KEI Industries (KEII IN) – Q2FY27 Result Update – Healthy growth outlook, margin recovery remains crucial – BUY
Published on 22 Oct 2026
KEII reported revenue growth of 38.5% YoY, driven by 46% growth in domestic W&C revenue, while export W&C revenue grew 7% YoY. Inventory increased due to the Sanand ramp-up and is expected to stabilize at current levels going forward. Management expects exports to accelerate, supported by a strong overseas order book, including INR9.9bn in export orders. Sanand capacity ramp-up remains gradual, with Phase 2 of the EHV and HT cable facility expected to commence commercial production by Mar’27. Management maintained its FY27 revenue growth guidance of 25%+ and EBITDA margin guidance of ~11%, with margins expected to improve towards 11-12% as Sanand utilization ramps up. Management reiterated its revenue growth target of 20% CAGR over the next 3-4 years. We tweak our earnings estimates by for FY28/FY29. We estimate revenue/EBITDA/PAT CAGR of 25.6%/29.4%/26.0% for FY26-29E. We maintain ‘BUY’ rating with revised TP of INR 5,961 (same as earlier), valuing at 35x Sep’28E earnings
