KEI Industries Q4FY2026 results

Q4 revenues broadly met our estimates for a growth of 19% but margins surprised our numbers. We expected almost flattish margins at 10.2% but it was higher by 77bps for 11%. Overall company for FY26 has beaten on both the guidance metrics of 20% revenue growth and 10.5-11% margins.   

1. Cables and Wires: The growth was driven by cables and wires business which grew by 17.9%. EBIT margins surprisingly higher by 148 bps to 12.45% indicating a strong pricing power and cost discipline measures.
2. Stainless Steel Wire: A standout Q4, EBIT margin at 8.94%, up 352 bps YoY. From a small base, but the trajectory is strong. Revenues for the segment grew by 21.5%.
3. EPC business: Revenue was flat due to high margin Gambia project getting placed in FY25 numbers. 

Sanand Facility is catalyst: Medium voltage cables are scheduled for commissioning July/August 2026. It has contributed zero revenue in FY26. When it ramps, it adds capacity on top of a business already growing 20%+. Guidance of 20%+ revenue growth, ~11% EBITDA margin for FY27. With Q4 exit rate and the incoming capacity, that guidance looks conservative and easily achievable. 

Results (consolidated)                                                                                             Rs crore

Actual vs. estimates                                                Rs. Crore