Shares of KEI Industries Ltd slipped over 5% in Thursday’s early trade, even after the company reported a strong 31.3% year-on-year increase in net profit for the September quarter. The decline followed a miss on revenue and EBITDA forecasts, which weighed on investor sentiment.
At 9:27 AM, KEI shares were trading 5.26% lower at Rs 4,188 on the NSE, compared to the previous close of Rs 4,420.60. The stock hit an intraday low of Rs 4,031.90, with a market capitalization of Rs 40,028 crore.
Earnings summary
KEI Industries’ consolidated net profit rose to Rs 204 crore in Q2 FY26, up from Rs 155 crore in the same period last year, slightly above the CNBC-TV18 poll estimate of Rs 201 crore.
Revenue from operations grew 19.4% YoY to Rs 2,726 crore, versus Rs 2,284 crore a year earlier, but fell short of analysts’ expectations of Rs 2,772 crore.
EBITDA came in at Rs 269.1 crore, up 20% YoY from Rs 224.4 crore but lower than the forecast of Rs 283 crore. The company’s EBITDA margin stood at 9.9%, almost flat from 9.8% last year but marginally below the estimated 10.2%.
Company background
Founded in 1968, KEI Industries is one of India’s leading manufacturers of cables and wires, supplying to power, infrastructure, housing, and industrial sectors. The company also provides EPC services and exports to several international markets.
Despite the strong profit growth, analysts attribute today’s decline to profit booking and disappointment over the EBITDA miss, which offset optimism around the company’s long-term growth outlook amid robust infrastructure and real estate demand.
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