KSH International Q4 FY26 Earnings Call — Analysis (NSE: KSHINTL)
KSH International delivered record quarterly PAT of ₹34.5 Cr (+87% YoY) on 29% volume growth and record EBITDA per ton of ~₹74,000, driven by a 92% YoY export surge and specialized wire demand from the global T&D cycle.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Revenue FY26 ₹3,107 Cr ( +61% YoY ) . New guidance — export revenue share ~40% . New story: Export acceleration and geographical diversific… .
Results
Q4FY26 revenue ₹1,018 Cr +101% YoY; EBITDA ₹56 Cr; EBITDA per ton ~₹74,000; PAT ₹34.5 Cr +87% YoY; volumes 7,600 MT +29% YoY.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue Q4FY26 | ₹1,018 Cr | +101% | yoy · Q4FY26 |
| Revenue FY26 | ₹3,107 Cr | +61% | yoy · FY26 |
| EBITDA Q4FY26 | ₹56 Cr | yoy · Q4FY26 · improved from ₹35 Cr in Q4FY25 | |
| EBITDA FY26 | ₹190 Cr | yoy · FY26 · improved from ₹123 Cr in FY25 | |
| PAT Q4FY26 | ₹34.5 Cr | +87% | yoy · Q4FY26 |
| PAT FY26 | ₹110 Cr | +62% | yoy · FY26 |
| EBITDA per ton Q4FY26 | ~₹74,000 | yoy · Q4FY26 · up from ~₹64,500 in Q3FY26 and ~₹60,000 in Q4FY25 | |
| EBITDA per ton FY26 | ~₹67,600 | yoy · FY26 · up from ₹52,500 in FY25 | |
| Volumes Q4FY26 | 7,600 MT | +29% | yoy · Q4FY26 · up from 5,900 MT in Q4FY25 |
| Export revenue growth Q4FY26 | 92% | +92% | yoy · Q4FY26 |
| Specialized wire revenue growth Q4FY26 | 103% | +103% | yoy · Q4FY26 |
| Installed capacity | 43,445 MT | point_in_time · Mar-26 · as of Mar 31, 2026 | |
| Capacity utilization | ~70% | point_in_time · Q4FY26 · consolidated, Q4FY26 | |
| Debt-to-EBITDA | 0.39x | yoy · FY26 · from 1.21x in FY25 |
Guidance
FY27 volume growth expected to at least match FY26’s 21%; sustainable EBITDA per ton guided at ₹65,000–70,000.
What management committed to
- FY27 volume growth will be at least 21% YoY, sustaining FY26’s growth rate. — at least 21%, FY27
- Sustainable EBITDA per ton will be in the range of ₹65,000–70,000 per metric ton on a long-term basis. — ₹65,000–70,000, FY27
- [Supa Phase II expansion] will bring total installed capacity to ~59,000 MT during FY27, with next new capacity coming online around Q2FY27. — 59,000 metric tons, FY27
- Green copper backward integration facility will commence during H2 of FY27. — H2FY27
- PEEK insulated wire facility will come online by end of Q2FY27, with capacity representing ~5–10% of total capacity after full expansion to 59,000 MT. — 5-10% of total capacity, Q2FY27
- Export revenue share will increase to ~40% over the next couple of years (from ~27% in FY26). — ~40%, next couple of years
- Payable days will improve beyond 25 days, approaching close to 30 days by the end of FY27. — >25 days, close to 30 days, FY27
Key themes
Export surge and T&D super-cycle
How the narrative shifted
- T&D structural super-cycle: Management frames the global transformer capacity expansion as a multi-year structural driver that directly feeds demand for CTC and specialized winding wires, creating a sustained growth runway.
- Export acceleration and geographical diversification: Export revenue surged 92% YoY; management is adding new transformer clients in Americas and Europe, targeting a return to 40% export revenue share, and sees export as a key margin and volume lever.
- Capacity expansion unlocking growth: Supa Phase II remains on track for FY27 completion, raising capacity to ~59,000 MT; full-year availability of new capacity underpins the volume growth guidance of at least 21% for FY27.
- Product mix shift toward specialized/CTC: Specialized wires (largely CTC) accounted for ~75% of revenue and drove EBITDA per ton improvement; management expects the mix to remain favorable even as standard wires grow, sustaining elevated unit profitability.
- Competitive moat via approvals and experience: Long approval cycles (5–7 years) for new entrants to reach high-voltage CTC segments and deep OEM relationships create high barriers; management emphasizes that capacity from existing qualified players matters most.
- Multi-year agreements with large transformer clients: Large transformer clients are exploring multi-year supply agreements; KSH is evaluating the implications to balance commitment certainty with the ability to serve new customers.
- Working capital normalisation and cash flow improvement: Management expects payable days to increase to 25–30 by end-FY27, which should significantly improve operating cash flows after a period of negative OCF driven by high growth.
- Geopolitical and copper price resilience: Middle East disruptions caused minor shipment delays (100–150 MT) but no material demand impact; copper pass-through and diversified supply chain insulate the business.
Operational commentary
- Supa capacity expansion on track for FY27 completion; Phase II to take installed capacity from 43,445 MT to ~59,000 MT, with next new capacities coming online around Q2FY27.
- Green copper backward integration project to commence facility during H2FY27, improving cost structure.
- PEEK insulated wire facility to start by end of Q2FY27; small initial capacity, targeting EV traction motors for 800V architecture; meaningful revenue contribution likely 1.5–2 years out.
- Export momentum accelerating: Q4FY26 export revenue +92% YoY, driven by new global transformer clients in Americas and Europe in addition to existing relationships; management target to lift export share from ~27% to ~40% over the next couple of years.
- Specialized wire revenues grew 103% YoY in Q4FY26, led by CTC for large power transformers; domestic wallet share expansion and new standard-wire clients in EVs, AC compressors, motors.
- Large transformer clients exploring multi-year agreements to secure supply; KSH evaluating strategic and financial implications to balance commitment with ability to serve new customers.
- Middle East shipment disruptions in Q4 (100–150 MT delayed to April) with no material demand impact; management sees no reduction in demand due to copper prices or geopolitical issues.
- Competitive moat in CTC highlighted: 20-year track record, long approval cycles (5–7 years for new entrants to reach 765kV/HVDC level), deep OEM relationships, and integrated production lines enabling 15–20 day turnaround.
Analyst Q&A
Q. Quantification of Middle East impact on Q4 volumes/revenue
Roughly 100-150 tonnes of dispatches missed in March, subsequently shipped in April; additionally, some orders were not started, so total effect ~200-300 tonnes.
Q. Sustainable EBITDA per ton for FY27-28
A range of around ₹65,000–70,000 per metric ton is sustainable on a long-term basis; Q4’s ₹74,000 is blend-dependent.
Q. How long for a new entrant to get approvals for CTC from PGCIL and reach high-voltage segments?
For an absolute new entrant, five to seven years to reach 765kV/HVDC levels; every utility has its own approval process beyond PGCIL.
Q. Could transformer companies backward-integrate into CTC given demand uncertainty?
Unlikely; capacity is now available, CTC is a complex product requiring order volumes to run efficiently, and globally no transformer OEMs are backward-integrated into CTC.
Q. Update on PEEK insulated wires and capacity addition
PEEK facility to come online by end-Q2FY27; small initial capacity; meaningful difference in 1.5–2 years as 800V traction motor market matures; within total 59k MT capacity, 5–10% planned for automotive sector.
Research and educational content only. Not investment advice.