1. Opening Hook
So while most companies are still blaming “macros” and “demand visibility,” KEI just walked into Q3 FY26 and casually dropped a near-20% revenue growth like it’s no big deal. Margins expanded, PAT jumped, and the balance sheet is carrying more cash than excuses on a bad concall. Dealers are selling more, exports finally woke up, and EHV cables seem to be having their own bull run. Management sounded confident—almost suspiciously calm—for a quarter this strong. But before we crown this as a perfect wires story, there are a few cracks hiding behind those glossy margin charts. Read on, because the real spice is in mix changes, institutional volatility, and what they didn’t say loudly enough.
2. At a Glance
- Revenue up 19.5% YoY – Apparently wires conduct electricity and growth now.
- EBITDA margin at 11.98% – Inflation blinked first, KEI didn’t.
- PAT up 42.5% YoY – Operating leverage finally showed up for work.
- Dealer sales +29% YoY – Retail electricians doing more heavy lifting than EPCs.
- Net cash still massive – Bank balance looking healthier than most PSUs.
3. Management’s Key Commentary
“EBITDA margins have improved due to better
product mix.”
(Translation: LT wires paid the bills, EHV brought the swag 😏)
“Dealer and distribution channel growth remains strong.”
(Retail demand is real; institutional buyers are still moody.)
“Export institutional sales grew 95% YoY.”
(Finally found customers who pay on time.)
“EHV cable sales increased significantly.”
(High voltage, high margin, high management confidence.)
“Working capital remains well under control.”
(Because ₹1,400+ crore cash solves many problems 💰)
“Order book stands at ~₹3,928 crore.”
(Visibility exists, execution now has no hiding place.)
4. Numbers Decoded
| Metric | Q3 FY25 | Q3 FY26 | What It Really Means |
|---|---|---|---|
| Revenue (₹ Cr) | 2,472 | 2,955 | Strong volume + price discipline |
| EBITDA Margin | 10.29% | 11.98% | Mix improved, costs behaved |
| PAT (₹ Cr) | 165 | 235 | Operating leverage kicking in |
| Dealer Share | ~51% | 54.5% | Retail engine getting stronger |
| Net Cash (₹ Cr) | — | ~1,267 | Balance sheet = cheat code |
5. Analyst Questions
- Q: Why domestic institutional sales dipped?
