Cable stock jumps as company begins commercial production at its ₹2,000 Cr Gujarat plant

Synopsis: KEI Industries has started the First phase of commercial production of high tension and low tension cables  at its new greenfield manufacturing facility thereby leading to capacity expansion and enhanced revenue outlook.

The shares of this cable manufacturing company engaged in manufacturing of HT, LTand EHV power cables, House wire and Stainless steel wire were in focus after starting commercial production at its new greenfield project

With the market capitalization of Rs. 38,508 Crores, the shares of KEI Industries, has reached the intraday high of Rs. 4014 per equity share, rising nearly 1.7 percent from previous day close of Rs.3,947 per share. 

What is the NEWS

KEI Industries has announced on 10 December 2025 that it has officially started the first phase of commercial production at its new greenfield manufacturing facility, Gujrat. The plant is set up for the manufacturing of HT, LT and EHV cables where it will manufacture HT & LT cables initially.

The manufacturing capacity before the new plant, of Cables, House Wires and stainless steel wires were 2,26,700 KMS, 23,89,000 KMS and 9,000 MT respectively. The company was doing healthy utilization of capacity with Cables utilized at 72.44 percent, SS wires at 82.84 percent and house wires at 67.08 percent. The new plant will add a capacity of 60,732 KMS/ annually for manufacturing cable. 

The total cost of the project is estimated to be Rs. 2000 Crores which has been funded by QIP and internal accruals of the company. The additional capacity will help the company to cater increased demand. 

Company Overview and Financial Highlights

KEI Industries is primarily engaged in the manufacturing of cables and wires and currently holds an order book of approximately ₹3,844 crore. The company serves over 2,000 institutional customers and is supported by a strong distribution network of 2,100 dealers across the country. 

Its revenue is largely driven by house wires, winding wires, LT power cables, and HT cables. The customer mix comprises 53% retail, 31% institutional, and 16% export. KEI operates around eight manufacturing facilities, supported by 38 marketing offices across India and four international offices in the UAE, Nepal, Gambia, and South Africa, giving it a global footprint in more than 60 countries.

Year on Year analysis: KEI Industries revenue has increased from Rs. 2284 Crores to Rs. 2726 Crores, up 19 percent, operating profit has increased from Rs. 225 Crores to Rs. 269  Crores, up 19.5 percent and Net profit has increased from Rs. 155 Crores to Rs 204 Crores, up 31.6 percent

Quarter on Quarter analysis: KEI Industries revenue has increased from Rs. 2590 Crores to Rs. 2726 Crores, up 5.25 percent, operating profit has increased from Rs. 258 Crores to Rs. 269 Crores, up 4.2 percent and Net profit has increased from Rs. 196 Crores to Rs 204 Crores, up 4 percent

Written By Vachan Kadli

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