Target: ₹5,573
CMP: ₹3,806.85
KEI Industries reported Wires & Cables revenue growth of 19.5 per cent in Q3-FY26, driven by strong growth in institutional cable exports. W&C EBIT margin expanded by 190 bps due to increased share of housing wires and substantial contribution of exports to total revenue.
KEI Industries has guided for over 20 per cent revenue growth in FY26 and about 25 per cent in Q4-FY26, despite RM inflation, backed by capacity increase. From FY27, the company targets over 20 per cent 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 about 100 bps once the plant is fully commissioned and has guided for about 11 per cent margin in FY27. KEI Industries reported strong revenue growth in EHV cables (+82.1 per cent y-o-y) and housing/winding wires (45.7 per cent y-o-y). Exports saw a significant increase of 82.4 per cent, with institutional cable exports surging by 95.5 per cent.
We tweak our earnings estimates for FY27/FY28. We estimate revenue/EBITDA/PAT CAGR of 22.7/23.1/19.1 per cent for FY26-28E. Maintain ‘BUY’ at target price of ₹5,573 (same as earlier), valuing at 40x FY28 earnings.
Published on January 23, 2026
