KEI Industries share price slumped over 9% on Thursday’s session despite decent Q2 results of the company. The cable and wire manufacturer announced a 31.3% rise in net profit for the September quarter compared to the previous year, fueled by robust revenue growth and consistent operating margins.
For the quarter that concluded on September 30, net profit reached ₹204 crore, an increase from ₹155 crore during the same quarter last year. Revenue from operations grew 19.4% year-over-year to ₹2,726 crore, up from ₹2,284 crore in the corresponding period last year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 20% to ₹269.1 crore, compared to ₹224.4 crore from the previous year. The company’s EBITDA margin stood at 9.9%, remaining almost constant from 9.8% in the same period last year.
KEI Industries is a prominent Indian producer of cables and wires, with operations that include power cables, house wires, stainless steel wires, and engineering, procurement and construction (EPC) services. The company caters to industrial, retail, and institutional customers both domestically and internationally.
KEI Industries’ management in an interview with CNBC-TV18 today said that the commissioning of the plant has been postponed by three months and is expected to be fully operational by March 27.
The rollout of Phase 1 has been pushed back to November rather than September 2025.
They continue to uphold their guidance for C&W revenue growth at over 20% in FY26, with full-year revenue growth anticipated at 20%.
KEI Industries share price today
KEI Industries share price today opened at an intraday high of ₹4,448.60 apiece on the BSE, the stock touched an intraday low of ₹4,033.65 apiece.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, KEI Industries share prices have seen a sharp cut in the morning session down over 4%, while prices have recovered from the morning lows of around 4,000 to current quote of 4,200 (at time of writing), the momentum is gripped by the bears with prices erasing gains of last two weeks.
Considering volume based sell-off, the stock prices may remain under pressure. October Swing low around 3,950 is key support whereas 4,400 is seen as immediate hurdle.
Should you buy, sell or hold?
Nuvama Institutional Equities noted that KEI Industries had another impressive quarter, achieving year-over-year growth of 20% in revenue, 22% in EBITDA, and 31% in PAT. Although Revenue and EBITDA aligned with our forecasts, PAT exceeded our estimate by 9% due to increased other income, likely from foreign currency gains.
The C&W segment saw a 23% year-over-year revenue increase, with EBIT margins rising by 50 basis points year-over-year and 20 basis points quarter-over-quarter to reach 10.9%. Exports surged by 93% year-over-year, accounting for 22% of total revenues.
“We expect peers to report healthy numbers given strong tailwinds on cables front. We have a BUY rating on the stock with a target price of ₹4,450. KEI continues to be our top pick in coverage universe,” said the brokerage.