KEI Industries Q3 FY26 Profit Jumps 42.5% to ₹235 Crore

Introduction

KEI Industries Limited, a major player in the Indian wires and cables sector, has announced a strong financial performance for the third quarter and the nine months ending December 31, 2025. The company reported significant year-over-year growth in revenue, profitability, and operational margins, reflecting sustained market demand and effective execution of its business strategies. The results highlight a period of robust expansion, particularly driven by its dealer and distribution network.

Stellar Quarterly Financial Performance

In the third quarter of fiscal year 2026 (Q3 FY26), KEI Industries achieved a consolidated net sales of ₹2954.70 crore, a notable 19.51% increase from the ₹2472.25 crore recorded in the same quarter of the previous fiscal year. This top-line growth was supported by even stronger gains in profitability. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged by 39.08% to ₹353.90 crore, compared to ₹254.45 crore in Q3 FY25. Consequently, the Profit After Tax (PAT) witnessed a substantial jump of 42.50%, reaching ₹234.86 crore from ₹164.81 crore in the prior year.

Margin Expansion and Operational Efficiency

The impressive earnings growth translated into improved profitability margins. The EBITDA margin for Q3 FY26 expanded to 11.98%, a significant increase from 10.29% in the corresponding period last year. Similarly, the PAT margin rose to 7.95% from 6.67%. This consistent improvement in margins underscores KEI's disciplined approach to cost management and its ability to leverage operational efficiencies effectively.

Nine-Month Performance Highlights

The company's growth trajectory was consistent over the nine-month period of FY26 (9M FY26). Net sales for this period stood at ₹8271.37 crore, a 21.26% increase over the ₹6821.09 crore reported in 9M FY25. EBITDA for the nine months grew by 32.96% to ₹963.15 crore, while PAT increased by 34.96% to ₹634.12 crore. The EBITDA margin for 9M FY26 improved to 11.64% from 10.62% year-over-year, and the PAT margin reached 7.67%, up from 6.89%, indicating sustained financial health.

Financial Performance Summary

Segment-Wise Business Performance

KEI's growth was well-diversified across its primary business segments. The Dealer/Distribution segment was a standout performer, with sales increasing by 29.20% YoY to ₹1612 crore in Q3 FY26. This segment contributed 54.53% to the total sales for the quarter, underscoring its importance. The company's active dealer network expanded to 2114 as of December 31, 2025.

The Institutional Cable and Wire segment, including exports, also showed positive momentum, with total sales reaching ₹1219 crore in Q3 FY26. A key driver within this segment was export sales, which grew by an impressive 95.10% YoY. Extra High Voltage (EHV) cable sales also saw a significant increase, reaching ₹127 crore in the quarter.

The EPC Projects segment recorded a 33.05% YoY increase in sales to ₹80 crore in Q3 FY26. In contrast, the SS Wire segment saw a slight decline of 1.49% YoY, with sales at ₹53 crore.

Strong Balance Sheet and Order Book

KEI Industries maintains a robust financial position. The company's pending order book stood at approximately ₹3,928 crore as of December 31, 2025, providing strong revenue visibility for the coming quarters. Furthermore, the company reported a significant net cash surplus. Against a gross debt of ₹154 crore, cash and bank balances totaled ₹1421 crore, resulting in a net cash position of ₹1267 crore. This strong liquidity provides substantial financial flexibility for future growth and investments.

Conclusion and Outlook

KEI Industries' Q3 and 9M FY26 results demonstrate a period of sustained growth, operational excellence, and prudent financial management. The strong performance in the Dealer/Distribution segment, coupled with growing export demand and a healthy order book, positions the company well for continued momentum. The robust balance sheet, characterized by a net cash surplus, further reinforces its capacity to navigate market dynamics and pursue expansion opportunities.