KEI Industries confirmed that the Income Tax Department has initiated search operations at the company’s registered office, plants and other locations, following earlier media reports that had triggered selling pressure in the stock.
In an exchange filing, the company said the searches were initiated on May 7, 2026, and added that it is fully cooperating with the authorities.
“Pursuant to Regulation 30 of the Listing Regulations, please be informed that the Income Tax Department has initiated a search today i.e. 07th May 2026 at Registered Office/ Plants and other locations related to the Company,” KEI Industries said in its filing.
The company further stated that it is providing all necessary information and support to the authorities and will update stock exchanges in case of any material development arising from the searches.
KEI Industries also said it remains committed to “the highest standards of ethical conduct and legal compliance,” adding that its commitment to transparency and due process remains “unwavering.”
The clarification comes after reports of Income Tax raids surfaced earlier in the day, leading to weakness in the stock and prompting the National Stock Exchange (NSE) to seek clarification from the company.
Shares of KEI Industries came under pressure during early trade, with the stock falling over 2-3% intraday amid investor caution around the developments.
The company had recently reported strong Q4 FY26 earnings, with consolidated net profit rising around 25.5% year-on-year to ₹284 crore, while revenue increased nearly 19% to ₹3,476 crore.
Brokerages had remained broadly constructive on the company’s long-term growth outlook due to strong demand in the cables and wires sector, infrastructure spending and ongoing capacity expansion plans. However, some analysts had recently turned cautious on valuations after the sharp rally in the stock.
KEI Industries is one of India’s leading manufacturers of wires and cables, with presence across retail, institutional and export markets. The company manufactures a wide range of products including extra-high-voltage cables, house wires and stainless-steel wires.