KEI Industries (517569) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue grew 19.38% year-over-year to ₹2,727 crore, with EBITDA up 31.2% and PAT up 31.47% to ₹204 crore; H1 FY26 revenue was ₹5,317 crore, EBITDA ₹609 crore, and PAT ₹399 crore.

• Net sales for Q2 FY26 reached INR 2,726 crore, with wire and cable segment growing 22% over the previous year.

• Export sales hit an all-time high in Q2 at INR 472 crore, nearly doubling year-over-year.

• Standalone and consolidated unaudited financial results for the quarter and half year ended September 30, 2025, were approved and reviewed by the Board and Audit Committee, with an unmodified limited review opinion from statutory auditors.

• The company is progressing with a new cable manufacturing facility in Sanand, Gujarat, with LT/HT cable production to start by November 2025 and EHV cable production by Q4 FY 2026-27.

Financial highlights

• Q2 FY26 EBITDA margin improved to 11.43% from 10.4% YoY; PAT margin rose to 7.46% from 6.78% YoY.

• H1 FY26 EBITDA margin increased to 11.46% from 10.81% YoY; PAT margin up to 7.51% from 7.01% YoY.

• Export sales in Q2 grew 96% to INR 472 crore; first half exports were INR 846 crore, up 79%.

• Financial charges as a percentage of net sales decreased to 0.52% in Q2 FY26 and 0.54% in H1 FY26.

• Net profit for Q2 FY26 was ₹2,035.13 million, compared to ₹1,407.38 million in Q2 FY25; half-year net profit was ₹3,992.60 million, up from ₹3,050.61 million year-over-year.

Outlook and guidance

• Management reaffirmed annual growth guidance of over 20% for FY26 and expects to maintain 20% CAGR for the next three to five years.

• New Sanand plant's first phase (over 50% of total capacity) will be operational by November 2025, with further expansion into EHV cables by Q4 FY 2026-27.

• Full Sanand project is expected to add INR 6,000 crore in revenue capacity when complete.

• Margin expansion of 1%-1.5% anticipated post full Sanand commissioning, likely in FY28.

• Pending order book stands at approximately ₹3,824 crore, indicating strong future revenue visibility.