/** blogpostTitle: KSH International Q4 FY26: Growth, Exports, and the Supa Capacity Ramp */

KSH International Q4 FY26: Growth, Exports, and the Supa Capacity Ramp

KSH International closed FY26 with a sharp step-up in scale and profitability, backed by a stronger demand cycle in transformers and a faster export ramp. For FY26, revenue from operations rose to 3,107.0 crore, up 61.1% YoY. EBITDA increased to 192.1 crore, and PAT climbed to 110.1 crore.

Q4 FY26 was even more striking on the growth rate. Revenue from operations came in at 1,018.3 crore versus 507.8 crore in Q4 FY25. EBITDA rose to 56.3 crore, while PAT increased to 34.5 crore. Management framed the quarter as a combination of demand momentum, improving mix, and higher export contribution.

The company’s narrative stays consistent across the presentation and the earnings call: copper-linked revenue can distort reported margins, but the underlying profitability is better assessed using EBITDA per ton. In FY26, EBITDA per ton was 67,625, and Q4 reached 74,018.

Product mix: specialized wires remain the anchor

KSH reports its business in two clear buckets. Specialized magnet winding wires accounted for 75.3% of FY26 revenue, while standard magnet winding wires made up 24.7%.

Specialized products include high-spec conductors used in transformers and high-voltage applications, where qualification cycles and approvals create high entry barriers. Standard wires are more automated and volume-driven, catering to motors, compressors, and general electrical applications.

The company also reiterated that it operates a copper pass-through model. Copper and exchange rate movement are directly passed to customers, while the value-add component is effectively fixed per ton, which is why copper price moves can reduce EBITDA margin percentage without necessarily hurting EBITDA per ton.

FY26 segment revenue split

Note: Segment revenues above are from the presentation’s INR million disclosures converted to crore.

FY26 and Q4 FY26: scale-up shows up in unit economics

KSH’s FY26 performance shows both higher volumes and higher EBITDA per ton. Sales volume increased to 28,168 MT in FY26 from 23,324 MT in FY25. In Q4, volume was 7,612 MT versus 5,900 MT a year ago.

Management attributed the Q4 improvement in EBITDA per ton to better product mix and higher exports. It also noted that a weaker rupee supported export contribution. In the call, management stated that copper prices rose sharply during the quarter, which pressured EBITDA margin percentage, but did not undermine EBITDA per ton.

Consolidated financial snapshot

Capacity ramp: Supa is the central operational lever

The most important operational development is the capacity expansion program. As per the presentation and management commentary, installed capacity at March 31, 2026 was 43,445 MT. The company is targeting installed capacity of roughly 59,000 MT after Phase II of the Supa project, with the presentation stating the expansion from 29,045 MT in FY25 to 59,045 MT by March 2027.

Management said the Supa expansion remains on track for FY27 completion, and the next set of new capacity is expected to come online around Q2 of FY27.

This ramp matters because FY26 only benefited from Supa capacity for part of the year. Management explicitly stated that with the higher capacity available for the full year in FY27, it expects to sustain at least FY26’s volume growth rate of 21%.

Exports: Q4 acceleration and the logistics reality

Exports were a key contributor in Q4. Management stated export revenue growth of 92% YoY in Q4, accelerating from 37% growth in Q3. It also said exports represented 27% of revenue in Q4.

The company exports exclusively to transformer OEMs, spanning the Americas, Europe, the Middle East, and parts of Asia. Management also noted it is working with new global transformer customers, where initial quantities are modest but can scale with qualification and relationship expansion.

However, the call also highlighted a practical risk that comes with export-led growth. The company faced shipment delays due to Middle East disruptions. Management quantified that around 100 to 150 tons could not be dispatched in March and were dispatched in April, and separately mentioned that the total effect including orders not started could be in the 200 to 300 ton range.

Balance sheet: deleveraging alongside growth, but cash flow still lags

KSH reported a strong improvement in leverage metrics. In the presentation, total debt declined to 316.2 crore in FY26 from 360.1 crore in FY25, and debt to equity improved to 0.39 from 1.21.

At the same time, operating cash flow remains a visible pressure point. During the Q&A, the CFO explained that operating cash flow was negative primarily because the company had to invest in receivables and inventory to fund higher revenue, with working capital days staying in the 65 to 68 day range.

Management’s response was pragmatic. It expects payable days to improve, targeting more than 25 days and moving toward 30 days by the end of FY27, supported by discussions with banks to optimize working capital financing structures.

New initiatives: solar, backward integration, and PEEK wires

Beyond capacity, KSH highlighted three specific operational and strategic initiatives:

First, it commissioned a 3.2 MW rooftop solar project at Supa, taking total company solar capacity to 4 MW. The company stated this is for captive use and is expected to reduce power costs.

Second, management discussed a green copper backward integration project, stating it expects to commence the facility during H2 of FY27.

Third, on the EV side, KSH discussed PEEK insulated wires. Management said PEEK capacity is expected to come online by end of Q2, but also stated the meaningful impact could be 1.5 to 2 years away as 800V traction motor architecture adoption increases.

Takeaways for investors

KSH International’s FY26 performance is a clear indicator of a scaling phase. Revenue, EBITDA, and PAT all hit record levels, and the company is tracking profitability using EBITDA per ton, which reached 67,625 in FY26 and 74,018 in Q4.

The key variable for FY27 is execution of the Supa ramp and absorption of fixed costs as capacity increases. Management expects to sustain at least last year’s volume growth, and guided EBITDA per ton sustainability broadly in the 65,000 to 70,000 range, with commentary also referencing a 67,000 to 74,000 band depending on mix and exports.

The demand environment described by management is supportive, but the call also made it clear that fast growth brings working-capital strain and occasional export logistics disruption. The company’s ability to reduce the cash conversion gap while scaling capacity will be an important operating marker through FY27.