KEI Industries Ltd reported strong year-on-year revenue and profit growth in Q2 FY27, supported by robust demand for wires and cables, particularly in the domestic market. However, operating margins moderated compared with the year-ago quarter, while net profit declined sequentially from Q1 FY27.

For the quarter ended September 30, 2026, revenue from operations reached ₹3,776.42 crore, up 38.5% from ₹2,726.35 crore in Q2 FY26. The increase reflects continued demand for power cables, house wires, extra-high-voltage cables and other electrical products.

Total income increased 37.3% year-on-year to ₹3,800.93 crore. The strong expansion in the top line demonstrates the company’s ability to grow sales across its core electrical infrastructure and building-wire markets.

Net profit rose 29% year-on-year to ₹262.45 crore from ₹203.51 crore in the corresponding quarter last year. However, profit declined 4.3% sequentially from ₹274.14 crore in Q1 FY27. The difference between annual growth and sequential performance highlights the importance of tracking both sales momentum and margins.

Profit before tax stood at ₹353.23 crore, up 27.4% year-on-year but down 4.3% quarter-on-quarter. Earnings per share increased to ₹27.45 from ₹21.30 in Q2 FY26, reflecting the improvement in reported profitability.

EBITDA increased approximately 28.7% year-on-year to ₹401 crore from ₹312 crore. Despite the increase in operating earnings, the EBITDA margin declined to 10.62% from 11.43% in Q2 FY26. Higher material costs and the changing product and sales mix are important factors to monitor when evaluating this margin movement.

The Cables and Wires business remained the company’s principal growth engine. Segment revenue increased 39.7% year-on-year to ₹3,668.52 crore. This segment contributed more than 96% of total quarterly sales, reinforcing KEI’s position as a wires and cables-focused electrical products manufacturer.

Domestic wires and cables sales increased approximately 45.8% year-on-year to ₹3,184 crore. Sustained demand, distribution expansion and operating improvements supported the performance. The domestic market continues to benefit from demand associated with infrastructure development, real estate construction, industrial activity and power transmission and distribution.

The company’s dealer and distributor channel also contributed to growth. Dealer and distributor sales increased by more than 46% year-on-year and represented approximately 59% of total sales. KEI’s distribution reach is important because it provides access to electricians, contractors, retailers, builders and other customers across multiple markets.

Exports of wires and cables reached approximately ₹455 crore, up 7.3% year-on-year. Export growth was more moderate than domestic growth, but management’s reported order-book position provides a basis for monitoring potential improvement in international markets. Future performance will depend on demand, competitive pricing and execution across export destinations.

Extra-high-voltage, or EHV, cables generated sales of approximately ₹217 crore, up 26% year-on-year. EHV cables are used in high-capacity power transmission projects and represent a technically demanding category within the company’s portfolio. Their contribution is relevant as investment in electricity networks and infrastructure creates opportunities for specialised cable suppliers.

KEI’s pending order book stood at approximately ₹5,185 crore at September 30, 2026. The order book offers visibility into future project execution, although its conversion into revenue depends on delivery schedules, project progress, customer requirements and the timing of billing.

The Engineering, Procurement and Construction (EPC) segment generated revenue of approximately ₹103.56 crore. Revenue was down 3.8% year-on-year on the segment measure reported in the investor presentation and declined sequentially from Q1 FY27. EPC activity can fluctuate with project execution schedules, making it important to assess this segment separately from the company’s larger product-sales business.

The Stainless Steel Wire segment recorded revenue of ₹62.70 crore, up approximately 16.4% year-on-year. Although it remains much smaller than the cables and wires business, it provides some diversification across industrial applications.

For the first half of FY27, revenue from operations reached ₹6,961.76 crore, up 30.9% from ₹5,316.67 crore in H1 FY26. Net profit increased 34.4% to ₹536.59 crore from ₹399.26 crore. These figures indicate that strong sales and profit growth continued across the first six months of the financial year.

The half-year EBITDA margin improved to approximately 11.73% from 11.46% in H1 FY26. This is an important distinction from the quarterly margin trend: although Q2 margin was lower year-on-year, the first-half margin remained higher than the corresponding period last year.

KEI continues to invest in manufacturing capacity and distribution to support its long-term growth. The company operates across house wires, low- and high-tension cables, control and instrumentation cables, specialty cables, EHV products and stainless steel wires. Capacity utilisation, product mix and the pace of infrastructure-related demand will influence the benefits of these investments.

The company also reported that the Income-Tax authorities had conducted search operations at certain premises, plants and residences of selected employees in May 2026. KEI stated that it had cooperated with the authorities and, as of the financial-results disclosure, had not received written communication regarding the final outcome. The company said the operational impact was not determinable and that it did not consider a material adverse adjustment necessary in the current financial statements. Investors should monitor subsequent regulatory disclosures for any material developments.

The company had approximately ₹31.4 crore of outstanding debt at the end of September 2026, according to reported financial coverage, while net debt was reported at approximately ₹72.7 crore in the investor-presentation summary. These figures use different debt measures and should not be treated as interchangeable. Monitoring working capital, cash generation and funding requirements remains relevant as sales expand.

Looking ahead, important factors include the sustainability of domestic demand, growth in dealer and distributor sales, conversion of the ₹5,185 crore order book, export performance and the recovery of EBITDA margins. The company’s ability to manage raw-material costs while maintaining competitive pricing will also influence profitability.

Overall, KEI Industries delivered strong Q2 FY27 revenue growth and a healthy increase in net profit, driven mainly by domestic wires and cables demand. The large order book and continued infrastructure-related demand provide positive business indicators, while lower quarterly margins and the sequential decline in profit remain important considerations for investors.

This article summarises reported financial results and available investor disclosures. It is for educational and informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security.

Highlights in Short

• Revenue from Operations: ₹3,776.42 crore, up 38.5% YoY.
• Total Income: ₹3,800.93 crore, up 37.3% YoY.
• Net Profit: ₹262.45 crore, up 29% YoY.
• Profit Before Tax: ₹353.23 crore, up 27.4% YoY.
• EBITDA: Approximately ₹401 crore, up 28.7% YoY.
• EBITDA Margin: 10.62%, compared with 11.43% in Q2 FY26.
• Cables and Wires Revenue: ₹3,668.52 crore, up 39.7% YoY.
• Domestic Wires and Cables Sales: Approximately ₹3,184 crore, up 45.8% YoY.
• Export Sales: Approximately ₹455 crore, up 7.3% YoY.
• EHV Cable Sales: Approximately ₹217 crore, up 26% YoY.
• Pending Order Book: Approximately ₹5,185 crore.
• Dealer and Distributor Sales: Up more than 46% YoY.
• Stainless Steel Wire Revenue: ₹62.70 crore, up 16.4% YoY.
• H1 FY27 Revenue: ₹6,961.76 crore, up 30.9% YoY.
• H1 FY27 Net Profit: ₹536.59 crore, up 34.4% YoY.
• H1 FY27 EBITDA Margin: Approximately 11.73%, compared with 11.46% a year earlier.
• Key Growth Drivers: Domestic infrastructure demand, distribution expansion, EHV cables and power-sector investment.
• Key Risks: Quarterly margin compression, raw-material costs, export growth and execution of the pending order book.
• Overall Performance: Strong annual growth in revenue and profit, with margins and sequential profitability requiring attention.