Incorporated in 1968, KEI Industries Ltd manufactures wires and cables (W&C) like EHV cables, HT cables, LT cables, and sells them in India and overseas.
Q3 FY26 Earnings Results
- Revenue from Operations: ₹2,954.7 crore, up 19.5% YoY from ₹2,472.3 crore; broadly in line with estimates.
- EBITDA: ₹353.9 crore, up 39.1% YoY from ₹254.5 crore; EBITDA margin 11.98% vs 10.29% in Q3 FY25 (≈170 bps expansion).
- Profit Before Tax (PBT): ₹314.7 crore, up ~42% YoY from ₹221.2 crore.
- Profit After Tax (PAT): ₹234.9 crore, up 43% YoY from ₹164.8 crore; PAT margin ~8.0%.
- Segment – Cables & Wires: Revenue ₹2,821 crore in Q3 FY26, contributing the bulk of topline and driving overall performance.
- Distribution/Dealer Channel: Sales through dealer/distribution market ₹1,612 crore, up 29.2% YoY from ₹1,247 crore, reflecting strong retail traction.
- 9M FY26 performance:
- Net Sales: ₹8,271.4 crore, up 21.3% YoY from ₹6,821.1 crore.
- EBITDA: ₹963.2 crore, up 33.0% YoY from ₹724.6 crore.
- PAT: ₹634.1 crore, up 35.0% YoY from ₹469.7 crore.
Management Commentary & Strategic Decisions – Q3 FY26
- Management underlined that Q3 FY26 delivered robust double‑digit growth in revenue and strong margin expansion on the back of healthy demand in the core cables & wires business and strong dealer/distribution momentum.
- The company reiterated its medium‑term growth aspiration of ~20% annual revenue growth, stating that new entrants are not expected to materially derail its trajectory given brand strength, execution capabilities, and channel depth.
- Strategic actions and focus:
- Continued push on retail/dealer channel to drive higher‑margin business, evidenced by 29% YoY growth in distributor sales to ₹1,612 crore.
- Ongoing capacity expansion and capex to support growth in power cables, house wires, and institutional projects, while maintaining a lean balance sheet.
- Capital allocation: Interim dividend of ₹4.50 per share (225% of face value) declared for FY26; Board also approved voluntary delisting from the Calcutta Stock Exchange (CSE).
Q2 FY26 Earnings Results
- Revenue from Operations: ₹2,726 crore, up 19.4% YoY from ₹2,284 crore; modestly below street estimates.
- EBITDA: ₹269.1 crore, up 20% YoY from ₹224.4 crore; EBITDA margin 9.9%, flat YoY and slightly below expected 10.2%.
- Profit After Tax (PAT): ₹204 crore, up 31.3% YoY from ₹155 crore.
- H1 FY26: EBITDA margin 9.9% vs 10.2% in H1 FY25, indicating mild operating‑efficiency pressure despite strong topline growth.
Management Commentary & Strategic Directions – Q2 FY26
- Management pointed out that Q2 FY26 saw strong double‑digit revenue and profit growth, driven by healthy demand in the cables & wires segment, though revenue and EBITDA were slightly below analyst expectations.
- Margins were impacted by operating‑efficiency headwinds and cost pressures, but remained stable YoY, with the company expecting improvement as operating leverage and mix benefits play out.
- The company reaffirmed its growth focus on the retail/dealer segment, capacity expansion and disciplined execution, setting the base for stronger margins and growth in H2 FY26 (which materialised in Q3 with ~12% EBITDA margin).
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.