KEI Industries has informed the stock exchanges that the Income Tax Department has concluded its Search and Seizure operations at the company's registered office, manufacturing plants, and other related locations, as well as the residence of the promoter and a few executives of the company. The operations, which commenced on May 7, 2026, were concluded by the late night of May 12, 2026. The disclosure was made 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 Kishore Kunal, Sr. VP (Corporate Finance) & Company Secretary.

Conclusion of Search and Seizure Operations

In its regulatory filing dated May 13, 2026, KEI Industries confirmed that the Income Tax Department officials concluded their Search and Seizure operations spanning six days. The company stated that it fully cooperated with the IT Department officials throughout the proceedings and responded to all clarifications and details sought by them. KEI Industries has also stated that it will promptly keep the exchanges informed of the outcome from the Search and Seizure operations upon receipt of any direction or order from the Income Tax Department.

The following key details have been disclosed in the official filing:

SEBI Disclosure Requirements

As required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company provided the following details regarding the Search and Seizure action:

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 and Seizure operations covered the registered office, plants, and other related locations, and also extended to the residence of the promoter and a few executives of 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 reaffirmed its commitment to transparency and cooperation with the due process of law. KEI Industries has stated it will update the stock exchanges promptly upon receiving any direction or order from the Income Tax Department following the conclusion of the Search and Seizure operations.

KEI Industries has received a rating downgrade from global brokerage UBS, which has moved the stock to Neutral from its previous stance, even as it raised the target price to ₹5600. The revision reflects a nuanced view of the company's prospects — acknowledging its structural strengths while flagging near-term headwinds that could cap stock performance.

UBS Rating Action at a Glance

The key details of UBS's revised assessment are summarised below:

Strong Structural Story, But Near-Term Upside Limited

UBS recognises KEI Industries as a compelling long-term play on India's electrification theme. The company's channel-led distribution model has enabled steady business expansion, and the brokerage sees meaningful export opportunities over the longer horizon. These factors underpin the raised target price, reflecting confidence in the company's fundamental business trajectory.

However, UBS cautions that the near-term risk-reward appears less attractive. The stock's current valuations are characterised as rich, suggesting that much of the positive outlook may already be priced in. This limits the potential for meaningful upside from current levels in the near term.

Key Concerns Flagged by UBS

The downgrade is driven by a combination of factors that could weigh on near-term performance:

• Rich Valuations: The stock is seen as fully valued at current market prices, leaving limited room for further re-rating in the near term.
• Rising Competition in Housing Wires: Increasing competitive intensity in the housing wires segment poses a challenge to KEI Industries' market share and pricing power.
• Capacity Constraints: Existing capacity limitations are seen as a bottleneck that could restrict the company from capitalising on immediate export opportunities, even as long-term export prospects remain intact.

Long-Term Positives Remain Intact

Despite the downgrade, UBS's assessment does not reflect a negative view on KEI Industries' long-term fundamentals. The company continues to benefit from India's structural electrification drive, which is expected to sustain demand for wires and cables over the medium to long term. The brokerage's decision to raise the target price to ₹5600 alongside the downgrade underscores that the underlying business quality is not in question — rather, it is the current valuation that limits further upside potential at this stage.