KEI Industries , a leading player in the Indian cable and wire industry, has unveiled ambitious growth plans for the coming years, projecting a revenue of ₹8,250 crore by fiscal year 2026. This target represents a robust 17% year-over-year growth, underlining the company's confidence in its strategic initiatives and market position.

Strong Financial Outlook

The company has set its sights on achieving an EBITDA margin of 11.3% by FY26, indicating a focus on maintaining profitability alongside revenue growth. This projection comes on the back of KEI Industries' solid order book, which currently stands at ₹5,400 crore across its EPC (Engineering, Procurement, and Construction) and cable segments.

Expansion Plans

KEI Industries is not resting on its laurels and has outlined significant expansion plans:

1. Capacity Enhancement: The company plans to increase capacity by 25% at its Pathredi and Silvassa manufacturing units. This expansion aims to meet the growing demand for its products and strengthen its market position.

2. EHV Cable Expansion: A capital expenditure of ₹600 crore is planned over the next two years, specifically for expanding the Extra High Voltage (EHV) cable segment. This investment underscores KEI's commitment to high-value, technologically advanced products.

Strategic Focus Areas

The company has identified key areas to drive its growth:

1. Export Growth: KEI Industries aims to increase its presence in international markets, leveraging its diverse product portfolio and quality standards.

2. Retail Network Expansion: Strengthening its retail presence is a priority, with plans to enhance its distribution network across India.

3. Margin Stability: The company plans to implement backward integration initiatives to maintain and potentially improve its profit margins.

Industry Outlook

KEI Industries' growth plans align with the positive outlook for the Indian cable and wire market. According to industry reports, the sector is expected to grow at a CAGR of 11-13% between FY24-29, driven by increased investments in power transmission, renewable energy, and infrastructure development.

Environmental and Social Initiatives

Alongside its financial goals, KEI Industries has demonstrated a commitment to environmental and social responsibility:

• The company has reduced its GHG intensity for scope 1 & 2 emissions by 4.8% in FY 2024-25 compared to the previous year.
• Energy intensity has been reduced by 9.89% in the same period.
• KEI has increased its use of renewable energy by 1.46% year-over-year.

These initiatives not only contribute to sustainability but also potentially enhance the company's appeal to environmentally conscious investors and customers.

Conclusion

KEI Industries' ambitious revenue target of ₹8,250 crore by FY26, coupled with its expansion plans and strategic focus areas, positions the company for significant growth in the coming years. The alignment of these plans with broader industry trends and the company's commitment to sustainability suggest a well-rounded approach to long-term value creation. However, investors should note that these projections are subject to market conditions and successful execution of the company's strategies.

KEI Industries , a leading player in the wire and cable industry, has reported impressive financial results for the second quarter, showcasing strong growth across key metrics.

Financial Highlights

KEI Industries demonstrated robust performance in the second quarter, with net sales reaching ₹2,726.00 crores, marking a significant 19.38% year-over-year growth. The company's Wire and Cable segment, a key driver of revenue, grew by 22% compared to the same period last year.

Profitability and Operational Efficiency

The company's profitability saw substantial improvement, with EBITDA increasing by 31.20% to ₹311.63 crores. EBITDA margins expanded from 10.40% to 11.43%, indicating enhanced operational efficiency. Profit after tax (PAT) surged by 31.47% to ₹203.00 crores, reflecting strong bottom-line growth.

Export Performance and Order Book

KEI Industries reported an all-time high in export sales, reaching ₹472.00 crores and representing an impressive 96.00% growth. This performance underscores the company's expanding global presence and competitiveness in international markets.

The company maintains a robust order book of ₹3,824.00 crores, providing visibility for future revenue streams and indicating strong demand for its products.

Expansion Plans and Future Outlook

The first phase of KEI Industries' Sanand plant faces a 4-month delay and is expected to be operational by November 2025. The company plans to bring over 50% of the plant's capacity online from December, signaling a phased approach to expansion.

Management has reaffirmed its growth guidance of over 20% for the full year and projects a 20% CAGR for the next 3-5 years, demonstrating confidence in the company's long-term prospects.

Market Presence and Demand Drivers

KEI Industries boasts a strong distribution network with 2,100 active dealers. The company continues to experience robust demand across various sectors, including energy, infrastructure, and data centers, positioning it well for sustained growth in these key markets.

In conclusion, KEI Industries' Q2 performance reflects its strong market position, operational efficiency, and strategic focus on high-growth segments. The company's ability to capitalize on domestic and export opportunities, coupled with its expansion plans, suggests a positive outlook for the coming quarters.