KEI's Q2 FY27 numbers came in mixed, with revenue of Rs. 3,776.42 Cr (+38.52% YoY) and PAT growth of +28.96% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 21, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 3,776.42 Cr (+38.52% YoY) |
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| PAT (Q2) | Rs. 262.45 Cr (+28.96% YoY) |
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| EBITDA margin | 10.62% (-81 bps YoY) |
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| EPS (Q2) | Rs. 27.45 (+28.87% YoY) |
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| Market cap | Rs. 40,525.88 Cr |
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| CMP | Rs. 4,239.95 |
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Quarter Snapshot
Revenue grew 38.5% YoY to Rs.3,776.42 Cr, running well ahead of management's 20% FY27 growth target, while PAT rose 28.96% to Rs.262.45 Cr. Operating margin fell to 9.97% from 12.43% in Q1, below the guided 11-12% range, as a ~9% copper price increase lifted material cost to 85.82% of revenue. EPC losses widened to Rs.8.93 Cr and inventories rose 50% since March, leaving the FY27 margin guidance dependent on an H2 recovery above 12.7%.
Key Investment Insights
Key Positives
- Revenue grew 38.52% YoY to Rs.3,776.42 Cr, ahead of management's guided 20% FY27 growth trajectory; H1 revenue of Rs.6,961.76 Cr is up 30.9% YoY
- PAT grew 28.96% YoY to Rs.262.45 Cr and basic EPS rose 28.87% to Rs.27.45
- Cables & Wires segment revenue grew 39.72% YoY with segment margin up 33 bps YoY to 11.26%
- The FY27 revenue target of ≈Rs.14,097 Cr requires only ~11% H2 growth given H1 delivery of Rs.6,961.76 Cr
- Trade receivables declined 9.0% since March 31 to Rs.1,676.81 Cr despite 38.5% YoY revenue growth
- No exceptional items were booked; normalized PAT equals reported PAT at Rs.262.45 Cr
Risk Factors
- Operating margin of 9.97% missed the guided 11-12% range and EBITDA margin of 10.62% fell below the >11% guidance; reaching an 11% full-year margin requires H2 above 12.7%
- EPC Projects loss widened to Rs.8.93 Cr from a Rs.5.13 Cr loss in Q1 and a Rs.5.13 Cr profit in Q2 FY26; H1 loss of Rs.14.06 Cr against FY26 full-year segment profit of Rs.19.42 Cr
- Inventories rose 50.1% since March 31 to Rs.3,604.48 Cr, taking the inventory-to-revenue ratio from ~88% to ~95%
- Net cash declined from ~Rs.1,326 Cr to ~Rs.413 Cr and current borrowings rose 53.1% to Rs.285.07 Cr to fund capex and inventory
- Material cost rose to 85.82% of revenue from 81.18% YoY as the ~9% copper price increase outpaced pass-through