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.

KEI Industries Limited delivered exceptional financial performance in the third quarter of FY26, with net profit surging 42.5% year-on-year to ₹2,348.61 crores. The cable and wire manufacturer's strong operational execution and market expansion drove revenue growth of 19.5% to ₹29,547.04 crores during the quarter ended December 31, 2025.

Strong Financial Performance Across Key Metrics

The company's financial results demonstrate robust growth across multiple parameters. Net profit for Q3FY26 reached ₹2,348.61 crores compared to ₹1,648.05 crores in the corresponding quarter of the previous year. Revenue from operations increased to ₹29,547.04 crores from ₹24,722.51 crores in Q3FY25.

Nine-Month Performance Shows Sustained Growth

For the nine months ended December 31, 2025, KEI Industries maintained its growth momentum with net profit increasing 35.0% to ₹6,341.21 crores compared to ₹4,698.66 crores in the corresponding period of FY25. Revenue from operations grew 21.3% to ₹82,713.69 crores from ₹68,210.89 crores.

Segment-Wise Performance Analysis

The Cables & Wires segment, the company's primary business vertical, generated revenue of ₹28,208.02 crores in Q3FY26, representing the largest contribution to total operations. The segment delivered profit before tax and interest of ₹3,373.44 crores during the quarter.

For the nine-month period, the Cables & Wires segment achieved revenue of ₹79,235.34 crores compared to ₹63,802.02 crores in the previous year. The EPC Projects segment contributed ₹3,381.70 crores in revenue for nine months, while the Stainless Steel Wire segment generated ₹1,604.51 crores.

Board Decisions and Corporate Actions

The Board of Directors approved several significant decisions during their meeting held on January 21, 2026:

• Interim Dividend: Declaration of ₹4.50 per equity share (225% of face value of ₹2.00 each) for FY26
• Record Date: January 28, 2026, for determining shareholders eligible for interim dividend
• Voluntary Delisting: Approved delisting from The Calcutta Stock Exchange Limited while maintaining listings on NSE and BSE
• Committee Reconstitution: Risk Management Committee restructured with Shri Sadhu Ram Bansal as Chairman

Operational Developments and Expansion

During the quarter and nine months ended December 31, 2025, KEI Industries commenced the first phase of commercial production for LT/HT Cables at its greenfield unit located at Sanand, Ahmedabad, Gujarat. This expansion represents the company's continued investment in manufacturing capabilities to meet growing market demand.

The company maintains its technical collaboration agreement with BRUGG to manufacture EHV cables up to 400kV, strengthening its position in the high-voltage cable segment. KEI Industries operates manufacturing facilities across Bhiwadi, Chopanki, and Silvassa, with branch offices in major cities including Delhi, Chennai, Kolkata, and Mumbai.

Financial Position and Capital Utilization

As of December 31, 2025, the company's paid-up equity share capital stood at ₹191.20 crores. From the QIP proceeds of ₹19,656.33 crores raised in November 2024, an unutilized amount of ₹6,157.72 crores has been invested in bank deposits with scheduled banks, while ₹22.17 crores remains in the QIP Monitoring Account for designated utilization as per issue objectives.