Synopsis:
KEI Industries sees pressure from new entrants in the cable industry but maintains strong growth and stable margins. The company remains confident in its future prospects despite rising competition.
KEI Industries Limited is a leading Indian company engaged in manufacturing and supplying wires and cables for sectors such as power, infrastructure, and industry. The company exports a range of products, such as EHV cables, HT cables, LT cables, and stainless steel wires, to customers in over 50 countries. Its main customers are in the oil and gas, renewable energy, power, and infrastructure sectors across key global markets.
With a market capitalization of Rs.40,834.40 crore, the shares of KEI Industries Limited were trading at Rs.4,276.60, up by 0.06 percent from the previous close of 4,274.20. In March 2025, KEI Industries saw its stock drop sharply after news that Adani Group and the Birla group were entering the cables and wires business.
Adani Group planned to enter through a joint venture with Praneetha Ecocables Limited, through its subsidiary Kutch Copper Ltd. Similarly, UltraTech Cement announced plans to invest Rs.1,800 crore over two years to establish a presence in the cables and wires segment.
After Adani Group and Birla Group announced their entry into the cables and wires market, stocks of existing players like KEI Industries, Polycab, and Havells fell due to fears of rising competition and lower margins. UltraTech’s own shares also declined about 5 percent, while cable companies dropped up to 17 percent, as investors anticipated pressure on future earnings.
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Financial Overview
The revenue breakdown for FY25 and Q1 FY26 shows LT Power was the top contributor with 40 percent of total revenue. The HW, WW segment made up 30 percent in FY25 and rose slightly to 32 percent in Q1 FY26. HT Cable contributed 20 percent in FY25, but its share dropped a bit to 19 percent in Q1 FY26.
EHV had a small share, increasing from 4 percent to 5 percent. The remaining categories such EPC, SSW, and others had minor contributions between 0 percent and 4 percent. Overall, the revenue mix stayed mostly stable, with only small changes across the categories.
In Q1 FY26, the company reported revenue of Rs.2,590 crore, up from Rs.2,065 crore in Q1 FY25. Net profit also climbed to Rs.196 crore from Rs.150 crore. The company’s return on equity is 15.6 percent, and return on capital employed is 21.3 percent. P/E ratio of the company stands at 52.41, with the industry average of 28.09.
Despite the competition in the cable and wire industry, KEI Industries Limited remains optimistic because the company has maintained its profit margins between 10.5 percent and 15 percent and has grown by 17 percent to 20 percent each year.
Since the overall industry is also growing at a strong rate of 12 percent to 13 percent every year, the company expects it will grow further without its margins being affected much.
Written by Jhanavi Sivakumar
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