KEI Industries management has set an ambitious target of achieving 11% EBITDA margin for the current fiscal year, as revealed during the company's recent conference call with investors and analysts.

Management Guidance on Profitability

During the conference call, the company's leadership expressed confidence in reaching the targeted EBITDA margin of 11.00% for the ongoing fiscal year. This guidance reflects management's assessment of current market conditions and the company's operational capabilities.

Strategic Outlook

The management's margin target indicates their focus on maintaining profitability while navigating the competitive landscape in the cables and wires industry. This guidance provides stakeholders with clear visibility on the company's expected financial performance and operational efficiency.

The 11% EBITDA margin target demonstrates KEI Industries' commitment to sustaining healthy profitability levels. This target serves as a key performance indicator for investors monitoring the company's financial trajectory and operational effectiveness in the current market environment.

KEI Industries Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, detailing the utilization of proceeds from its ₹2,000.00 crore Qualified Institutional Placement (QIP). The report was prepared by CARE Ratings Limited, which serves as the monitoring agency for the QIP proceeds under SEBI regulations.

QIP Proceeds Utilization Overview

The monitoring agency report confirms that KEI Industries utilized ₹171.50 crore during the third quarter of FY26, bringing the total cumulative utilization to ₹1,440.64 crore as of December 31, 2025. The quarterly deployment was primarily directed towards machinery procurement for the company's cable manufacturing facility at Sanand, Ahmedabad.

Object-wise Fund Deployment

The QIP proceeds were allocated across four primary objectives, with the largest portion designated for the Sanand manufacturing facility. The company has made significant progress on its capital expenditure plans, particularly for the cable manufacturing facility.

Compliance and Monitoring Status

CARE Ratings Limited, in its capacity as the monitoring agency, reported no deviations from the disclosed objects of the QIP issue. The monitoring agency confirmed that all utilization remains aligned with the disclosures made in the placement document. The company has obtained all necessary government and statutory approvals related to the stated objects.

The report indicates that KEI Industries completed its debt repayment obligations as planned during FY25, utilizing the entire allocated amount of ₹275.99 crore. Similarly, issue-related expenses of ₹34.37 crore were fully utilized as per the original timeline.

Deployment of Unutilized Proceeds

The remaining ₹559.36 crore of unutilized proceeds has been strategically deployed in fixed deposits across multiple banks including Axis Bank, ICICI Bank, IDBI Bank, and Yes Bank. These investments are earning returns ranging from 4.75% to 7.51% with maturity dates extending through March 2026.

The monitoring agency noted that the total unutilized amount includes ₹58.62 crore in accumulated interest earnings from these fixed deposit investments. The company has been systematically redeploying interest earnings into new fixed deposits to optimize returns on idle funds.

Project Timeline and Progress

Regarding the Sanand facility development, the original placement document projected ₹849.01 crore expenditure for FY25, with the balance ₹600.99 crore planned for FY26. The company has exceeded the FY25 target, having utilized ₹895.09 crore by December 2025, which includes ₹161.41 crore spent during FY25 and ₹733.68 crore in the subsequent period.

The monitoring agency report was reviewed and approved by KEI Industries' Audit Committee and Board of Directors in their meeting held on January 21, 2026. The report has been made available on the company's website and submitted to BSE Limited, National Stock Exchange of India Limited, and The Calcutta Stock Exchange Limited as per regulatory requirements.