KEI Industries (KEII IN) – Q2FY26 Result Update – Sanand ramp-up delayed, growth outlook intact – BUY
Published on 16 Oct 2025
KEII has reported W&C revenue growth of 22.5% driven by strong export demand, which offset the moderation in domestic demand. KEII has guided for revenue growth to exceed 20% in FY26, with a sustained CAGR of over 20% from FY27. Growth is expected to be driven by strong traction across emerging sectors such as data centers, renewables, real estate, and infrastructure projects. Commencement of the 1st phase of the new facility, expected by Nov’25, with 50% capacity utilization, will further support growth; full ramp-up is anticipated by FY27. The company aims to improve its EBITDA margin by 100-150bps once Sanand plant becomes fully operational. KEII reported strong revenue growth in EHV cables (+83.0% YoY), LT cables (+33.5% YoY), and housing/winding wires (+27.3% YoY) in Q2FY26. Exports saw a significant increase of 93.2%, while institutional cable exports surged by 116.6%. We tweak our earnings estimates for FY27/FY28. We estimate revenue/EBITDA/PAT CAGR of 21.7%/23.2%/22.6% for FY25-28E. Maintain ‘BUY’ at TP of Rs4,926 (earlier Rs4,946), valuing at 40x FY28 earnings.
