EL7.AI
StocksMediumUpdated×2•Originally published 22 October 2026•Updated 22 October 2026•
4 min read

KEI profit rises 28.96% as sales grow and margin narrows

Key Facts

1Consolidated net profit rose 28.96% to 262.45 crore rupees, from 203.51 crore rupees a year earlier.
2Quarterly revenue increased 38.52% to 3,776.42 crore rupees, from 2,726.35 crore rupees a year earlier.
3The EBITDA margin, under the company's standalone measure including other income, narrowed to 10.62% from 11.43% a year earlier.
4Debt after deducting cash and including trade finance acceptances stood at 314 crore rupees, compared with net cash of 592 crore rupees at the end of March.
5The outstanding order book stood at about 5,185 crore rupees, according to the September results presentation.

KEI Industries' consolidated net profit rose 28.96% in the fiscal second quarter ended September 2026, while revenue grew faster and profit margins narrowed. Profit reached 262.45 crore rupees, compared with 203.51 crore rupees in the same period of fiscal 2025–2026, according to results published by Business Standard. Revenue climbed to 3,776.42 crore rupees in the second quarter of fiscal 2026–2027, from 2,726.35 crore rupees a year earlier, an increase of 38.52%. Actual revenue exceeded Investing's forecast of 34.30 billion rupees for the period ended September. However, consolidated basic earnings per share were 27.45 rupees, according to the company's official financial results. That fell short of the earnings per share forecast of 28.43 rupees shown by Investing for the same period.

Earnings before interest, taxes, depreciation and amortisation totalled about 401 crore rupees during the quarter, according to the official results presentation. The company calculates this measure on a standalone basis, including other income. The EBITDA margin was 10.62% in the second quarter of fiscal 2026–2027. The measure stood at 312 crore rupees with a margin of 11.43% in the corresponding quarter of the previous fiscal year, marking an increase in earnings but a decline as a share of revenue. In the first quarter of the current fiscal year, EBITDA was 415 crore rupees, with a margin of 13.04%. Profitability under the company's measure therefore declined in both value and margin from the previous quarter.

Among quarterly results items, other income fell 42.02% year on year, according to Business Standard. It totalled 24.52 crore rupees in the second quarter of fiscal 2026–2027, compared with 42.29 crore rupees in the corresponding period a year earlier. Depreciation, by contrast, rose to 30.58 crore rupees from 20.20 crore rupees in the comparable quarter. That represented an annual increase of 51.39%, outpacing revenue growth over the same period. Consolidated finance costs totalled 172.38 million rupees in the quarter ended September 2026, according to the company's official financial disclosure. The engineering, procurement and construction projects segment posted a loss before interest and taxes of 89.26 million rupees during the same quarter.

The domestic market led growth in wire and cable sales, which rose 45.76% year on year in the second quarter of fiscal 2026–2027, according to the company's presentation. Wire and cable exports, meanwhile, increased 7.27% from the same period of the previous fiscal year. Sales through dealers and distributors grew 50.46% year on year, outpacing overall domestic wire and cable sales growth. This channel accounted for 58.79% of the company's total sales during the quarter. The company had 2146 active dealers at the end of September 2026. By product, extra-high-voltage cable sales totalled 217 crore rupees during the fiscal second quarter, according to the official presentation.

On the balance sheet, the company shifted to debt of 314 crore rupees at the end of September 2026, according to the results presentation. This position is calculated as total debt after deducting cash and including trade finance acceptances. The company had ended March 2026 with net cash of 592 crore rupees on the same basis. On pricing policy, management explained during the May earnings call that price increases were passed on to customers on institutional orders. Management said on that call, referring to passing on the increases: "In all institutional orders, they are passed on."

Looking ahead, the outstanding order book stood at about 5,185 crore rupees, according to the September 2026 results presentation. On capacity expansion, management had set a timeline for starting extra-high-voltage cable production at Sanand during the May 2026 earnings call. It said "extra-high-voltage cable production will begin by March 2027". To discuss the results, the company scheduled a call for analysts and investors on 22 October 2026, according to its official notice. Nuvama Wealth Management is organising the call at 12:00 noon India time.