KEI Industries Limited delivered exceptional financial performance in Q3 FY26, demonstrating strong growth across key business segments and reinforcing its position as a leading player in the wires and cables industry. The company's robust results reflect successful execution of its expansion strategy and growing market presence both domestically and internationally.

Financial Performance Highlights

The company reported impressive financial metrics for the third quarter, with significant improvements across all major parameters:

The company's EBITDA margin expansion to 12.00% from 10.29% in the previous year demonstrates improved operational efficiency and better product mix. The profit after tax margin also strengthened to 7.95% compared to 6.67% in Q3 FY25.

Segment-wise Revenue Performance

KEI Industries showcased balanced growth across its business segments, with particularly strong performance in the B2C distribution network:

The B2C segment's contribution increased to 55% from 50% in the previous year, while the company maintained strong institutional sales despite capacity constraints.

Nine-Month Performance and Export Growth

For the nine-month period ending December 2025, KEI Industries sustained its growth momentum with net sales of INR8,271 crores, representing a 21.26% increase. The company's EBITDA for the period reached INR963 crores with a 33% growth rate and an EBITDA margin of 11.64%.

Export performance remained a key highlight, with nine-month export sales reaching INR1,390 crores, achieving an overall growth of 79%. The company has successfully expanded its international presence, becoming the first Indian company to supply extra high-voltage cables to Australia and qualifying for the National Grid UK framework agreement for voltages up to 400 kV.

Capacity Expansion and Future Outlook

KEI Industries has made significant progress on its Sanand facility expansion, with total capital expenditure of INR928 crores incurred during the nine-month period. The Sanand project has received INR1,353 crores in total investment, with an additional INR200 crores planned for the current quarter.

The company has commenced trial production at Sanand in December 2025, with gradual ramp-up planned through the current quarter. Management expects the facility to contribute approximately INR2,700 crores in revenue for the next financial year.

Order Book and Market Position

KEI Industries maintains a robust order book position of INR3,928 crores as of December 31, 2025, providing strong revenue visibility:

The company operates through 2,114 active dealers as of December 31, 2025, strengthening its distribution network across India. Management projects achieving 20% plus growth for the full financial year and expects to improve operating margins in FY26, supported by the Phase 1 commercial production at Sanand and strong order book positions across all segments.

Kei Industries management has shared optimistic growth projections during their recent conference call, outlining expectations for sustained business expansion in the coming period. The company's leadership provided insights into their growth strategy and market outlook.

Growth Projections and Volume Expectations

The management team indicated that the company is expecting volume growth to fall within the range of 16% to 18% going forward. This projection reflects the company's confidence in market demand and their ability to capture increased business volumes across their operations.

Price Inflation Strategy

Beyond volume growth, Kei Industries management highlighted that price inflation due to rising input prices will be factored into their pricing strategy. The company plans to pass on these input cost increases to customers, which should contribute to overall revenue growth beyond the projected volume increases.

Combined Growth Impact

The management emphasized that when price inflation adjustments are added to the projected volume growth, the actual growth rates should be higher than the 16-18% volume increase alone. This approach suggests a comprehensive growth strategy that addresses both market expansion and cost management considerations.

The company's growth outlook appears to be built on a foundation of volume expansion supported by appropriate pricing adjustments to maintain margins amid rising input costs. This dual approach aims to deliver robust overall growth performance while managing operational cost pressures effectively.