Ladies and gentlemen, good day and welcome to KEI Industries' Q4 FY 2026 earnings conference call hosted by Nuvama Institutional Equities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Achal Lohade from Nuvama Institutional Equities. Thank you and over to you, sir.
Yeah. Thank you. Good afternoon, everyone. On behalf of Nuvama Institutional Equities, we are glad to host the senior management of KEI Industries Limited to discuss its Q4 FY 2026 and FY 2026 earnings. We have with us Mr. Anil Gupta, Chairman and Managing Director of the company, and Mr. Rajeev Gupta, Executive Director Finance and CFO. We'll start the call with the opening remarks from the management, and then move to Q&A session. Thank you, and over to you, sir.
Okay. Good afternoon, friends. I'm Anil Gupta, CMD, KEI Industries Limited. I'll give brief about this financial results of this quarter as well as the full year. As you must have received all the, this, information already, net sales in Q4 in FY 2025, 2026 is INR 3,476 crore, with grown by around 19.27%. EBITDA/net sales margin achieved is 12.21% as against 11.61% in the same period previous year. Profit after tax in this quarter is INR 284.31 crore, with a growth in PAT, with 25.5%. Profit After Tax/Net Sales margin is 8.18% versus 7.77%.
We could improve it by 0.5% for the same period, over the same period. Domestic institutional cable sale via B2B is INR 804 crore, up around 6%. Sales of Extra High Voltage Cables B2B is INR 188 crore in the fourth quarter against INR 115 crore last year, with a growth of around 64%. Export sales in this quarter is INR 443 crore. Total B2B sale contribution is 40% as against 46% in the previous year same period. Sales through dealer network, distribution network is INR 1,936 crore in fourth quarter against INR 1,498 crore with a growth of around 29% in the B2C sale.
Distribution sale contributed, contribution was for 56% in fourth quarter as against 51% in the previous year same period. EPC sale other than cable is INR 123 crore as against previous year same period, INR 72 crore. Out of the total sales of EPC, Extra High Voltage cable EPC sale is INR 106 crore against INR 32 crore in the same period last year. Sales of Stainless Steel Wire in Q4 is INR 55 crore as against INR 46 crore for the same period previous year. Now I will give you summary of the full year results, full financial year 2025, 2026. The net sales in FY 2025, 2026 is INR 11,746 crore against previous year, INR 9,735 crore, with growth in the net sales is 20.66%.
However, our wire and cable segment in terms of value in FY 2025, 2026 has grown by 22.32% against previous year. All our cable plants of Rajasthan were operating at peak capacity during last financial year, 2024, 2025 itself. Capacity at our Chinchpada plant was added in Q2 of last financial year, 2024, 2025, which resulted into a overall volume growth in financial year 2025, 2026 by 15% for copper cables, but aluminum was flat. The net volume increase was 6.21%. For the current financial year, 2026, 2027, volume growth will come from Chinchpada for wire capacity, and for cables, the growth will come from Sanand plant.
We are expecting 17%-18% volume growth in this current financial year, which will mainly coming from Sanand's new facility. You are aware that our Sanand, you know, plant was commissioning of first phase was delayed by around six months. We commissioned the first phase in the end of December 2025. Second and last phase is expected to be commissioned in the fourth quarter of FY 2026-2027. In financial year 2025-2026, average copper price increased by 16.85%, and average aluminum prices increased by 9.91%. During FY 2025-2026, operating margin has improved to 10.46% against 10.18%.
EBITDA in this financial year, full financial year is INR 1,387 crore, up by 30.56% compared to last year. EBITDA oblique net sales margin is 11.81% as against 10.92% in the previous year. The profit after tax in financial year 2025-2026 is INR 918 crore, with a PAT margin of 7.82%. Domestic institutional cable sale, wire and cable, has been INR 2,688 crore. However, the domestic institutional cable sale of Extra High Voltage Cable is INR 559 crore, against INR 308 crore previous year, with a growth of 82%. Export sale achievement is INR 1,833 crore, against.
INR 1,267.
INR 1,267. The growth in export is 45%. The total cable institutional sale contribution is 42%, which is at par with the previous year. Sales through distribution network is INR 6,349 crore, up by 25%. The total active working dealers of the company around March 31, 2026 was approximately 2,125. Dealer sale contribution is 54% in overall sales. EPC sale other than cable is INR 311 crore against INR 343 crore. Stainless Steel Wire sale in full FY 2025-2026 is INR 212 crore at par with the previous year. Now I will give you the demand outlook and the future outlook of the company. The demand outlook continues to remain strong.
We are very hopeful that whatever we have projected in the volume growth and plant utilization, it will happen. We are bullish about huge CapEx coming up in India in the power transmission and distribution sector, data centers, institutional infrastructure projects like metro rails and railways, as well as the construction sector, comprising of commercial construction as well as real estate. Oil and gas sector will continue to remain strong. Especially the power generation sector will see substantial growth in this, in coming financial year, not only in the solar and the wind, but also in the thermal power generation. The data centers will also be a big booster.
Export for America.
We have also commenced, restarted our exports to U.S., after the lull in last financial year because of the tariffs. We hope to do a substantial sale in U.S. this year, taking our export to around approximately 20% of our total sales in the current financial year, which is as per our previous target. This is a brief summary from our side. We now look forward to answering your questions. Thank you.
Thank you very much, sir. We will now begin the question and answer session.Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Thank you very much. First question is from the line of Sukrit D. Patil from ICICI Securities Limited. Please go ahead.
Good afternoon to the team. I have two questions. My first question to Mr. Anil Gupta is, in your view, how is KEI Industries-
Sukrit, your lines are unmuted. Please go ahead with your question.
Yes. Hello. Am I audible?
As there is no response from the current questioner, we'll move to the next question from the line of Pulkit Patni from Goldman Sachs. Please go ahead.
Sir, thank you for taking my questions. Two questions. Firstly, are you witnessing any supply chain issues right now? Supply of PVC compound, XLPE, any other sort of supply chain issue? You did mention that freight costs. On the TV interview, you mentioned freight costs have gone up quite meaningfully, and you are sharing part of that with the customer in the export market. Anything else on that side that you'd like to highlight in terms of costs and supply chain?
Thank you. Supply, as of now, I think none of our plant has suffered because of the raw material issues coming through imports because of the good stocking by us as well as the domestic availability. Our only the imports of XLPE from Middle East, especially Abu Dhabi, is not happening because of the shipping problem. Also in March, we witnessed, you know, we were not able to ship our goods to Middle East because no shipping line was ready to take the deliveries. Now, in April, it has started, albeit at a very high cost because the containers are now going to Fujairah and from Fujairah port by land to various destinations in Abu Dhabi and Qatar, and other countries.
In most of the customers are bearing 50% of the differential freight cost from us. In cases where our prices were FOB, there the entire freight cost is to their account. That has also started because they need material. Of course, in March we suffered. We could have done around INR 50 crore more INR 50 crore-INR 60 crore more exports which could not happen.
Fair point, sir. My second question is, I mean, historically, we've done a very good job in meeting our guidance. Our guidance has always been in the high teens to early 20s in terms of revenue growth. You just mentioned right now that 17%-18% is the volume growth in FY 2027 that you are targeting from the Sanand facility. If I was to just make the assumption of where copper is likely to be based on what the last year prices were, then we are talking about at least a 10%-15% upside that will just come from copper. Is it fair to assume both added together that we could look at more like a 30% revenue growth this year, or am I reading too much into this?
No, no. I think, what you are saying, if that happens, this will happen. It could happen.
Okay. This is, this is clear, sir. Thank you so much for taking my questions.
Okay.
Thank you. Next question is from the line of Puneet Gulati from HSBC. Please go ahead.
Yeah. Thank you so much, and congrats on great performance. My question is if you can elaborate a bit on what has been the key drivers of your, you know, margin expansion in this quarter, especially when you faced some bit of challenges on the freight side and the Middle East on supply side.
No. What he said is the freight side only related to the Middle East and our Middle East, sale is practically very, very less. It is no impact on the overall supply.
No, no. What I said is the freight impact coming on the supplies to Middle East. That freight impact has come in April, not in March, because in March, the supply could not happen because of the restrictions on the shipping.
Okay. No adverse impact there. Whatever 70 BPS margin that you lost is more.
I can say that whatever extra freight we are bearing in April, that will be compensated by higher exchange rates, which we will get from our export revenue in those orders itself. Because those orders were priced at anywhere around INR 90 or INR 91. Even if we are bearing some extra freight, that will be compensated by the extra revenue from the exchange fluctuation.
Understood. 17%-18% volume growth that you guided from the Sanand plant, that's effective from FY 2027 itself?
Yes.
What sort of another growth should we expect for FY 2028 based on the second phase?
Similar growth will continue to happen because the capacity will keep on coming up, and plant will keep on getting stabilized with the more and more supplies going from that plant. We are. You know, when we set up a new plant, it takes a little while to get that plant specific approvals also from the customers. Hence the ramp-up is always gradual.
Okay. FY 2027 it is 17%-18%. FY 2028 it could be a bit more gradually, that's all.
Yeah. It will be, it should be around 20%. Yeah.
Okay. Lastly, if you can also talk about, you know, how do you think about margins for the current year?
We, I mean, on a conservative side, we can expect around 11, anywhere between 10.5%- 11%.
Okay. That's all from me, sir. Thank you so much, and all the best.
Yeah.
Thank you. Next question is from the line of Achal Lohade from Nuvama Institutional Equities. Please go ahead.
Just a quick clarification, sir. When you were talking, you said, you know, the wires growth will come from Chinchpada. The cables growth will come from Sanand plant. That 17%, 18% volume growth you said for the cables or the company as a whole?
No, no, company.
I presume company as a whole. Yeah. Okay.
Company as a whole. Yeah.
Perfect. The other question I had is, you know, in terms of exports, if you could elaborate a little bit as to where we are, what kind of, you know, products we are, you know, currently exporting, and what incremental new product categories can we look at? If you could guide a little bit more to us in terms of the export front, growth as well as the categories and the key drivers or geographies.
We are exporting mainly LT, HT, and Extra High Voltage Cables. Apart from that, we are also exporting Control and Instrumentation Cables for oil and gas refineries. This is our product, total product mix and export basket is not different from domestic domestic supplies. Export basket is, in terms of products, is similar to domestic.
Understood. Geographies, if you could give us a sense, FY 2026 export mix?
Our export, major export destinations are Middle East, Australia, Africa, and now, and as well as the United States. We are also exporting to Europe as well.
Understood. Would it be possible to know what kind of Solar Cables mix we have, sir, for FY 2026 at our company level?
Solar. You're talking of Solar? Solar Cable.
Solar Cables. Yes, sir.
Solar Cables, we are manufacturing, power cables, and also now we are manufacturing, Solar Wires by electron beam process. We have set up this electron beam facilities in our Sanand plant and which has started.
Got it. The contribution will be relatively small at this stage, right?
No, it will, quarter after quarter it will, keep growing.
FY 2026 will be smaller and FY 2027 will grow substantially.
Yeah.
Understood. Would this be a value-added product, sir, in terms of margins or similar margins?
Yes, yes. No, no, it. See, it will be a similar margin. I mean, when we talk of EBITDA margins, we talk of, you know, all products averaged together.
Got it. Got it. I'll fall back in the queue for further follow-up, sir. Thank you so much.
Thank you. Next question is from the line of Bala subramanian A. from Arihant Capital. Please go ahead.
Good afternoon, sir. Thank you so much for the opportunities. My first question, we have planned around INR 2,000 crore kind of investment over next three to four years post Sanand. I think we also bought a Bhiwadi land around for INR 92 crore, and we also bought a 70-acre land in Baroda. I'm trying to understand, like what is the use case of this land, and what kind of products we are going to target for the investments. We are also planning a little backward integration into compounds. I think you are currently highly importing high voltage compounds.
At the moment we are manufacturing PVC compounds and low tension XLPE compounds ourselves and importing and/or procuring domestically medium voltage compounds and Extra High Voltage are all being imported. Extra High Voltage will continue to be imported. We will be working on manufacturing medium voltage compounds ourselves, but that this project will take more minimum two years because the civil construction to the factory setup takes time. We are also considering manufacturing our own Galvanized Steel Wire, Cable Armor Wire, because we have a substantial consumption of close to 5,000 tons a month, which makes it economic sense to do that.
Other products what we are, we will be, whatever products in electrical side, but in cable industry, which we may be missing, we'll continue to add those plus the new, newer capacities in our new facilities, whatever will come up in the next two, three financial years.
Okay, sir. My second question is, we have active dealers of 2,125, but around 100 top dealers contribute 70%-80% of sales. Basically, 5% of the dealers are bringing 70%-80% of the sales. Dealer inventory is typically nearly 15-20 days. I'm trying to understand the remaining dealers are inactive or they are bringing they are the low productive dealers.
No, no.
Yes, sir. What is your dealer churn rate annually, sir?
It's not inactive dealer. The major part of 20% dealers which do 20% of the total sale. the 20%
Those dealers are anywhere between, you know, INR 50 lakh to INR 1 crore. First, they are operating in the smaller towns, doing small-town sales or retail sales, and they are mostly operating in two 90-meter wire segment because there it, you require dealers at every nook and corner. You, you need lot of numbers, then only the sale comes. So far as churning is concerned, I think every year, 10%-12% is the churning of dealers. Some dealers leave and some new are added.
Got it, sir. Thank you so much for the detailed explanation. All the best.
Thank you.
Thank you. Before we move to the next question, a reminder to the participants, to ask a question, you may press star and one. Next question is from the line of Pathanjali Srinivasan from Sundaram Mutual Fund. Please proceed.
Hello, sir. Thank you for the opportunity. I had couple of questions. Firstly, could you tell us, like, what is the increase in terms of price and what is the volume growth for this quarter? On a year-on-year basis, where do you see things for the next year?
For the full year basis, the copper price increased by 16.85%. For aluminum, it was increased by 9.91% for the full year basis. Overall, for full year, we have grown for the copper production, that is was by 15%. Our aluminum consumption was flat. Overall, the net volume growth for the metals was 6.21%.
Got it, sir. What is the price increase we had to take this year, around 8-9%? Would that be the range for that?
We are passing on. We are working on the passing on mechanism.
Correct.
Every price increase is basically pass on mechanism. Because we are a tender-driven business, so whenever we are quoting, we are quoting on a prevailing market price on that date. Accordingly, we are quoting the price.
Got it.
In all the institutional orders, it gets passed on.
Okay, sir. We had mentioned that 15%- 17% volume growth can happen in FY 2027. This is only from the new plant or it is just entire, like even the existing plants put together? What would be your guidance overall?
Existing plants are, basically Rajasthan plants. They are already working on the peak capacity. Only the Chinchpada plant and the new plant of Sanand, they will add in the volume actually.
Yes, sir. In terms of growth, you still stick to 20% growth for 2027 over 2026, or is there a slight?
Normally, if the price remain at this level and with the volume growth of 17%, 18%, this value will grow more. If the prices are going down, then still we will be maintaining at 20% because we are adding 17%, 18% volume.
Uh, but the-
Except the last year, except the last 25, 26, if you go for the next, previous five, six, seven years, our volume growth was close to 14% to 16% year after year. Sir, I can add here that if the prices, remains bullish of the metals, then definitely the revenue growth will be much more.
Got it, sir. No, sir, just only doubt or concern is that the volume growth is a bit lower given that we had very strong base for the last two, three years, and we are also bringing new capacities. Will we see any challenges in terms of volume growth? That is what the concern is, sir.
No, volume was based on the capacity addition. Whatever in the phased manner we are adding the capacity, so volume growth will be in this range only, which will be resulting more than 20% when it comes growth.
Got it, sir. Thank you so much, sir. All the best.
Thank you.
Thank you. Next question is from the line of Shirom Kapur from Jefferies. Please go ahead. Line for the current questioner got disconnected. We'll move to the next question from the line of Praveen Sahay from PL Capital. Please go ahead.
Yeah, hi. Thank you for the opportunity and many congratulations for a good set of numbers. First question related to the acceptance. For from the last Q3 and now the Q4, the acceptance number has been, you know, on the higher side. How we will read this, the way forward? Like even the trade payable numbers, I can see that's increased for an year, YOY if I look at. How to read these numbers, the way forward, where you want to see this number?
This number will remain in this category only because now the prices of the metal has already increased. The volume of the company is also increasing after the production. That's it. This number will remain in this range only.
It's a factor of pricing, and that's where you are saying that number to be here.
Yeah. The new Sanand plant also, no? Because their inventory has increased.
Right. Okay. The second question, sir, related to the housing wire and winding wire. We had observed in the last three years continuously increase in the contribution. Now it's for FY 2026, 33% of contribution. Further you are guiding for the Chinchpada, there is a wire production which will further add to the volume. Where you want to see this contribution to go from here, 33%?
I think dealer distribution contribution is already 54%. Whatever cable capacity is increasing in Sanand, we hope that 53%-55% contribution from the dealer distributor will remain.
Okay. As per our this contribution also to go up, housing wire and winding wire.
Basically the housing wire goes to the dealer only. The housing wire sale is increasing, but the cable sale is also increasing now because of the Sanand plant.
Okay. Okay. Okay. We will maintain this number at this level.
Yes.
The another question is related to the order book. If you can give the bifurcation of the order book, EPC and the Extra High Voltage domestic, if you can?
We have the as on 31st March 2026 order book of EPC division is INR 309 crore. Extra High Voltage power cable order book is INR 625 crore. We have also L1 in Extra High Voltage power cable order book of INR 233 crore another order. Cable domestic institution order book an around INR 2,154 crore. Cable export order is INR 497 crore. Put together all order book is close to INR 3,585 crore. Whatever order book from the dealer distributor that is not reflecting it here because they are the orders which we supply within three to four days time, or maybe at the one week time. That's it.
Right, sir. One clarification, like, volume growth for the quarter is 12.5%.
No, no. Volume growth for the quarter was close to 2%. The full year basis, the net volume growth is, I'd say 6.2%.
Okay. Oh, thank you, sir, and all the best.
Thank you. Next question is from the line of Shreya Kejriwal from Moneyvesta Capital. Please go ahead.
Hello, sir. Congratulations on your results. My question was regarding the EPC. EPC contributes like around 2.6%, as we saw in FY 2026 revenue. Does the company plan to scale this up or keep it as a supporting business? Like, what's your view on that?
No. Since last three, four years before, we have guided that EPC business will go down towards the 2%, 3% only. As per the guidance, because the working capital is very long in EPC. Because of that, we are increasing the retail where the working capital is very low. That's how it is our plan.
It is mostly a supporting business to support our Extra High Voltage cable projects, where cable value is more than 80%.
Okay, sir. I have one more question regarding the QIP proceeds. I feel that around INR 400 crore- INR 500 crore remain unutilized. Any specific deployment plan or timeline for this capital?
The second phase of the Extra High Voltage power cable in Sanand will complete by Q4 of the current financial year. The whole INR 385 crore unutilized QIP money will be utilized in the current financial year.
Okay. Thank you, sir, so much.
Thank you. Next question is from the line of Ashish Agarwal from IndusInd Nippon Life. Please go ahead.
Yeah. Thanks. sir, two questions from my side. What is the CapEx plan now for FY 2027, and will it include CapEx incrementally in Bhiwadi also? Secondly.
Sir,
Yeah, sorry.
Yeah, please. Please.
Secondly, just wanted to understand on the EHV side. This year we have seen a substantial growth on the EHV revenues, almost close to 66% growth. Given our new capacities for EHV only will be coming towards the end of this year, how should we look at the growth on the EHV side? Yeah, thanks.
This year, in EHV segment, we expect a growth of around 20%. A little bit from our existing factory because we are already operating at almost full capacity and some portion of growth will come from Sanand.
With regards to the CapEx investment, every year we will be doing around INR 600 crore-INR 700 crore capital expenditure for next two- three years continuous.
Got it. Thanks. Thanks a lot.
Thank you. Next question is from the line of Christopher Harkov from Pictet. Please go ahead.
Hey, thanks for the call. Just a follow-up question on the quarterly volume growth, if I may. Is it fair to say that you are still capacity constrained, or how do you explain the discrepancy or the difference to some of your peers' volume growth? What was Sanand's contribution in the fourth quarter in terms of volume growth?
In Sanand, fourth quarter sale was very less. It was less than INR 100 crore. Because the ramp up takes time. Now from the first quarter onward for the current financial year, the sale from Sanand will be visible to that extent. As Anil has just spoken about, current year growth will be coming from Sanand.
Another question.
The first part of the question.
Yeah.
The volume growth in the fourth quarter.
The-
was that still capacity constraint or how should we?
Yeah, it was mainly because of the capacity constraint, actually.
Got it. Okay. Thank you very much. Thanks.
Thank you. Next question is from the line of Rahul Agarwal from Ikigai Asset. Please go ahead.
Hi, sir. Very good afternoon.
Good afternoon.
Sir, two questions. Firstly, I see reduction on the receivable side on the balance sheet. Overall, we see some changes to inventory and creditors. I believe that is because of some transit export delays which will normalize in 1st quarter. Overall, on a sustainable basis, the company should be between 85-90 days of net working capital cycle over the next two, three years. Is that understanding correct?
Yeah. Net working capital cycle is because of receivable to the B2C business is already reducing year after year. Because of that, the working capital cycle is decreasing actually.
Is that is purely because of channel financing?
Yeah, that is mainly purely because of channel financing.
Okay. Incrementally, this 57 days of sales of, you know, receivable days, that should remain flattish or it should further decline?
This debtor may further decline to, as of now it has reduced from 2.2 months- 1.88 months. It may reduce to 1.75 months.
Got it.
Almost now the overall inventory plus debtor minus creditor is close to 2.97 months, as against last year it was 3.39 months.
Right. I get that. Secondly, Rajeevji, I mean, you talk about CapEx of INR 800 crore-INR 900 crores a year. Your operating cash flow is gonna be similar every year, you know, based on the growth guidance you're giving. The cash lying in the balance sheet, right, almost INR 1,300 crores net cash, how do we reinvest this in the business then? You know, the entire CapEx is gonna get funded from your accruals itself. What is the thought there?
Sir, we will be doing all future CapEx from the internal accrual only because whatever CapEx we are accruing year after year, we will be allocating close to 60%-70% for the capital expenditure for the incremental capacity addition to grow at a CAGR of 20%. Because of we are growing more than 20%, we need to add some additional working capital. Balance 30% of accrual will be kept for the incremental working capital requirements. That is our overall plan to use our cash flow for the next three to four years.
Right. Sir, I was actually talking about, you know, the cash remaining in the balance sheet even after using working capital. Even at 90 days of sale, you need INR 500-600 crores of working capital and you will need.
Sir, see, sometime. Normally the size of the company, INR 500 crore-INR 600 crore cash will always be carry. Only the additional INR 200 crore-INR 300 crore cash, it may go up, it may go down, depending on the receivable and the inventory cycle. It cannot be remain same on month-over-month basis. On an average it is there, but on month-over-month basis it may increase or decrease. If suppose sudden jump in the raw material price, then for that particular month it will increase substantially, cash will not be there at that time. Because of that, we need to have the cash at INR 500 crore-INR 600 crore level at any given point of time in the balance sheet.
Got it, sir. Got it.
Because we are running a debt-free company. With this guidance, we will be continuing running as a debt-free company for next four to five years with a top line growth of 20% CAGR, depending on the capacity we are going to add.
Got it, sir. Got it. This just to double-click on this fourth quarter volume growth, you said 2%. How do you read this in terms of your own expectations in the quarter? I understand there have been a lot of fluctuations on a QoQ basis, month-on-month basis. Environment is not normal.
Sir-
What is your expectation? How is the performance?
Sir, there are two aspects to this. First is the capital allocation. If we are allocating the capital of 60%-70% toward the CapEx and 30% for incremental working capital requirement, considering we will be growing a CAGR of a 20%+. Okay? If the value is increasing and the volume is also increasing, then we may be requiring more additional working capital also, no? By saying 30%, 40% is very easy, but to arrange the capital for that also we need some allocation. If we have already allocated to the capital expenditure, then we need to have the borrowed. As of now, we are not borrowing. Whatever capacity we are creating, we are creating a capacity with a volume growth of 17%-18%.
Last year in Sanand, the six months was delayed because of that volume could not be added into the sale. Because of that, the volume growth was not there. Otherwise our all the Rajasthan plant, even in 2024, 2025, they were running at a peak capacity. Whatever capacity increased in the Chinchpada plant in the second half of the 2024, 2025, that has contributed only towards the volume growth. Because of that, the last year, the copper metal consumption has grown by 15%, but aluminum metal consumption was flat because the Sanand was not operative at that time. The Sanand is operative and the Chinchpada is having the capacity for the wires. Then we will be operating again back to the 17%-18% volume growth.
Very clear, sir. Very clear. Thank you so much, and wish you all the best for next year.
Thank you, Rahul. Thank you.
Thank you. Next question is from the line of Umang Mehta from Kotak Securities. Please proceed.
Hi, thanks for the opportunity. I just wanted to clarify something. Earlier, we had given a number of around 2,700 crores from Sanand plant in FY 2027. Are you still sticks to that? If yes, then.
Yes, sir.
18% volumes would actually be slightly higher if actually you do INR 2,700 crores is the question. The second clarification-
Volumes will come not only from Sanand, but from Chinchpada also, no, for the wires. That is mainly for copper.
Understood. Just to reconfirm something you said to Pulkit earlier, 17, 18% volume plus if prices sustain as they are, then on an annual basis, we are looking at 25% plus, top line growth. That's correct, right?
Sir, as of now, if the prices may increase, the value will automatically be clear. We can't say the value will increase, the price will increase or decrease at this moment of time.
Sure, sir.
There may be the chance the price decrease also, no, sir?
Sure, sir. Thank you so much. These are my questions. Thank you.
Thank you. Next question is from the line of Akshay Gattani from UBS. Please proceed.
Hi, sir. Thank you for the opportunity, sir. Earlier you commented export revenue share guidance of around 20% of revenue for FY 2027. If we assume even a 20% company level revenue, this implies export revenue growing more than 50%. A large part of 16%-18% volume growth is supported by exports. Is there any identified geography which is contributing big to this? Any particular product which will drive half increase in exports?
Sir, mainly products and geographies will remain same where we are exporting. It will increase volume will come from the same geographies and similar type of projects.
Okay. This is more of a broad-based, rising acceptability of Indian product in the export market, we can say.
Yes.
On the volume growth, front, sir. Volume growth is accelerating from 6.5% in FY 2026 to 16%-18% in 2027. How would this impact operating leverage? Do you expect any pre-operative expenses for phase 2 of Sanand, EHV plant?
Sir, already we have guided that from 2027, 2028 when the Sanand will be at full capacity. That will be the first year in 2027, 2028. Another 0.5% EBITDA margin will get improved because of economy of scale. In the current financial year, already operating margin has improved from 10.18% to 10.46%. Another 20-25 basis point, it will further increase year after year because of the economy of scale and having more export and more B2C business.
Got it. Got it, sir. This is very helpful. Thank you.
Thank you. Next question is from the line of Anuj Shah from PhillipCapital. Please go ahead.
Hi. Good afternoon, sir. Congratulations to the entire team of KEI Industries for delivering good set of numbers. Actually just wanted to reiterate, you know, the break-up of the current order book that you had mentioned. Actually, I had missed it. If you could just give us, you know, the break-up of the current order book, sir, that would be great. Thank you.
Yeah. Sir, EPC order book is INR 309 crore. Extra High Voltage power cable order book is INR 625 crore. Domestic cable order book is INR 2,154 crore. Export cable order is INR 497 crore. Put together all is INR 3,585 crore as of 31st March 2026. L1 on EHV, another order is INR 233 crore.
Oh, okay, sir. Thank you so much, sir. Thank you.
Thank you. Next question is from the line of Prashant Shah from Mehta Equities PMS. Please go ahead.
Hello, sir. Congratulations to the entire team. I want to understand about export business, particularly in the U.S. Since you said you are looking good traction which can be come from U.S. What kind of orders, product or business that you are expecting from U.S. business? I want to know about particularly from the data centers area. Thank you.
See.
Data centers, I think we expect to supply them mainly HT cables and also some copper flexible. Presently our market, what we have built for data center is only for the medium voltage HT cables to U.S. We are working out that what other cables can be sold in the data centers. When we sell to data centers, we have to face competition from their American domestic industry as well. Because of the realization of U.S. market last year, the progress in market development was stalled, which has restarted now. We'll be able to let you know about it in our next call.
Right. Right. I want to know about what kind of order book is currently from U.S. side, and approximately what kind of margin that we are taking from U.S. business?
Sorry.
Basically, in U.S. market, close to INR 50 crore-INR 60 crore order book as of March 31, 2026 was there. As Anuj is saying that now this market has opened after the tariff has reduced. Now this, our marketing team is traveling over there, and they are recapturing their, our existing customers and adding new customers. In future this will be adding up. Up till August last year, we have reached close to INR 40 crore per month sale. In three months' time we will try to reach first at that level, then it will be further adding to our business.
Right. Right. This is our value-added product area?
Sir, every product is a value-added product.
I want to know about the EBITDA margin of U.S. market.
Sir, average EBITDA margin is close to 11% for all exports.
Okay. Okay. Okay. Okay. Thank you, and all the best to the team.
Thank you.
Thank you. Next question is from the line of Ankit Soni from Mirae Asset Securities. Please go ahead.
Yeah. Hi, sir. Congratulations for a good set of numbers. Just wanted to be having two to three questions. The Sanand facility second phase was, I believe, earlier operational in around August or September month. Has it got to delay to quarter four? Am I reading it right?
Already the whole Sanand plant get delayed by six months. The phase 1 also got delayed by six months, the end phase also will get delayed by six months because the construction will be in progress. By March 2027, the Extra High Voltage power cable production will be there.
Okay. I believe first phase will be fully operational for financial year 2027, will be giving you growth of, volume growth of around 17%-18%. The second phase, which will be operational by around Q4, would open up, what sort of volume growth for financial year 2028?
It will be another 17%-18% volume growth will be there.
Okay. Another 17, 18%. Sure. With respect to the price hikes, have you taken all the price hikes in relation to what was the raw material increase, maybe till March 31st or maybe till here? Are we taking another price hike going forward?
Sir, that is our business model. Whenever price increase, we are increasing the price of the cable. Whenever decrease, we are decreasing the price of the cable. There is no issue for the pass on. Since last four, five years if you see our balance sheet, you will not find a fluctuation in the EBITDA margin.
Okay. Sure. If you can just let me know, what was the price hike we took in FY 2026?
Sir, in every order we price hike. It's an order to order basis because we are quoting in a day at least 10- 15 tenders. These kinds of prices are getting passed on on every day basis, not on month to month basis. Only in the case of retail the price is revised twice a month. In the institutional sales where order to make sale is there, every day we are quoting and every day we are quoting on a prevailing market price.
Sure. Okay. Got it, sir. Yeah, that should be my metric.
Thank you.
Thank you. Next question is from the line of Nikhil Purohit from Fident Asset Management. Please proceed.
Hi. Thanks for the opportunity and congrats on a great set. Most of my answers, most of my questions have been answered. I just had one question. In this institution business and the distribution business, can you tell me the cables versus wire share in both of these segments?
See, major share in the institutional is for the, for the cable only. For the dealer distribution business, there is almost 55% business belongs to wire and close to 45%-50% business belong to the cable.
Okay. wires was stronger this quarter, right?
Wire is always, we are going close to.
No, no, no. The dealer, through dealer network we sell cables as well.
That's why I said almost 45%-50% we are selling to cable and 50%-55% through dealer distributor we are selling our wire product.
Correct.
Got it. Okay. Thanks, sir.
Thank you.
Very well.
Next question is from the line of Devarshi Jani from who is an individual investor. Please go ahead.
Hello, sir. First of all, sir, congratulations for the good set of number. I have just one to clarify the one doubt, sir. Entire year, sir, total institutional sale, including the export, increased by around 19%. The share of the total revenues is somewhat decreased. Could you explain the EHV segment strategy? This quarter domestic sales increased from INR 115 crore- INR 188 crore. Is this where you anticipate the main future institutional growth?
No. The institutional sale belongs to the domestic market as well as to export market. With the constraint in the capacity, if the export is increasing, then the domestic sale to institution will go down. Only that was the reason. Otherwise, the market size in the domestic front is also very strong, and in export market is also we are improving year after year. In Extra High Voltage power cable, because in 2024, 2025 the sale was less, because of that in 2025, 2026 it is increasing. It is showing increasing actually.
Okay, okay. Got it. Got it, sir. Rest of the questions are already, sir, answered, sir. Thank you so much for the opportunity and all the best for future.
Thank you, sir. Thank you.
Thank you. Next question is from the line of Archit Shah from 360 Capital. Please proceed.
Yeah, thank you for the opportunity. Congratulations for the good set of numbers. Sir, just one question. Could you give a split in volume growth for annual and for 4Q, both cables versus wires? The 2% and 6% split.
Sir, volume is not available for separate because in our factories of Silvassa and Chinchpada we are making within the same factory we are making the wire as well as cable.
Okay. Would it be directionally right to say that cables volume would have outperformed wires?
No, sir. Volume is depend on the capacity actually. We were not having the capacity for cable actually.
Okay, okay. This 2% was mainly led by wires, you're saying?
Market is so strong, demand is so strong in our Indian market and in overseas market. Whatever capacity we are having, we are able to sell easily. Because our Sanand plant get delayed by six months, so because of that, the sale planned from the Sanand was not happened in 2025, 2026. Because of this, we have grown in terms of value because the prices has increased. In terms of volume, we could have grown only from our Silvassa Chinchpada plant, actually.
Okay, okay. Got it. Got it. Got it, sir. Thank you. Thank you so much.
Sure. Marco, bye.
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for the closing comments.
Thank you very much for joining this conference call. I hope that we have been able to answer most of your questions. If still you have any queries, please, you can refer it back to us. Thank you.
Thank you, sir. On behalf of Nuvama Institutional Equities, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.