KSH International Limited approves ₹185 crore Supa expansion

KSH International Limited approved up to ₹185 crore for its Supa Phase-3 expansion on November 4, 2026, targeting specialized magnet winding wire capacity of 72,200 MT annually by Q1 FY2029. The plan would add 14,355 MT to the company’s disclosed available capacity of 57,845 MT.

What did KSH International approve for the Supa facility?

KSH International approved capital expenditure of up to ₹185 crore for the third phase of expansion at its Supa facility in Maharashtra. The project is intended to expand production of Specialized Magnet Winding Wires, a product category that the company has identified as important for improving its long-term product mix and pursuing larger orders.

The approved investment is a brownfield expansion and includes land acquisition, according to the company’s investor presentation. KSH International said the project will raise annual capacity to about 72,200 MT by the first quarter of FY2029. Against the disclosed available capacity of 57,845 MT entering the second half of FY27, the planned addition is 14,355 MT, or nearly 25%.

The board approved the project while considering the company’s unaudited financial results for the quarter and half year ended September 30, 2026. The announcement did not provide a detailed construction schedule, annual spending breakup, projected revenue contribution, or project-level profitability estimate.

How does Phase-3 fit into KSH International's existing expansion plan?

Phase-3 follows KSH International’s ongoing multi-stage expansion at Supa rather than replacing the earlier programme. Phase 1 added 12,000 MT in September 2025, taking total capacity to 41,045 MT. Phase 2 has been planned to add a further 18,000 MT, with the company previously indicating total installed capacity of about 59,045 MT by the end of FY27.

In its latest disclosures, KSH International said 96% of the previously planned 59,045 MT expansion had been completed six months ahead of schedule. It reported available capacity of 57,845 MT entering the second half of FY27 and utilisation of 76% in the September quarter. These figures provide the operating context for the additional Phase-3 proposal.

The Supa facility received its Consent to Operate in September 2026. Separately, KSH International began producing copper rods for captive use at its new Upcast facility in Chakan, Pune, effective August 4, 2026. Captive copper rod production is part of the company’s manufacturing setup, while the newly approved capex is specifically directed at specialized magnet winding wire capacity.

What were KSH International's Q2 FY27 financial results?

KSH International reported revenue from operations of ₹1,319.7 crore for Q2 FY27, up 85.33% year-on-year, while profit after tax rose 62.16% to ₹48 crore. The company attributed revenue growth to higher volumes and higher copper prices during the quarter.

EBITDA increased 95% year-on-year to ₹89.7 crore. The company reported EBITDA per tonne of about ₹1,01,400, representing a 55% year-on-year improvement. Volume growth was stated at 26% year-on-year, indicating that both volumes and copper-linked realisations contributed to the reported revenue increase.

The balance sheet also showed lower debt in the reported period. Total debt declined by ₹139.7 crore quarter-on-quarter to ₹341.3 crore, and the debt-to-equity ratio stood at 0.38 times. KSH International has not disclosed a specific allocation between internal accruals and borrowing for the Phase-3 project.

How will the capex be funded and what does it mean for investors?

KSH International said Phase-3 will be funded through internal accruals, debt, or a combination of both. The approved amount represents about 5% of trailing-twelve-month revenue of ₹3,712 crore and around 3% of the company’s stated market capitalisation, based on the figures cited in the announcement.

For investors, the project adds a defined capacity target but leaves several financial variables undisclosed. The company has not provided a funding mix, commissioning milestones before Q1 FY2029, expected utilisation for the new capacity, or an estimate of the project’s effect on revenue and margins. The current debt reduction and 0.38 times debt-to-equity ratio are relevant context, but they do not establish how much of the capex will ultimately be debt-funded.

The expansion is linked to demand from original equipment manufacturers for specialized winding wires, including demand associated with transmission and distribution equipment. KSH International has also referred to recent Powergrid approval for 765 kV transformers as part of the broader market backdrop. However, no order book amount, customer commitment, or revenue linked to the Phase-3 capacity has been disclosed.

Why does the new capacity matter for the electricals industry?

KSH International operates in the electricals sector and cables industry, where winding wires are used in equipment such as motors, transformers and other electrical applications. The company has said the Supa expansion is designed to support specialized wire demand and strengthen its ability to seek larger orders and new customer opportunities.

The company’s reported 76% utilisation during Q2 FY27 indicates that existing available capacity was already being used materially, although utilisation can change with demand, product mix and commissioning of additional lines. Phase-3 is therefore a longer-term manufacturing expansion, with completion targeted more than two years after the board approval.

KSH International’s disclosures point to two near-term operating markers: utilisation of the capacity available in the second half of FY27 and progress on the earlier Phase 2 programme. For the new project, the next reported reference point is its Q1 FY2029 completion target. The company has not announced intermediate construction or spending milestones.

Conclusion

KSH International has combined strong reported Q2 FY27 growth with a ₹185 crore decision to expand Supa capacity to 72,200 MT per annum. Revenue reached ₹1,319.7 crore, EBITDA was ₹89.7 crore and profit after tax was ₹48 crore, while lower debt provided additional context for the company’s decision to evaluate internal accruals and borrowing for the project.

The key item to watch is execution against the Q1 FY2029 Phase-3 target. Investors can also track utilisation of the currently available 57,845 MT capacity, progress of the earlier Phase 2 expansion, and any future disclosure on the funding mix, project spending and customer demand for specialized magnet winding wires.