KEI Industries shares fell 10% to ₹3,816 on Thursday after the company’s September quarter margins failed to meet investor expectations. While revenue jumped 38.5% to ₹3,776 crore, losses in the EPC division and margin pressure in the core cables business weighed on the stock. Investors are now closely watching the company’s ability to manage raw material costs.
KEI Industries shares saw a sharp decline of 10% in Thursday's trading session, closing at ₹3,816 on the BSE. The sell-off follows the release of the company’s September quarter (Q2FY27) results, where strong revenue growth was overshadowed by concerns regarding profitability metrics.
The company reported a revenue of ₹3,776 crore, representing a 38.5% increase compared to the same period last year. Profit after tax also grew by 29% to ₹262 crore. Despite these topline gains, investors reacted negatively to the underlying margin performance. A significant point of concern was the core cables business, where operating margins remained under pressure. Furthermore, the company’s Engineering, Procurement, and Construction (EPC) division reported a loss for the quarter, which acted as a drag on the overall financial performance.
For a company like KEI Industries, raw materials—primarily copper, aluminum, and stainless steel—account for more than 75% of operating costs. This heavy reliance makes the company's margins highly sensitive to fluctuations in global commodity prices. The market’s reaction suggests that investors are worried about whether the company can maintain or improve its profitability if commodity costs remain volatile.
Trading activity at the counter intensified significantly, with combined volume on the NSE and BSE reaching 1.2 million shares by mid-morning. The stock is currently trading near its 52-week low of ₹3,730, marking a correction of roughly 36% from its recent peak of ₹5,931.40 recorded in August 2026. This indicates a significant shift in investor sentiment over the past two months.
Analysts at Motilal Oswal Financial Services noted that while the Q2 EBITDA (earnings before interest, taxes, depreciation, and amortization) was largely in line with broad estimates, the specific weakness in cable margins and the poor performance from the EPC segment created a disconnect with market expectations. The brokerage currently maintains a 'Buy' rating on the stock but has indicated that a formal review of its valuation assumptions is pending the management's upcoming conference call scheduled for later today.
Investors will be looking for clarity in the management's commentary during the conference call. The primary monitorables include the outlook for the EPC division, any strategy to improve segment margins, and management's view on the raw material price trend. The ability of the company to pass on costs to customers and the recovery trajectory of the EPC business will be critical for determining future stock performance.