KEI Industries Shares Surge 11% in Two Days Post Q3 Results and ₹4 Dividend Announcement
KEI Industries Ltd: Overview
KEI Industries Ltd is a leading Indian manufacturer and supplier of cables and wires, specializing in a wide range of products, including power cables, control cables, instrumentation cables, and specialty cables. Founded in 1968 and headquartered in New Delhi, the company caters to diverse industries such as power, oil and gas, real estate, railways, and infrastructure. KEI has positioned itself as a one-stop solution provider for cables and wires, offering customized solutions that meet specific project requirements. In addition to cables, the company also manufactures stainless steel wires and provides turnkey EPC (Engineering, Procurement, and Construction) solutions, adding further value to its portfolio. With its state-of-the-art manufacturing facilities in Bhiwandi, Chopanki, Silvassa, and Pathredi, KEI ensures high-quality production and consistent supply to domestic and international markets. The company boasts a robust distribution network, covering urban and rural markets across India, and exports its products to over 50 countries, strengthening its global presence. KEI has been at the forefront of technological advancements and innovation, ensuring that its offerings align with the evolving needs of its clients and the industry. The Indian cables and wires industry is poised for significant growth, driven by rapid urbanization, increasing infrastructure development, and rising investments in the power and renewable energy sectors. Government initiatives such as ‘Make in India’ and the push for smart cities have further boosted demand for quality cables and wires. Globally, the market is witnessing a shift towards high-performance and energy-efficient cables, offering opportunities for companies like KEI to expand their product offerings and cater to the growing demand.
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In Q3 FY25, KEI Industries saw a strong performance in its domestic institutional wire and cable sales, which rose to ₹809 crore compared to ₹556 crore in the same quarter last year. However, domestic institutional EHV cable sales dropped significantly to ₹41 crore, down from ₹184 crore in the previous year. Total institutional cable sales, including exports, contributed 44.82% of the company’s revenue during the quarter, a slight decrease from 45.42% in Q3 FY24. Despite this, total institutional sales, including exports, posted an impressive year-over-year growth of 18.22%.
For the nine months ended FY25, domestic institutional wire and cable sales climbed to ₹1,998 crore, up from ₹1,560 crore in the same period a year ago. Meanwhile, domestic institutional EHV cable sales declined to ₹193 crore from ₹402 crore last year. Total institutional cable sales, including exports, contributed 41.03% of revenue during 9M FY25, compared to 44.57% in 9M FY24. EPC sales, excluding cables, experienced a sharp decline of 58.94% year-over-year in Q3 FY25, with export EPC sales recorded at ₹13 crore for the quarter and ₹89 crore for the nine months of FY25. The company’s order book remained strong, with pending orders valued at approximately ₹3,871 crore. On a standalone basis, KEI’s financial charges in Q3 FY25 were ₹10.92 crore, consistent with the same period last year.
Business Segments
- Cables and Wires: The cables and wires segment is the largest and most significant contributor to KEI Industries’ revenue. KEI’s cables are designed to meet the diverse and demanding requirements of industries such as power generation and distribution, real estate, oil and gas, railways, and infrastructure development. These cables are known for their superior quality, reliability, and ability to withstand extreme conditions, ensuring safety and efficiency in operations. With advanced manufacturing capabilities and adherence to stringent quality standards, KEI consistently delivers innovative cable solutions tailored to the specific needs of its clients, making it a preferred partner for various sectors.
- Stainless Steel Wires: KEI Industries is also a prominent manufacturer of stainless steel wires, which are extensively used across several industries, including automotive, construction, and industrial machinery. These wires are renowned for their exceptional durability, resistance to corrosion, and adaptability to diverse applications. They find applications in areas such as welding, reinforcement, and industrial equipment, providing clients with reliable solutions for critical processes. By maintaining strict quality control and continuously enhancing its product range, KEI has established itself as a key player in the stainless steel wire market.
- EPC Services: KEI offers turnkey Engineering, Procurement, and Construction (EPC) solutions for power transmission and distribution projects, further strengthening its position as a comprehensive solutions provider. The EPC segment includes a range of services such as cable laying, installation, testing, commissioning, and project management. This end-to-end approach allows KEI to deliver complete solutions to its clients, ensuring seamless execution and timely project delivery. KEI’s commitment to excellence in project execution has made it a trusted partner for government bodies, utilities, and private organizations involved in power and infrastructure development.
- Exports: KEI Industries has established a strong foothold in the global market by exporting its products to over 50 countries. The company has a significant presence in regions such as the Middle East, Africa, Southeast Asia, and Europe. KEI’s export portfolio includes a diverse range of cables and wires, designed to meet the specific needs of international clients across various industries. The export business has been a key growth driver, contributing substantially to KEI’s overall revenue.
Subsidiary Information
- KEI Cables Australia Pty Ltd: This subsidiary plays a pivotal role in KEI Industries’ expansion into the Australian market. It focuses on supplying high-quality cables and wires to key industries such as mining, construction, and energy. With its robust portfolio of products and expertise, KEI Cables Australia caters to the growing demand for reliable and efficient cable solutions in the region.
- KEI International Ltd (Dubai): Situated in the UAE, this subsidiary enhances KEI’s presence in the Middle East, a region characterized by rapid infrastructure development and high demand for cables and EPC services. KEI International Ltd ensures that the company’s products and services are accessible to a broad range of clients, contributing significantly to the company’s growth in this key market.
- KEI Industries FZE (Sharjah): As a strategic hub for KEI’s export operations, this Sharjah-based entity is instrumental in providing customized cable solutions to clients across Africa, the Middle East, and nearby regions. The subsidiary focuses on meeting the unique requirements of international clients, reinforcing KEI’s commitment to delivering excellence on a global scale.
- KEI Europe GmbH (Germany): Headquartered in Germany, this subsidiary supports KEI’s endeavours to penetrate the European market. It specializes in providing high-performance cables and solutions tailored for industrial and infrastructure applications. By catering to the European market’s emphasis on quality and innovation, KEI Europe GmbH plays a critical role in the company’s international growth strategy.
- KEI Projects Pvt Ltd: This subsidiary is dedicated to executing EPC contracts, supporting KEI’s vision of offering integrated solutions for large-scale power transmission and distribution projects. KEI Projects Pvt Ltd leverages the parent company’s expertise in cables and wires to deliver comprehensive project management services, ensuring successful project completion and client satisfaction.
Q3 FY24 Earnings
- Revenue of ₹2467 crore in Q3 FY24 up by 19.8% YoY from ₹2059 crore in Q3 FY24.
- EBITDA of ₹241 crore in this quarter at a margin of 10% compared to 10% in Q3 FY24.
- Profit of ₹165 crore in this quarter compared to a ₹151 crore profit in Q3 FY24.
Financial Summary
| INR Cr. | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 2059 | 2467 | 6908 | 8104 |
| Expenses | 1845 | 2226 | 6206 | 7267 |
| EBITDA | 215 | 241 | 702 | 838 |
| OPM | 10% | 10% | 10% | 10% |
| Other income | 14 | 14 | 32 | 49 |
| Net Profit | 151 | 165 | 477 | 581 |
| NPM | 7.3% | 6.7% | 6.9% | 7.2% |
| EPS | 16.7 | 17.3 | 52.9 | 64.5 |