Shares of KEI Industries experienced a significant rally today, climbing over 8% to reach Rs 5415.95. This surge pushed the company's market capitalization to Rs 51,601 crore, following the announcement of robust first-quarter earnings and an optimistic revenue growth outlook.
Strong Financial Performance in Q1 FY27
For the first quarter of fiscal year 2027, KEI Industries reported a consolidated net profit of Rs 274 crore, marking a substantial 40% increase from Rs 196 crore in the corresponding period last year. The company's profit after tax margin also saw an improvement, rising to 8.61% from 7.56% year-over-year.
Revenue from operations grew by 23% year-on-year, reaching Rs 3,185 crore in Q1 FY27, up from Rs 2,590 crore in Q1 FY26. This growth was attributed to broad-based demand across the wires and cables segment, coupled with a balanced business performance.
Margin Expansion and Upgraded Outlook
The company's EBITDA margin improved notably to 12% in the first quarter, compared to 10% in the same period last year, representing an expansion of approximately 155 basis points. Management anticipates maintaining an EBITDA margin of around 11-12% for the full fiscal year 2027.
In a key development, KEI Industries upgraded its revenue growth guidance for FY27. The company now expects revenue to grow by “25% plus,” an increase from its previous forecast of “20% plus.” This revised outlook reflects strong confidence in sustained demand and operational efficiency.
Drivers of Future Demand
The management highlighted that the increasing demand from data centers is expected to be a significant booster for energy demand, subsequently driving further need for wires and cables. This emerging sector, alongside consistent demand across its core segments, positions KEI Industries for continued growth.