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Q3FY26 Result Highlights KEI Industries delivered a strong consolidated performance in Q3 FY26, driven by healthy demand in cables & wires and operating leverage. Net sales stood at ₹2,954.7 crore, registering a 19.5% YoY growth compared to ₹2,472.3 crore in Q3 FY25. Sequentially, revenue grew 8.4% QoQ, indicating sustained momentum. EBITDA increased sharply by 39.1% YoY to ₹353.9 crore, supported by better product mix and operating efficiencies. Consequently, EBITDA margin expanded to 10.83%, up from 9.94% in Q3 FY25, reflecting margin normalization and scale benefits. Profit after tax (PAT) rose 42.5% YoY to ₹234.9 crore, while PAT margin improved to 7.95% versus 6.67% last year. On a QoQ basis, PAT grew 15.4%, highlighting steady profitability improvement. Overall, Q3 FY26 reflects robust topline growth, meaningful margin expansion, and strong earnings visibility, supported by execution strength, improving mix, and controlled finance costs.

The Cable & Wires – Dealer/Distribution segment emerged as the key growth driver, with revenue rising 29.2% YoY to ₹1,612 crore. The segment contributed 54.5% of total consolidated sales, supported by robust retail demand, wider market penetration, and an expanded dealer network of 2,114 active dealers. The Cable & Wires – Institutional segment (including exports) recorded revenue of ₹1,219 crore, up 10.3% YoY. Within this, domestic institutional sales stood at ₹592 crore, while EHV cable sales increased sharply to ₹127 crore, highlighting traction in power transmission and infrastructure projects.  Exports continued to perform well, with cable exports reaching ₹500 crore in Q3 FY26, aided by execution of overseas institutional orders. The EPC (other than cables) segment reported ₹80 crore revenue, growing 33.1% YoY, though it remained a small contributor at ~2–3% of total sales. The Stainless Steel Wire segment posted ₹53 crore revenue, marginally declining 1.5% YoY, reflecting softer demand conditions.

Key conference call takeaways

Capacity Expansion & Capex

• Total capex incurred during 9M FY26 stood at ~₹928 crore, with ₹769 crore invested in the Sanand greenfield facility, reflecting accelerated execution momentum.
• Cumulative Sanand project investment reached ~₹1,353 crore, with another ~₹200 crore planned in Q4 and remaining spends scheduled in FY27.
• LT/HT trial production commenced in December, with gradual ramp-up underway; MV capacity expected by July–August 2026 and EHV facilities by FY27.
• Management targets ~₹6,000 crore incremental revenue potential from Sanand by FY29, implying ~3–3.5x asset turn over steady-state operations.

Order Book & Demand Visibility

• Total order book stood strong at ~₹3,928 crore, offering healthy short-term revenue visibility across domestic institutional, export, EPC, and EHV segments.
• Order book included ₹2,426 crore domestic cables, ₹717 crore EHV cables, ₹424 crore export orders, and ₹361 crore EPC projects.
• Execution cycle remains short at 3–4 months, ensuring rapid conversion of order book into revenues and continuous replenishment pipeline.
• Management highlighted no visible slowdown in power, renewable, data center, or infrastructure-driven cable demand, both domestically and internationally.

Margins, Pricing & Risk Management

• EBITDA margin improvement is structural, driven by higher export share, increasing EHV contribution, backward integration, and operating leverage from new capacities.
• Raw material exposure is largely managed through natural hedging, inventory management, and price pass-through, limiting margin volatility from copper price swings.
• Retail pricing is dynamically adjusted every 10–15 days, ensuring effective transmission of commodity price changes without impacting long-term profitability.
• Management reiterated medium-term EBITDA margin guidance of ~11%+, with ~100 bps improvement expected over the next two years.

Management Strategic Direction

• Management reiterated confidence of delivering >20% revenue growth in FY26, supported by Q4 momentum, capacity ramp-up, and strong export traction.
• Medium-term growth outlook remains robust, with >20% CAGR targeted over the next 3–4 years, driven by Sanand commissioning and expanding EHV footprint.
• KEI highlighted competitive strengths in EHV exports, global certifications, and strong brand equity, creating high entry barriers for new domestic entrants.

Outlook & valuation

KEI Industries Limited is well-positioned to capitalize on a structurally strong industry backdrop, where robust power transmission, renewable energy expansion, data centre growth, urban infrastructure, and electrification capex underpin sustainable demand for cables and wires. KEI Industries Limited is entering a multi-year growth phase with management guiding for 20%+ revenue growth in FY26 and ~20% CAGR over the next 3–4 years, driven by the Sanand greenfield ramp-up, strong domestic power and renewable demand, and sustained export momentum, with Sanand alone expected to contribute ~₹2,700 crore revenue in FY27 and scale to ~₹6,000 crore by FY29. EBITDA margins are guided to improve to ~11% in FY27, with further expansion over the medium term led by operating leverage, higher EHV and export mix, and backward integration, while commodity price volatility is largely passed through, limiting margin risk. With improving growth visibility, easing capacity constraints, and strong competitive positioning in institutional, EHV, and export markets, KEI can deliver ~22–25% EPS CAGR over FY26–FY29. At CMP, the stock is trading at 36x FY27E. We recommend a Hold rating on the stock.