KEI Industries has officially confirmed that the Income Tax Department initiated a search at its registered office, plants, and other related locations on May 7, 2026. The company disclosed the development through a formal intimation filed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, addressed to both BSE Limited and the National Stock Exchange of India. The filing was signed by Prakash Ojha, Manager (Legal & Secretarial) of the company.

Official Confirmation and Company Response

In its regulatory filing, KEI Industries stated that the Income Tax Department initiated the search on May 7, 2026, covering the company's registered office, plants, and other associated locations. The company confirmed it is fully cooperating with the authorities and providing all necessary information and support. KEI Industries further stated that it will update the stock exchanges in case of any material information or event once the search concludes.

The company also reaffirmed its commitment to ethical conduct and legal compliance. The following key details have been disclosed in the official filing:

Locations and Operations

KEI Industries operates manufacturing facilities and offices across multiple locations in India. The company's works include plants at Bhiwadi and Chopanki in Rajasthan, and Silvassa in the Union Territory of Dadra & Nagar Haveli and Daman & Diu. The company also maintains branch and regional offices in Delhi, Chennai, Kolkata, and Mumbai. The Income Tax Department's search spans the registered office and plants, along with other locations related to the company.

Company Background

KEI Industries is a prominent player in the Indian cables and wires industry, headquartered at Okhla Industrial Area, New Delhi. The company has stated that its commitment to transparency and belief in the due process of law remain unwavering. The Income Tax Department's search and seizure action across multiple locations continues to be closely watched by market participants and stakeholders. The company has committed to providing further updates to the stock exchanges upon conclusion of the search, should any material developments arise.

KEI Industries delivered strong financial performance for the fourth quarter and fiscal year ended March 31, 2026, with the Board of Directors approving the audited standalone and consolidated financial results at their meeting held on May 4, 2026. The audited results, along with the auditors' report, were subsequently published in Business Standard (all editions) in English and the Delhi edition in Hindi on May 5, 2026, pursuant to Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has also made available the audio recording of the Analysts/Investors Call on the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, held on May 5, 2026. The company's standalone net profit for Q4 FY26 rose to 2,843.12 million rupees from 2,265.48 million rupees in the corresponding quarter of the previous year, reflecting robust operational execution. Following the results, Morgan Stanley downgraded the stock to Equal-weight while raising its target price to ₹5,213, citing balanced risk-reward after a recent ~35% outperformance.

Key Financial Performance

Revenue from operations for Q4 FY26 increased to 34,763.96 million rupees from 29,147.88 million rupees on a year-on-year basis, demonstrating sustained demand across business segments. For the full fiscal year, revenue reached 117,477.65 million rupees compared to 97,358.77 million rupees in FY25, representing significant annual growth. EBITDA for Q4 improved to 3,771.51 million rupees from 3,051.60 million rupees in the year-ago period, with the EBITDA margin expanding to 10.85% from 10.47% year-on-year.

The following table summarises KEI Industries' key standalone financial metrics for Q4 and FY26:

Segment Performance and Corporate Developments

The Cables & Wires segment remained the primary revenue driver, contributing 112,205.66 million rupees for FY26, followed by EPC Projects at 5,614.36 million rupees and Stainless Steel Wire at 2,165.07 million rupees. Total assets as of March 31, 2026, stood at 89,559.78 million rupees, compared to 72,346.03 million rupees in the previous year, reflecting the company's expansion initiatives.

The Board approved the re-appointment of M/s Jagdish Chand & Co. as Internal Auditors and M/s S. Chander & Associates as Cost Auditors for the financial year 2026-27. Statutory auditors M/s Pawan Shubham & Co. issued an unmodified opinion on both standalone and consolidated financial results. The company also declared and paid an interim dividend of 4.50 rupees per equity share on January 21, 2026, with the Board proposing this be treated as the final dividend for FY26.

Analysts/Investors Call Recording

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, KEI Industries has published the audio recording of its Analysts/Investors Call pertaining to the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The call was held on May 5, 2026, following the Board's approval of results on May 4, 2026. The recording is accessible via the company's official website.

Morgan Stanley Analyst View

Morgan Stanley downgraded KEI Industries to Equal-weight following the Q4 results, while simultaneously raising its target price to ₹5,213. The brokerage noted that Q4 profit after tax beat expectations on the back of stronger margins, even as overall volumes remained soft. Domestic Cables & Wires growth came in strong at +23%, though export performance was weak. The brokerage also highlighted that part of the growth was aided by commodity prices and foreign exchange tailwinds rather than purely organic volume expansion.

The following table outlines the key parameters from Morgan Stanley's updated assessment:

Morgan Stanley cut its earnings per share estimates by 3–4%, citing the risk that rising competition in the cables and wires space could exert pressure on margins going forward. The brokerage concluded that after the stock's recent ~35% outperformance, the risk-reward profile appears balanced at current levels, justifying the downgrade despite the earnings beat.