KSH operating margin trails Industrials peers by 8.25 percentage points
Management highlighted faster growth in Specialized Wires and said Phase 2 is on track for Q2; the filing came after market close.
Filed 10 Aug 2026, 20:21 IST · after market close · KSH International Ltd (KSHINTL)
Key takeaways
- Standalone Q1FY27 net profit was Rs 42.22 cr after Rs 17.28 cr of interest and a 25.79% tax rate.
- Operating margin was 6.39%, 8.25 percentage points below the 14.64% median for 93 Industrials peers.
- Management said KSH signed a five-year framework agreement with a global transformer OEM for supply to its production facilities.
Price around the results
Q1 standalone profit after finance and tax costs
KSH International reported standalone Q1FY27 net profit of Rs 42.22 cr after Rs 17.28 cr of interest and Rs 14.68 cr of tax. Operating profit was Rs 74.37 cr on revenue of Rs 1,164.23 cr, showing that finance costs were a significant deduction below the operating line. Other income of Rs 8.19 cr also contributed to reported profit before tax of Rs 56.90 cr.
Specialized Wires led the quarter’s operating activity
Management said growth in higher-value Specialized Wires, particularly CTC, outpaced Standard Wires and drove Q1 volumes, exports and unit economic profitability. The company said it completed Phase-I+ of its fourth unit at Supa, Maharashtra, and commissioned an upcast backward integration facility during the quarter. Management also said Phase 2 of the capacity expansion is on track to come online in Q2.
Margin remains below the Industrials peer set
KSH’s 6.39% operating margin was 8.25 percentage points below the 14.64% median among 93 Industrials companies that had reported the same quarter. The margin comparison places KSH ninth from the bottom of that peer group. The reported 25.79% tax rate and Rs 8.19 cr of other income are relevant to assessing how operating performance translated into net profit.
Results were filed after market close
KSH filed these standalone results at 20:21 IST on 10 August 2026, after the market closed. The filing therefore came without a reported market reaction at the time of this note.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,164 cr |
| Other income | ₹8 cr |
| Expenses | ₹1,090 cr |
| Operating profit | ₹74 cr |
| Operating margin (%) | 6.39% |
| Interest | ₹17 cr |
| Depreciation | ₹8 cr |
| Profit before tax | ₹57 cr |
| Tax | ₹15 cr |
| Net profit | ₹42 cr |
| EPS (₹) | ₹6.23 |
Operating margin of 6.39% compares with a Industrials sector median of 14.64% across 93 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
- Specialized Wires, particularly CTC, outpaced Standard Wires growth and drove Q1 volumes, exports and unit economic profitability.
Planned next quarter
- The Phase 2 capacity expansion is planned to come online in Q2.
Expansion
- KSH completed Phase-I+ of its fourth unit in Supa, Maharashtra.
- The Phase 2 capacity expansion is on track to come online in Q2.
- KSH commissioned its upcast backward integration facility during the quarter.
New orders
- KSH signed a five-year framework agreement with a large global transformer OEM to supply its global production facilities.
New initiatives
- KSH commissioned an upcast backward integration facility as part of its development initiatives.
Competition
- KSH describes itself as the largest Indian exporter of winding wires.
Problems & risks
- No specific company-stated problems or adverse factors were identified in the provided pages.
What to watch
- Whether operating margin moves above or below 6.39% in Q2.
- Whether Phase 2 comes online in Q2, as management said.
- Updates on the five-year framework agreement with the global transformer OEM.