More Stories

Informist, Saturday, Oct. 11, 2025

 

By Udita S. Jaiswal

 

MUMBAI – KEI Industries Ltd. is expected to report a substantial increase in its net sales and profit after tax for the September quarter on the back of robust demand for cables and wires from the infrastructure sector and an increase in copper prices which was passed on to customers, according to analysts. Firm demand for infrastructure development, expansion in the power sector, mainly transmission and distribution, and growth in new avenues such as data centres and electric vehicles, led to higher demand for cables and wires. The ongoing traction in real estate and individual consumption is also a key driver for this rise in demand, analysts said.

 

KEI Industries is expected to report a net profit of INR 2.03 billion, up nearly 31% on year, according to the average of the estimates of six broking firms. Nuvama Wealth Management Ltd. has the lowest estimate of INR 1.86 billion while the highest estimate of INR 2.10 billion is from Motilal Oswal Financial Services Ltd. 

 

The company's net sales for the reporting quarter are expected at INR 27.44 billion, up over 20% on year, according to the average of the six estimates. The lowest estimate for net sales is INR 26.88 billion from Nuvama while the highest estimate of INR 28.38 billion is from Prabhudas Lilladher Pvt. Ltd.   

 

An uptick in copper prices during the quarter also supported revenue growth, the analysts said. Increased copper prices directly impacts the product value as copper is a main raw material for cables. After passing on the higher copper prices to the consumer, KEI Industries is likely to report higher net sales on the back of firm demand, an analyst from Elara Securities said.

 

Copper prices rose on the back of concern about disruption in supply from Chile, the largest producer. Prices of the October copper contract on the Multi National Commodity Exchange were up over 11% on year at INR 954.55 per kilogram as of Sept. 30. On a quarterly basis, copper prices on the MCX were up over 7% from INR 889.5 on Jun. 30.

 

KEI Industries primarily operates in two segments--wires and cables, and engineering, procurement, and construction services. The wires and cables segment offers a broad product range, including power cables of low to extra-high voltage, house wires, control, and instrumentation cables. The engineering, procurement, and construction segment provides integrated services for projects across various core industries, such as infrastructure and energy.

 

KEI's cables and wires segment's margin is likely to remain at 11% on year due to strong demand and positive trends in commodity prices during the quarter, according to Motilal Oswal. "We believe competitive intensity in the sector is unlikely to be as high as initially anticipated, and the incremental supply is expected to be absorbed by strong demand growth in the sector," brokerage Motilal Oswal said in a report. KEI's earnings before interest, tax, depreciation, and amortisation are expected to grow to INR 2.79 billion, according to the average of five estimates. 

 

Of the 11 brokerage reports on the company available with Informist, nine have a "buy" recommendation with an average target price of INR 4,356. Two brokerage have a "hold" on the stock. The company will report its earnings for the September quarter Wednesday.

   

On Friday, shares of the company ended at INR 4,294.6, up nearly 1% on the National Stock Exchange. The stock is up nearly 8% since the company announced its June quarter earnings. KEI's net profit in the June quarter was at INR 1.96 billion, up nearly 31% on year. Similarly, its net sales were INR 25.90 billion, up over 25% on year.

 

Following are the Jul-Sept earnings estimates for KEI Industries from six brokerage firms in descending order of the estimate of net profit:

 

Broking firm	Net Profit (in INR million)	Net Sales (in INR million)	EBITDA
Motilal Oswal Financial Services Ltd.	2,100	27,405	2,836
Prabhudas Lilladher Pvt Ltd.	2,096	28,382	2,867
Elara Securities (India) Pvt Ltd.	2,088	27,166	2,798
Anand Rathi Share and Stock Brokers Ltd.	2,030	27,421	N.A
JM Financial Institutional Securities Pvt Ltd.	1,978	27,356	2,751
Nuvama Wealth Management Ltd.	1,860	26,881	2,697
Average	2,025.33	27,435.17	2,789.80

 

End 

 

US$1 = INR 88.68

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000  

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.