Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
KEI Industries Limited (NSE: KEI) Q3 2026 Earnings Call dated Jan. 22, 2026
Corporate Participants:
Anil Gupta — Chairman, Managing Director and Chief Executive Officer
Rajeev Gupta — Executive Director, Finance
Analysts:
Achal Lohade — Analyst
Rahul Agarwal — Analyst
Unidentified Participant
Natasha Jain — Analyst
Saumil Mehta — Analyst
Keyur Pandya — Analyst
Pulkit Patni — Analyst
Sandesh Shetty — Analyst
Praveen Sahay — Analyst
Unidentified Participant
Amit Agicha — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good afternoon and welcome to The Kei Industries Q3FY26 earnings conference call hosted by Nuvawa Institutional Equities. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr.
Achal Lohade from Nuama Institutional equities for opening remarks. Thank you. And over to you.
Achal Lohade — Analyst
Yes, thank you, Ryan. Good afternoon everyone. On behalf of Nuama Institutional equities, we are glad to host the senior management of Kei Industries Limited to discuss the Q3 FY26 earnings. We have with us Mr. Anil Gupta, Chairman, Managing Director of the company. Mr. Rajit Gupta, Executive Director of Finance and CFO. We’ll start the call with the opening remarks from the management and then move to Q and A session. Thank you. And over to you, sir.
Anil Gupta — Chairman, Managing Director and Chief Executive Officer
Yeah. Good morning. Thank you for joining this conference call. I’m Anil Gupta, CMD of KEI Industries Limited. The brief of this quarter Q3 is net sales. You must have reviewed the numbers, but I’ll just brief it. Net sales in Q3 is 2,954 crore with a growth in net sale is 19.51%. EBITDA in this quarter is 354 crore against 254 crore last year with a growth of 39%. EBITA oblique net sales margin is around 12% as against 10.29% in the same period last year. Profit after tax is 234.86 crore against 164 crore last year.
Growth in PAT is 42.5%. Profit after tax oblique net sales margin is 7.95% versus 6.67%. Domestic institutional cable sale. Wires and cable is 592 crore. And domestic institutional cable sale each extra high voltage cable is 127 crore. Export sale in this quarter is 544 crore. And the overall growth in the wire and Cable export is 95% in this quarter. Total institutional cable sale contribution is 41% as against 45% in previous year. Same period. Sales through distribution network I.e. P2C was 1612 crore with a growth of 29%.
B2CCL contribution is 55% in the third quarter again as against 50% in the previous year. Same period. EPC scale other than fuel is 60 crores. Again 60 crore last year. Against 54 crore last year. For 9 months period from April to December. Net sales is 8271 crore. Growth of 21.26% EBITDA 9 months 963 crore. The growth in EBITDA in 9 months is around 33% EBITDA outli net sales margin is 11.64%. Profit after tax in 9 months is 34 crore. Profit after tax oblique net its margin is 7.67%. Institutional Cable sale is 1884 crore and extra high voltage sale is 371 crore.
Export sale in nine months is 1390 crore. The overall growth in the export is 79%. Total cable institutional sale contribution in nine months is 42% as against 41% same period last year and B2C contribution is 4413 crore so the growth is 23%. The total active working dealer of the company around 31st December is 2114. B2C sale contribution is at par at 53% in nine month period. EPC sale is 188 crore and stainless steel wire sale is 157 crore against 166 crore last year. Total order book position as on 31st December 25th is 3928 crore out of which EPC is 361 crore.
Extra high voltage cable 717 crore, cable domestics 2426 crore, export orders 424 crore and total wire and cable segment 3567 crore. Future outlook and during 9 month period company has incurred a total capital expenditure of rupees 928 crore out of this capex in Sanand is 769 crore. Salarpur for buying a land 72 crore. Sanand another land has been purchased at a cost of 24 crore and other locations, other plants and locations for plant and machinery rupees 63 crore. The total capex payment incurred for Sanand until now is total 1353 crore.
Another Rs. 200 crore will be spent in this quarter and balance will be spent in next financial year. Company is hopeful to achieve 20% plus growth in full year period and also will improve our operating margin in FY25 26. Considering phase one commercial production at Sanand and strong order book of domestic institution for cable sale, export orders and extra high voltage cable as on date. After completing the Sanan project and the strong demand in domestic and overseas markets, we are hopeful to grow more than 20% in next CAGR in next three to four years.
I would like to highlight that at present we are very strong in the institutional cable market whether it is domestic or export. KEI is the first Indian company to supply several projects of extra high voltage cables 330kV cables to Australia and also supplied total 220kV cables to UAE and Spain. KEI is the only Indian company to qualify in National Grid. UK framework agreement for maximum voltage is up to 400kV. We have expanded our reach to Caribbean islands and supplying to West Indies and many other neighboring countries.
In domestic market we are supplying to entire solar power chain including Reliance Polysilicon factory at Jamnagar in UAE. KEI has backed three contracts for supply of 132kV cables and gaining acceptance as a EHV extra high voltage cable manufacturer in Middle East. So this inside a brief summary about the results from my side. And you are now requested to put your question.
Questions and Answers:
Operator
Thank you ladies and gentlemen. We will now begin the question and answer session. 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 their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Rahul Aggarwal from Ikigai Asset. Please go ahead.
Rahul Agarwal
Hi sir. Very good afternoon. Thanks for the opportunity. Sir, three questions. Firstly to understand the Sanand ramp up plan and if you could elaborate between the segments. I understand that ltht is going to be a larger portion of this plant
Unidentified Participant
And
Rahul Agarwal
EHV will add another 1200 crores of peak sales. So over 27, 28, 29. Just wanted to know. Next three years how do you plan to ramp up Sanand sales? What products come first, what comes later. If we just break it into three years that will help. That’s the first question.
Anil Gupta
Okay, so ltht we have just started trial production in December and gradually in this quarter. January, February, March, by April we expect that our electron beam equipments to manufacture electron beam cured solar wires will be commissioned. And that will add another boost to this plant so far as extra extra high voltage cable is concerned. And we will also be ramping up our medium voltage cable capacities further by July or August. But an extra high voltage cable facilities will come up by March 27th.
So this is. This is. This is going to be the ramp up. So in next financial year this project will be complete in all respects.
Rahul Agarwal
Got it sir. So overall should I assume that to achieve this you know, you’ve spent. Your plan Is to spend 2000 crores. This should make at least 3, 3 and a half times asset terms. We were talking about 6000 crores top line should happen sometime in March 29th. By FY 29th we should achieve this entire 6000 crore incremental top line. Is that fair understanding?
Anil Gupta
Yes. Yes, absolutely.
Rahul Agarwal
Okay. And you know second question was on the capitalization of the capex. I understand that as you said ltht pile production started in December. And we’ve incurred a capex of about 800 crores in nine months on Sanath. Right. The balance 500 crores was last year. So about 1300 crores of capex is done till date. How much is capitalized till December of 25.
Rajeev Gupta
Basically we capitalize around 550 crore. And balance will be capitalized when these machinery will get started. As NLG had spoken about the control cable of the electron beam in April. And then more machinery in middle medium voltage in the month of July or August. So accordingly it will be capitalized in the books of account. But the whole plant will be capitalized by March 2027.
Rahul Agarwal
Okay. So out of the entire 2000 crores how much would be the land cost? Sir, I mean we will exclude that for capitalization. Land
Rajeev Gupta
Cost was originally 140 crore. Please.
Rahul Agarwal
Right. The balance will get depreciated on a full capex basis from fiscal 28. Is that correct?
Rajeev Gupta
28. Yes. Yes.
Rahul Agarwal
Okay. Perfect sir.
Rajeev Gupta
So the depreciation load will not come in one year. Actually next financial year. Because it is in the phase manner. So it will be completely. Will come only in 28.
Rahul Agarwal
And that would be about 5% of 2000 crore. Right? About 100 crores. Is that fair?
Rajeev Gupta
But. But in. In 28 the top line will also be from there alone will be close to 5,000 crore.
Rahul Agarwal
Yes, I understand that. Yeah. Yeah.
Rajeev Gupta
Yes.
Rahul Agarwal
The third question was, you know just to go back to the Anandji’s commentary. We’re expecting 20% growth for top line full year. I think we’ve done like similar 21% in nine months. And we’ve seen very sharp rise in copper in December. So just to understand why are we conservative here?
Anil Gupta
No, I think the growth this quarter should be anywhere between around 25% plus. So. So we are trying to quantify it in a better manner. But definitely because of the increase in the copper prices it will be anywhere more than 25% in this quarter.
Rahul Agarwal
Right? Right. Got it sir. Got it. And margins, you’ve already mentioned that two years time you should see about 100bps adding up at EBITDA level. Do you retain that guidance?
Anil Gupta
Yes, yes, I think we have already given a guidance. And next year we expect to achieve EBITDA margins of around 11% overall for the full year.
Rahul Agarwal
Got it sir. Thank you so much and wish you all the luck for the next years. I’ll come back in the queue.
Rajeev Gupta
Thank you Raul.
Operator
Thank you. We take the next question from the line of Natasha Jain from Philip Capital. Please go ahead.
Natasha Jain
Thank you for the opportunity, sir. So my first question is on the hedging side. So assuming that you know 50% or rather 40% of your entire raw mat cost is metal cost and you are exporting approximately 20% so that’s naturally hedged for the remaining 20%. I would like to know do we purchase its spot or do we hedge the entire exposure?
Rajeev Gupta
We don’t hedge. We are working under natural hatch. We are. We are carrying three to four months inventory. Three to four months pending order from the institution side. And we are carrying two and half months plus inventory in our floor and one month inventory in during the transit period because we are importing
Anil Gupta
And also. We are mainly 85% of our metals we are buying from Hindalco and Vedanta domestically. So it is the purchases in rupees. So here the foreign exchange exposure doesn’t come into picture.
Rajeev Gupta
So we are working under natural as we were guiding you in the past. Also.
Natasha Jain
Got it. So now if I sequentially see your number the growth has been moderate. I understand there has been volume constraint. But then if I see your EBIT margin sequentially also there’s a sharp increase. Now you have historically mentioned your EBIT EBITDA margin is usually in a range across your categories. So if I then calculate the EBITDA just sequentially the growth is still very high. So could it be possible that because you just said that you have inventory for a longer period of time. So did we also get a benefit of low cost inventory in this quarter?
Rajeev Gupta
Madam, normally whenever we talk of a particular quarter in the past also when the sudden movement of the price of the copper either upside or downside there may be increase or decrease by half percent to 1%. But for a. For a full year basis as we have earlier guided that we will improve our operating margin which you are seeing from the last year and year after year we are going to improve because of the capacity we are getting increased and the product mix like extra high voltage and the segment like export is increasing.
So it is helping us to improve reverta Margin.
Natasha Jain
Understood. And sir, one last question. In terms of wires, how do you see the channel right now? Is it stuffed to more than which is required or do you think that fourth quarter will continue to see margin growth for buyers.
Rajeev Gupta
Year after year? In the wiring segment also we are growing more than 22 23%. So that will remain continuing for a full year basis.
Natasha Jain
Understood. Thank you so much sir. All the best.
Operator
Thank you. We take the next question from the line of Somil Mehta from Kotak Mutual Fund. Please go ahead.
Saumil Mehta
Yeah, so thanks for the opportunity. First thing, what is the total inflation? What we saw on the raw material side for the last quarter and how much was already passed on to the cables and wires manufacturers clients. If you can just broadly quantify,
Rajeev Gupta
As. We said that we always carry two and a half month inventory in floor and one month inventory in transit. As against that three to four months pending order position from the institution side either from domestic or export. So practically old order served with the old inventory. But with the retail market, in every 15 days the retail price will up or down depending on the a price movement. So practically everything is pass on.
Saumil Mehta
Okay. And if you can just tell in the quarter which is currently going on January, what are the kind of price hikes you take in the retail markets given copper is on an inflationary trend.
Anil Gupta
The required required is in increasing the list prices of cables and wires has already been done and now effectively the sale is happening at the current, current average prices of copper and aluminum prevailing in January.
Rajeev Gupta
It is the normal routine actually. Whenever copper goes up, price goes up, copper goes down, price goes down. It’s a normal practice adopted by all. The industry players
Saumil Mehta
That I understand, just want to understand. I’m not worried about price like pass on. I’m just trying to understand retail markets.
Anil Gupta
Around price rise. Where. In the selling prices. And in cable, effective December actually major price increases have started from December. So December or January, May. Overall I can see that 10% rise.
Saumil Mehta
Cable price. And so my last question is in terms of when you’re giving a 20 plus guidance for next year and a 25% plus for Q4, is this more of a volume guidance or a value? And broadly what is the copper price increase? What we are building.
Anil Gupta
See, I can say that volume guidance will be there anywhere between 16 to 18% and plus the price inflation due to input price inflation in the in the inputs will be added.
Saumil Mehta
So the actual
Anil Gupta
Actual growth should come more than that.
Saumil Mehta
Perfect, perfect. Take you sir, thank you so much and all the best for subsequent quarters.
Operator
Thank you. We Take the next question from the line of Anupam Goswami from SUD Life Insurance. Please go ahead.
Rahul Agarwal
Thanks. Sir. Good morning. Sir. Just one. Overall what we’ve seen in the industry. Of a growth of more than 20 30%. While our growth has been 20%. How do we do this versus the inventory industry and volume growth and value. Breakup how it looks like sir, in. This quarter.
Anil Gupta
Our capacities in cables was almost at the peak level. So whatever. So we could not grow much in cable segment. We just. We grew our volumes by around 10% in cables and in wires. More than that maybe in the other. Other piece like Havers Day commissioned their Tumkur new cable factory around nine months. Nine months or one year back. So they could increase their volumes from there. We have been able to commission our Sanant facility. And the contribution from that will come in this quarter into our Q4.
Rahul Agarwal
Okay. So if you can just quantify how. Much capacity has been added by the Anand.
Anil Gupta
The capacity what we have commissioned is around at the Moment is around 250 crore rupees a month. In Sanand the half of the capacity has been commissioned. And this capacity will come into production gradually. As we are doing the ramp up with the induction of manpower in all the departments. And also one by one machines are being commissioned and put into production. Secondly, initial one or two months in any cable factory goes into the obtaining lot of type tests conducted on cables by different agencies.
Visits by the customers and also obtaining BIS license. So that.
Natasha Jain
The person you are speaking with has put your call on hold. Please stay on the line.
Operator
Ladies and gentlemen, we have lost the line of the management. Please stay connected while I reconnect the management. Thank you. Ladies and gentlemen, we have reconnected the management. Sir, you may proceed.
Anil Gupta
Yeah, sorry, some question was there.
Operator
Alupam, if you can please repeat your question.
Rahul Agarwal
Hi sir. Capacity what we have added you are saying about 250 crores a month. And bi certification what is required and. Would be ramp up gradually as we were saying.
Anil Gupta
Yeah. So we have already obtained the BIS license for low tension cables already which have come. And for HT cable it is expected to be received by end of January. So we are. We are doing all possible things to bring the contribution from new facility. And I can assure you that with our experience of running a cable industry for last around 50 years it will be ramped up very short very shortly.
Rahul Agarwal
It is
Anil Gupta
Just we need some basic approvals which are bare essential to sell.
Rahul Agarwal
Got it sir. Thank you.
Anil Gupta
Yeah.
Operator
Thank you. We take the next question from the line of K. Pandya from ICICI Prudential Life Insurance Co. Ltd. Please go ahead.
Keyur Pandya
Thank you for the opportunity sir, two questions. First on this 250 crore a month kind of capacity and that would get added gradually there will be some addition during FY27. Now just based on this 250 crore capacity when do you think that you would be able to utilize the significant proportion by what time? That is first question and second since the plant has come or the OPEX may be upfront and ramp up may be gradual. Do you think at this segment debit level that is cable and wire segment level our EBIT margin can come down because of the depreciation and some OPEX during FY27.
Rajeev Gupta
So next year also from the standard itself we will have the Turnover close to 2700 crore from the sun itself so and whatever deptrene will be there, it will be absorbed. So we don’t guide or we don’t think that our EBIT margin will go down.
Keyur Pandya
Understood. And just last question on the demand side are you seeing any deceleration in TND or any other large consumption industry? Capex I am not de growth but deceleration from either because of the past, I mean high base of past few years or because of the high prices of commodity, not only cables but even otherwise all the other raw materials. Thank you.
Anil Gupta
As of now we don’t see any deceleration in the demand for cables. You see prices really do not affect the project. If the project is going on, it’s coming in maybe for a one a month or so the decision making may stop. But ultimately that product has to be purchased to complete the project. And I don’t think that energy sector will see slowdown because of the exceptional energy demand required by you know industries, households and data centers and other consumers. So I mean we don’t expect any letdown in the demand.
Keyur Pandya
Noted. All the best. Thank you.
Operator
Thank you. We take the next question from the line of Achal Lohadeh from Nuama Institutional Equities. Please go ahead.
Achal Lohade
Yeah sir, just a quick clarification if you could talk a little bit about the competition like we have seen, you know some of the new entrants in wires. You also mentioned competition in your media interview in the morning. So if you could little bit give us some more, some more sense on the competition for both cables and wires from the new competition.
Anil Gupta
Yeah. Okay. So I’ll. I’ll just brief you about that. You see in last one year we have seen few new entrants on Pan India basis Like Torrent, Surya, Roshni, Lucre etc. And few other small companies entering wire segment. But our present growth is in spite of all these competitions. Our major strength is product performance and brand image. Any newcomer takes around five to seven years to build up that brand image and product performance. We are also price competitive. So we are already know we are already operating in a very very competitive competitive market.
We are all having, you know, substantial capacities and good. Hence we have good purchasing power. And our fixed overheads are very very low. Because of the large volumes as compared to the new players. The demand itself is growing by around 13 to 14%. So new players will also get adjusted in next few years. Apart from you know giving existing players a growth. Secondly, you know in this we are offering a full basket of products like cables, flexible wires, telephone cables for residential buildings, LAN cables, solar wires.
And we are approved with leading consultants and architects. So this kind of complete basket whosoever new entrant is coming for them to conceptualize all this will take a long time. So I can. We will always have a edge over them and we will have will be able to deal with this competition. The creation of network requires required to reach reasonable skill is at least four to five years. Even the distribution network what you need and the manpower you need to create this network that also takes adequate time.
And the market is also growing. Rest what is in the store in future nobody can, you know nobody can see.
Rajeev Gupta
In last 13, 14 years even the KI has reached only towards 3500 to 4000 crore wire sale. So. So it took us almost more than a decade to reach this level.
Achal Lohade
Fair point. Any comment on the cable front as well? Sir, apart from wires.
Anil Gupta
Front I mean I don’t see there is any new player coming into the cable segment. And with our, you know, strong presence in with the. With the projects and exports I don’t see any deceleration in that.
Rajeev Gupta
And whether pre qualification is required by anyone coming in for the cable.
Achal Lohade
Sorry just to hop on this wire thing. You know we also like have recently Bajaj announced foray into wires. So is probably Compton also could is what there is speculation. So given these are, you know electrical companies, appliances companies. They have an element of distribution already in place. So how do you. How do you defend or how do you see that playing out in terms of volume or pricing for the industry and us as well?
Anil Gupta
Sir, they are coming up with I think in my opinion with outsourcing model and so far as my experience is concerned in wires and cables outsourcing model Will not work.
Rajeev Gupta
And. And already there are three, three, four companies. Those who have already come even. Even though all the existing companies has grown very well even after this, this competition.
Achal Lohade
Understood. Okay, I’ll fall back in the queue, sir. Thank you so much.
Operator
Thank you. We take the next question from the line of Pulkit Patani from Goldman Sachs. Please go ahead,
Pulkit Patni
Sir. Thank you for taking my questions, sir. Two of them, sir. First is in continuation of Achal’s question and you did allude to it. Why do you think the outsourcing model in wires will not work? That would be the first question, sir.
Anil Gupta
This is my opinion. It is. It is not a. It has not, not so far been tested by anyone. So we’ll. Let’s see whether it will work or not. I mean it is my opinion that. And because this market is very competitive and after paying the manufacturing cost etc and other call profits to a contract manufacturer, I don’t think that just by brand you can earn too much of margin. And even a newcomer will have to build up the brand in the wire segment which is a good case scenario for at least five to seven years.
You can’t build a brand overnight.
Pulkit Patni
Sure, sir. So my second question is on your margin guidance. So just to sort of break it down, you have a large capacity that is coming on stream. I’m guessing there’ll be some negative operating leverage because of that. Plus you have a big focus on export which is higher margin. As a combination of all these you are guiding for margins to improve. Is that a fair assessment or is that underlying assumption something wrong?
Anil Gupta
No, it is a fair assessment and we are giving a margin guidance based on the combination of domestic as well export market.
Pulkit Patni
Very clear, sir. Thank you.
Operator
Thank you. We take the next question from the line of Puneet Gulati from hsbc. Please go ahead.
Sandesh Shetty
Yeah, thank you so much for the opportunity. My first question is in your overall volume growth for this quarter, is there any bit of inventory stalking to your mind that has happened or is it all pure growth?
Rajeev Gupta
It is normally pure growth because quarter on quarter we are giving the numbers and quarter on quarter we are guiding. But you know, inventory for in the channel by a dealer distributor does not kept more than 15 to 20 days. So that is for. For them also it is a routine nature of work.
Sandesh Shetty
But because the raw material prices went up exceptionally. Do you think there has been some inventory stocking?
Rajeev Gupta
It is applicable to all the quarter because in the second quarter also it was increased in first quarter it has also increased in third quarter it has also increased the continuous, the pricing is increasing. So this means it is, it is automatically set up in the system.
Sandesh Shetty
Okay. My second question is on the export side. You know, you’ve done now four quarters of very, very strong growth. Is there room to do similar sort of, you know, very, very high growth for next few quarters or do you think you’ve reached a base and you’ve tapped more or less the opportunities to do more, you know, 20% kind of growth that you’re guiding for the full business? Or should we still expect growth to be very, very fast like you’ve delivered over last four quarters?
Anil Gupta
World markets are very, very big. 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, you know, large economies.
Sandesh Shetty
Yes. So in your train mind that number can continue into next few.
Anil Gupta
Yeah, yeah, yeah. But I, I don’t say that every year we can double but we still see a strong growth for next few years until we reach a reasonable level of market.
Sandesh Shetty
Understood, that’s very helpful. And lastly, if you can give some sense of what is the existing capacity utilization for your various units.
Rajeev Gupta
The utilization of capacity is close to 76% in the cable division.
Sandesh Shetty
Okay, that’s all from my side. Thank you so much.
Operator
Thank you. We take the next question from the line of Praveen Sahai from Prabhu Das Liladar Capital. Please go ahead.
Praveen Sahay
Yeah. Hi. Hi. Sir. Thank you for opportunity. Sir, you said related to the volume growth 16 to 18% for a way forward you are looking at as a volume growth and how is has been in the third quarter.
Rajeev Gupta
The third quarter. Nilgi has said that close to 10, 11% was the growth. Because if you see sometimes this volume get exchanged between the copper and aluminum, the price of the copper is three times more than the aluminum cable. So. Exactly. Reflection replica. It cannot be quarter to quarter can be gauged because in some quarter aluminium cable gate orders are more so then the volume may see more. But in terms of value it is a 1/3 in terms of the copper. When we get the copper most like from export market, the copper is more so then the value will be high but the volume will not be look like aluminium.
Praveen Sahay
Right, right. Got it. Got it, sir. Second, you know, related to the ST cable because the SD cable for quite a, you know, a couple of quarters we are seeing there is a dip in the revenue. So is that the. I can understand there is a fungibility in the capacities but is there a demand impact or is that the capacity impact in The ST cable.
Rajeev Gupta
Last year extra high voltage power cable capacity was utilized for ST power cable. So that’s why comparatively the reflection is like that. So now the extra high voltage order is very high nowadays. So extra high voltage power cable is being manufactured on extra voltage. So no high voltage is manufactured on a extra voltage now. So that why that is there?
Anil Gupta
Because the effect is common.
Praveen Sahay
Yeah,
Anil Gupta
Yeah. But
Praveen Sahay
With the southern capacity which is up and running first phase is there a possibility of a SD cable to improve from here?
Anil Gupta
Yes, yes. Absolutely. Absolutely. It will be substantially improved.
Rajeev Gupta
Sir. You see we are always talking about the growth of 20% plus CAGR. Not for one quarter or for one year. Even in the 21222223 when the prices of copper was not increasing rather decreasing or aluminum price decreasing. At that time also we were growing by 19%. So we are not related to the price increase or decrease. Rather than we are more focused. More focused towards the the value growth. So that a disciplined growth we can maintain actually.
Praveen Sahay
Right sir. Lastly on the order book bifurcation if. You can give like a EPC extra. High voltage domestic cable how it’s been.
Rajeev Gupta
So order book just Anilji has told. I will repeat that it’s a total order book is 3928 crore. Out of which EPC order book is 361 crore. And extra high voltage power cable is 717 crore. Domestic cable order is 2002 and 2426. Export cable order is 424. So total is 3928 cr.
Praveen Sahay
Thank you sir. And all the best.
Operator
Thank you. We take the next question from the line of Kunal Sheth from BNK 361 Wealth Asset Management. Please go ahead.
Rahul Agarwal
Yeah. Hi. Thank you for the opportunity. Most of my questions have been clarification. As an export is concerned do we in a particular benchmark in mind in terms of we want to restrict it to say 15 to 80% of sales or it will this opportunity. Do we have any such number in mind?
Rajeev Gupta
Sir, we are growing depending on the capacity. As our capacity is increasing, we are growing. That’s how we have given the guidance originally 20% CADR. But if some prices are increased definitely that impact will come in future.
Rahul Agarwal
Sir, is referring more to export. Is there a number that we are looking at that we want to restrict export to certain percentage.
Anil Gupta
There is no. There is no restriction that we will stop at that level. We will see where the sky is the limit where we can go.
Rajeev Gupta
But ultimately the capacity we need to utilize now
Anil Gupta
Whatever capacity
Rajeev Gupta
Will be there. Either we can utilize an export or in detail or domestic. It cannot be that export should also increase or domestic also increase and retail increase. Because we will. We have to grow ultimately with the capacity.
Rahul Agarwal
Right sir. But realistically what could be the share of exports in two years
Rajeev Gupta
Close to more than 20%. Energy has already visualized and.
Anil Gupta
But we will definitely be aiming for more. But you know as. As soon as some we get more visibility we can give better guidance. This year we are hit by exports to us which was started last year. So ultimately in this uncertain times of geopolitics it is very difficult to comment what a leader is thinking in other countries.
Rahul Agarwal
This quarter which was the major countries that we were. We have exported to.
Anil Gupta
We have been exporting to now Europe. We are exporting to Australia. We are exporting to Middle east and. And Africa. Us at that. The moment is on hold because of that tariff.
Operator
Thank you. We take the next question from the line of Rahul Agarwal from Ikigai asset. Please go ahead.
Rahul Agarwal
Thank you for the follow up. So just one question. If I exclude Sanand, could you please help me understand the existing capacity in terms of sale value for ltht EHV and housing wire. How much peak sales can we achieve out of the existing capacity? No,
Anil Gupta
No. It is already. Already reached peak. So there’s no more 12,000 to 12,500. Crore capacity other than this.
Rahul Agarwal
Sorry sir, I missed that number. 12,500 crores.
Rajeev Gupta
Yeah. So that is the capacity total.
Rahul Agarwal
Okay. Other
Rajeev Gupta
Than
Rahul Agarwal
Other than Sana. Right. And any expansion brownfields are you planning apart from Sana will look the next two to three years.
Rajeev Gupta
Yeah, that has already been planned. And after the Sanand, even the next financial year we will be going to start in our biwadi. But that will be in the planning stage as of now. A
Anil Gupta
New project on a new land. New
Rajeev Gupta
Land which we bought in the current financial year with an investment of 92 crore rupees. And after that we are. We are already acquiring the land in Baroda. Around close to 70 acre land we are accumulating there. So in next three to four year our planning is to invest another 2000 crore rupees apart from Sanon.
Rahul Agarwal
Okay. Right. Yeah. So in terms of this we are.
Rajeev Gupta
We are targeting a close to a 20% CAGR growth for next four to five years.
Rahul Agarwal
Understand that? So this 12,500 is existing capacity plus the brownfield whenever they start and plus. Is that correct?
Rajeev Gupta
Yes.
Rahul Agarwal
Thank you so much.
Operator
Thank you. We take the next question from the Line of Vidit Srivedi from Asian Market Securities. Please go ahead.
Rahul Agarwal
Yeah so thank you for the opportunity. Most of the questions have been answered. Just wanted to know what’s the asset turn in wires? What’s the asset turn in cables.
Rajeev Gupta
So in cable assert turn is close to 1 is to 4 and in wire may be a certain close to 1 is to 5 or 1 is to 6.
Keyur Pandya
It’s 1 is to 71
Rajeev Gupta
Is to. 6 or maybe 1 is to 7 when the brownfield Capex is going on there.
Anil Gupta
Conference call.
Rahul Agarwal
Got it sir. Thanks a lot.
Operator
Thank you. We take the next question from the line of Saket Kapoor from Kapoor and company. Please go ahead.
Unidentified Participant
Yeah Namaskar sir, you can hear me? Yeah. Yes. Yes. Yeah. Yes. Just to, just to summarize that if you could just give us some color on the landscape especially for the EHV cable segment in terms of the current demand with respect to the renewable segment growth is propelling in the segment and the capacity in the country and the key players who are participating in this in this journey including Kei and if you could just give us some some more color. And then there was some talks of some some easing by the government of India in allowing Chinese players to participate in in government projects and in power utilities also because of some shortages in the in the power segment especially in putting up the universe infrastructure.
So how do we stand there and any update you would like to share. On these two aspects
Anil Gupta
Government has been talking of allowing Chinese in some segments like transformers or some high voltage equipment where there is a real shortage and delivery periods from existing manufacturers are very long. Maybe two or two years or three years in cable segment there is no such issue and there are four or five significant players now in this in the HV segment also like Kei, Universal cable, Sterilite LS cable. So and with the bulk of this product I don’t think that Chinese cables manufacturers can compete with us in the Indian market because of the disadvantages they.
Have.
Unidentified Participant
Demand or capacity. In the annual and job expect going ahead. And currently if we take you mentioned 4 players name capacity wise sir how do we rank and competitors capacity additions?
Anil Gupta
See we have almost 25% of the total capacity in line with other 4 and new capacity which is coming up. I don’t think that anybody is putting up a EHP plant especially only for EHP. They might there might be a dual purpose of manufacturing EHP and HT cable. So its quantification we will do and we’ll let you know.
Unidentified Participant
Okay. Because what what is there in the public Domain that player like which you mentioned Universal cable is also coming up with CapEx and setting up new capacity for EHV. That was the reason I. I asked you the question. And then secondly sir, in terms of the compounding part does the. The Sinopolis compound or the PVC compounds which are required are we sourcing it domestically or are these imported? Sir,
Anil Gupta
In terms
Unidentified Participant
Of the higher
Anil Gupta
Some special high voltage compounds we are importing because nobody manufacture it in India. But for medium voltage, for low voltage XLP and PVC compounds we are manufacturing ourselves. We have already done lot of backward integration in our company. We are almost manufacturing 3000 tons of PVC every month and close to 1000 tons of XLP compound which is used in LT cables and solar wires and low tension control cables within our plant.
Unidentified Participant
Okay. Because they are also dominant players like Dev Plastics and are seeking impediment from various players in the higher KB segment. So are we a customer to them? And thereby also as we ramp up to the higher KV in the HV segment they can be a prominent or trusted supplier.
Anil Gupta
Yeah. We are buying from Devplastic our requirements for medium voltage cables up to from 11kv to 66kv. But beyond these voltages and all the compounds are imported from Borealis or Dow Chemicals.
Unidentified Participant
Right? And lastly sir, on the further capex which you just outlined for the 2000 crore can you give us some color which segments are you articulating the the expansion and if you would give me one. One pending point was that how is the demand supply currently for the EHV capacity? Whichever you are ramping up and other players. Also how is the demand supply gap currently and two years down the line. Also.
Anil Gupta
The demand for EHV cable is continuously rising for evacuation power of power from renewable sources and new projects which are coming up in the transmission, in the power generation side and improving the transmission infrastructure. This really don’t have any at the moment any quantification of that but we can. We’ll try to compile the data and come back. You. It is on drawing board. It will be cleared in next. It will be you know finalized in. Next six months.
Unidentified Participant
And all the best to the team. Thank you sir.
Anil Gupta
Thank you.
Operator
Thank you ladies and gentlemen, if you wish to ask a question please press star and one we take the next question from the line of Amit Agicha from HG Hawa and company. Please go ahead.
Amit Agicha
Yeah. Good afternoon sir and congratulations for good set of members and thank you for the opportunity. So with over 2100 dealers what is the optimal dealer count and like how do you ensure dealer productivity rather than just expansion?
Anil Gupta
We are definitely not expanding the dealers too much in this 2500 dealers, 2100 dealers, I think around 100 dealers are very big. But rest of the dealers they operate in the small towns and small market B and C type cities. There the dealer sizes are anywhere between 1 crore to 3 crore or 5 crore. So that is why the number of dealers looks like. But the significant dealers which you know contributes 80, 70 or 80% of the sale is within 100. And we are trying to ramp up those dealers so that our distribution chain is improved.
Amit Agicha
How much incremental branding or advertising spend is planned to strengthen the retail put?
Anil Gupta
I think anywhere between 75 to 80 crore is our, you know, ad spend in this financial year.
Amit Agicha
That’s the last question from my side. The order book I think so you said is 3,928 crore. Like what is the execution time and how much will be converted that in FY27 revenues
Rajeev Gupta
Within three to four months is the timeline to execute the order.
Anil Gupta
These orders are quickly replaceable. I mean we just execute most of the orders in three to four months period and only a few of it goes up to five months. But most of it is are over in next in maximum four months. And these are replaced every month by new orders.
Amit Agicha
I appreciate you answering my question sir. Thank you. And all the best for the future.
Anil Gupta
Thank you.
Operator
Thank you. We take the next question from the line of Niransh Jain from BNP Pariba. Please go ahead.
Unidentified Participant
Hi sir. Thank you for the opportunity. So my first question is on the domestic institutional sales for nine months which includes. I do apologize
Operator
To interrupt you but your audio is not clear.
Unidentified Participant
Hello. Sorry, is this clear now?
Operator
Yes, please go.
Unidentified Participant
Yeah. So sir, when I’m looking at this domestic institutional sales number which includes 1880 crores for cable and wires and 370 for EHV in nine months I’m looking at a 3% growth on a year on year basis. So just what I wanted to understand that why are we seeing this low number for the domestic institutional sales Especially when our utilizations are also at around 75% for cables. So what explains the 3.3percent growth on the institutional side.
Rajeev Gupta
Once the export is increased so the capacity is limited. So. So this capacity has gone to the export market. Actually.
Rahul Agarwal
Utilization comes on
Rajeev Gupta
The basis of the volume as I said, when we take the order of the copper. So copper is three times priced than the aluminium price. So that’s why it does not reflect the true picture actually.
Unidentified Participant
Okay, okay. Understood sir. And secondly Just wanted to check when we say the peak revenue potential of 12,500 crores on our existing capacity. This is based on the spot prices of copper and aluminium.
Rajeev Gupta
The copper price is close to 9,000 LME base price was there at that time 9 to 10,000. But see copper price does not stay at one place actually sometime it goes up, sometimes it goes down also
Anil Gupta
We. Understand your concern and you know we are also trying to. We are also using our maximum capacities in volume terms and whatever reflection on the turnover comes by way of the prices it will be reflected in our results also in the. In the coming quarter.
Unidentified Participant
Right? No, no sir, I just. That that is understandable but I just wanted to check that like what is the risk to this 12,500 on either side as in like. So as you mentioned that this is on the basis of 10,000. First of all, first of all,
Rajeev Gupta
First of all I will highlight since last five years, every quarterly or yearly concur we are always giving the guidance of a 20 CAGR based on the capacity prices whether goes up or even the goes down. Also as I highlighted that in 21 and 23 the prices were going down still we were growing by 19%, 18%. So in future also it does not matter to kei in last 15 years our growth was close to 17% CAGR in last 15 years number of times prices has gone down, number of time the prices has gone up but none of the year where we have not grown except the COVID year of 20, 20, 21.
So. So that’s where we are maintaining a disciplined approach irrespective of the price down. Also we are, we were growing in the past also. So in future whenever we are talking of a CAGR growth we are talking about 20 CAGRTH irrespective of the copper going down, irrespective of anything. Because whatever capacity we are creating, whatever new market we are creating like analges to the start of the year has visualized that we should reach to the or 20% export within one to two years time. So we have already reached close to 17% in this nine month period.
So we are working on our strategy, we are not working on somebody else’s strategy. You see, it is not possible to grow quarter after quarter. If you see if somebody has grown in this quarter 50% can he grow in the next year, third quarter 50% or even he can maintain a 20% growth? It will not be possible sir, because we are industry since last 50 years. So we are growing this copper going up and down. We are, we Are continuously working towards the growth of the company. And we are participating in the industry.
We are the topmost company from the country. Those who are exporting more in so many countries. So we will remain focused. We will remain focused with a growth rate of 20% CAGR not for one year but for five years. That is from our side. Demand has no issue in the country. And neither demand has issue in the overseas market.
Unidentified Participant
Sure, that’s helpful. Thank you so much and all the rest.
Rajeev Gupta
Thank you sir.
Operator
Thank you. We take the next question from the line of Rohit Charan from. I thought pms. Please go ahead.
Unidentified Participant
So thank you for the opportunity. Hi sir. And my question is on ESV segment. Once the VCV tower is commissioned in FY27 that will still be the pre qualification period, right?
Anil Gupta
Very, very less. Because we are. We are already having experience of last 15 years in extra high voltage cable. So it will be only a type test required to be carried out in the new plant new facility.
Unidentified Participant
Okay, just a follow up. I’m seeing a shift in towards the complex urban underground projects like Universal cables is doing that and currently K is focusing on this segment are only in high volume exports.
Anil Gupta
Can you repeat this question please?
Unidentified Participant
Like I’m like Universal cables is competing on urban undergoing projects currently.
Anil Gupta
Yeah,
Unidentified Participant
Cables. 400 kilovolt cables.
Anil Gupta
Yeah.
Unidentified Participant
Now Kes. Is Kes focusing on this cables or just.
Anil Gupta
Yes, yes. We have already executed more than. I mean 30 to 40 such large projects all over India in last 10 years and still executing in Mumbai, in Karnataka, in various states. We are very well there and we are already focusing on this. And it’s not that our focus on domestic market is not there or urban underground is not there. We are executing lot of such projects.
Unidentified Participant
Okay, thank you. Thank you.
Operator
Thank you ladies and gentlemen. We take that as a last question and conclude the question and answer session. I now hand the conference over to Mr. Anil Gupta for his closing comments.
Anil Gupta
Yeah. So thank you very much our investors for participating in this conference call. I can reassure you that with the kind of business Kei has built up and in terms of, you know, product approvals, product capabilities and our strength of our management in terms of production, quality control, marketing and our worldwide network, we will be growing substantially in. It was only the capacity constraint which was hampering our growth for last two years maybe as compared to overseas. But with the Sanand facility now getting commissioned and getting ramped up, we will see substantially good results in fourth quarter and in the next financial year as each machine is commissioned one by one in a cable factory.
So it may take another one to two months to really ramp up the capacities. But we are on the track and we’ll be giving a very strong growth in this business. Incoming next three to four years with these new capacities coming up. Thank you very much for your participation.
Operator
Thank you. On behalf of NuVama Institutional equities, that concludes this conference call. Thank you for joining us. And you may now disconnect your lines.