KEI Industries: Bullish on Accumulation, Target Price Rs 5660: Prabhudas Lilladher

KEI Industries Sees Revenue Growth, Adjusts Earnings Estimates

KEI Industries, a leading electrical components manufacturer, has reported a 19.3% growth in its Wiring and Cabling (W&C) revenue in Q4FY26. However, the company's volume growth remained muted at approximately 2% in the same quarter, primarily due to capacity constraints at its existing plants in Rajasthan, which were operating at peak utilization. The ramp-up of the Sanand plant was also delayed, contributing to the subdued volume growth.

The company's exports declined by 10% in Q4FY26, with Middle East exports being impacted in March 2026 due to shipping disruptions. However, exports resumed in April 2026 at higher freight costs via the Fujairah port, with partial cost pass-through to customers. KEI Industries is targeting an export contribution of approximately 20% of its revenue in FY27, with improving traction in the US market.

The company's Sanand plant is expected to complete its last phase by Q4FY27, which will support scale-led margin expansion. KEI Industries has maintained its EBITDA margin guidance at 10.5%-11% for FY27. In response to these developments, we have tweaked our earnings estimates for FY27 and FY28.

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Revenue and Earnings Growth Projections

Following the recent run-up in the stock price, we have downgraded our recommendation for KEI Industries to 'Accumulate' from 'BUY'. Our revised target price is INR 5,660, valuing the company at 40x FY28 earnings.