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) Q4 2026 Earnings Call dated May. 05, 2026
Corporate Participants:
Anil Gupta — Chairman, Managing Director and Chief Executive Officer
Analysts:
Achal Lohade — Analyst
Natasha Jain — Analyst
Puneet Gulati — Analyst
Pulkit Patni — Analyst
Rahul Agarwal — Analyst
Balasubramanian A — Analyst
Unidentified Participant
Praveen Sahay — Analyst
Unidentified Participant
Unidentified Participant
Nikhil Purohit — Analyst
Saumil Mehta — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome TO Kei Industries Q4FY26 earnings conference call hosted by Nuama Institutional Equities. As a reminder, all participant lines will be 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 an operator by pressing star then zero on a touched on phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Achal Lohadev from Nuama Institutional Equities. Thank you. And over to you, sir.
Achal Lohade — Analyst
Yeah. Thank you. Good afternoon everyone. On behalf of Nuama Institutional equities we are glad to host the senior management of K Industries Limited to discuss the Q4FY26 and FY26 earnings. We have with us Mr. Alim Gupta, Chairman for Managing Director of the company. And Mr. Rajiv Gupta, Executive Director, Finance and CFO. I will start the call with the opening remarks from the management and then move to communication. Thank you. And over to you, sir.
Anil Gupta — Chairman, Managing Director and Chief Executive Officer
Okay. Good afternoon friends. I’m Anil Gupta, CMD. Kei Industries Ltd. I’ll give brief about this financial results of this quarter as well as the full year as you must have received all this information already. Net sales in Q4 in FY25 26 is 3476 crore grown by around 19.27%. EBITDA oblique net sales margin achieved is 12.21% as against 11.61% in the same period previous year. Profit after tax in this quarter is rupees 284.31 crore with a growth in PAT with 25.5% profit after tax. Oblique net sales margin is 8.18% versus 7.77%.
So we could improve it by 0.5% for the same period. Over the same period.
Natasha Jain — Analyst
Domestic
Anil Gupta — Chairman, Managing Director and Chief Executive Officer
Institutional cable sale B2B is 804 crores up around 6%. And sales of extra high voltage cables B2B is rupees 188 crore in the fourth quarter against rupees 1,145 crore last year with a growth of around 64%. Export sales in this quarter is 443 crore. Total B2B2BB sale contribution is 40% as against 46% in the previous year. Same period sales through dealer network distribution network is 1936 crore in fourth quarter against 1498 crore with a growth of around 29% in the B2C sales distribution sale contribution was for 56% in fourth quarter as against 51% in the previous year same period.
EPC sale other than cable is rupees 123 crore as against previous year same period 72 crore out of the total sales of EPC. Extra high voltage cable EPC sale is 106 crore against rupees 32 crore in the same period last year. Sales of stainless steel wire in Q4 is 55 crore as against 46 crore for the same period previous year. Now. Now I will give you a summary of the full year results. Full financial year 2526 the net sales in FY 2526 is 11,746 crore against previous year 9735 crore. Growth in the net sales is 20.66%.
However our wire and cable segment in this terms or in terms of value in FY2526 has grown by 22.32% against previous year. All our cable plants of Rajasthan were operating at peak capacity during last financial year 2425 itself and capacity at Chinchpada plant was added in Q2 of last financial year 2425 which resulted into a overall volume growth in financial year 2526 by 15% for copper cables but aluminium was flat so the net volume increase was 6.21% for the current financial year 2627. Volume growth will come from Chinchpada for wire capacity and for cables the growth will come from Sanan plant.
We are expecting 17 to 18% volume growth in this current financial year which will mainly coming from Sanand new facility. You are you are aware that our fanand you know plant was commissioning of first phase was delayed by around six months. So we you know commissioned the first phase in the December 20, December 25 and second and last phase is expected to be commissioned in the fourth quarter of FY 2026 27. In financial year 2526 average copper price increased by 16.85% and average aluminium prices increased by 9.91% during SY2526.
Operating margin has improved to 10.46% against 10.18% EBITDA in this financial year. Full financial year is 1387 crore up by 30.56% compared to last year. EBITDA oblique net sales margin is 11.81% as against 10.92% in the previous year. So the profit after tax in financial year 2526 is 918 crore with a BAT margin of 7.82%. Domestic institutional cable sale wire and Cable has been 2,688 crore. However the domestic institutional cable sale of extra high voltage cable is 559 crore against 208 crore previous year with a growth of 82%.
Export sale achievement is 18, 833 crore against 1267. So the growth in export is 45%. So the total cable institutional sale contribution is 42% which is at par with the previous year. And sales through distribution network is 6349 crore up by 25%. The total active working dealers of the company around 31-03-2626 was approximately 2125. Dealer sale contribution is 54% in overall sales. PPC sales other than cable is 311 crore against 343 crore stainless steel wire sale in full FY 2526 is rupees 212 crore at par with the previous year.
Now I will brief you the demand outlook and the future outlook of the company. The demand outlook continues to remain strong. We are very hopeful that whatever we have projected in the volume growth and plant utilization it will happen and we are bullish about huge capex coming up in India in the power transmission and distribution sector. Data centers, institutional infrastructure projects like metal rails and railways as well as the construction sector comprising of commercial construction as well as real estate, oil and gas sector will continue to remain strong.
Especially the power generation sector will see substantial growth in this incoming financial year not only in the solar and the wind but also in the thermal power generation. The data centers will also be a big booster
Achal Lohade — Analyst
Export for America.
Anil Gupta — Chairman, Managing Director and Chief Executive Officer
We have also commenced restarted our exports to United States after the lull in last financial year because of the tariffs and we hope to do a substantial sale in us this year taking our export to around approximately 20% of our total sales in the current financial year which is as per our previous target. So this is a brief summary from our side. We now look forward to answering your questions. Thank you.
Questions and Answers:
Operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question question may press star and one on the Touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Sukrit D. Patil from Eyesight Fintrade Private Limited. Please go ahead.
Anil Gupta
Good afternoon to the team. I have two questions. My first question to Mr. Anil Gupta is in your view, how is unmuted.
Operator
Please go ahead with your question.
Anil Gupta
Yes, hello. Am I audible? Hello? Audible.
Puneet Gulati
As there is
Operator
No response from the current questioner we’ll move to the next question from the line of from Goldman Sachs. Please go ahead
Pulkit Patni
Sir. Thank you for taking my questions. Two questions. Firstly, are you witnessing any supply chain issues right now? Supply of pvc, compound, xlp, any other sort of supply chain issue? You did mention that freight cost on the TV interview you mentioned freight costs have gone up quite meaningfully and you are sharing part of that with the customer in the export market. Anything else on that side that you would like to highlight in terms of costs and supply chain?
Anil Gupta
Thank you. Supply. As of now I think none of our plant has suffered because of the raw material issues coming through imports. Because of the good stocking by us as well as the domestic availability. And our only the imports of XLP from Middle east especially Abu Dhabi is not happening because of the shipping problems. Also in March we witnessed, you know we were not able to ship our goods to Middle east because no shipping line was ready to take the deliveries. Now in April it has started a little bit at a very high cost because the containers are now now going to Fizura and from Fizura port by land to various destinations in Abu Dhabi and Qatar etc.
In other countries. So it is, it is a. And most of the customers are bearing 50% of the differential freight cost from. From us. And in cases where the our prices were fob there the entire trade cost is to their account. But that that has also started because they they need material. And so it was a. Of course in March we suffered, we could have done around 50 crore more. 50 to 60 crore more exports which could not help.
Pulkit Patni
Fair point sir. So my second question is. I mean historically we’ve done a very good job in meeting our guidance. But our guidance has always been in the high teens to early 20s in terms of revenue growth. You just mentioned right now that 17 to 18% is the volume growth in FY27 that you are targeting from the Sanant facility. If I was to just make the assumption of where copper is likely to be based on what the last year prices was then we are talking about at least a 10 to 15% upside that will just come from copper.
So is it fair to assume both added together that we could look at more like a 30% revenue growth this year or am I reading too much into this?
Anil Gupta
No, no. I think if what you are saying, if that happens. This will happen. It could happen.
Pulkit Patni
Okay, this is, this is clear, sir. Thank you so much for taking my question.
Operator
Thank you. Next question is from the line of Puneet Gulati from hsbc. Please go ahead.
Puneet Gulati
Yeah, thank you so much and congrats on great performance. My question is if you can elaborate a bit on what has been the key drivers of your margin expansion in this quarter. Especially when you face some bit of challenges on the freight side and the Middle Eastern supply side.
Rahul Agarwal
No, what he said is a freight side only related to the Middle east end. Our Middle east sale is practically very, very less. So it is no impact on the overall.
Anil Gupta
What I said is the freight impact coming on the supplies to Middle east. But that freight impact impact has come in April, not in March because in March the supply supply could not happen because of the restrictions on the shipping.
Puneet Gulati
Okay so. Okay, so no adverse impact there. So whatever 70 pips margin that you lost is more. But I can say that
Anil Gupta
Whatever, whatever extra freight we are bearing in April that will be compensated by higher exchange rates which we will get from our export revenue in those orders itself because those orders were priced at anywhere but around 90 or 91 rupees. So even if we are bearing some extra freight that will be compensated by the extra revenue from the exchange fluctuation.
Puneet Gulati
Understood. And so 17, 18% volume growth that you guided from the sun plant that’s effective from this, this FY27 itself. And then what sort of another growth should we expect for FY28 based on the second phase?
Anil Gupta
Similar growth will continue to happen because the capacity keep on coming up and plant getting stabilized with the more and more supplies going from that plant. You know, when we set up a new plant it takes a little while to get that plant specific plant, plant specific approvals also from the customers. And so hence the ramp up is always gradual.
Puneet Gulati
Okay, so FY27 it is 17, 18, 28, it could be a bit more gradually. That’s. Yeah, it will
Anil Gupta
Be, it would be around 20%. Yeah.
Puneet Gulati
Okay. And lastly if you can also talk about, you know, how do you think about margins for, for the current year
Anil Gupta
We, I mean on a conservative side we can all expect around 11, any, anywhere between 10 and a half to 11%.
Puneet Gulati
Okay, that’s all from Mr. Thank you so much and all the best.
Operator
Thank you. Next question is from the line of Achal Lohardi from Noama Institutional Equities. Please go ahead.
Natasha Jain
Just a quick clarification sir. When you are talking you said, you know the wires growth will come From Sinchwada and the cables growth will come from Stan and plant at 1718. Volume growth you said for the cables or the company as a whole? I vision company as well. Yeah. Okay.
Anil Gupta
The company has a whole. Yeah,
Natasha Jain
Perfect. The other question I had is, you know, in terms of exports, if you could elaborate a little bit as to where we are, what kind of, you know products we are you know currently exporting and what incremental new product categories can we look at? If you could get a little bit more to us in terms of the export front growth as well as the categories and the key drivers or geographies.
Anil Gupta
We are exporting mainly LP, HT and X5 voltage cables. Apart from that we are also exporting control and instrumentation cables for oil and gas refineries. So this is our product total product mix. And export basket is not different from domestic domestic supplies. Look, export basket is in terms of products is similar to domestic.
Natasha Jain
Understood. And geographies. If you could give us a sense FY26 export mix.
Anil Gupta
Major export destinations are Middle East, Australia, Africa and now. And as well as the United States. And we are also exporting to Europe as a
Natasha Jain
Understood. And would it be possible to know what kind of solar cables mix we have sir, for FY26 at our company level?
Anil Gupta
Yes, solar cables. We are manufacturing power cables and also now we are manufacturing solar wires by electron beam profile. So we have set up this electron beam facilities in our salon plant and which has started.
Natasha Jain
Got it. So the contribution will be relatively small at this stage, right?
Anil Gupta
No, it will quarter after quarter it will keep going.
Natasha Jain
So FY26 will be smaller and FY27 will will grow substantially. Understood. And would this be a value added product, sir, in terms of margins or a similar margin?
Anil Gupta
Yes. No, no. Will be a similar margin. I mean when we talk of EBITDA margins we talk of you know, all products average together.
Natasha Jain
Got it. Got it. I’ll fall back in the queue for further follow up. Thank you so much.
Operator
Thank you. Next question is from the line of Bala Subramaniam from Aryan Capital. Please go ahead.
Balasubramanian A
Good afternoon sir. Thank you so much for the opportunities. So my first question, we have planned around 2000 crore kind of investment over next three to four years post senant. I think we also bought a giwadi land around for 92 crores. And we also got a 70 acre land in Baroda. So I’m trying to understand like what is the use case of this land and what kind of products we are going to target for the investments. Is there we are we also planning any backward integration into compounds. I think you are currently highly importing high voltage compounds.
Anil Gupta
We are at the moment we are manufacturing PVC compounds and low tension XLP compound server cells and but importing and or procuring domestically medium voltage compounds and extra high voltage are all being imported. So extra high voltage will continue to be imported. However we will be working on manufacturing medium voltage compounds ourselves. But that this project will take minimum two years. Because the civil construction to the factory setup takes time. Similarly we are also considering manufacturing our own galvanized steel wire cable, armor wire.
Because we have a substantial consumption of close to 5,000 tons a month. So which makes it economic sense to do that and other products. What we are we will be whatever products in electrical side in cable industry which we may be missing. We will continue to add those plus the newer capacities in our new facilities. But whatever will come up in the next two, three financial years.
Balasubramanian A
Okay sir, so my second question is. We have active dealers of 2125. But around 100 top dealers contribute 70 to 80%. 70 to 80% of sales. Basically 5 percentage of the dealers are bringing 70 to 80 percentage of their sales. And dealer inventory is typically nearly 15 to 20 days. So I’m trying to understand. The remaining dealers are inactive or they are drinking. They are the low, low protective dealers. And what is your ad? Yes sir. What is our dealer chant rate annually? Sir,
Anil Gupta
It’s not inactive dealer. The major part of 20% dealers which do 20% of the total sale. So the 20% those dealers are anywhere between you know 50 lakhs to 1 crore. So they are always meant first they are operating in a smaller towns doing small town sales or retail sales. And they are mostly operating in two 90 meter wire segment. Because there you require dealers at every nook and corner. So you need lot of numbers. Then only the sale comes. And so far as churning is concerned, I think every year 10 to 12% is the churning of dealers.
Some dealers leave and some new are added.
Balasubramanian A
I got it sir. Thank you so much for the detailed explanations. All the best.
Anil Gupta
Thank you.
Operator
Thank you. Before we move to the next question, a reminder to the participants to ask a question. You may press star and one next question is from the line of Patanjali Srinivasan from Sundaram Mutual fund. Please proceed.
Unidentified Participant
Hello sir. Thank you for the opportunity. I had a couple of questions. So firstly could you tell us like what is the increase in terms of price and what is the volume growth for this quarter and on a year, on year basis. Where do you see things for the next year?
Rahul Agarwal
For the full year basis the copper price increased by 16.85%. And for aluminium increased by 9.91% for the full year basis. Overall for full year we have grown for the copper production that is also by 15. But our aluminium consumption was flat. So overall the the net volume growth for the metal was 6.21%.
Unidentified Participant
Got it sir. So what is the price increase we had to take this year? Around 8, 9%. Would that be the passing
Rahul Agarwal
On now we are working on the. We are working on the passing on mechanism.
Unidentified Participant
Correct. Every time
Rahul Agarwal
Is basically pass on mechanism. Because we are a tender driven business. So whenever we are quoting we are quoting on a prevailing market price on that date. Accordingly we are quoting the price
Unidentified Participant
In all the institutional
Rahul Agarwal
Orders. It get faster.
Unidentified Participant
Okay sir. And we had mentioned that 15 to 17% volume growth can happen in FY27. So this is only from the newer plant or it’s just entire like even the existing plants put together. And what would be
Rahul Agarwal
Existing plants of basically Rajasthan plants They are already working on the peak capacity. Only the Chinchpada plant and the new plant of Sanam they will add in the volume. Actually
Unidentified Participant
Yes. So in terms of growth you still stick to 20% growth for 27 over 26. Or is there a slighter. Normally the price
Rahul Agarwal
Remains. If the price remain at this level and with the volume growth of 1718 this value will grow more. But if the prices are going down then still we will be maintaining a 20% because we are adding 1718 value.
Unidentified Participant
But the except
Rahul Agarwal
The last year. Except the last 25, 26. If you go for the next previous 5, 6, 7 years our volume growth was close to 14 to 16% year after year.
Anil Gupta
I can add here that if the prices remains bullish of the metals then definitely the revenue growth will be much more.
Unidentified Participant
Got it sir. No sir, just only doubt or concern is that the volume growth is a bit lower. Given that we had very strong base for the last two, three years. And we are also bringing new capacities. So will we see any challenges in terms of volume growth? That is what the concern is sir.
Rahul Agarwal
No volume was based on the capacity addition. So whatever in the phase manner we are adding the capacity. So volume growth will be in this range only which will be resulting more than 20%. Well comes growth.
Unidentified Participant
Got it sir. Thank you so much for all the best.
Rahul Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Shirom Kapoor from Jefferies. Please go ahead. Line for the current questionnaire got disconnected. We’ll Move to the next question from the line of Praveen Sahai from PL Capital. Please go ahead.
Praveen Sahay
Yeah. Hi. Thank you for opportunity and many considerations for a good set of numbers. First question related to the acceptance for from the last Q3 and now the Q4. The acceptance number has been you know on the higher side. So how we will read this the way forward. Like even the trade table numbers I can see that’s an increase for a year. Yui. If I look at. So how to read these numbers the way forward where you want to see this number.
Rahul Agarwal
This number will remain in this. In this category only. Because all the prices of the metal has already increased. So. And the volume of the company is also increasing after after the production. So that’s this will make this number will remain in this range only.
Praveen Sahay
So it’s a factor of a pricing. And that’s where you are saying that’s number to be here. Yeah.
Rahul Agarwal
And new salmon plant also because their inventory has increased.
Praveen Sahay
Right. Okay. And second questions are related to the housing wire and winding wire. And we had observed in the last three years continuously increase in the contribution. So now it’s for FY 26 33% of contribution. So and further you are guiding for the change board there is a wires production which will further add to the volume. So where you want to see this contribution to go from here. 33%.
Rahul Agarwal
I think dealer distribution contribution is already 54%. And whatever cable capacity is increasing in. So we hope that 53 to 55% contribution from the dealer distributor will remain.
Praveen Sahay
Okay. So as our this contribution also to go up housing wire and.
Rahul Agarwal
Yeah. So basically the housing wire goes to the dealer only. So the housing ware sale is increasing. But the cable sale is also increasing
Praveen Sahay
Because of the
Rahul Agarwal
Final plan.
Praveen Sahay
Okay. Okay. So we will maintain this number at this level. Yes. Another question is related to the order book. So. So if you can give the bifurcation of the order book EPC and extra high voltage domestic.
Rahul Agarwal
So we have The AS on 31st March 2026 order book of EPC division is 309 crore rupee. Extra high voltage power cable order book is 625 crore rupees. And we have also L1 in extra high voltage power cable order book of 233 crore. Another order and cable domestic institution order book and around 2154 crore. And cable export order is 497 crores. Put together all order book is close to 3585 crore. In whatever order book from the dealer distributor. That is not reflecting it here because they are the order which we supply within three to four days time or maybe at that one week time.
That’s it.
Praveen Sahay
Right. And one clarification like volume growth for the quarter is 12 and a half percent.
Rahul Agarwal
No, no. Volume growth for the quarter was close to 2%. And full year basis the net volume growth is. I’d said 6.2%.
Praveen Sahay
Okay, thank you sir and all the best.
Operator
Thank you. Next question is from the line of Shreya Kejriwal from Manivesta Capital. Please go ahead.
Unidentified Participant
Hello sir. Congratulations on your results. So my question was regarding the EPC. So EPC contributes like around 2.6% as we saw in FY26 revenue. So does the company plan to scale this up or keep it as a supporting business? Like what’s your view on that?
Rahul Agarwal
Since last three four years before we have guided that EPC business will go down towards the 2, 3% only. So as per the guidance because they are the working capital is very long in epc. So because of that we are increasing the retail where the working capital is very low. That’s how it is our plan.
Anil Gupta
It is mostly a supporting business to support our extra high voltage cable projects where cable value is more than 80%.
Unidentified Participant
Okay so and my. I had one more question regarding the QIP proceeds. I feel that around 400 to 500 crore remain unutilized. So any specific deployment plan or timeline for this capital.
Rahul Agarwal
The second phase of the extra voltage power cable in Sanand will complete by Q4 of the current financial year. So the whole 385 crore unutilized UIP money will be utilized in the current financial year.
Unidentified Participant
Thank you sir so much.
Operator
Thank you. Next question is from the line of Ashish Agarwal from Indus in Nippon Life. Please go ahead.
Unidentified Participant
Yeah, thanks. Sir, two questions from my side. What is the CAPEX plan now for FY27 and will it include CAPEX incrementally in Biwadi also. And secondly and secondly just wanted to understand on the EHV side this year we have seen a substantial growth on the EHV revenues almost close to 66% growth given our new capacities for EHV only will be coming towards the end of this year. How should we look at the growth on the EHV side? Yeah, thanks.
Anil Gupta
In EHV segment we expect a growth of around 20%. A little bit from our existing factory because we are already operating at almost full capacity. And. And some portion of growth will come from Sanand
Rahul Agarwal
With regards to the CAPEX investment every year we will be doing around 600 to 700 crore capital expenditure for next two to three years continuous.
Unidentified Participant
Got it. Thanks. Thanks.
Operator
Thank you. Next question is from the line of Christopher Hartkoff from Pictet. Please go ahead.
Nikhil Purohit
Hey, thanks for the call. Just a follow up question on the quarterly volume growth. If I may. Is it fair to say that you were still capacity constrained or how do you explain the discrepancy or the difference to some of your peers volume growth? And what was Sanaa’s contribution in the fourth quarter in terms of.
Rahul Agarwal
In Salam, fourth quarter sale was very less. It was less than 100 crore rupees. Because the ramp up takes time. But now from the first quarter onward for the current financial year, the sale from Salam will be visible that extent as energy was spoken about. Current year growth will be coming from the salon.
Nikhil Purohit
And the first part of the question, did the volume growth in the fourth quarter, was that still how long was the constraint or how should we. Yeah,
Rahul Agarwal
It was mainly because of the capacity constraint actually.
Nikhil Purohit
Got it. Okay. Thank you very much. Thanks.
Operator
Thank you. Next question is from the line of Rahul Agarwal from Ikigai Asset. Please go ahead.
Anil Gupta
Hi sir. Very good afternoon.
Rahul Agarwal
Good afternoon.
Anil Gupta
Sir, two questions. Firstly, I see reduction on the receivable balance. On the receivable side on the balance sheet overall we see some changes to inventory and creditors. I believe that is because of some transit export delays which will normalize in first quarter. So overall on a sustainable basis the company should be between 85 to 90 days of networking capital cycle over the next two, three years. Is that understanding correct?
Rahul Agarwal
Yeah. Networking cycle is because of receivable to the B2C business is already reducing year after year. So because of that the working capital cycle is decreasing. Actually
Anil Gupta
Is that. That is purely because of channel financing?
Rahul Agarwal
Yeah, that is mainly purely because of channel financing.
Anil Gupta
Okay. So incrementally this 57 days of sales of you know, receivable date that should remain flattish or it should further decline.
Rahul Agarwal
This debtor may further decline to. As of now it has reduced from 2.2 months to 1.88 months. It may reduce to 1.75 months.
Anil Gupta
Got it. But
Rahul Agarwal
Almost now the overall inventory plus data minus creditor is close to 2.97 months. As against last year it was 3.39 months.
Anil Gupta
Right, I get that. And secondly, Rajiv ji, you talk about capex of 8, 900 crores a year. Your operating cash flow is going to be similar every year based on the growth guidance you’re giving. So the cash lying in the balance sheet, right? Almost 1300 crores net cash. How do we reinvest this in the business then? Because the entire capex is going to get funded from your accruals itself. So what is the thought there?
Rahul Agarwal
Sir, we will be doing all future capex from the internal approval only because whatever capex we are accruing year after year we will be allocating close to 60 70% for the capital expenditure for the incremental capacity addition to grow at a CAGR of 20% and because of we are growing more than 20% so we need to add some additional working capital so balance 30% of accrual will be kept for the incremental working capital requirements. So that is our overall plan to use our cash flow for the next three to four years.
Anil Gupta
Sir, I was actually talking about the cash remaining in the balance sheet even after using working capital even at 90 days of sale you need 5600 crores of working capital.
Rahul Agarwal
Normally the the size of the company 500 to 600 crore cash will always be carry only the only the additional 2, 300 crore cash it may go up, it may go down depending on the receivable and the inventory cycle because it cannot be remain same in on month to month basis on an average it is there but on month to measure it may increase or decrease. If suppose sudden jump in the raw metal price then for that particular month it will increase substantially. So cash will not be there at that time. So because of that we need to have the cash at 500 to 600 crore level at any given point of time in the balance sheet.
Nikhil Purohit
Got it sir. Because we
Rahul Agarwal
Are running because we are running a debt free company and with this guidance we will be continuing running as a debt free company for next four to five years with a top line growth of 20% CAGR depending on the capacity we are going to add.
Anil Gupta
Got it sir, got it. And this just to double click on this fourth quarter volume growth you said 2%. How do you read this in terms of your own expectations in the quarter? I understand there have been lot of fluctuations on a QQ basis. Month on month basis environment is not normal. But what
Rahul Agarwal
There are two aspects to this. First is the capital allocation. If we are allocating the capital of 60 70% toward the capex and 30% for incremental working capital requirement considering we will be growing a CAGR of a 20% percent plus. Okay, so if the value is increasing and the volume is also increasing that we may be requiring more additional working capital also. So by saying 3040 is very easy. But to arrange the capital for that also we need some allocation. So if we have already allocated to the capital expenditure then we need to have the borrowed so at all as of now we are not going to borrowing.
And whatever capacity we are creating, we are creating a capacity with a volume growth of 1718%. Because last year in Sanon the six month was delayed. Because of that that volume could not be added into the field. So because of that the volume growth was not there. Because otherwise our all the Rajasthan plant even in 24:25 they were running at a peak capacity. So whatever capacity increased in the chinch parlor plant in the second half of the 24:25 that has contributed only towards the volume growth.
So because of that the last year the copper has. Copper metal consumption has grown by 15%. But aluminium metal consumption was flat. Because the Osana was not operative at that time. Now the is operative and the chinchilla is having the capacity for the wire. So. So then we will be operating again back to the 17 18% volume growth.
Anil Gupta
Very clear sir. Very clear. Thank you so much and wish you all the best. Thank you.
Operator
Thank you. Next question is from the line of Oman Mehta from Kotak Securities. Please proceed.
Saumil Mehta
Hi. Thanks for the opportunity. So I just wanted to clarify something. Earlier we had given a number of around 2700 crores. Some plant in F27.iu still sticks to that. And if he has then the 18 volumes would actually be slightly higher. If actually you do, 2700 crores is the question. And the second clarification will
Rahul Agarwal
Come not only from Sanam but from Kinchpal Arisuna for the buyer that is mainly for copper.
Saumil Mehta
And just to reconfirm something you said to Pulkit earlier. 17:18 Volume plus if prices sustain where they are then on an annual basis we are looking at 25 plus top line growth. That’s correct, right?
Rahul Agarwal
As of now if the prices may increase the value will automatically be will be clear. But we can’t say the value will increase. The price will increase or decrease at at this moment of time.
Saumil Mehta
Sure sir. Because there
Rahul Agarwal
Also.
Saumil Mehta
Sure sir. Thank you so much. These are my questions.
Operator
Thank you. Next question is from the line of a Gatani from ubs. Please proceed.
Saumil Mehta
Hi. Thank you for the opportunity sir. Earlier you commented export revenue share guidance of around 20% of revenue for FY27. And if you assume even a 20% company level revenue this implies export revenue growing more than 50%.
Puneet Gulati
So
Saumil Mehta
A large part of 16 to 18% volume growth is supported by exports. So is there Any identified geography which is contributing big to this. Any particular product which will drive up increase in exports,
Anil Gupta
Products and geographies will remain same where we are exporting. It will increase volume will come from the same geographies and similar type of project.
Saumil Mehta
Okay, so this is more of a broad based rising acceptability of Indian product in the export market. Yes. And on the volume growth, Francis, volume growth is accelerating from 6.5% in FY26 to 16 to 1827. So how would this impact operating leverage? And do you expect any pre operative expenses for phase two of Sanant?
Rahul Agarwal
Already we have guided that from 2728 when the salon will be at full capacity. So that will be the first year in 2728. So another half percent EBITDA margin will get improved because of economy of scale in the. In the current financial year already operating margin has improved from 10.18% to 10.5. And another 2025 gives point it will further increase year after year because of the economy of scale and having more export and more B2C business.
Saumil Mehta
Got it. Got it. This is very helpful. Thank you.
Operator
Thank you. Next question is from the line of Anutshah from Philip Capital. Please go ahead.
Natasha Jain
Hi Grafton. Sir, congratulations to the entire team of Kei Industries for delivering good set of numbers. Actually just wanted to reiterate you know the breakup of the current order book that you had mentioned. Actually I had missed it. So if you could just give us you know the breakup of the current order book therefore that would be great. Thank you.
Rahul Agarwal
Yeah. The EPC order book is 309 crore. Extra high voltage power cable order book is 625 crore. Domestic cable order book is 2154 crore. And export cable order is 497 crore. Put together all is 3585 crore as of 31st March 2026. And L1 on EHV another order is 233 crore.
Natasha Jain
Okay sir. Thank you so much sir. Thank you.
Operator
Thank you. Next question is from the lineup Parshav Shah from Meta equities pms. Please go ahead.
Natasha Jain
Congratulations to the entire team. I want to understand about export business particularly in the us. Since you said you are looking good tractions can be come from us. So what kind of orders, product or business that you are expecting from business I want to know about particularly from the data centers area. Thank you.
Anil Gupta
See data centers I think we. We expect to supply them mainly HP cables and. And also some copper flexible. But presently our our market what we have built for the data center is only for the medium voltage HD cables to us. And we are working out that what other cables can be sold in the data centers. Because when we sell to data centers we have to face competition from their American domestic industry as well. So because of the US market last year the progress in market development was called which has restarted now.
We’ll. We’ll be able to let you know about it in the. In. In our next.
Natasha Jain
Right, Right. So I want to know about what kind of order book is currently from a US side and approximately what kind of margin that we are taking from us in the business.
Rahul Agarwal
In US market close to 5060 crore rupees order book as of 31st March 2026 was there. But as energy is saying that now this market has opened after the tariff has reached reduced. So now this our marketing team is traveling over there and they are recapturing their our existing customers and adding new customers. So in future this will be adding up. So up till August last year we have reached close to 40 crore rupees per month sale. So within three months time we will try to reach first at that level.
Then it will be adding to our business.
Natasha Jain
And this is a. This is our evaluated product area.
Rahul Agarwal
Every product is evaluated product.
Natasha Jain
I want to know about the ebitda margin of US market
Rahul Agarwal
The average. But the margin is close to 11% for all exports.
Natasha Jain
Okay, thank you and all the best to attend.
Rahul Agarwal
Thank you.
Operator
Thank you. Next question is from the line of Ankit Soni from Miraise. Please go ahead.
Unidentified Participant
Yeah. Hi sir. Congratulations for a good set of numbers. Just wanted to be having two to three questions. So the Sanand facility second phase was I believe earlier operational in around August or second September month. So has it got to delay to quarter four? So am I reading it right
Rahul Agarwal
Already? Already the whole Sanon plant get delayed by six months. So the phase one also got delayed by six months. So the increase also will get delayed by six months because the construction will be in progress. So by March 2027 the extra I would power cable production.
Unidentified Participant
Okay. And So I believe first phase will be fully operational. For financial A27 will be giving you a growth of volume growth of around 17 to. And the second phase which will be operational by around quarter four would open up what sort of volume growth for financially 28
Rahul Agarwal
It will be another 17 18% volume growth will be there.
Unidentified Participant
Okay. Another 17 18%. Sure. And so with respect to the price hikes. So have we taken all the price hikes in relation to what was the raw material increase maybe till March 31st or maybe till here. Are we taking another price hike going forward?
Rahul Agarwal
That is. Sir, that is our business model. Whenever price increase we are increasing the price of the cable. Whenever decrease we are decreasing the price of the table. So there is a no issue for the pass on since last four, five years. If you see our balance sheet, you will not find the situation in our EBITDA market.
Unidentified Participant
Okay, sure. And if you can just let me know what was the price hike we took in financial year 26?
Rahul Agarwal
Every order we price it’s a order to order basis. Because we are quoting in a day at least 10 to 15 tenders. So these kinds of price are getting passed on on every day basis. Not on month month basis only. In the case of retail the prices revise twice a month. But in the institutional sales if your order to make sale is there every day we are quoting in every day we are quoting on a prevailing market price.
Unidentified Participant
Sure. Okay. Got it sir, that should be my.
Operator
Thank you. Next question is from the line of Nikhil Purohit from Fident Asset Management. Please proceed.
Nikhil Purohit
Hi. Thanks for the opportunity and congrats on a great set. Most of my answers, most of my questions have been answered. I just had one question. In this institution business and the distribution business can you tell me the cables versus buyer share in both of these segments
Rahul Agarwal
Major share in the institutional is for the for the cable only and for the dealer distribution business there is almost 55% business belongs to wire and close to 45 to 50% business belong to the cable.
Nikhil Purohit
Okay, so buyers was stronger this quarter, right?
Rahul Agarwal
Fire is always going closer
Anil Gupta
Network we sell cables as well.
Rahul Agarwal
That’s why I said almost 45% to 50%. We are selling to cable and 5050 to 55% through dealer distributor we are selling our byproduct. Correct.
Nikhil Purohit
Got it. Okay. Thank you.
Operator
Thank you. Next question is from the line of Deishi Johnny from who is an individual investor. Please go ahead.
Natasha Jain
Hello sir. First of all the congratulations for the good setup number. I
Saumil Mehta
Was just one want to clarify the one doubt for entire total institutional sales including the exports increased by around 19%. But the share of the total revenue is somewhat decreased. Could you explain the EHV segment strategy? This quarter domestic sales increased from 115 to 1hhdr. Is the is this where you anticipate the main future institutional growth?
Rahul Agarwal
The institutional sale belongs to the domestic market as well as to export market. With the constraint in the capacity if the export is increasing then the domestic sale to institution will go down. So only that was the reason. Otherwise the market size in the domestic front is also very strong. And in export market is also we are improving year after year in extra I voltage power cable. Because in 2425 the sale was less. So because of that in 2526 it is increasing. It is showing increasing actually.
Nikhil Purohit
Okay. Okay. Rest of the questions are already answered. Thank you so much for the opportunity and all the best.
Rahul Agarwal
Thank you sir. Thank you.
Operator
Thank you. Next question is from the line of archit Shah from 360 Capital. Please proceed.
Saumil Mehta
Yeah, I thank you for the opportunity and congratulations for the good set of numbers. So just one question. Could you give us split in volume growth for annual and for four Q1 cables versus wires? The 2% and 6% split,
Rahul Agarwal
Sir, volume is not available for separate. Because in our factories of Silvasa and Chinchwala we are making within the same testing. We are making the buyer as well as legal.
Natasha Jain
Okay, but would it be directionally right to say that cables volume would have outperformed wires or
Rahul Agarwal
Volume is depend on the capacity. Actually we were not having the capacity for cable actually.
Saumil Mehta
Okay. Okay. So this 2% was mainly led by wires. You’re saying market is
Rahul Agarwal
So strong. Market is so strong. Demand is so strong in our Indian market and in overseas market. Whatever capacity we are having, we are able to sell easily. So because our Sanan plant get delayed by six months. So because of that the sale plan with from the Sanon was not happened in 2526. So because of this we have grown in terms of value because of prices has increased. But in terms of volume we could have grown only from the our Silvada Chinchpala plant actually.
Saumil Mehta
Okay. Okay. Got it. Got it, got it. Thank you. Thank you so much.
Operator
Thank you. Ladies and gentlemen, as there are no further questions from the participants I now hand the conference over to the management for the closing comments.
Anil Gupta
Thank you very much for joining this conference call. I hope that we have been able to answer most of your questions. If still you have any queries, you can refer it back to us. Thank you.
Operator
Thank you, sir. On behalf of Nuama Institutional equities, that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.