KEI Industries (KEII IN) – Q1FY27 Result Update – Strong margin and Sanand ramp-up to drive growth – ACCUMULATE
Published on 04 Aug 2026
KEII reported revenue growth of 23% YoY, led by 24.7% growth in W&C revenue, while domestic W&C grew 29.3% YoY. EBITDA margin expanded by 250bps YoY to 13.0%, driven by a better product mix, higher retail contribution and operating leverage. Exports declined 7.3% YoY due to shipment disruptions in the Middle East and customs duty-related issues in the US; however, management expects export contribution to reach ~17-18% in FY27 as shipments normalize and the US market opens up. Sanand continues to ramp up gradually and is expected to contribute INR15-20bn revenue in FY27, while the EHV facility is scheduled for commissioning by Mar’27, with overall Sanand utilization targeted at ~70-75% in FY28. Management maintained its 20%+ medium-term revenue growth guidance and guided for 11-12% EBITDA margin, supported by strong domestic and overseas demand. We upward revise our earnings estimates by 6.0%/6.2% for FY27/FY28 factoring in strong revenue growth from the Sanand facility and margin expansion. We estimate revenue/EBITDA/PAT CAGR of 25.7%/29.3%/24.3% for FY26-28E. We maintain ‘Accumulate’ rating with revised TP of INR 6,001 (earlier INR 5,650), valuing at 40x FY28 earnings
