KEI Industries Limited (KEI) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to KEI Industries Q4 FY26 Earnings Conference Call hosted by Nuama 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 Lohadi from Nuama Institutional Equities. Thank you, and over to you, sir.

Yeah, thank you. Good afternoon, everyone. On behalf of Nuama Institutional Equities, we would like to host the senior management of Korea Industry Committee. To discuss the Q4, FI 26 and FI 22 domains, we have with us Mr. Aneem Kutka, Chairman for Managing Director of the company, and Mr. Rajiv Kutka, Executive Director of Finance and CFO. I will start the call with the opening remarks from the management and then move to communication. Thank you and over to you, sir.

Good afternoon, friends. I'm Anil Gupta, CMD, KEI Industries Limited. I will give brief about these financial results of this quarter as well as the full year. As you must have received all this information already, net sales in Q4 in FY25-26 is 3,476 crore, grown by around 19.27%. EBITDA oblique net sales margin achieved is 12.21% as against 11.61% in the same period previous year. Profit after tax in this quarter is Rs. 284.31 crore with a growth in PATH with 25.5%. Profit after tax oblique net sales margin is 8.18% versus 7.77%. So we could improve it by 0.5%. For the same period, over the same period, domestic institutional cable sale, B2B, is 804 crores, up around 6%, and sales of extra high-voltage cables, B2B, is Rs. 188 crores in the fourth quarter against Rs. 115 crores last year, with a growth of around 64%. Export sales in this quarter is 443 crores. Total B2B sale contribution is 40% as against 46% in the previous year, same period. Sales through dealer network, distribution network, is 1,936 crore in fourth quarter against 1,498 crore with a growth of around 29% in the quarter. 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 Rs. 123 crore as against previous year same period 72 crore. Out of the total sales of EPC, Extra-high-voltage cable EPC sale is 106 crore against Rs. 32 crore in the same period last year. Sales of stainless steel wire in Q4 is 55 crore as against 46 crore for the same period previous year. Now I will give you a summary of the full year results, full financial year 25-26. The next sale in FY25-26 is 11,746 crore. Against previous year, 9,735 growth. Growth in the net sales is 20.66%. However, our wire and cable segment in terms of value in FY2526 has grown by 22.32% against previous year. All our cable plants of Rajasthan were operating at peak capacity during last financial year. 24.25 itself, and the capacity of our Chinchpada plant was added in Q2 of last financial year 24-25, which resulted in an overall volume growth in financial year 25-26 by 15% for copper cables, but aluminum was flat. So the net volume increase was 6.21%. For the current financial year, 26-27, volume growth will come from Zinchpada for wire catastrophe, and for cables, the growth will come from Thanan farm. We are expecting 17-18% volume growth in this current financial year, which will mainly coming from Thanan new facility. You are aware that our Sanand plant was commissioning, our first phase was delayed by around six months. So we commissioned the first phase in December 25. And second and last phase is expected to be commissioned in the fourth quarter of FY26-27. In financial year 2526, average copper price increased by 16.85% and average aluminum prices increased by 9.91%. During FY2526, operating margin has improved to 10.46% against 10.18%. EBITDA in this financial year, full financial year is 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. So, the profit of the tax in financial year 2526 is 918 crore with a fat margin of 7.82%. Take a traditional cable sale, wire-end cable. 2,688 crores. However, the domestic institutional cable sale of extra high-voltage cable is 559 crores against 308 crores previous year, with a growth of 82%. Export sale achievement is 1,833 crores against 1,267. So the growth in export is 45%. So, the total cable institutional sale contribution is 42%, which is at par with the company here, and sales through distribution network is 6,349 crore, up by 25%. The total active working dealers of the company around 31st March 26th was approximately 2,125. Dealer sale contribution is 54% in overall sales. EPC sale other than cable is 311 crore, again 343 crore. Stainless steel wire sale in full FY2526 is Rs.212 crore at par with the previous year. Now, I will brief 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, and 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. We'll see substantial growth in this coming financial year, not only in the solar and wind, but also in the thermal power generation. Ventus will also be a big booster. We have also commenced, restarted our exports to United States after the lull in last financial year because of the tariffs, and we hope to... We have 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. So this is a brief summary from our side. We now look forward to answering your questions.

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 1 on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Sukrit D. Patil from iSight FinThread Private Limited. Please go ahead. Sukrit, your line is unmuted. Please go ahead with your question. As there is no response from the current questioner, we'll move to the next question from the line of Polkit Patney from Goldman Sachs. Please go ahead.

Sir, thank you for taking my questions. So, two questions. Firstly, are you witnessing any supply chain issues right now, supply of PVC compound, XLP, 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 goods stocking by us as well as the domestic availability, and only the imports. of XLP from Middle East, especially Abu Dhabi, is not happening because of the shipping problems. 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... We have started at a very high cost because the containers are now going to Fizura and from Fizura port by land to various destinations in Abu Dhabi and Qatar, et cetera, and other countries. So it is a – and most of the customers are bearing 50% of the differential trade costs from us. And in cases where our prices were FOB, there the entire trade cost is to their account. But that has also started because they need material and

so it was a, of course, in March we suffered,

we could have done around 50 to 60 crore more exports, which could not happen.

Fair point, sir. Sir, my second question is, I mean, historically, we've done a very good job in meeting our guidance, but our guidance has always been in the high teens to early 20s in terms of revenue growth. You just mentioned right now that... 17% to 18% is the volume growth in FY27 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% to 15% upside that will just come from copper. So 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 Greer, sir. Thank you so much for taking my questions.

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, you know, face some bit of challenges on the freight side and, and the Middle East supply side.

No, what he said is the freight side only related to the Middle East and the Middle East sale is practically very, very less. So, it is no impact on the overall property?

No, no. What I said is that freight impact coming on the supplies to Middle East. But 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, so, okay, so no adverse impact there. So, whatever, I don't think it's margin that you lost is more, but

I can say that whatever, 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 90 or 91 rupees. So, even if you are bearing some extra freight, that will be compensated by the extra revenue from the exchange fluctuation.

Understood. And so 17-18% volume growth that you guided from the sun plant, that's effective from this FI27 itself. And then what sort of another growth should we expect for FI28 based on the second phase?

Similar growth will continue to happen because the capacity will keep on coming up and plants will... I'm getting stabilized with the more and more supplies going from that plant. You know, when we set up a new plant, it takes a little while to get that plant-specific plant-specific approvals also from the customer. So, hence the ramp-up is always gradual.

Okay, so, if I 27, it is 17, 18 percent, 28, it could be a bit more gradual.

Yeah, it will be, it could be around 20 percent, yeah.

Okay, and lastly, if you can also talk about, you know, how do you think about margins for, for the current year?

We, I mean, on a conservative side, we can expect around 11, anywhere between 10.5 to 11 percent.

Okay. That's all for me. Thank you so much and all the best.

Thank you. Next question is from the line of Achal Lohadi from Noama Institutional Equities. Please go ahead.

Just a quick clarification, sir. When you were talking, you said, you know, the wires growth will come from Pinchwada, and the cables growth will come from Starnan's plant. The 17-18% volume growth, you said, for the cables or the company as well? I presume company as well. Yeah, okay.

Company as well.

Okay. 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 get a little bit more to us in terms of the export growth as well as the categories and the key drivers for geography.

We are supporting many... We are also exporting control and instrumentation cables. This is a lot of... It is not different from domestic supplies. In terms of products, it's similar to domestic.

I understood. And geographies, if you could give us a sense, a 526 export mix.

Our export, major export destinations are in Middle East, Australia, Africa, and now, as well as the United States. And we are also exporting to Europe as well.

And would it be possible to know what kind of solar cable mix we have, sir, for FI-26 at our company level?

We are talking about solar cables. Solar cables, yes, sir. Solar cables, we are manufacturing power cables, and also now we are manufacturing solar wires. By electron beam process. So, we have set up this electron beam facility in our Sanal plant, and which has started.

Got it. So, the contribution will be relatively small at this stage, right?

No, it will, quarter after quarter, it will keep growing.

So, Fi26 will be smaller, and Fi27 will grow substantially. Yeah.

Right.

Understood. And would this be a value-added product, sir, in terms of margins or a similar margin?

Yes. No, no. You 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. I'll fall back in the queue for further follow-up. Thank you so much.

Thank you. Next question is from the line of Bala Subramaniam from Aryan Capital. Please go ahead.

Good afternoon, sir. Thank you so much for the opportunities. Sir, my first question, we have planned around 2,000 crore kind of investment over next 3 to 4 years post-senant. I think we also bought a big body land around for 92 crores, and we also bought a 70-acre land in Baroda. So 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 backward integration into compounds. I think we are currently highly importing high-voltage compounds.

We are, at the moment, we are manufacturing PVC compounds and low-tension XLP compounds ourselves. And, but importing and or procuring domestically medium-voltage compounds and extra-high voltage are all being imported. So, extra-high voltage will continue to be imported. However, we will be... Working on manufacturing medium-voltage compounds ourselves, but this project will take minimum two years because the civil construction to the factory setup takes time. Similarly, 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, so which makes it economic sense to do that. And the other products, what we are, we will be, whatever products in electrical side, but in cable industry, which we may be missing, we will continue to add those. What's the newer capacity 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 to 80% of sales. Basically, 5% of the dealers are bringing 70 to 80% of their sales, and dealer inventory is typically nearly 15 to 20 days. So, I'm trying to understand the remaining dealers are inactive or they are bringing low productive dealers. Yes, sir. What is our dealer's churn rate annually, sir?

See, it's not inactive dealer. The major part of 20% dealers which do 20% of the total sales. So the 20%, those dealers are anywhere between... And they are mostly operating in two 90-meter wire segments because there you require dealers at every loop and corner. So you need a lot of numbers. Then only the sale comes. And so far, as churning is concerned, I think every year, 10 to 12 percent is the churning of dealers. Some dealers leave and some new are added.

I got it, sir. Thank you so much for the detailed explanation from the rest.

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 Patanjali Srinivasan from Sundaram Mutual Fund. Please proceed.

Hello, sir. Thank you for the opportunity. I have a couple of questions. So, firstly, could you tell us, like, what is the increase in terms of price, and what is the volume growth for this quarter, and on a year-on-year basis, where do you see things for the next year?

So, for the full-year basis, the copper price increased by 16.85%. And for aluminium, it was increased by 9.91% for the foliar basis. Overall, for foliar, we have grown for the copper production, that is by 15%. But our aluminium consumption was flat. So overall, the net volume growth for the metal was 6.1%.

Got it, sir. So, what is the price increase we had to take this year? Around 8-9%? Would that be the number?

We are working on the passing on mechanism. Correct. Every price increase is basically pass on mechanism. Because we are a standard driven business, so whenever we are quoting, we are quoting on a prevailing market price. On that date, accordingly, we are quoting the price. In all the institutional orders, it's...

You mentioned that 15% to 17% volume growth can happen in FY27. So, this is only from the new plant or it's just entire, like even the existing plants put together? And what would be your guidance overall?

Existing plants of basically Rajasthan plants, they are already working on the peak capacity, only the Chinchpada plant and the new plant of Sanab.

So, in terms of growth, you still stick to 20% growth for 27 over 26, or is there a slight...

Normally, if the price remains at this level, and with the volume growth of 17-18%, this value will grow more. But if the prices are going down, then still we will be maintaining a 20% because we are adding 17-18% volume. Except the last year, except the last 25-26, if you go for the previous 5-6-7 years, our volume growth was close to 14-16% year after year.

I can add here that if the prices remain 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. So, will we see any challenges in terms of volume growth? That is what the concern is, sir.

Thank you. Based on the capacity addition, so whatever in the phase manner we are adding the capacity, so volume growth will be in this range only, which will be resulting more than 20% value terms growth.

Got it, sir. Thank you so much, sir. All the best.

Thank you. Next question is from the line of Shirom Kapoor from Japanese. Please go ahead. Line for the current questioner got disconnected. We'll move to the next question from the line of Praveen Sahai 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. From the last Q3 and now the Q4, the acceptance number has been on the higher side. So how we will read this the way forward, like even the trade table numbers, I can see that's increased for an year, why, why, if I look at it. So how to reach this numbers way forward where you want to see this number.

So, this number will remain in this category only, because all the prices of the metal has already increased, and the volume of the company is also increasing after the production. So, this number will remain in this range only.

So, it's a factor of pricing, and that's where you are saying that's number to be here.

Yeah, and the new Sarnan plant also, because their inventory has increased.

Very sorry. Okay. And the second questions are related to the housing wire and winding wire. And we had observed in the last three years continuously increase in the contribution. So now it's for FY26, 33% of the contribution. And further, you are guiding for the change board, there is a wire production which will further add to the volume. So where you want to see this contribution to go from here, 33%.

I think dealer distribution contribution is already 54% and whatever cable capacity is increasing in Sanam, so we hope that 53% to 55% contribution from the dealer distributor will remain.

Okay, so as our disc contribution also to go of housing wire and money wire.

Yeah, so basically the housing wire goes to the dealer only. So the housing wire tail is increasing, but the cable tail is also increasing, because of the current flash.

Okay, so we will maintain this number at this level. Another question is related to the order book. So, if you can give the bifurcation of the order book, EPC and X-ray voltage domesticatedly.

So, we have the, as on 31st March 2026, order book of EPC division is 309 crore rupees. Extra-high-voltage power cable order book is 625 crore rupees, and we have also L1 in extra-high-voltage power cable order book of 233 crore, another order, and cable domestic institution order book is around 2,154 crore, and cable export order is 497 crore. Put together all, order book is close to 3,535 crore. In whatever order book from the dealer distributor, that is not reflecting here, because they are the order which we supply within three to four days' time, or maybe at that one week time. That's it.

Right, sir. And one clarification, like volume growth for the quarter is 12.5%.

No, no, volume growth for the quarter was close to 2%. And the full year, which is the net volume growth is, I'd say, 6.2%.

Okay. Thank you, sir, and all the best.

Thank you. Next question is from the line of Shreya Kejriwal from Money Vesta Capital. Please go ahead.

Hello, sir. Congratulations on your results. So, my question was regarding the EPC. So, EPC contributes like around 2.6% as we saw in FY26 revenues. So, does the company plan to scale this up or keep it as a supporting business? Like, what, sir, do you want that?

No. Since last 3-4 years before, we have guided that EPC business will go down towards the 2-3% only. As per the guidance, because there the working capital is very long in EPC. So because of that, we are increasing the retail, there 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...

Okay, sir. And I have one more question regarding the QIP proceeds. I feel that around 400 to 500 crore remain unutilized. So, any specific deployment plan or timeline for this capital?

The second phase of the XY voltage power cable in Sanand will complete by Q4 of the current financial year. So, the whole 385 crore unutilized QIP money will be utilized in the current financial year.

Thank you so much.

Thank you. Next question is from the line of Ashish Agarwal from Indus in Nippon Life. Please go ahead.

Yeah, thanks. Sir, two questions from my side. What is the CAPEX plan now for FI27, and will it include CAPEX incrementally in Givadi also?

And secondly, just

wanted to understand on the EHP 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.

Mr. in EHP 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 Sanar.

In regards to the CapEx investment, every year we will be doing around 600 to 700 crore capital expenditure.

Thank you. Next question is from the line of Christopher Hartkopf from Pictet. Please go ahead.

Hi, thanks for the call. Just a final question on the quarterly volume growth, if I may. Is it fair to say that you were still capacity constrained, or how do you explain the discrepancy or the difference to some of your peers' volume growth, and what was Sanam's contribution in the fourth quarter in terms of volume growth?

In Sanam, fourth quarter sale was very less. It was less than 100 crore rupees. Because the ramp takes time, but now from the first quarter onward for the current financial year, the sales from Salem will be visible to the extent. As I mentioned earlier, the current year growth will be coming from the Salem.

The first part of the question, with the volume growth in the fourth quarter, was that the capacity constraint, or how should we?

Yeah, it was mainly because of the capacity constraint, actually.

Got it.

Thank you. Next question is from the line of Rahul Agarwal from Aikigai Asset. Please go ahead.

Hi, sir. Very 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 credit. I believe that is because of some transit export delays, which will normalize in first quarter. So, overall, on a sustainable basis, the company should be between 85 to 90 days of net working capital cycle over the next 2-3 years. Is that understanding correct?

Yeah, net working capital cycle is, because of receivable to the B2C business, is already reducing year after year. So, because of that, the working capital cycle is decreasing, actually.

Is that, that is purely because of channel financing?

Yeah, that is mainly purely because of channel financing.

Okay, so 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 to 1.88 months. It may reduce to 1.75 months. But almost now, the overall inventory plus data minus creditor is close to 2.97 months, as against last year, it was 3.39 months.

Right. I get that. And secondly, Rajivji, you talk about capex of 8-9 mid-close a year. Your operating cash flow is going to be similar every year, based on the growth guidance you're giving. So, the cash lying in the balance sheet, right, almost 1,300 crores net cash, how do we reinvest this in the business then? Because the entire capex is going to get funded from your accruals itself. So, 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 serious year of 20%, and because we are growing more than 20%, so we need to add some additional working capital, so by the 30% of accrual will be kept for the incremental working capital requirements. So that is our overall plan to use our cash flow for the next three to four years.

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 500-600 crores of working capital.

And you will need some time to... Normally, the size of the company, 500 to 600 crore cash, will always be carried. Only the additional 200-300 crore cash, it may go up, it may go down, depending on the receivable and the inventory cycle. Because it cannot be the same on month-to-month basis. On an average, it is there, but on month-to-month basis, it may increase or decrease. Thank you. And then jump in the raw matter price, and for that particular month, it will increase substantially. So cash will not be there at that time. So because of that, we need to have the cash at 500 to 600 crore level at any given point of time in the balance sheet. Yes, debt-free company. That's a 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. And 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, one-on-one basis. Environment is not normal. But what is your expectation? How is the performance?

So, there are two aspects to this. First is the capital allocation. If we are allocating the capital of 60-70% towards the CapEx and 30% for incremental working capital requirement, considering we will be growing a CAGR of a 20% plus, okay. So if the value is increasing and the volume is also increasing, that we may be requiring more additional working capital also, no? So by saying 30%, 40% is very easy. But to arrange the capital for that also, we need some allocation. So if we have already allocated to the capital expenditure, then we need to have the borrow. So as of now, we are not borrowing. And whatever capacity we are creating, we are creating a capacity with a volume growth of 17-18%. Because last year in Sanand, the six month was delayed because of that, that volume could not be added into the sale. Because of that, the volume growth was not there. Otherwise, all the Rajasthan plants, even in 2024-2025, they were running at a peak capacity. So whatever capacity increased in the Spala plant in the second half of the 2024-2025, that has contributed only towards the volume growth. So, because of that, the last year, the copper has, copper metal consumption has grown by 15%, but aluminum metal consumption was flat because of... The channel was not operative at that time. Now the channel is operative, and the Tinchpada is having the capacity for the wire. So then we will be operating again back to the 17-18% volume load.

Very clear, sir. Very clear. Thank you so much, and wish you all the best for the next year.

Thank you. Next question is from the line of Umang Mehta from Kotak Securities. Please proceed.

Hi. Thanks for the opportunity. Sir, just wanted to clarify something. Earlier, we had given a number of around 2,700 crores from Sainan plant in F-27. Are you still sticks to that? And if yes, then... And 18% volume would actually be slightly higher if actually you do 2,700 crores is the question. And the second clarification is...

Volume will come not only from Sanand, but from Kinshpal also, for the buyer. That is mainly for copper.

Understood. And just to reconfirm something you said to Pulkit earlier, 17-18% volume plus its prices sustained as they are, then on an annual basis, we are looking at 25% plus top-line growth. That's correct, right?

As of now, if the prices may increase, the value will automatically be there. But we can't say the value will increase, the price will increase or decrease at this moment of time.

Sure, sir. Thank you so much, these are my questions.

Thank you. Next question is from the line of Akshay Gattani from UBS. Please proceed.

Thank you for the opportunity, sir. Earlier you commented export revenue share guidance of around 20% of revenue for FY27. And if you assume even a 20% company level revenue, this implies export revenue growing more than 50%. So a large part of 15 to 18% volume growth is supported by exports. So is there any identified geography which is contributing big to this, any particular product which provides sharp increase in exports?

The products and geographies will remain same where we are exporting. It will increase volume will come from the same geographies and similar type of project.

Okay, so this is more of a broad-based rising acceptability of Indian product in the export market, we can see. And on the volume growth, Francis, volume growth is accelerating from 6.5% in FY26 to 16 to 18 to 27. So how would this impact operating leverage, and do you expect any preoperative expenses for fees to a Sanand EHB plan?

Sir, already we have guided that from 27-28 when the Sanand will be at full capacity. So that will be the first year in 27-28. So another half percent 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%. And another 2025 gives clients It will further increase year after year because of the economy of this scale and having more export and more.

This is very cool.

Thank you. Next question is from the line of Anand Shah from Philip Capital. 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 re-trade, you know, the breakup of the current order book that you had mentioned. Actually, I had missed it. So, if you could just give us, you know, the breakup of the current order book, sir, that would be great. Thank you.

Yeah, sir, EPC order book is 309 crore. Extra high voltage power cable order book is 625 crore. Domestic cable order book is 2,154 crore, and export cable order is 497 crore. Put together all is 3,585 crore, as of 30 past March 2026, and L1 on EHV, another order is 233 crore.

Okay, sir. Thank you so much, sir.

Thank you. Thank you. Next question is from the line of Barshav Shah from MetaEquities PMS. Please go ahead.

Hello, sir. In relation to the entire team, I want to understand about Xcode business, particularly in the U.S. Since you said you are looking good traction, can we come from U.S.? So 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.

Data centers, I think we expect to supply them mainly HD cables and also some copper flexible. But presently, our market, what we have built for data center is only for the medium voltage HD cables through U.S. We are working out that what other cables can be sold in the data centers because when we sell to data centers, we have to face competition from their American domestic industry as well. So, because of that, 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 week.

Right, right. So, I want to know about what kind of order book is currently from the U.S. side, and approximately what kind of margin that we are taking from U.S. business.

Basically, in U.S. market, close to 50-60 crore rupees order book as of 31st March 2026 was there. But as Energy is saying that now this market has opened after the tariff has reduced. So now our marketing team is traveling over there, and they are recapturing our existing customers and adding new customers. So, in future, this will be adding up. So, up till August last year, we have reached close to 40 crore rupees per month save. So, in three months time, we will try to reach first at that level, then it will be ready.

And this is our value-added product area.

Every product is a value-added product.

I want to know about the EBITDA margin of US market.

Sir, average EBITDA margin is close to 11% for all exports.

Thank you, and all the best to get in. Thank you.

Thank you. Next question is from the line of Ankit Soni from Mirai Asit Sher Khan. Please go ahead.

Yeah, hi, sir. Congratulations for a good set of numbers. I just wanted to be having a two to three questions. So, the Sanand facility second phase was, I believe, earlier operational in around August or September month. So, has it got to delay to quarter four? So, am I reading it right?

Already the whole Sanand plant get delayed by six months. So, the phase one also got delayed by six months. So, the in-phase also will get delayed by six months because the construction will be in progress. So, by March 2027, the extra-high-voltage-covertible production.

I believe first phase will be fully operational for Financially 27 will be giving you volume growth of around 17% to 80%. And the second phase, which will be operational by around quarter four, would open up what sort of volume growth of Financially 28?

It will be another 17-18% volume growth will be there.

Okay. Another 17, 18%. Sure. And so with respect to the price hikes, so have we taken all the price hikes in relation to what was the raw material increase and maybe till March 30 or maybe till here? Are we taking another price hike going forward?

That is our business model. Whenever price increase, we are increasing the price of the cable. No issue for the pass-on. Since last 4-5 years, if you see our balance sheet, you will not find a fluctuation in our EBITDA market.

And if you can just let me know, what was the price hike we took in financial year 26?

In every order we price hike, it's the order-to-order basis because we are quoting in a day at least 10 to 15 tenders. So these kinds of prices are getting passed on on every... In the case of retail, Sure.

Okay. That should be my question. Thank you.

Thank you. Next question is from the line of Nikhil Purohe from Frident Asset Management. Please proceed.

Hi. Thanks for the opportunity and congrats on a great set. Most of my questions have been answered. I just had one question. In this institutional business, And the distribution business, can you tell me the cables versus buyer share in both of these segments? Major share in the institutional is for the cable only, and for the dealer distribution business, there is almost 55% business belongs to wire, and close to 45-50% business belongs to the cable.

Okay, so wires were stronger this quarter, right?

Wires are always going close to...

That's why I said, almost 45% to 50% we are selling to cable, and 50% to 55% through bigger distributors, we are selling our buyer product.

Got it. Okay. Thank you.

Thank you. Next question is from the line of Devrishi Chani, who is an individual investor. Please go ahead.

Hello, sir. First of all, congratulations for the good side of the number. I just want to clarify the one loud stop. For NTI, sir, total institutional sales, including the export, increased by around 19%. But the share of the total revenues is somewhat decreased. Could you explain the EHV segment strategy? This quarter, domestic sales increased from 115 TR to 118 TR. Is this aware you anticipate the main future institutional growth?

The institutional sale belongs to the domestic market as well as to the export market. So with the constraint in the capacity, if the export is increasing, then the domestic sale to institution will go down. So only that was the reason. Otherwise, the market size in the domestic front is also very strong, and in the export market, we are also improving year after year. In extra-voltage power cable, because in 24-25, the sale was less. Because of that, in 25-26, it is increasing. It is showing increasing, actually.

Okay, got it, got it. The rest of the questions are already answered. Thank you so much for the opportunity and all the rest for future.

Thank you. Next question is from the line of Archit Shah from 360 Capital. Please proceed.

Yeah, I thank you for the opportunity and congratulations for the good set of numbers. Sir, just one question. Could you give a split in volume growth for annual and for 4Q when tables versus wires, the 2% and 6% split?

Sir, volume is not available for separate, because in our factories of Silvata and Sinspala, we are making, within the same factory, we are making the wire as well as cable.

Okay, but will it be directionally right to say that cable's volume would have outperformed wires?

Of course, the volume is dependent on the capacity, actually. We were not having the capacity for cable, actually.

Okay, okay. So, this 2% was mainly led by, why are you saying?

The market is so strong, 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. So, because our Sanand plant gets delayed by 6 months, so because of that, the sale planned with... From the Sanand was not happened in 25-26. So, because of this, we have grown in terms of value because the prices have increased. But in terms of value, we could have grown only from the Silvasa Kinshpala plant, actually.

Okay, okay. Got it. Got it. Got it. Thank you. Thank you so much.

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 NWAMA Institutional Equities, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.