KEI Industries (KEII IN) – Q3FY26 Result Update – Exports and housing wires drive margin expansion – BUY
Published on 22 Jan 2026
KEII reported W&C revenue growth of 19.5% in Q3FY26, driven by strong growth in institutional cable exports. W&C EBIT margin expanded by 190bps due to increased share of housing wires and substantial contribution of exports to total revenue. KEII has guided for 20%+ revenue growth in FY26 and ~25% in Q4FY26, despite RM inflation, backed by capacity increase. From FY27, the company targets >20% revenue CAGR supported by full ramp-up of Sanand plant and strong domestic and overseas demand. Sanand project will be fully ramped up by Mar’27, with electron beam equipment commissioning by Apr’26, MV cables by Aug’26, and EHV cables by Mar’27. The company aims to improve its EBITDA margin by ~100bps once the plant is fully commissioned and has guided for ~11% margin in FY27. KEII reported strong revenue growth in EHV cables (+82.1% YoY) and housing/winding wires (+45.7% YoY). Exports saw a significant increase of 82.4%, with institutional cable exports surging by 95.5%. We tweak our earnings estimates for FY27/FY28. We estimate revenue/EBITDA/PAT CAGR of 22.7%/23.1%/19.1% for FY26-28E. Maintain ‘BUY’ at TP of Rs5,573 (same as earlier), valuing at 40x FY28 earnings.
