KEI Industries Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript KEI Industries Ltd filed with BSE on 10 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
KEI Industries reported Q1 FY27 net sales of Rs 3,185 crores, up 23% year-on-year, with EBITDA growing 39.5% to Rs 415 crores and operating margin improving to 12.43%-13.04% range depending on the metric cited. Management attributed the margin improvement to product mix, a higher share of retail distribution sales at 59%, and operating leverage as fixed costs grew slower than sales. Export sales declined due to disruptions from the Iran conflict and US customs duty issues, while domestic wire and cable sales grew 29% and the Sanand facility continued its capacity ramp-up.
Numbers mentioned
Net sales: INR3,185 crores (Q1 FY27)
p. 3
“the net sales in Q1 of FY26-'27 is INR3,185 crores against INR2,590 crores last year.”
Anil Gupta, page 3 of the filed PDF · View the filing
EBITDA: INR415 crores (Q1 FY27)
p. 3
“EBITDA in this quarter is INR415 crores against INR297 crores last year.”
Anil Gupta, page 3 of the filed PDF · View the filing
EBITDA/sales margin: 13.04% (Q1 FY27)
p. 3
“EBITDA/sales margin is 13.04% as against 11.49% in the same period previous year.”
Anil Gupta, page 3 of the filed PDF · View the filing
Profit after tax: INR274 crores (Q1 FY27)
p. 3
“Profit after tax in this quarter is INR274 crores against INR195 crores.”
Anil Gupta, page 3 of the filed PDF · View the filing
Domestic wire and cable sale: INR2,784 crores (Q1 FY27)
p. 3
“Domestic wire and cable sale in this quarter is INR2,784 crores and it has registered a growth of 29%.”
Anil Gupta, page 3 of the filed PDF · View the filing
Export sale: INR341 crores (Q1 FY27)
p. 3
“Export sale in this quarter is INR341 crores against INR375 crores previous year.”
Anil Gupta, page 3 of the filed PDF · View the filing
Extra high-voltage cable sales: INR186 crores (Q1 FY27)
p. 3
“Total sales of extra high-voltage cable is INR186 crores against INR126 crores in the previous year same period.”
Anil Gupta, page 3 of the filed PDF · View the filing
Active working dealers: 2,128 (as on 30th June 2026)
p. 3
“Total active working dealer of the company as on 30th June is 2,128.”
Anil Gupta, page 3 of the filed PDF · View the filing
Pending order book: INR4,292 crores (as on 30th June 2026)
p. 4
“Pending order book is INR4,292 crores; out of which EPC is INR271 crores, extra high-voltage cable INR793 crores, cable domestic INR2,400 crores and export orders pending are INR822 crores.”
Anil Gupta, page 4 of the filed PDF · View the filing
Book value: INR725.94 (as on 30th June 2026)
p. 4
“Book value as on 30th June is INR725.94 against INR697 as on 31st March 2026.”
Anil Gupta, page 4 of the filed PDF · View the filing
Cash and bank balances: INR1,054 crores (as on 30th June 2026)
p. 4
“Cash and bank balances as on 30th June is INR1,054 crores, which includes QIP balance of INR303 crores.”
Anil Gupta, page 4 of the filed PDF · View the filing
Sanand capex incurred to date: INR1,722 crores (up to 30th June 2026)
p. 4
“Total capex done in Sanand up to 30 June '26 is INR1,722 crores.”
Anil Gupta, page 4 of the filed PDF · View the filing
Q1 capacity utilization - cable division: 72% (Q1 FY27)
p. 4
“Capacity utilized during Q1 is approximately 72% in cable division, 61% in house wire division, 91% in stainless steel wire division and 45% in communication cable.”
Anil Gupta, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — more than 20% · next 2 to 3 years
stated firmly by Anil Gupta
p. 4
“Based on the strong demand in domestic and overseas market, we are hopeful to grow more than 20% in next 2 to 3 years.”
Anil Gupta, page 4 of the filed PDF · View the filing
Capital expenditure — approximately INR600 crores to INR700 crores annually · next 3 to 4 years
stated firmly by Anil Gupta
p. 4
“Company is expected to incur capital expenditure of approximately INR600 crores to INR700 crores annually for next 3 to 4 years.”
Anil Gupta, page 4 of the filed PDF · View the filing
Operating margin — 11% to 12% · coming year
stated firmly by Rajeev Gupta
p. 5
“So now that hurdle we have crossed and we hope that now we will be in the range of 11% to 12% operating margin for the coming year.”
Rajeev Gupta, page 5 of the filed PDF · View the filing
Sanand revenue contribution — INR1,500 crores to INR2,000 crores · FY27
stated firmly by Anil Gupta
p. 7
“We expect around INR1,500 crores to INR2,000 crores revenue from Sanand in this financial year, which will come in the contribution in this particular -- in FY27.”
Anil Gupta, page 7 of the filed PDF · View the filing
Sanand capacity utilization — 70% to 75% · next financial year
stated firmly by Rajeev Gupta
p. 7
“by next year, the full capacity will be available and close to overall capacity in the next financial year, 70% to 75% we will be in a position to utilize for next financial year.”
Rajeev Gupta, page 7 of the filed PDF · View the filing
Salarpur capex — around INR700 crores · next 2 years
stated firmly by Rajeev Gupta
p. 5
“we also announced our new capital expenditure in our Bhiwadi factory that is Salarpur where we will put around another INR700 crores to put another factory in next 2 years' time.”
Rajeev Gupta, page 5 of the filed PDF · View the filing
EHV project commissioning — by March 2027
stated firmly by Rajeev Gupta
p. 7
“So by March 2027, our extra high-voltage power cable project also will get commissioned.”
Rajeev Gupta, page 7 of the filed PDF · View the filing
Sanand total capacity — around INR7,000 crores · within 2 years
stated firmly by Rajeev Gupta
p. 11
“So the total capacity will reach around INR7,000 crores within 2 years' time in Sanand.”
Rajeev Gupta, page 11 of the filed PDF · View the filing
Revenue growth — more than 25% · this financial year
stated firmly by Anil Gupta
p. 12
“Now also I'm sure that our growth in this financial year will be more than 25% in financial terms in revenue terms.”
Anil Gupta, page 12 of the filed PDF · View the filing
Export share of sales — at least 17% to 18% · current financial year
stated as an aspiration by Rajeev Gupta
p. 16
“our target to reach at least 17% to 18% for the current financial year.”
Rajeev Gupta, page 16 of the filed PDF · View the filing
Return on capital employed — not by FY28
stated conditionally by Rajeev Gupta
p. 20
“No, sir, not by '27-'28 because we have kept the creditor level low.”
Rajeev Gupta, page 20 of the filed PDF · View the filing
Revenue — 25,000 · FY29-30
stated firmly by Rajeev Gupta
p. 20
“Sir, we have given you the target of '29-'30 for 25,000. We will fulfil it and give it to you.”
Rajeev Gupta, page 20 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said fixed costs don't scale with incremental sales and product mix shift toward retail and higher-margin export orders is helping.
Answered by Rajeev Gupta
Asked by Natasha Jain: Why has opex remained flat despite aggressive retail push and Sanand commissioning, driving margin improvement?
p. 5
“As we have earlier also highlighted that as the incremental sale is going up so the fixed expenditure does not increase in that way.”
Rajeev Gupta, page 5 of the filed PDF · View the filing
Management said the inventory increase was mainly due to Sanand ramp-up and Ind AS reversal of export sales not yet dispatched, not inventory gains.
Answered by Rajeev Gupta
Asked by Praveen Sahay: Was there an inventory gain booked this quarter given the sharp rise in inventory?
p. 6
“Inventory increase, as I just explained, because of the new factory of Sanand where all the raw material and work in process and finished goods is starting to have that kind of capacity.”
Rajeev Gupta, page 6 of the filed PDF · View the filing
Management clarified the Rs 3,000 crore figure was a slip of the tongue, and the actual expectation is lower.
Answered by Anil Gupta
Asked by Praveen Sahay: How much revenue will Sanand contribute in FY27, given a media report of Rs 3,000 crore?
p. 7
“No, no. Actually in media interaction, actually it was a little bit of a slip of tongue. We expect around INR1,500 crores to INR2,000 crores revenue from Sanand in this financial year, which will come in the contribution in this particular -- in FY27.”
Anil Gupta, page 7 of the filed PDF · View the filing
Management cited a mix of higher EHV contribution, higher retail distribution share, and better expenditure leverage on higher sales.
Answered by Rajeev Gupta
Asked by Raman KV: What led to the margin expansion this quarter?
p. 8
“It is a mix of 3, 4 things. One is extra high-voltage power cable contribution has increased.”
Rajeev Gupta, page 8 of the filed PDF · View the filing
Management gave margin figures by segment.
Answered by Rajeev Gupta
Asked by Raman KV: What is the incremental margin difference between EHV cable and low/medium voltage cable?
p. 8
“Our extra high-voltage operating margin was close to 15% as compared to low voltage and medium- voltage power cable institution side was 10.5% and retail side was 11% and export was more than 11%.”
Rajeev Gupta, page 8 of the filed PDF · View the filing
Management attributed margin gains to multiple factors including brand building, market mix shift, and expenditure ratio improvement, reaching an 11-12% operating margin trajectory.
Answered by Rajeev Gupta
Asked by Umang Mehta: Have wires pricing changes (reducing discount to peers) helped margins?
p. 9
“So now we are in the trajectory for the future where 11% to 12% operating margin we will be operating.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Management explained they prefer conservative guidance because market participants tend to add further expectation on top of stated numbers.
Answered by Rajeev Gupta
Asked by Manoj Gori: Why has guidance shifted from 18% volume growth to 25% value growth to now 20% value growth?
p. 12
“Manojji, the issue is that whenever we say a percentage, you add 2%-3% more to it. You increase our difficulty. So, that's why we want to be conservative.”
Rajeev Gupta, page 12 of the filed PDF · View the filing
Management confirmed the guided margin excludes other income and is purely operating margin.
Answered by Rajeev Gupta
Asked by Akshen Thakkar: Does the 11-12% margin guidance include other income or is it pure operating EBITDA margin?
p. 13
“It is the operating margin I'm talking because you people always evaluate us only on operating margin and that's how the operating margin we are doing.”
Rajeev Gupta, page 13 of the filed PDF · View the filing
Management explained government capex budgets are allocated in value terms, so value growth better reflects order flow regardless of commodity price movements.
Answered by Rajeev Gupta
Asked by Pulkit Patni: Why is value growth emphasized over volume growth given peer commentary is also strong?
p. 16
“Pulkitji, first of all, why we are talking on value growth because the government expenditure budget maintained in the value terms only.”
Rajeev Gupta, page 16 of the filed PDF · View the filing
Management acknowledged the Q1 export shortfall was due to Middle East disruptions and shipping issues, and expressed confidence exports would recover as markets reopened.
Answered by Anil Gupta
Asked by Shirom Kapur: Given the 17-18% export target for FY27, does that imply 50%+ growth in exports over the remaining nine months after a Q1 decline?
p. 17
“I think you're right because we could not dispatch lot of goods in the first quarter because of the Middle East crisis and shipments were not available, which has started now but albeit at a high shipping cost.”
Anil Gupta, page 17 of the filed PDF · View the filing
Management said geographic diversification and debt-free status insulate the company from geopolitical and market-specific risks, though some risk always remains.
Answered by Anil Gupta
Asked by Bharat C Shah: What internal or external risks could disrupt the company's growth trajectory?
p. 19
“But our aim is to remain risk-free in terms of our financial goals and our marketing goals so that we are spread over in so many countries that we are able to make up our sales from somewhere or the other.”
Anil Gupta, page 19 of the filed PDF · View the filing
Risks flagged
Export disruption due to Middle East conflict (Iran-related war) affecting order dispatch
p. 3
“The export is impacted because of non-dispatch of – non-execution of several orders of Middle East because of the war with Iran and also due to the custom duty issues in United States.”
Anil Gupta, page 3 of the filed PDF · View the filing
US customs duty issues affecting export execution
p. 3
“also due to the custom duty issues in United States.”
Anil Gupta, page 3 of the filed PDF · View the filing
Potential for unpredictable geopolitical actions affecting exports
p. 19
“Even if we have seen blockade from U.S.A., we have seen the wars in Middle East, which led to stoppage of shipments; but still we have been able to grow from wherever our customer base is there.”
Anil Gupta, page 19 of the filed PDF · View the filing
Uncertainty from Trump administration policy affecting exports
p. 18
“The export situation is also shaping up well unless Mr. Trump comes up with something peculiar again.”
Bharat C Shah, page 18 of the filed PDF · View the filing
Capital constraints limiting pace of growth despite strong demand
p. 14
“Constraint is basically the capital.”
Rajeev Gupta, page 14 of the filed PDF · View the filing
Greenfield project ramp-up challenges including manpower and machinery stabilization
p. 14
“In a greenfield project, the production ramp-up takes time in terms of manpower and machinery stabilization.”
Anil Gupta, page 14 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.