KEI Profit Rises 28.96% in Second Quarter, Misses Estimates
Key Facts
KEI Industries' consolidated net profit rose 28.96% in the fiscal second quarter ended September 2026 as revenue expanded, but fell short of analysts' expectations. Profit reached 262.45 crore rupees, compared with 203.51 crore rupees in the quarter ended September 2025, according to results published by Business Standard. Quarterly revenue was 3,776.42 crore rupees, compared with 2,726.35 crore rupees a year earlier, an increase of 38.52%. That exceeded analysts' revenue forecast of 34 billion rupees, according to Informist, while their average net profit estimate was 2.72 billion rupees. On a quarterly basis, net profit fell 4.26% from the quarter ended June 2026, according to Informist. The company's shares closed the session on 21 October 2026 at 4,230.40 rupees, down 4.76% on the day, according to Investing data.
The company attributed the revenue expansion in its official earnings presentation to "broad-based demand for wires and cables", with domestic sales growing faster than exports during the quarter. Domestic wire and cable sales rose 45.76% year on year in the fiscal second quarter of 2026–2027. Wire and cable exports, meanwhile, increased 7.27% from the same period a year earlier, according to the same presentation. Sales through dealers and distributors grew 50.46% year on year, outpacing overall domestic wire and cable sales growth. The dealer and distributor channel accounted for 58.79% of the company's total sales during the quarter, representing more than half of sales as the business expanded.
On operating profitability, earnings before interest, taxes, depreciation and amortization rose 28.69% year on year during the quarter, according to the company's presentation. But the EBITDA margin narrowed to 10.62% in July–September 2026, according to Informist. The margin stood at 11.43% in the same period of 2025, meaning operating profit growth was accompanied by a decline in its share of revenue. On pricing policy, management had said on its May earnings call that the company passes input price increases on to customers for institutional orders. Referring to those increases, management said on that call: "They are passed on in all institutional orders."
For the first half of fiscal 2026–2027, the company's revenue rose 30.94% from the same period a year earlier, according to the official earnings presentation. First-half net profit increased 34.40% year on year, outpacing revenue growth over the same period. On the standalone balance sheet, inventories rose to 3,604.48 crore rupees at the end of September 2026. That compared with inventories of 2,400.79 crore rupees at the end of the previous fiscal year in March 2026, according to the company's presentation. Meanwhile, standalone cash and bank balances fell to 698.47 crore rupees at the end of September. Those balances stood at 1,512.65 crore rupees at the end of March, alongside the increase in inventories between the two dates.
Looking ahead, outstanding orders totaled about 5,185 crore rupees, according to the September 2026 earnings presentation. The company expected substantial export growth, citing strong orders and improving demand in key overseas markets. It described the basis for that outlook as "a strong order book and strengthening demand in key overseas markets". On capacity expansion, management had said on the May 2026 earnings call that production of extra-high-voltage cables at the Sanand expansion would begin by March 2027. That date represents management's earlier guidance on the start of production at the expansion. To discuss the results, the company scheduled a call for analysts and investors on 22 October 2026, hosted by Nuvama Wealth Management. The company's notice set the call for 12:00 noon India time.