KEI margin reaches 12.43% as domestic cables drive Q1 growth
Revenue grew 22.97% year on year and operating profit rose 53.42%, while sequential profit slipped as other income fell and the tax rate increased.
Filed 03 Aug 2026, 20:48 IST · after market close · KEI Industries Ltd (KEI)
Key takeaways
- Standalone operating margin rose 2.47 percentage points year on year to 12.43% as revenue growth outpaced expense growth.
- Net profit increased 40.05% year on year, while other income fell 50.59%, leaving operations as the main source of profit growth.
- Domestic Wires & Cables grew 29.31% year on year, offsetting a 7.29% decline in the export business.
Price around the results
Domestic demand lifts Q1 operating performance
KEI Industries reported standalone revenue growth of 22.97% year on year, ahead of the 19.60% increase in expenses, which drove a 53.42% rise in operating profit. The company said domestic Wires & Cables growth was 29.31%, helped by sustained demand and operational improvements. It also reported EHV cable sales growth of 47.74%, to Rs 186 cr from Rs 126 cr.
Margins improve for a fourth straight quarter
Operating margin expanded 2.47 percentage points year on year and 1.45 percentage points sequentially because costs grew more slowly than revenue in both comparisons. The current 12.43% margin is the fourth consecutive quarterly improvement from the 9.88% recorded in Q2FY26. Interest expense still rose 21.93% year on year and depreciation increased 43.64%, but other income fell 50.59% and accounted for only 5.3% of pre-tax profit.
Sequential profit eased despite better operating profit
Revenue declined 8.37% sequentially, but expenses fell faster at 9.86%, allowing operating profit to rise 3.73% and margin to widen. Net profit nevertheless fell 3.58% because other income dropped 54.33% and the tax rate increased 1.12 percentage points; interest expense declined 6.01%. Against 38 reported Industrials peers, KEI's 12.43% operating margin was 1.76 percentage points below the 14.19% sector median.
Management points to export recovery and domestic execution
Management said the export business has a strong order book and that demand in key overseas markets is strengthening, with substantial growth expected in exports. That commentary follows a 7.29% year-on-year decline in Export Wires & Cables sales in Q1FY27. The filing was made after market close, so there is no current results reaction; after the previous eight results, the stock fell six times and rose twice, with a median absolute move of 2.31%.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,185 cr | ₹3,476 cr | -8.37% | +22.97% |
| Other income | ₹20 cr | ₹43 cr | -54.33% | -50.59% |
| Expenses | ₹2,790 cr | ₹3,095 cr | -9.86% | +19.60% |
| Operating profit | ₹396 cr | ₹382 cr | +3.73% | +53.42% |
| Operating margin (%) | 12.43% | 10.98% | — | — |
| Interest | ₹18 cr | ₹19 cr | -6.01% | +21.93% |
| Depreciation | ₹29 cr | ₹28 cr | +0.32% | +43.64% |
| Profit before tax | ₹369 cr | ₹377 cr | -2.12% | +40.24% |
| Tax | ₹95 cr | ₹93 cr | +2.35% | +40.81% |
| Net profit | ₹274 cr | ₹284 cr | -3.58% | +40.05% |
| EPS (₹) | ₹28.68 | ₹29.74 | -3.56% | +39.97% |
Operating margin of 12.43% compares with a Industrials sector median of 14.19% across 38 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Domestic Wires & Cables posted 29.31% year-on-year growth, led by sustained demand and operational improvements.
- EHV cable sales increased to ₹186 crore in Q1 FY27 from ₹126 crore in Q1 FY26, growing 47.74% year on year.
Guidance & outlook
- The export business is expected to grow substantially due to a strong order book and strengthening demand in key overseas markets.
Problems & risks
- Export Wires & Cables sales declined 7.29% year on year in Q1 FY27.
What to watch
- Whether operating margin holds above 12.43% after four consecutive quarterly increases.
- Whether export Wires & Cables sales recover from the 7.29% year-on-year decline.
- Whether domestic Wires & Cables growth remains above 29.31% year on year.