KEI Industries Shares Jump 2% as Management Reiterates Over 20% FY26 Growth, Margin Expansion

On Monday, KEI Industries shares jumped 2%, reaching a day’s high price of Rs 4,149 on the NSE after management reiterated growth guidance and global brokerages reinforced bullish calls, lifting sentiment despite the stock trading just below its record highs.

Share Price Movement

On the NSE, KEI Industries is trading higher, with the price hovering at Rs 4,150, gaining about 2% on the previous day's closing price. The stock remains around 10% below its 52-week high of about Rs 4,643.45. In the past year, the stock has been down by 7% but delivered around 761% in the 5 year range.

Financial Performance

KEI had reported Q2FY26 revenue of about Rs 2,726 crore, up nearly 19.37% year-on-year. EBITDA rose around 31.19% to about Rs 311.63 crore, with the margin maintained, improving to around 11.4%, while profit after tax increased roughly 31.61% to about Rs 204 crore, taking the PAT margin to about 7.46%.

Segment Revenue Mix

The core wires and cables segment delivered about 22.46% revenue growth in Q2FY26, reaching Rs 2,625.61 crore. The stainless steel wire segment slowed down by 10.56%, reaching Rs 53.87 crore, and the EPC projects segment saw a decline of 22.55% to Rs 101.35 crore.

Order book, Guidance and Outlook

As of September 30, 2025, KEI carried an order book of about Rs 3,824 crore, providing healthy revenue visibility from institutional, EPC and export contracts. Management has guided for more than 20% revenue growth for FY26, up from the earlier 17–18% in the recent earnings call transcript, and now it reiterated its stance to maintain it while improving the margin by 100 basis points for the next three years.

On the recent earnings call, management reiterated that domestic cable and wire demand will remain robust, supported by energy consumption sectors, along with transmission and distribution, infrastructure build-out and rising data centre investments. 

The company had highlighted the upcoming Sanand facility phase 1, which is slated to start production in November 2025, and is expected to add more than 50% of the capacity. KEI plans to keep increasing the share of exports to about 18% to 19% of revenues.

Brokerage Target Price

Global Brokerage companies like Morgan Stanley recently maintained an “Overweight” rating on KEI Industries with a target price of Rs 4,793, implying moderate upside from current levels and signalling confidence in earnings compounding. The brokerage firm highlighted robust domestic demand for cables and wires, along with growing data centre opportunities, where 8% to 10% of capital expenditure is allocated to the Cables & Wires segment. Morgan Stanley expects the company to grow its volume by 15% to 16% in H2. The company sees a rising 18% export mix by FY27, covering countries like Australia, the Middle East, Africa and the USA.