Summary
KSH International Limited - Q3 FY 2026 Earnings Call Summary Monday, February 09, 2026 10:00 AM
Event Participants
Executives 4 Amod Joshi (CFO), Dhruv Chopra (Head of IR), Nakul Patil (Head of Secretarial & Legal), Rajesh Hegde (MD)
Analysts 6 Ankur Gulati, Aryan Bhatia, Kaushik Doshi, Kushal Kasliwal, Mahesh Bendre, Nidhi, Nishant Sharma, Sudhir
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Sales Volume | 7,400 metric tons | +24% YoY; highest growth rate in 10 years driven by Supa facility commissioning. |
| Revenue from Operations | ₹818 crores | +59% YoY; driven by increased volumes, product mix shift, and higher LME copper prices. |
| EBITDA | ₹49 crores | +22.5% YoY; growth tempered by upfront costs of capacity expansion and high copper prices. |
| EBITDA per Ton | ₹66,000 | +32% YoY; consistent with 9M FY26 levels; reflects shift to higher value-added segments. |
| PAT | ₹23 crores | -9% YoY; decline due to one-time labor costs, interest on Supa loan, and increased depreciation. |
| Debt-to-Equity | 0.42x | Significant reduction from 1.35x in Q2 FY26 following repayment of ₹225.9 crores debt. |
| Capacity Utilization | 68% | Down from 90%+ in Q2; reflects the addition of 14,400 MTPA new capacity at Supa. |
| Net Working Capital | 75-80 days | High inventory days (40-45) due to large T&D order sizes; management targeting reduction via payable extension. |
Geographic & Segment Commentary
- Specialized Winding Wires: Contributed 75% of total revenue, growing 61% YoY. Performance was driven by the Transmission & Distribution (T&D) sector, specifically Continuously Transposed Conductors (CTC) used in large power transformers.
- Exports: Revenue increased 37% YoY, representing 27% of total revenue. Growth accelerated from 22% in Q2, with the company maintaining its position as India’s largest winding wire exporter across 24 countries.
- Domestic Market: Driven by infrastructure demand for renewables, grid modernization, and 765 kV transformers. The company is currently supplying to 37 HVDC transformer orders, which are high-value-addition domestic projects.
Company-Specific & Strategic Commentary
- Capacity Expansion (Supa Facility): Phase 1 completed in Sept 2025, adding 12,000 MT. Total capacity reached 43,445 MT at Dec 2025 with plans to reach 59,045 MT within 14 months (Rajesh Hegde).
- HVDC Leadership: KSH is the only Indian company approved to supply 400kV HVDC transformers, a high-margin segment benefiting from long-distance renewable energy evacuation projects (Rajesh Hegde).
- EV & Specialized Markets: Diversifying into EV motors (2-wheeler currently, 4-wheeler in 12-18 months) and PEEK-coated wires for 800V traction motors to drive future margins (Dhruv Chopra).
- Operating Leverage: Management expects sequential volume increases to absorb the ₹3.8 crore incremental quarterly depreciation and fixed costs associated with the Supa expansion (Amod Joshi).
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Full Year Volume | 28,500 - 29,500 MT | Target for FY26 based on robust demand and new capacity availability. |
| EBITDA per Ton | ₹65,000 - ₹67,000 | Defined as a “sustainable level” despite potential fluctuations in copper prices. |
| PAT Growth | ~53% for FY26 | Management believes the 9M growth rate is sustainable for the full fiscal year. |
| Capacity Utilization | 80% - 85% | Targeted optimal utilization for the new 43,445 MT base over the next 2-3 years. |
Risks & Constraints
| Risk | Context |
|---|---|
| Copper Price Volatility | While copper is a pass-through, sharp price increases inflate working capital requirements and interest costs, potentially squeezing PAT margins (Amod Joshi). |
| Operating Leverage Lag | Rapid capacity addition has led to upfront fixed costs and depreciation ahead of full volume ramp-up, temporarily impacting bottom-line growth (Rajesh Hegde). |
| Import Competition | Possible entry of Chinese players in government tenders for transformers could increase competition, though duty structures currently favor domestic manufacturers (Rajesh Hegde). |
Q&A Highlights
T&D and HVDC Market
- Question: What is the status of the 37 HVDC transformer orders? (Nidhi)
- Answer: These are domestic orders from prominent Indian manufacturers and will be supplied over 12-18 months. While volume is currently small, it represents the highest value-addition product (Rajesh Hegde).
US Trade Duties
- Question: How does the new US trade deal affect competitiveness? (Nidhi)
- Answer: Duties on value-addition are expected to drop from ~54% to between 18%-25%. This makes KSH highly competitive against Chinese manufacturers who face ~34% duties (Rajesh Hegde).
Working Capital Improvement
- Question: How will the company reduce working capital days from the current 75-80 range? (Kushal Kasliwal)
- Answer: Focus is on increasing payable days (currently low at 5 days) by moving from advance payments to credit-based copper procurement as volumes grow (Amod Joshi).
EBITDA Sustainability
- Question: Will EBITDA per ton improve with higher utilization? (Mahesh Bendre)
- Answer: While operating leverage helps, the company is also growing lower-margin standard wire volumes. ₹65,000-₹66,000 is considered the sustainable baseline (Dhruv Chopra).
Key Takeaway
KSH International reported a transitional third quarter marked by a 24% YoY volume surge to 7,400 MT following the commissioning of the Supa Phase 1 facility. While Revenue grew 59% to ₹818 crores, PAT declined 9% due to one-time labor costs, higher depreciation, and interest on expansion debt (now repaid). Strategically, the company is pivoting toward high-value segments, including 37 HVDC transformer orders and PEEK-coated wires for EVs, while maintaining its lead as India’s top winding wire exporter. Management significantly de-leveraged the balance sheet using IPO proceeds, reducing the debt-to-equity ratio to 0.42x. Looking ahead, the company guided for full-year volumes of 28,500-29,500 MT and expects operating leverage to improve as Supa utilization ramps up toward 80%. KSH remains well-positioned to capitalize on global grid modernization and the domestic renewable energy push.
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