Cable Stock in Focus After Announcing Strong Revenue Growth Guidance for Q1 and FY27

Synopsis: KEI Industries expects over 20% revenue growth in Q1 and FY27, supported by recovering exports and strong domestic demand. Management sees data centres as a major long-term opportunity, with the company catering to most cable requirements in the segment. 

The shares of this company which manufacture wires and cables (W&C) like EHV cables, HT cables, and LT cables, and sell them in India and overseas are in the spotlight after it has guided for over 20% revenue growth in both Q1 and FY27.

With a market capitalisation of Rs. 50,990 cr, the shares of KEI Industries Ltd were trading at Rs. 5333.75 per share, down from its previous close of Rs. 5,419.15 per share. The stock delivered a 40% return over the past year, with gains of 18% year-to-date, 22% over the last six months, and 1% in the past month.

What’s the News

KEI Industries has guided for over 20% revenue growth in both Q1 and FY27, reflecting management’s confidence in demand trends across its key business segments. The company also expects a recovery in export orders, which should support overall growth during the year.

Management remains optimistic about the data centre segment, viewing it as a significant long-term growth opportunity amid rising investments in digital infrastructure and cloud computing facilities across India.

The company is well-positioned to benefit from this trend, as it can cater to nearly 90% of a data centre’s cable requirements, excluding optical fibres. KEI is also continuing its brand-building efforts, with an annual advertising and marketing spend of around Rs. 80–100 crore.

Data Centers as a Massive Growth Engine

It has identified India’s rapidly expanding data center industry as a primary long-term growth driver. The company currently generates approximately Rs. 400-500 crore in annual revenue from this segment. However, Chairman and Managing Director Anil Gupta expects this figure to multiply several-fold over the next 8 to 10 years as massive projects announced by major corporate groups become fully operational.

Beyond domestic opportunities, the company is witnessing a strong recovery in its export bookings, pointing toward robust growth for the full year. While specific quarter-on-quarter predictions remain difficult due to persistent shipment and supply chain challenges in the Middle East, the management notes that overall dispatches are improving daily. 

Regarding manufacturing costs, the company clarifies that fluctuations in aluminum prices are unlikely to heavily impact profitability, as they align their inventory closely with the order book to smooth out commodity volatility over the year.

KEI Industries Limited is one of India’s leading wire and cable manufacturers, offering a wide range of products including power cables, control cables, instrumentation cables, and stainless-steel wires. The company serves sectors such as infrastructure, real estate, power, industrial projects, and data centres, while also expanding its footprint in exports.

On the financial front, it reported a strong performance in Q4FY26. Revenue increased 19% YoY to Rs. 3,476 crore from Rs. 2,915 crore in Q4FY25, while EBITDA rose 27% YoY to Rs. 382 crore from Rs. 301 crore. Net profit grew 25% YoY to Rs. 284 crore compared to Rs. 227 crore in the year-ago period, with EPS increasing 25% to Rs. 29.74 from Rs. 23.71. 

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