KSHINTL

KSH International reported robust financial results for Q4 and FY26. Revenue from operations for Q4 FY26 surged 101% YoY to INR 1,018 crores, contributing to a full-year revenue of INR 3,107 crores, up 61% YoY. Profitability also saw significant improvement, with Q4 PAT increasing 87% YoY to INR 34.5 crores, and FY26 PAT reaching INR 110 crores, a 62% YoY growth. The company's EBITDA per ton for Q4 FY26 stood at INR 74,000, a notable increase from INR 60,000 in the prior year, driven by a favorable product mix and higher export volumes.

Specialized winding wires continued to be a key growth driver, representing approximately 75% of total revenues in both FY26 and FY25, with a 103% YoY growth in Q4 FY26. The company is a market leader in Continuously Transposed Conductors (CTC), which contributes significantly to specialized wire revenues. Export performance was particularly strong, with a 92% YoY increase in Q4 FY26 export revenue, accelerating from previous quarters. Management aims to increase the share of exports from the current ~30% to ~40% over the next couple of years, leveraging demand from transformer companies across four continents.

As of March 31, 2026, KSH International's installed capacity was 43,445 metric tons. With the completion of Phase II of the Supa expansion, capacity is projected to reach approximately 59,000 metric tons. The next phase of new capacity is expected to come online around Q2 FY27. Consolidated company utilization in Q4 FY26 was approximately 70%. The company also has space to add another 10,000 tons of capacity at the Supa site, which will be evaluated based on market demand.

The company significantly deleveraged its balance sheet, reducing the debt-to-EBITDA ratio to 0.39x in FY26 from 1.21x in FY25. Despite strong revenue growth, operating cash flows were negative due to investments in working capital, particularly receivables and inventory. To address this, management is targeting an improvement in payable days from the current 65-68 days to 25-30 days by the end of FY27, which is expected to significantly enhance cash flows.

KSH International is venturing into new product areas, with capacity for PEEK insulated wires expected to come online by the end of Q2 FY27. This product is targeted at the automotive sector, particularly for 800-volt traction motors, and is anticipated to offer the highest EBITDA per ton, similar to or slightly higher than CTC. In line with sustainability efforts, the company commissioned a 3.2 MW rooftop solar project in Supa, bringing total solar capacity to 4MW, and expects its green copper backward integration project to commence in H2 FY27.

The T&D sector is experiencing a structural long-term growth cycle, driven by renewable energy, grid modernization, and increasing power demand. Management highlighted that new entrants in the specialized CTC segment face substantial barriers, including a 5-7 year approval process for high-voltage applications, reinforcing KSHINTL's established position. The estimated total demand for CTC in India is projected to reach 100,000-120,000 tons by 2030, with FY27-28 demand expected to be around 70,000-75,000 tons, indicating significant market opportunity.