KEI Industries share price plunges 10%, nears 52-week low; here's why

KEI's Q2FY27 EBITDA was in line with estimates, although the EPC business reported a loss during the quarter and C&W margins were below estimates, said analysts at Motilal Oswal.

KEI Industries share price movement

 

KEI Industries' share price plunged 10 per cent to ₹3,816 on the BSE in Thursday’s intraday deals amid heavy volume after the company reported lower-than-expected operating profit margins for the quarter ended September 2026 (Q2FY27). 

 

The average trading volume at the counter more-than-doubled with a combined 1.2 million equity shares changing hands on the NSE and BSE till 10:14 AM.

 

The stock price of the wires & cables (W&C) company quoted close to its 52-week low of ₹3,730 touched on January 22, 2026. It corrected 36 per cent from its 52-week high of ₹5,931.40 hit on August 18, 2026.

 

 

KEI Industries – Q2 results

 

KEI Industries reported Q2FY27 performance, with revenue rising 38.5 per cent year-on-year (YoY) to ₹3,776 crore, EBITDA increased 39.8 per cent to ₹377 crore and profit after tax grew 29 per cent to ₹262 crore. Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved 9 bps YoY to 10 per cent, due to better operating efficiency and better product mix.

 

The company said revenue growth driven by broad-based demand in W&C business. Cable revenue grew 40 per cent YoY to ₹3,669 crore while stainless steel wire and EPC revenue stood at ₹63 crore and ₹104 crore, respectively. Domestic W&C revenue grew 46 per cent and exports grew by 7 per cent YoY. The order book stood at ₹5,185 crore as of Q2FY27.

 

KEI Industries is engaged in manufacturing a wide variety of power cables ranging from 66 kV/110 kV/132 kV/220 kV/400 kV, control and instrumentation cables, rubber cables, winding wires and stainless-steel wires. The company also has a presence in engineering, procurement, and construction (EPC) and turnkey solutions segment for infrastructure projects.

 

Brokerages view on KEI Industries

 

Analysts at Motilal Oswal Financial Services said that KEI’s Q2FY27 EBITDA was in line with their estimates, supported by strong revenue growth in the C&W and EPC segments, although the EPC business reported a loss during the quarter and C&W margins were below estimates. 

 

The brokerage firm in the Q2 result update said that they remain structurally positive on the C&W sector, supported by strong long-term growth drivers. “We have a BUY rating on the stock. However, we will review our assumptions after the concall on October 22, 2026,” analysts said.

 

Meanwhile, KEI’s business is highly raw material intensive, with raw materials forming 75-77 per cent of the total operating costs. Main raw materials used are copper, stainless-steel strips and rods, GI wires, PVC & DOP and aluminium with purchases backed by letters of credit (LCs) or cash. 

 

Orders generally have a mix of variable and fixed-price contracts. The company maintains 2-2.5 months’ inventory, where pricing is already fixed. Since most orders are executed within three months’ time, the company is insulated against adverse raw material movement to a large extent. KEI’s forex risk is largely mitigated with a natural hedge. KEI generally does not hedge its exposure, and hence, its profitability remains vulnerable to sharp movements in foreign currency rates, but it generally benefits from rupee depreciation, Care Ratings said in its rationale dated July 7, 2026.

 

The West Asia crisis also led to uncertainties in global supply chains and commodity markets; however, the impact on KEI remained largely mitigated due to its diversified geographical presence and broad-based customer portfolio, the rating agency said. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.