KEI Industries Targets 20% Revenue CAGR, Plans INR 700 Crore Investment in Rajasthan

KEI Industries Targets 20% Revenue CAGR, Plans INR 700 Crore Investment in Rajasthan

The Electrical Post

KEI Industries Limited is targeting revenue growth of around 20% CAGR over the medium term, supported by strong domestic demand, expanding exports, retail network development and capacity additions across its wires and cables business, according to Anil Gupta, Chairman-cum-Managing Director, KEI Industries Limited, in the company’s annual report for FY 2025-26.

KEI Industries is among India’s largest and top three organized players in the wire and cable industry. Its expertise spans Extra High Voltage (EHV) cables up to 400 kV, an extensive range of power, control, and instrumentation cables, and turnkey Engineering, Procurement, and Construction (EPC) solutions for complex power infrastructure.

The company closed FY 2025-26 with revenue of INR 11,748 crore, an increase of 20.66% over the previous year. EBITDA increased by 30.56% to INR 1,388 crore, while EBITDA margin improved to 11.81% from 10.92%. Profit after tax stood at INR 918 crore, with a PAT margin of 7.82%. The wires and cables segment grew by 22.32% during the year. Higher copper and aluminum prices contributed to value growth, while the company’s product mix, pricing discipline and operating controls supported improved profitability.

India’s expanding requirements across transmission, distribution, industrial applications and consumer wiring are creating significant opportunities for the industry. Government spending on roads, railways, metros, urban infrastructure and power networks is running alongside private investment in manufacturing, data centers, renewable energy, oil and gas, commercial real estate and housing. State industrialization programs are creating new manufacturing clusters, including in Uttar Pradesh and other high-growth regions. These investments are generating demand across extra-high-voltage (EHV), high-tension (HT), low-tension (LT), control, instrumentation and housing wires.

Despite an uncertain global operating environment during FY 2025-26, marked by tariff changes, geopolitical tensions, shipping disruptions and commodity-price volatility, India continued to benefit from domestic demand, public capital expenditure and manufacturing investment. Renewable energy projects require evacuation infrastructure, while data centers need high-voltage incoming power, medium-voltage distribution and copper cables within their facilities. Semiconductor and advanced manufacturing plants require stable power systems and cables built to exact technical standards. Transport and urban infrastructure projects also generate demand for power, signaling, fire-survival and specialized cables.

Domestic institutional demand remained broad-based across power transmission and distribution, solar and wind projects, thermal power generation, oil and gas, data centers, railways, metros, highways, tunnels, commercial construction and residential development. The semiconductor and electronics manufacturing ecosystem is also creating demand for stable power infrastructure and technically reliable cable solutions.

Domestic institutional cable and wire sales stood at INR 2,688 crore. Domestic institutional EHV cable sales increased by 82% to INR 559 crore. KEI’s existing EHV facility operated close to full capacity, supported by established approvals, execution experience and customer relationships. The company expects EHV demand to remain strong as India expands transmission capacity and strengthens the grid to accommodate rising power generation and consumption.

The dealer and distribution business delivered sales of INR 6,349 crore, an increase of 25%, accounting for 54% of overall sales. KEI’s active dealer base reached approximately 2,125 at the end of the year, while housing wire sales grew by approximately 32%.

The company’s retail strategy focuses on productivity and market quality. KEI is selectively expanding its network, strengthening capable dealers and replacing weaker partners where required. Eastern and southern India remain priority markets, with additional sales personnel, dealer onboarding and increased local market engagement planned in these regions. Product quality, availability, brand investment and service support will remain central to the company’s expansion strategy.

Exports emerged as another major contributor, with export sales increasing by 45% to INR 1,833 crore during FY 2025-26. KEI now serves customers across more than 60 countries, with established business in the Middle East, Australia and Africa and a growing presence in Europe and the United States. Its export portfolio includes EHV, HT and LT cables used in utilities, renewable energy, oil and gas and infrastructure projects.

The United States market had slowed as tariff uncertainty affected customer decisions. With tariff-related issues easing, business conditions have improved and customer engagement has resumed. KEI is reconnecting with existing customers while pursuing new accounts, supported by strong demand visibility. The company expects the US to contribute sizeable growth to exports and remain an important market over the coming years.

Capacity addition is central to KEI’s five-year plan. Sanand Phase I was commissioned in December 2025, and production at the facility has been ramping up steadily month-on-month. The company expects Sanand to make a major contribution to topline growth in FY 2026-27 as utilization increases throughout the year.

Sanand Phase I adds LT and HT cable capacity and includes an electron-beam facility for specialized applications in renewable energy, railways, transportation, aerospace, industrial operations, nuclear plants and other critical infrastructure projects. Alongside this, the Chinchpada plant will support wires production during FY 2026-27, while Sanand will drive the increase in cable volumes.

Sanand Phase II will add EHV cable capacity through a vertical tower, along with additional HT cable capacity, and is scheduled for commissioning by March 2027. The facility is being designed to meet domestic and international requirements up to the 500 kV voltage grade, expanding KEI’s ability to serve utilities and large projects in India and overseas.

During FY 2025-26, KEI acquired 18 acres of industrial land at Salarpur, Rajasthan, close to its existing manufacturing facilities. The company plans to invest around INR 700 crore at this location to add cable capacity and strengthen backward integration through galvanized iron (GI) wire manufacturing. The new facility is expected to be commissioned by September 2028.

KEI has also acquired approximately 70 acres of land in Kheda, Vadodara. Conversion of the land for industrial use is underway and is expected to be completed by the end of FY 2026-27, with plant construction scheduled to begin the following year.

The company expects annual capital expenditure of around INR 600-700 crore, aligned with demand across retail, institutional and export markets. These investments will expand manufacturing capacity and strengthen backward integration to support its medium-term revenue target.

Alongside capacity expansion, KEI is strengthening its technological capabilities, product quality and market access. Its NABL-accredited research and development and testing infrastructure supports product development, customization and qualifications for demanding applications. KEI manufactures EHV cables up to 400 kV and is preparing for 500 kV and high-voltage direct current (HVDC) applications. Its product range includes solutions for renewable power, electric vehicle infrastructure, marine applications, fire safety and specialized industrial uses.

KEI enters FY 2026-27 with firm demand, additional capacity and a diversified market base. The ramp-up of Sanand, the planned commissioning of Sanand Phase II and future investments at Salarpur will strengthen its ability to serve rising requirements from power transmission and distribution, renewable energy, infrastructure, data centers, industrial projects and international markets, while deeper retail penetration and wider export reach will support capacity utilization and its targeted revenue growth of around 20% CAGR over the medium term.
 

Published at : Oct 26, 2026 02:22 PM (IST)

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