On Thursday, shares of KEI Industries fell 10% to ₹3,728.70, bringing them close to their 52-week low. The stock subsequently recovered some of its losses but was still trading more than 7% lower. The sharp decline followed the company's quarterly results, which showed growth in revenue and profit but failed to meet expectations for operating profit margins.
The company reported a 38.5% year-on-year increase in revenue to ₹3,776 crore for the quarter ended September 2026. EBITDA rose 39.8% to ₹377 crore, while profit after tax increased 29% to ₹262 crore.
KEI Industries' EBITDA margin improved by 9 basis points year-on-year to 10%, supported by its operating profitability and a better product mix. The company attributed its revenue growth to strong demand across its businesses.
Revenue from cables increased 40% year-on-year to ₹3,669 crore. Revenue from stainless steel wire and engineering, procurement and construction (EPC) operations stood at ₹63 crore and ₹104 crore, respectively.
Domestic wires and cables (W&C) revenue grew 46% year-on-year, while exports increased 7%. The company's order book stood at ₹5,185 crore at the end of the second quarter.
Despite the growth in revenue and profitability, the stock came under pressure following the operating margin performance, which fell short of expectations.
Motilal Oswal Financial Services said KEI Industries' second-quarter EBITDA was in line with its estimates, supported by strong revenue growth in the cables and wires and EPC segments. However, the brokerage noted that the EPC business incurred a loss during the quarter.
In its update on the company's Q2 results, Motilal Oswal said it remained positive on the cables and wires sector, citing strong long-term growth prospects. The brokerage maintained a 'Buy' rating on KEI Industries shares.
The stock's sharp decline highlights the market's reaction to quarterly operating performance, even as the company reported double-digit growth in revenue and profit. Investors will continue to assess the company's margins, segment-level performance and order book alongside the broader pressure on Indian equity markets.
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