KEI Industries Ltd. is hinging high hopes on rapid expansion of data centres for fuelling wires and cable demand. The company has retained its 25% revenue guidance for fiscal year 2027.
Speaking to NDTV Profit after the company's June quarter earnings Managing Director Anil Gupta said the company's ebitda margins will reach 11% to 12% in the current fiscal.
"The data centre business will boost demand for wires and cables," Gupta said, adding that the company expects the trend to support growth over the coming years.
He added that the segment is also expected to support higher energy demand, creating additional opportunities for the company's products.
The company expects its Sanand manufacturing facility to start making a meaningful contribution to revenue. KEI Industries should see reasonably good revenue from the unit going forward.
ALSO READ: Pidilite Industries Q1 Results: Double-Digit Growth Across Revenue, Profit; Margin ExpandsKEI Industries' wires and cables business revenue grew 25% during the June quarter, reflecting healthy demand across segments.
Gupta said the company remains focused on retaining its margin strength despite ongoing capacity expansion and expects demand momentum to remain healthy across its key end-markets.
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KEI Industries Q1 FY27 (Consolidated, YoY)
- Net profit up 40.1% to Rs 274 crore from Rs 196 crore
- Revenue up 23% to Rs 3,185 crore from Rs 2,590 crore
- Ebitda up 53.4% to Rs 396 crore from Rs 258 crore
- Margin up 240 basis points to 12.4% from 10%
KEI Industries Share Price
The stock rose as high as 9.7% to Rs 5510 apiece on the NSE on Tuesday after the result announcement. The share price pared some gains to trade 9.5% higher at Rs 5,500.
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