Shares of KEI Industries Ltd. opened as much as 7% lower on Tuesday, May 5, following its March quarter earnings announcement. According to reports from CNBC TV18 and ET Now, the stock received a downgrade from brokerage firm Morgan Stanley, which moved the company to 'Equal Weight' rating after a 35% outperformance versus the Sensex over the past six months. The brokerage also raised its price target to ₹5,213, indicating an upside potential of 6.6% from current price levels despite the downgrade. As per CNBC TV18, the stock had previously been trading as a multibagger, making the current decline particularly notable for investors.
The company delivered impressive Q4 results with revenue rising 19.2% year-on-year to ₹3,476 crore, slightly above expectations. As reported by CNBC TV18 and ET Now, the growth was led by 18% growth in the wires and cables segment and 22% growth in stainless steel wires, while the EPC segment remained largely flat. EBITDA increased 26.7% to ₹381 crore, beating estimates, with margins expanding 70 basis points to 10.9% from 10.3% a year ago. Gross margins improved 150 basis points to 25.2%, and profit after tax rose 18% to ₹93 crore, also ahead of expectations. Domestic cable and wire revenue rose 23%, though exports remained soft, with growth supported by higher commodity prices and rupee depreciation. The company's consolidated net profit for Q4 FY26 grew 18% to ₹93 crore compared to ₹79 crore in the same quarter of the previous fiscal year.
According to CNBC TV18 and ET Now, segmentally, wires and cables margins improved 140 basis points to 12.4%, while stainless steel wires margins expanded sharply by 400 basis points to 9%. The brokerage noted that overall EBITDA margins were the highest since Q4FY24, while margins in the wires and cables segment hit their highest level since Q2FY21. However, the EPC segment continued to see margin pressure. The Q4 PAT beat estimates, driven by stronger margins despite weaker volume growth, with the company benefiting from higher commodity prices and rupee depreciation. In Q4 FY26, domestic institutional cable and wire sales were at ₹804 crore compared to ₹760 crore year-on-year, while total institutional cable and wire sales, including exports, contributed 40.3% compared to 45.5% in Q4 FY25.
For FY26, the company reported revenue growth of 20.66%, exceeding its earlier guidance of 19-20%. As reported by CNBC TV18 and ET Now, the order book stood at ₹3,585 crore, down 9% sequentially and 6% year-on-year. The topline growth was primarily value-led, aided by price pass-through of higher raw material costs, though underlying volume growth may have declined on a year-on-year basis despite the strong revenue print. Management aims to grow revenue at 20% year-on-year despite higher commodity prices and a weaker rupee. The company's profitability also improved during FY26, as EBITDA margin rose to 11.81% from 10.92% in the previous year, while PAT margin expanded to 7.82% in FY26, up from 7.15% in FY25. However, analysts at Morgan Stanley have cautioned about potential margin pressure due to rising competition in the wires segment and have cut FY27 and FY28 EPS estimates by 3-4%.
At 12 PM on Tuesday, May 5, KEI Industries shares were trading at ₹4,950.40 apiece on the National Stock Exchange, falling 2.13% from the previous close. According to latest market data, the stock has surged 20% in a month and advanced 26% over six months, while climbing 10% from the beginning of the year. The company has a market capitalisation of ₹47,341.41 crore. Shares had touched their one-year high of ₹5,303 apiece on March 2, 2026, while their 52-week low of ₹3,000 was hit on April 30, 2025. Founded in 1968, KEI Industries Limited specialises in manufacturing and marketing a broad portfolio of electrical wires and cables, including house wires, power cables (EHV, MV, and LV), solar cables, and stainless steel wires.
