KEI Industries share price tank nearly 9% despite strong Q2 results

KEI Industries’ stock plummeted nearly 9 per cent on Thursday, despite reporting a robust growth in net profit for Q2FY26.

The company reported a 31 per cent y-o-y increase in the standalone net profit for the quarter ended September 2025 at ₹203.51 crore from ₹154.82 crore in the year-ago period. Its revenue from operations rose by 19 per cent to ₹2,726.34 crore in the period under review as against ₹2,283.8 crore in the same quarter last year.

KEI’s cables & wires business registered a 23 per cent y-o-y growth, while the stainless steel wires (SSW) and EPC projects business registered a y-o-y decline of 10 per cent and 23 per cent, respectively.

Despite these positive financials, the stock’s decline can be attributed to investor concerns over margin pressures and valuation.

The EBITDA margin of 9.9 per cent was slightly below street expectations.

Leading brokerage firms have maintained a positive outlook on KEI Industries. UBS has reiterated its ‘buy’ rating with a target price of ₹4,750 per share, citing the company’s strong export growth and operational efficiency.

Nuvama Institutional Equities has maintained its ‘buy’ stance with a target price of ₹4,450 per share, emphasising that KEI continues to be its top pick in coverage universe. Analysts remain optimistic about the company’s long-term trajectory, particularly with the commissioning of the Sanand plant, which is expected to bolster capacity and support future growth.

The stock traded 6.5 per cent lower at ₹4,136.20 at 2.40 pm, hitting an intraday low of ₹4,033.65 against the previous close of ₹4,423.60.

Published on October 16, 2025