you. Sir, two questions. First on the the capacity side so till the time our current facility say it gets commissioned and ramps up do you see any challenge on the growth side for next two quarters I’m not around de growth but for growth because of the capacity constraints. That is first question and second in your medium to long term target officer 20% revenue growth how do you see export contribution? What could be the growth from the exports? That is second question.
Rajeev Gupta
Last year we have spent the amount on the brownfield Capex in our Silvassa plant and Pakridi plant. As of now we are having our cable capacity utilized 74 75% only. So every quarter we will grow. That’s why we will be growing in the current year 18 to 19%. And since the Salam capacity will be in place by September so month after month it will be ramping up. So in the second half the capacity utilization will start from the Sananda Also by the next year the whole plant will be ready. So we will be easily growing 20% from there.
Keyur Pandya
And on the exports.
Anil Gupta
Export, we have already mentioned that our aim Is to reach 17 to 18% of our top sales coming to exports in next two years. So that soonest we are able to, you know, create this new capacity at panel. We will try to ramp up that.
Keyur Pandya
Okay, just one follow up. So 30%, I mean upwards of 25% growth. 30% growth in cables this quarter and no capacity constraint. Plus new plant coming up. Despite that, in reason why you are constraining your guidance to 17, 18% this year.
Rajeev Gupta
First of all, quarterly number does not reflect the full year growth. Always we say see neither the profit, neither the growth. Because sometimes the quarterly base is low in the second half, always third quarter and fourth quarter base is very, very high. So it is in the cable industry. Always we maintain the full year guidance and we as a Kei always maintain the full year guidance.
Anil Gupta
But definitely we are little conservative in giving guidance. Our performance will be far better, I’m sure about.
Keyur Pandya
Okay, that’s a lot and all the best.
operator
Thank you. The next question is from the line of Achal Lohade from Nuama Institution Equities. Please go ahead. Sir.
Achal Lohade
Yeah. Sir, two questions from my end as well. One, you know, just to clarify, when you talk about the revenue growth, I presume you’re talking about the overall company growth and not cable and wire. So given we are company as a whole. Understood. So given we are, we are descaling in the EPC business, does that mean it’s upwards of 24, 25% growth for the full year for cable and wire segment? Because that is seeing a 30, 40 kind of a difference.
Rajeev Gupta
Ultimately we are giving me the full balance sheet. So on full year, full year balance sheet, whether so whatever sale we will be doing, it will be growing 18 to 19% for current EBITDA margin will be close to 11%. So. So because these two numbers we are. Always communicating, see as a guidance, as a, it is only a guidance. We have always, you must have seen that we have always performed better than the guidance.
Achal Lohade
That’s fair, that’s fair. Point. Sir. The second question I had pertaining to the exports, I know the situation is still evolving, but as of now, if we were to ask factually, you know, how. How do we stack up against the competing countries? Specifically for us, given that is the new geography we have added, how do we stack up in terms of the tariff vis a vis say a Mexico or a China or South Korea?
Anil Gupta
Sir, the US is at the moment little slow because of this uncertainty of tariffs. But you know, our dependence on us is very small at this moment. Our exports to other countries is substantially high, especially Middle East, Australia, Africa and and also Europe now which we are doing. So we are not too much worried about US impact at the moment. But we will have to watch out what happens next in this quarter. I think something should settle down and that will be beneficial for the company. Our last year exports to us was only I think 160 crore.
So I mean it is not that we are highly dependent on us but. More important to utilize the capacity. Whether we are utilizing the capacity for export or for retail or for domestic institution.
Achal Lohade
Right. No, I was coming from the fact that we have the land parcels. If the massive opportunity actually comes up for exports, you know, could there be a possibility for us to participate in that? Obviously, you know, I understand given whatever capacity we have, we’ll still utilize that. But I was just more curious to get you know, the tariff rate on India vis a vis Mexico or a China or South Korea in US.
Anil Gupta
As of today, whatever tariffs have been announced, they have not been actually operationalized or implemented. They are just on paper. I don’t think that any, even any notifications are issued by US government. These are only in the media.
Achal Lohade
Right, right. And how about the customers ex of us? You know, how the demand situation, how the competitive pricing perspective? Have you seen anything changing out there as well or things remain as business as usual?
Anil Gupta
We are always competitive because I mean our production costs are in the best way as compared to our international penetration is not a problem and it is only a matter of developing that market. The issue is not the competition issue is developing the market market and getting a product certifications in different categories and acquisition of customers.
Achal Lohade
Fair point. That’s great. Thank you. I’ll fall back in the future. Thank you.
operator
Thank you. The next question is from the line of Shirom Kapoor from Jafferies. Please go ahead.
Shirom Kapur
Hi, thanks for the question. Just wanted to focus on exports again. The 17 to 20% contribution that you are referring to. If currently the US market as you’re saying is a little slow, what is. Exactly the roadmap that you’re looking at. To go up to this 20% which would be the geographies that will drive this and this high 120% growth that you got in 1Q of course on a low base right now because of the new markets that are added. But once that base settles, what kind. Of growth could you be looking at in These new markets like US and Europe. Thanks.
Rajeev Gupta
As we are continuing reminding you that we are not totally dependent on US or Europe. Our main object is to utilize the capacity. Whether we are selling to the domestic market or to export market. But all the friends we need to open up. Because we don’t know which geography will be weak or with geography will be strong. Our focus to go towards the export. So that is the reason. But if that is not there, 100200 crore sale will be less. It will not impact to the company.
Anil Gupta
Moreover, you know at the moment you there is an uncertainty in U. S market. But it will not remain. Just let us be patient for maybe two, three months. Then all these things get settled and ultimately customers over they need material and there is a strong demand in US. So only thing is that they are also waiting because of the uncertainty of the tariffs. The projects are slow there because of this uncertainty.
Shirom Kapur
Okay, understood. Thank you sir.
operator
Thank you. The next question is from the line of Charanjit Singh from dsp. Please go ahead.
Charanjit Singh
Hello sir. Thanks for the opportunity and congratulations on great set of numbers. So my question is first on the EHV side on the extra high voltage. What is the kind of, you know, tender pipeline you’re looking like. And in terms of the competition from the imports, how that is and some of the new capacity scaling up. How you see that the timelines for those. That’s my first question. Especially on the EHV site.
Anil Gupta
There is a tender pipeline is good. And what was the question? I don’t know. Capacity will come up only after one year. So there is a good tender pipeline. I think this sector will segment will see a good substantial growth in the coming years. So the capacity is being created Keeping a vision of next three to five years in the Indian market as well as overseas markets.
Charanjit Singh
So sir, from the Indian market perspective can you give some numbers in terms of how large is the EHV market? What is the kind of size it could become in the next three to five years like you are, you know envisioning and creating the capacities accordingly.
Anil Gupta
I think at this moment the market size in the EHP segment is. Should be close to 3,000 crore. And I think in next three to five years it should. In three years time I think it should reach around 6,000 crore. And. And it should be going faster. Actually in my opinion. But. But I don’t have any real data to support it.
Charanjit Singh
Got it sir. So my other question is on the wiring side if you can touch upon, you know.
Anil Gupta
One more thing. I want to mention that all our EHP capacities, whatever we are feeding, creating, we always in in case EHP orders are not enough. We always use the capacity for manufacturing HD cables. So none of the capacity, you know is idle at any given point.
Charanjit Singh
Got it sir. So my second question is wiring side. Hello.
Anil Gupta
Yeah.
Charanjit Singh
Yes sir. On the housewives, you know in that market, you know in terms of our market share currently and what is our aspiration going forward and you know, in terms of the distribution network where we are versus where we had, you know once we started the journey on the houseware side.
Rajeev Gupta
Number of dealer distributor or strengthening of the dealer distributor team. That’s how this growth is coming. Or Ginjin areas may southern belt or eastern belt accordingly dealer distributor so overall northeast west purchase percent.
Charanjit Singh
Okay, so thanks for taking my questions. That’s all from my side. Thank you.
Rajeev Gupta
Thank you.
operator
Thank you. The next question is from the line of Rahul Maheshwari from Daulat Asset Management. Please go ahead.
Rahul Maheshwari
Hello. Am I audible?
Anil Gupta
Yes, yes.
Rahul Maheshwari
Good afternoon sir and congratulations on that set of numbers. So one question. Can you give some highlights or insights on the solar specialty cables which what kind of numbers are we clocking? And also we had the earlier told. That the Salmon facility will be used. Also for the HVDC opportunity which would be coming. So can you give some opportunity size. Numbers or tam that will be very helpful.
Anil Gupta
Thank you. I’ll reply this Solar we are already catering to all the major solar developers all over the country and even we are exporting solar wires now in Sanan facility we are also creating a new process to manufacture solar wires which is electron beam process irradiation process. So that also we are creating so that our, you know our size of sale in this segment grows up because many customers ask for that kind of process to be adopted during manufacturing. Secondly, regarding HVDC cables, HVDC cables is an upcoming segment in Indian transmission sector. As of it will take little bit time to get a substantial growth in this segment.
But what facilities what we are creating in Sanand that is uncommon for H Vac and H Vac cables. So H Vac, which we are currently manufacturing for last 15 years and selling in Indian market and also exporting HVDC is in prevalence in many European and UK countries. In India also a number of HVDC projects has been executed but with imported cables. So what I can say is our facility will be fully used for H Vac and HVDC extra high voltage cables. But it is difficult to quantify because HVDC it will take a little time, maybe around two years for us to develop our pre qualification and and type tests etc.
Which are long duration tests. So at this moment it is difficult to give any projections for hvdc.
Rahul Maheshwari
Sure. Answer Just one want to know that. Can you give some growth what kind. Of growth rate we are growing in. This solar specialty, cables and etc. And also going forward we will just. Stick with the wires and cables or. We will be coming with the solar related products also because the entire industry is growing towards moving towards that chain. So what’s your proposition for Kia?
Anil Gupta
We will remain focused on wire and cable Brazil business whether for solar or for other industries. So we don’t intend to diversify other item chains of solar industry and I think growth rate is very high but. But I don’t have the exact data that how much is the solar. But definitely the growth rate in solar with the solar developers is very very high.
Rahul Maheshwari
Thank you so much sir. Best wishes.
operator
Thank you. The next question is from the line of Dhruv Jain from Ambit Capital. Please go ahead.
Dhruv Jain
My first question is on the domestic institutional cables business. So you’ve seen KEI do very well in this quarter. Just wanted some color on which sectors have contributed to growth and Even from an FY26 perspective from a tender activity, which sectors are likely to drive growth for ki. That’s my first question.
Anil Gupta
The major institutional sale of of cable is coming from power power transmission and distribution companies and related EPC contractors. Secondly EPC solar power, solar power developer developing companies who are, you know creating and developing solar power projects and related power evacuation infrastructure. So the major and also the other institutional customers who execute or EPC contractors who execute projects in power generation projects whether it is thermal hydal or projects like thermal ventilation and other projects.
See cables always goes into, you know, some project. Only thing is how we are selling. Sometimes we sell it directly our B2B business to business where we sell directly to the end customer. Sometimes same sale we are doing through the dealers who are but ultimately the user will be some project. I think I’m clear.
Dhruv Jain
Yes, yes. Just wanted your sense that which sectors are doing well. So obviously power has been historically also one of the key
Anil Gupta
All segments of energy sector whether power transition generation, distribution in power, whether it is thermal power projects which are now again coming up in a big way.
Solar power is now at the peak at this moment and related infrastructure of solar power like battery energy storage projects and I think in one to two years we will see a central segment of storage projects which will be in advanced stage. Then data centers which Consumes good amount of and then this building, construction, commercial and other infrastructure buildings they also consume substantial amount of wires and cable and a new manufacturing plant infrastructure plants like metros, rails and railways.
Dhruv Jain
Second question is on the housing buyer side so over the last few months Kei has been outperforming the market Given that you were late entrants but now that you’ve become a substantially large player in the housing market just wanted to get your thoughts that say when does this growth start to normalize? Do you still have that say in the next two or three years? You still believe that in the housing market side you can grow at 20 to 25% rate or if you start normalizing towards you know the company level 18 to 20% sort of growth in the next say one or two years.
Anil Gupta
I don’t know what happens after two years but as of today I believe that it should grow between around 20 to 25% in this segment. Got it. Thank you so much and all the best.
operator
Thank you. The next question is from the line of Amit Adicha from Edgy Hawa Please go ahead.
Amit Agicha
Good afternoon sir and congratulations for good set of numbers. Y o Y so most of the questions have been answered like the strong cash position like are there any plans for dividend buyback or MNAs?
Rajeev Gupta
As of now we are doing the CAPEX expansion mode and we need to spend another 500 to 700 crore year after year so once we will do this completion the expansion and then after two, three years we can think but as of now there is a no.
Amit Agicha
So the second question related to the order book pending order books which is 3921 crores like what is the execution pipeline and visibility across the quarters.
Rajeev Gupta
Normally whenever we have the institutional order whether domestic or from extra it has to be executed within three to four months time Sometimes it may take five months also but normally every spending order situation three to four months only.
Amit Agicha
I appreciate you answering my question always for the future.
Rajeev Gupta
Thank you.
operator
The next question is from the line of Nikhil Purohit from Fident Asset Management Please go ahead.
Nikhil Purohit
Hi, thanks for the opportunity. I have just one question what was. The cable share inclusive of exports in the institution business and the cable share. In the distribution the B2C business. In the domestic in the export we are selling mainly wire and cable only because stainless steel wire is very little amount and in export market major share is for cable and buyer and little bit share for EPC1 project going on in the Gambia and Nepal but the major share is belong to cable itself the. Major share is cable in the export business.
Rajeev Gupta
Yes. Okay.
Nikhil Purohit
And just in B2C what is the cable share?
Rajeev Gupta
It will be almost B2C BK sometimes little bit higher, little bit lower. But almost 50. 50. Okay good.
Nikhil Purohit
Thank you.
operator
The next question is from the line of Bala Subramaniam from Arihant Capital.
Balasubramanian A
Please go ahead. Good afternoon sir. I think we have a dealer, dealer and distribution channel network of more than 2,000. And so we could share the mix of southwest, north and the east side. And right now we have a channel financing coverage of 70%. And what’s the. Is there any timeline, is there any target to increase and what is the timeline?
Anil Gupta
So. Whenever we add new dealer distributor been covered and slowly, slowly whenever there are new dealer distributor getting added they will be also included in the channel financing scheme.
Balasubramanian A
Sir on that network side you can share like. Like personally stamp like where we have penetrated more and where we are target.
Rajeev Gupta
Please repeat your question.
Balasubramanian A
No sir, like out of 2000 plus deal and distribution channel side. Like if you could share for these terms of like southwest, north and east. Like where we have connectivity more. And.
Rajeev Gupta
We are trying our level best to increase our dealer distributor network in the southern and eastern part. But long miles to go. So it will take longer time to reach out to every market.
operator
The next question is from the line of Vidit Trivedi from Asian Market Securities. Please go ahead.
Vidit Trivedi
Thanks for the follow up question. You just mentioned that Middle Eastern and the Australian geographies are a stronghold for you. But recently I think China and Australia has entered into a zero tariff policy. So don’t you think there will be a headwind for us when we compete with China in Australian markets?
Anil Gupta
Australia. China is already a strong player in Australian market for many years. And they have better proximity compared to India. So in spite of that we have been exporting our cables to Australia for last more than 11 years now. So it’s not that China is there anything new. They are already there.
Vidit Trivedi
So answer. What are the three top destinations for us?
Rajeev Gupta
Middle East, Australia and Africa. Apart from this Europe and usa.
Vidit Trivedi
Thanks a lot. Second, on the EBITDA margin guidance you have been guiding that close to 11% is quite doable. My question is that you know you guys are eyeing a top line. Sorry but sorry. Exports contribution of close to 18% in the coming few years. Don’t you think that our guidance can end up from here. Let’s say 11.5 or 12ish kind of a number.
Rajeev Gupta
So when it will reach to 18% then it is. It will automatically come up to 11 and half. Or maybe more.
Vidit Trivedi
Thanks a lot, sir.
operator
Thank you. Ladies and gentlemen, this was the last question for today. And now I hand the conference over to the management for closing comments. Over to you, sir.
Anil Gupta
I thank you, our respected investors, to be on this conference call. We are already always available to answer any of your queries. You may feel free to reach out to us. Thank you very much. Thank you, everyone.
operator
On behalf of Luama Institutional equities, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.