KEI Industries emerged as the top performer, surging 9% to ₹5,475 after reporting exceptional June-quarter results that beat analyst estimates. The stock opened 3.5% higher and rose as much as 7.5% to hit a high of ₹5,375 on the National Stock Exchange, marking three straight days of gains during which the counter has advanced around 12%. As of 11:02 AM, KEI Industries shares were trading 6.72% higher at ₹5,360.90, significantly outperforming the benchmark Nifty 50, which was down 0.55%. The strong performance was driven by Q1FY27 PAT growing 40.05% YoY to ₹274.14 crore compared with ₹195.75 crore in the same quarter last year, while revenue increased 22.97% YoY to ₹3,185.34 crore from ₹2,590.32 crore in Q1 FY6. EBITDA stood at ₹415 crore, up 39.57% YoY due to better operating efficiency and product mix, with EBITDA margin expanding 155 bps to 13.04% from 11.49% in Q1 FY6. The profit growth was supported by an improvement in profitability, with PAT margin expanding to 8.61% in Q1 FY7 from 7.56% in Q1 FY6. The latest results show revenue of ₹3,190 crore for the June quarter, registering a 23% year-on-year growth, with EBITDA jumping 53% YoY to ₹400 crore and EBITDA margin expanding 240 basis points to 12.4% driven by operating leverage and improved product mix.
Stock-specific action dominated the market on August 4, as investors reacted to June-quarter earnings, brokerage upgrades and key corporate developments. Ather Energy emerged as the top performer, surging 18% to hit a record high of ₹1,500 after its net loss narrowed to ₹51 crore in June quarter from ₹178 crore in the same period last year as demand for electric two-wheelers accelerated sharply. The electric two-wheeler maker's net sales showed strong performance with revenue from operations jumping 89% to ₹1,217 crore from ₹645 crore in the corresponding period last year. KEI Industries gained 8% after reporting a robust June-quarter performance with a 40% YoY jump in net profit to ₹274.14 crore and revenue increasing 22.97% YoY to ₹3,185.34 crore. The board also approved a ₹700 crore capacity expansion at its upcoming manufacturing facility in Rajasthan. Great Eastern Shipping surged as much as 14.57% to hit an intraday high of ₹1,600 after the company reported its highest-ever net profit of ₹1,309 crore in April-June period, with revenue from operations surging 71% to ₹2,286 crore. Shipping Corporation of India rose 4.76% to ₹306 mirroring gains in its peer company after reporting strong June quarter earnings.
The company's dealer and distributor channel continued to be a key growth driver, contributing around 59% of total revenue during the quarter, compared with 51% a year ago. Revenue from this channel surged 42% YoY to ₹1,880 crore, with sales through dealers and distributors typically carrying higher margins. According to brokerage firm JM Financial, the improving channel mix is expected to support profitability going forward. The company also announced a ₹700 crore capacity expansion at its Salarpur facility to add 50,000 km of cable manufacturing capacity and 40,000 metric tonnes of GI wire capacity. The project will be commissioned in phases and is expected to be completed by the second quarter of FY29. As of the end of the June quarter, capacity utilisation stood at around 72% for cables, 45% for communication cables, 61% for house wires and winding wires, and 91% for stainless steel wires.
Motilal Oswal has recommended buy rating on KEI Industries with a target price of ₹6,630 in its research report dated August 04, 2026, upgrading from its earlier target of ₹5,010. The brokerage highlighted that KEI Industries reported revenue growth of 23% YoY, led by 24.7% growth in W&C revenue, while domestic W&C grew 29.3% YoY. EBITDA margin expanded by 250bps YoY to 13.0%, driven by better product mix, higher retail contribution and operating leverage. However, exports declined 7.3% YoY due to shipment disruptions in the Middle East and customs duty-related issues in the US, though management expects export contribution to reach ~17-18% in FY27 as shipments normalize. The Sanand facility continues to ramp up gradually and is expected to contribute ₹15-20bn revenue in FY27, while the EHV facility is scheduled for commissioning by March 2027, with overall Sanand utilization targeted at ~70-75% in FY28. Management maintained its 20%+ medium-term revenue growth guidance and guided for 11-12% EBITDA margin, supported by strong domestic and overseas demand. The brokerage estimates revenue/EBITDA/PAT CAGR of 25.7%/29.3%/24.3% for FY26-28E and values the stock at 45x FY28E EPS.
Following the strong margin performance, brokerage firm JM Financial believes there is a high probability that the company may raise its FY27 EBITDA margin guidance of 10.5%–11%. The brokerage also expects margins to expand further in FY28, supported by the commissioning of the extra-high voltage (EHV) cable facilities by the end of FY27. Motilal Oswal projects EBITDA/PAT CAGR of ~27%/23% over FY26-28 and estimates OPM at ~11%/12% over FY27/FY28. The stock is currently trading at 47x/37x on FY27E/FY28E EPS. The contrasting performance of LIC and Kalpataru despite their earnings improvements highlights the market's selective approach to corporate developments, with investors showing preference for companies with clear growth prospects and operational improvements. Institutional investors remained net buyers on August 3, with Foreign Institutional Investors (FIIs) purchasing equities worth ₹922.26 crore and Domestic Institutional Investors (DIIs) buying shares worth ₹1,571.18 crore.
