KSH International Q1 FY27: Capacity ramp, CTC-led mix gains, and a clear push for long-term OEM visibility

KSH International opened FY27 with a sharp step-up in scale and profitability, helped by a richer mix of specialized winding wires and higher exports. For the quarter ended June 30, 2026 (Q1 FY27), revenue from operations rose to INR 1,164.2 crore versus INR 558.7 crore in Q1 FY26. EBITDA increased to INR 74.4 crore from INR 40.2 crore, while profit after tax reached INR 42.2 crore versus INR 22.7 crore.

Management positioned the quarter as a continuation of the structural demand cycle in transformers, grid upgrades and electrification-linked applications. The company also used the call to reinforce two priorities for FY27: completing Phase 2 of its capacity expansion at Supa and improving working-capital efficiency as the business scales.

The operating story: mix-led uplift, with unit economics in focus

KSH’s model links a large part of revenue to copper prices through a pass-through mechanism. In the investor presentation, the company explains pricing as a combination of copper cost and a fixed value-add per ton. As a result, reported EBITDA margins can move with copper prices even when profitability per ton remains stable.

That is why management consistently points investors to EBITDA per ton. In Q1 FY27, EBITDA per ton was reported at INR 93,325, up from INR 74,018 in Q4 FY26 and INR 65,885 in Q1 FY26. On the concall, management attributed the jump mainly to product mix, specifically a record contribution from CTC within the specialized wires portfolio, along with higher export contribution and improved utilization.

At the volume level, sales were 7,969 tons in Q1 FY27 versus 7,612 tons in Q4 FY26 and 6,114 tons in Q1 FY26. Utilization was discussed at around 73% to 73.5% on available capacity.

Financial snapshot

Segment mix: specialized wires remain the core profit engine

KSH reports two broad product buckets. In FY26, specialized magnet winding wires contributed 75.3% of revenue, while standard magnet winding wires contributed 24.7%.

The specialized bucket covers higher specification conductors used in transformers and high-voltage applications, including continuously transposed conductors (CTC) and various insulated rectangular conductors. The company emphasized high entry barriers in this segment, such as stringent vendor approvals and long qualification cycles.

The standard bucket includes enameled winding wires for motors, compressors and general electrical equipment. Management stated on the concall that standard wire EBITDA per ton improved marginally as utilization increased, but reiterated that specialized wires, and particularly CTC, remain more profitable.

Within specialized wires, management also provided a directional indicator that about 25% of CTC volume has been coming from large power transformers such as 765 kV and HVDC categories over the last few quarters.

Capacity expansion: moving toward 59,045 MT by end of FY27

The second key narrative is capacity. Installed capacity at June 30, 2026 was 43,445 MT. The company is expanding total capacity from 29,045 MTPA in FY25 to 59,045 MT by March 2027.

Management stated Phase 2 is expected to add capacity in Q2 FY27, with full completion by March 2027. The investor presentation reiterates that the company remains on track to exit FY27 with 59,045 MT available capacity.

KSH’s manufacturing footprint includes four plants: Taloja, Chakan (two units), and Supa. Sales volume and utilization data in the deck shows that FY26 volumes were 28,168 tons on utilization of 64.8%, while Q1 FY27 volumes were 7,969 tons at 73.4% utilization.

On capital allocation related to capacity, management stated the overall project cost for Phase 2 is around INR 150 crore to INR 160 crore. The company also said the board has authorized management to evaluate acquiring an additional 10 acres of land in Supa MIDC to support longer-term expansion needs, without quantifying incremental tonnage.

Separately, management confirmed that capacity for PI insulated wires targeted at EV traction motors is still under installation and forms part of Phase 2.

Customer visibility: a five-year framework agreement with Hitachi Energy

On customer engagement, the biggest announcement was a five-year supply framework agreement with Hitachi Energy Global. Management said this framework covers supplying winding wires to Hitachi’s Indian plants as well as some global plants. At the time of the call, quantity and pricing were not finalized, and the company stated it would update investors when details are available.

The company also reiterated its positioning as a supplier to 120 plus OEM customers with high repeat business. The presentation cites 97% repeat revenue, while management stated on the concall that repeat revenue is in excess of 95%.

Exports are another pillar. KSH describes itself as the largest Indian exporter of winding wires to 24 countries, with exports at around 30% of revenue in the investor deck. On the concall, management stated export revenue rose 76% year-on-year in Q1 FY27 and reiterated a long-term objective to raise exports back toward a historical peak of around 40% of total revenue.

Working capital and leverage: improving trend, but still a key focus

KSH acknowledged that hyper-growth puts pressure on cash conversion. Net average working capital days improved to 60 days in Q1 FY27 from 71 days in Q1 FY26, and from 65 days in Q4 FY26. In Q&A, management said an industry-standard level is around 30 to 35 days and described this as achievable over a multi-quarter period.

Debt was discussed in the context of working capital. The investor presentation shows total debt of INR 481.0 crore in Q1 FY27 compared to INR 379.4 crore in Q1 FY26, but debt equity improved to 0.57 from 1.18. Management noted that FY26 debt was mostly growth-driven working capital borrowing.

The CFO clarified that interest expense increased mainly due to higher working capital borrowings as turnover rose, rather than a meaningful increase in the cost of capital. The company also indicated its working capital borrowing costs range between about 6% and 9.5% depending on product mix.

What to track from here

KSH’s Q1 FY27 performance was anchored by a strong specialized wires mix and higher exports, which lifted EBITDA per ton to a quarterly high. However, management also acknowledged that the quarter saw an unusually high CTC contribution and expects product mix to normalize over the next two to three quarters as standard and EV-linked capacities ramp.

For FY27, management stated it is comfortable sustaining about INR 75,000 EBITDA per ton, while highlighting that outcomes depend on mix, export share and currency movements and that fixed costs may increase as new capacity is utilized.

The near-term monitorables remain straightforward. First, the cadence of Phase 2 commissioning in Q2 FY27 and completion by March 2027. Second, the company’s ability to sustain utilization as capacity expands. Third, continued progress in reducing working capital days, which management has identified as critical for moving toward operating cash flow positivity.

In short, KSH’s quarter reinforces a consistent thesis: engineered, approval-heavy winding wires can benefit from a multi-year transformer and electrification cycle, provided the company executes the capacity ramp without losing control of cash conversion.