Why is KEI Industries' share falling despite healthy YoY numbers? Details

KEI Industries' share price declined today despite reporting healthy year-on-year (Y-o-Y) growth, as investors reacted negatively to the company's weak sequential (Q-o-Q) in Q1FY26.

KEI Industries share price: Cable maker KEI Industries shares were under pressure on Wednesday, July 23, 2025, with the stock dropping up to 2.61 per cent to hit an intraday low of ₹3,884.50 per share.

 

At 10:50 AM, KEI Industries share price continued to trade lower, down 1.91 per cent at ₹3,912.65. In comparison, BSE Sensex was trading 0.20 per cent higher at 82,351.95 levels.

 

Why did KEI Industries share fall today?

 

KEI Industries' share price declined today despite reporting healthy year-on-year (Y-o-Y) growth, as investors reacted negatively to the company's weak sequential (quarter-on-quarter or Q-o-Q) performance in the June quarter (Q1FY26).

 

On a Q-o-Q basis, net profit dropped 13.6 per cent to ₹196 crore in Q1FY26 from ₹227 crore in Q4FY25. Revenue also declined 11.1 per cent to ₹2,590.3 crore from ₹2,914.7 crore in the previous quarter.

 

The company's operational performance weakened as well. Ebitda fell 14.3 per cent Q-o-Q 

to ₹258 crore compared to ₹301.1 crore in Q4FY25. Ebitda margin contracted by about 30 basis points (bps) to 10 per cent from 10.3 per cent in the preceding quarter.

 

However, on a Y-o-Y basis, KEI Industries posted solid growth. Net profit rose 30.3 per cent to ₹196 crore in Q1FY26, compared to ₹150 crore in Q1FY25. Revenue increased 25.4 per cent to ₹2,590.3 crore from ₹2,065.3 crore a year ago.

 

Ebitda also grew 17.8 per cent Y-o-Y to ₹258 crore, up from ₹219.1 crore in Q1FY25. However, the Ebitda margin declined by 60 basis points from 10.6 per cent to 10 per cent over the same period.  Check List of Q1 results today

What brokerages say about KEI Industries Q1 results?

 

Nuvama Institutional Equities

 

KEI Industries delivered a strong Q1FY26 performance, with revenue, Ebitda, and PAT surpassing both Nuvama and consensus estimates by 6-13 per cent. The core Cables & Wires (C&W) segment reported robust 32 per cent Y-o-Y growth, in line with peers like Polycab (up 33 per cent) and Havells ( up 27 per cent). 

 

Notably, C&W exports surged 121 per cent Y-o-Y, now contributing 13 per cent to total revenues. Management targets this share to rise to 17-18 per cent in the medium term. While the Sanand greenfield facility’s commissioning has been delayed by three months – Phase 1 is now expected in September 2025 and Phase 2 in Q1FY27 – Nuvama remains upbeat on KEI’s growth prospects. 

 

The brokerage maintained a ‘Buy’ rating with a target price of ₹4,350 and expects a 5-7 per cent upward revision in consensus earnings estimates.

 

Motilal Oswal Financial Services

 

KEI's Q1FY26 Ebitda came in ahead of estimates, led by strong growth in the C&W segment, even as other verticals saw revenue moderation. C&W margins held steady. 

 

The upcoming Sanand facility, focused on LT/HT and EHV cables, is expected to commence Phase 1 operations by September 2025, with EHV production beginning in Q1FY27. 

 

Thus, analysts at Motilal Oswal currently have a ‘Neutral’ stance on the stock and plans to revisit its assumptions post the management’s earnings call.