KEI Industries Q2 Profit Rises 29% to INR 262 Crore

Net Sales: INR 3,776 crore (up 38.52% YoY).
Net Profit: INR 262.45 crore (up 28.96% YoY).

Reader Takeaway: Strong revenue growth and healthy export demand drive performance, though EPC phase-out causes minor near-term margin friction.

What just happened

KEI Industries has posted robust financial results for the quarter ended September 30, 2026. The company achieved a significant 38.52% jump in net sales compared to the previous year, supported by a healthy order book of INR 5,185 crore. Net profit also showed a strong upward trajectory, rising to INR 262.45 crore.

Why this matters

Investors are closely watching the company's transition as it moves away from the EPC segment. While this business contributed only a small portion of total revenue, its phase-out is expected to result in minor operational losses over the next two quarters. However, the core wire and cable business remains a strong performer, with export demand—particularly from the US—playing a critical role.

The backstory

The Sanand expansion project is currently the central pillar of the company's growth strategy. Having already invested INR 1,876 crore, KEI Industries is preparing to start Phase 2 for extra high-voltage and HT cable production by March 2027. This facility is expected to help the company achieve its long-term EBITDA margin goal of 12%.

Risks to watch

Working capital levels have risen as the company builds inventory for the new Sanand plant. Management has guided that these inventory days should normalize by March 2027. Investors should monitor this normalization process closely to ensure that cash flow remains efficient during the scaling phase.

What to track next

The company has reiterated its guidance of 25% annual revenue growth and a 20% CAGR for the next three to four years. Success in scaling the Sanand facility and the final closure of the EPC business will be the primary metrics for shareholders in the upcoming quarters.