KEI Industries Q4 FY26: Growth stays strong, but capacity ramp-up is the real story

KEI Industries ended Q4 FY26 with another quarter of strong year-on-year growth and steady margin expansion. Consolidated net sales for Q4 FY26 were INR 3,476.40 crore versus INR 2,914.79 crore in Q4 FY25, a rise of 19.27%. EBITDA increased to INR 424.44 crore from INR 338.38 crore, taking the EBITDA margin to 12.21% from 11.61%. PAT rose to INR 284.31 crore from INR 226.55 crore, and PAT margin improved to 8.18% from 7.77%.

For FY26, consolidated net sales were INR 11,747.77 crore compared with INR 9,735.88 crore in FY25, up 20.66%. EBITDA grew 30.56% to INR 1,387.60 crore, with EBITDA margin expanding to 11.81% from 10.92%. PAT increased to INR 918.43 crore from INR 696.41 crore, and PAT margin improved to 7.82% from 7.15%.

The quarter’s headline numbers were supported by a stronger dealer and distribution business, ongoing momentum in exports, and a sharp rise in extra high-voltage (EHV) cable sales. But the management commentary made it clear that volume growth in FY26 was constrained by capacity. The key variable for FY27 is how quickly the new Sanand facility ramps up.

Q4 and FY26 financials: margins moved up again

The margin trend remained positive in both the quarter and the full year. Q4 FY26 EBITDA margin improved to 12.21%, while FY26 margin improved to 11.81%. Management attributed the broader performance to a mix of higher scale, continued retail contribution, and exports.

A key context point is that FY26 saw higher metal prices on average, with management stating that average copper prices increased by 16.85% and aluminium prices increased by 9.91% on a full-year basis. The company reiterated that institutional business is tender-driven and pricing is based on prevailing market rates, while in retail the company revises prices twice a month.

Business mix: dealer network leads, institutional steady, EPC deliberately small

KEI’s quarterly business mix continues to tilt in favour of the dealer and distribution channel. In Q4 FY26, dealer and distribution revenue was INR 1,936 crore versus INR 1,498 crore in Q4 FY25, growing 29.28% YoY. This channel contributed 55.70% of overall sales in Q4.

For FY26, dealer and distribution revenue was INR 6,349 crore versus INR 5,088 crore in FY25, growing 24.79% YoY. Dealer and distribution contributed 54.04% of overall sales in FY26. The company reported 2,125 active working dealers as of 31 March 2026.

On the institutional side, total institutional cable and wire sales including exports were INR 1,404 crore in Q4 FY26, up from INR 1,328 crore in Q4 FY25. The contribution of institutional including exports was 40.37% in Q4 FY26 versus 45.57% in Q4 FY25. For FY26, institutional including exports was INR 4,916 crore versus INR 4,121 crore in FY25, contributing 41.84%.

The commentary also clarifies why the institutional share can fluctuate. Management explained that with capacity constraints, a rise in exports can reduce availability for domestic institutional supply. That does not necessarily signal weaker domestic demand.

EPC remains a supporting business by design. FY26 EPC contribution (other than cable) was stated at 2.65%, and management reiterated that EPC is intentionally kept at around 2% to 3% because working capital is long. They also described EPC as supportive to EHV cable projects where the cable value forms the majority.

Product mix and the EHV push

The presentation provides a clear revenue breakup by product. For Q4 FY26, LT cables were INR 1,622 crore, HT was INR 411 crore, housing and winding wires (HW/VW) were INR 1,088 crore, EHV was INR 219 crore, stainless steel wire was INR 55 crore, EPC other than cable was INR 123 crore, and other items were INR 41 crore.

For FY26, LT was INR 5,063 crore, HT was INR 1,632 crore, HW/VW was INR 3,900 crore, EHV was INR 670 crore, stainless steel wire was INR 212 crore, EPC other than cable was INR 311 crore, and other was INR 40 crore.

EHV stood out in both the quarter and the year. Domestic institutional EHV cable sales were INR 188 crore in Q4 FY26 versus INR 115 crore in Q4 FY25. For FY26, domestic institutional EHV cable sales were INR 559 crore versus INR 308 crore in FY25. Management also guided that EHV growth in the current year could be around 20%, with the company already operating close to full capacity and some incremental contribution expected from Sanand.

Capacity and guidance: FY27 depends on Sanand ramp-up

Management was explicit that volume growth in FY26 was constrained. They stated that all cable plants in Rajasthan were already operating at peak capacity, and that Q4 volume growth was close to 2% due to capacity constraints. Sanand’s contribution in Q4 FY26 was described as less than INR 100 crore because ramp-up takes time.

For FY27, management guided for 17% to 18% volume growth at the company level, with wires growth coming from Chinchpada and cables growth from Sanand. The first phase of Sanand was commissioned in December 2025 after a delay of about six months. The second and last phase, which includes extra high-voltage power cable production, is expected by Q4 FY27, with management indicating March 2027.

On profitability, management guided conservatively for EBITDA margins of 10.5% to 11% for the current year. They also indicated that as Sanand stabilizes, there could be incremental margin improvement due to economies of scale.

Exports are another lever. Management said export destinations include the Middle East, Australia, Africa, the United States, and Europe. They noted restarting exports to the US after the prior year’s lull due to tariffs and discussed supplying medium voltage HT cables for data centers, while acknowledging competition from domestic US manufacturers.

Order book, balance sheet, and working capital

Pending orders were stated at approximately INR 3,585 crore as of 31 March 2026. Management provided a breakup: EPC order book was INR 309 crore, extra high-voltage power cable order book was INR 625 crore, domestic cable institutional order book was INR 2,154 crore, and export cable order book was INR 497 crore. In addition, they cited L1 in EHV of INR 233 crore.

On leverage, the company presented gross debt of INR 186 crore as of 31 March 2026 and cash and bank balances of INR 1,512.65 crore, resulting in a negative net debt position. Management stated they intend to remain debt-free and fund future capex from internal accruals.

Capex guidance for the next phase of growth is meaningful. Management guided for annual capex of around INR 600 crore to INR 700 crore for the next 2 to 3 years. They also stated that unutilized QIP proceeds (INR 385 crore mentioned) would be utilized in the current financial year, aligned with completing the second phase at Sanand.

Working capital metrics were also discussed. Management attributed improving receivables and working capital cycle to channel financing and suggested further reduction in receivable months is possible.

Takeaways

KEI Industries delivered another year of strong growth with margin expansion in FY26, and Q4 continued the same trajectory. The mix remains retail-led, with a meaningful institutional and export presence. The most important variable for FY27 is execution and ramp-up at Sanand, especially the timing of Phase 2 for EHV power cables.

Management guidance of 17% to 18% volume growth and 10.5% to 11% EBITDA margin sets expectations clearly. If capacity ramps as planned and export momentum sustains, the company’s next leg of growth appears tied more to execution speed than demand availability.