Kaycee Industries Ltd Q2 FY26: The 82-Year-Old Switch-Making Legend That Just Plugged Into EVs (Literally)

1.At a Glance

Imagine a company that’s been flipping switches since before India’s independence—and is still shocking the market, one electrical contact at a time. Welcome toKaycee Industries Ltd, the OG of industrial switches and the newly enlightened cousin of Salzer Electronics. With a market cap of ₹303 crore, this vintage manufacturer of rotary switches, counters, and electrical components has managed to remainswitched onfor 82 long years.

Trading at₹955 per share, Kaycee looks like the nerd in the electrical classroom—quiet, consistent, and somehow topping every exam. But wait—this old-timer isn’t just tinkering with rotary switches anymore. InOctober 2024, it dropped ₹8 crore to acquire30% in Ultrafast Chargers Pvt Ltd, a Bangalore-based EV fast-charging start-up. That’s like your grandfather suddenly buying shares in a crypto-mining firm.

The Q2 FY26 numbers show why investors are watching closely:

• Revenue:₹14.91 crore (↑11.8% YoY)
• PAT:₹1.50 crore (↓2.6% QoQ)
• EPS:₹4.73

Even with a tiny ₹3.38 crore debt, the company flexes aROCE of 30.6%andROE of 22.2%—numbers that would make many “new-age tech” firms blush. But the real punchline? It trades at52.8x earnings, so clearly, the market thinks old is the new bold.

2.Introduction

Once upon a time in 1942, while the world was fighting wars, a few engineers in India decided to fight something else—manual control. Thus was bornKaycee Industries Ltd, the nation’s first manufacturer of rotary switches. Back then, “turning on the power” meant something entirely different, but these guys made it literal.

Fast forward to 2025, Kaycee’s switches are still turning things on—only now it’s not just machinery, but investor interest too. The company is asubsidiary of Salzer Electronics, one of India’s electrical legends. Kaycee operates out ofVapi, Gujarat, manufacturing high-end electrical gear while quietly expanding into EV charging infrastructure.

Think of Kaycee as that studious elder sibling who’s never made headlines but owns half the house. The company may not be Insta-famous, but with its15%+ operating margins, growing customer base (including Indian Railways, Tata, BHEL, and ABB), and diversification intoDC fast chargers, it’s literally plugging into the next industrial revolution.

The only catch? The stock’s fallen nearly60% in one year, suggesting Mr. Market might have tripped on a live wire. But beneath that buzz, there’s a steady hum of engineering precision and a hint of midlife reinvention.

3.Business Model – WTF Do They Even Do?

Kaycee’s business model is deceptively simple—they make switches that keep India’s machines alive.But like any good Indian joint family, it has two children:

1. Manufacturing Segment (72%)
2. Trading Segment (28%)

Themanufacturing segmentproduces the electrical hardware backbone of India—rotary switches, cam switches, toggle switches, timers, counters, and limit switches. These aren’t your household wall switches; these are industrial-grade control components used inpower plants, telecom setups, and heavy machinery.

Thetrading segment, on the other hand, sources and sells electrical goods—mostly from parentSalzer Electronics—like wires, cables, connectors, and fittings. Think of this arm as Kaycee’s sales rep who hustles Salzer products to Kaycee’s vast network of 10,000+ clients across 20 states.

But here’s the twist: since FY22, the trading segment has grown94%, while manufacturing grew56%. Translation? The trading business, though smaller, is sprinting faster. That means the company isn’t just relying on its factories; it’s building a strong distribution backbone that can monetize every plug point across India.

Oh, and did we mention the clientele? Indian Oil, Indian Navy, Airtel, BHEL, Tata, Mahindra, Siemens—basically, every big name that makes sparks fly.

So, yes—they make switches, but their switchboard connects half of India’s industrial ecosystem.

4.Financials Overview

Let’s talk numbers—because in finance, electricity isn’t the only thing that needs current flow.

Commentary:Sales are growing, margins are holding, and profits are steady—but the stock price behaves like someone yanked the main circuit. Despite decent profitability and nearly15% OPM, Kaycee’s market valuation has short-circuited. Maybe