Q1 beat drives KEI Industries shares 7% higher; JM Fin sees 15% upside

KEI Industries share price: Shares of KEI Industries surged more than 7 per cent in early trade on Tuesday after the company reported a 40 per cent Y-o-Y rise in June quarter profit, aided by a 23 per cent increase in revenue and margin expansion.

 

The stock opened 3.5 per cent higher at ₹5,201 and rose as much as 7.5 per cent to hit a high of ₹5,375 on the National Stock Exchange (NSE). 

 

This marks three straight days of gains, during which the counter has advanced around 12 per cent.

 

As of 9:50 AM, KEI Industries shares were trading 6.8 per cent higher at ₹5,364, outperforming the benchmark Nifty 50, which was down 0.55 per cent.

 

 

KEI Industries Q1 results 

 

For Q1FY27, KEI Industries' PAT grew by 40.05 per cent Y-o-Y to ₹274 crore, compared with ₹196 crore reported in the same quarter a year ago. 

 

Its revenue from operations increased by 23 per cent Y-o-Y to ₹3,185 crore in Q1 FY27, as against ₹2,590 crore in the June quarter of the last fiscal year. 

 

Ebitda for the reporting three-month quarter stood at ₹415 crore, up 39.57 per cent Y-o-Y due to better operating efficiency and better product mix. Consequently, the Ebitda margin expanded by around 155 bps to 13.04 per cent in Q1 FY27 as against 11.49 per cent in Q1 FY26.

 

The company said that Q1 growth was driven by broad-based demand in Wires & Cables and balanced business performance. The domestic Wires & Cables segment posted a healthy 29.31 per cent Y-o-Y growth in the quarter, led by sustained demand and operational improvements.  Check Q1 Results Today 

 

KEI Industries: JM Financial maintains 'Buy' 

 

Post quarterly results, JM Financial has maintained a 'Buy' rating on KEI Industries with a target price of ₹5,800. The target implies an upside of 15 per cent from the previous close of ₹5,-23.

 

Analysts said that Q1 performance was supported by a favourable revenue mix and operating leverage, resulting in margin expansion. While revenue growth was in line and PAT beat the estimates by around 14 per cent, volume growth was largely flat to low single digits.  JM Financial said that the margin performance could drive an upgrade in margin guidance (currently at 10.5–11 per cent). Also, further expansion is due in FY28 as Extra High Voltage (EHV) cable facilities go live by the end of the current fiscal year.

 

On the exports front, JM Financial said that the revenue in Q1 declined 7 per cent Y-o-Y. However, the export business is expected to grow substantially due to a strong order book position and strengthening demand in key markets. Exports remain a key focus area, with its share targeted to increase to around 20 per cent over the next two–three years.

 

KEI also resumed sales efforts in the US while continuing to strengthen its presence across existing geographies, providing an additional growth avenue beyond domestic infrastructure and industrial demand.

 

Meanwhile, Motilal Oswal Financial Services said that KEI Industries' Q1 performance was above its estimates. The C&W and EPC segments delivered strong revenue growth; however, the EPC segment incurred a loss during the quarter. The brokerage said that it remains "structurally positive on the C&W sector, given strong growth drivers" and reiterated its 'Buy' rating on the stock.   ====================================================== 

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