KEI Industries (KEII IN) – Q4FY26 Result Update – Capacity ramp up & exports to drive next leg of growth – ‘Downgrade to Accumulate’
Published on 05 May 2026
KEII reported W&C revenue growth of 19.3% in Q4FY26, with volume growth remained muted to ~2% in Q4FY26 due to capacity constraints as existing plants in Rajasthan were operating at peak utilization and the Sanand plant ramp-up was delayed. Exports declined 10% and Middle East exports were impacted in Mar’26 due to shipping disruptions but resumed in Apr’26 at higher freight costs via Fujairah port, with partial cost pass-through to customers. Export contribution is targeted at ~20% of revenue in FY27, with improving traction in the US market. Sanand last phase is expected to be commissioned by Q4FY27, supporting scale-led margin expansion, with EBITDA margin guidance maintained at 10.5%-11% for FY27. We tweak our earnings estimates for FY27/FY28. We estimate revenue/EBITDA/PAT CAGR of 22.5%/24.1%/19.9% for FY26-28E. Downgrade to ‘Accumulate’ from ‘BUY’ due to recent runup in stock price with revised TP of INR 5,660 (earlier INR 5,545), valuing at 40x FY28 earnings.
