KEI Industries shares tumble 8% despite Q2 profit rising 29%, revenue up 39%

ETMarkets.com

KEI Industries reports strong quarterly growth, but shares decline as the stock remains below key technical indicators.

KEI Industries reported consolidated profit after tax (PAT) of Rs 262 crore in Q2 FY27, up from Rs 203 crore in the corresponding quarter last year. Revenue from operations rose to Rs 3,776 crore from Rs 2,726 crore, supported by broad-based demand in its wires and cables business.

EBITDA increased 28.69% year on year during the quarter, driven by improved operating efficiency and a better product mix.

Wires and cables business drives growth

The domestic wires and cables segment remained the key growth driver, recording a 45.76% year-on-year increase in sales during Q2 FY27, supported by sustained demand and operational improvements.

Export sales of wires and cables grew 7.27% year-on-year during the quarter. The company expects export business to expand substantially, citing a strong order book and improving demand across key overseas markets.

Extra-high voltage (EHV) cable sales rose 26.20% year-on-year to Rs 217 crore in Q2 FY27, compared with Rs 172 crore in the year-ago quarter.

Total wires and cables sales, including exports, stood at Rs 3,639 crore, accounting for 96.35% of the company's overall sales during the quarter, up from 95.68% in Q2 FY26.

Dealer and distributor sales gain traction

Sales through dealers and distributors increased 50.46% year on year in Q2 FY27, contributing 58.79% of overall sales, compared with 54.12% in the corresponding quarter last year.

KEI Industries had 2,146 active dealers as of September 30, 2026, reflecting the scale of its distribution network.

H1FY27 performance remains strong

For the first half of FY27, KEI Industries reported a 30.94% year-on-year increase in revenue.

Profitability metrics also improved during the period. EBITDA margin expanded to 11.73% in H1 FY27 from 11.46% a year earlier, while PAT margin increased to 7.71% from 7.51%.

Share price, technical indicators and shareholding pattern

KEI Industries shares have declined around 15% over the past month, bringing the company's market capitalisation to approximately Rs 40,443 crore. The stock's 52-week high stands at Rs 5,899.

According to Trendlyne's technical indicators, the stock is trading below all eight simple moving averages (SMAs), indicating weakness across these technical trend measures.

In the September 2026 quarter, foreign institutional investors (FIIs) reduced their stake in the company to 26.14% from 27.32% in the previous quarter. Meanwhile, mutual funds increased their holding to 23.00% from 22.52% during the same period.