KSHINTL - KSH Internationa

📊 NSE: KSHINTL 🏢 Cables - Electricals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for H1 FY26 reached INR 1,270.86 Cr, representing a 40.5% YoY growth from INR 904.58 Cr. The Specialized Winding Wires segment contributed 77% of total revenue in Q2 FY26, up from 72% in Q1 FY26, while Standard Wires accounted for 23%.

Geographic Revenue Split

Exports accounted for 70.03% of revenue in H1 FY26 (INR 889.98 Cr), showing a steady increase from 67.30% in FY25 and 62.09% in FY24. Domestic revenue contributed the remaining 29.97% (INR 380.88 Cr).

Profitability Margins

Gross Profit Margin for H1 FY26 stood at 11.1%, a slight improvement of 18 bps YoY. PAT Margin significantly improved to 4.1% in H1 FY26 compared to 2.6% in H1 FY25, a 147 bps increase, driven by better fixed cost absorption and higher value-added product sales.

EBITDA Margin

EBITDA Margin for H1 FY26 was 6.8%, up 159 bps from 5.2% in H1 FY25. Absolute EBITDA grew 83.3% YoY to INR 86.39 Cr. EBITDA per ton increased 42.1% YoY to INR 65,515 in Q2 FY26 from INR 46,114 in Q2 FY25.

Capital Expenditure

The company invested INR 61.20 Cr in H1 FY26 and INR 120.16 Cr in FY25 for property, plant, and equipment. Total non-current assets increased to INR 319.83 Cr as of September 2025 to support the Supa plant expansion.

Credit Rating & Borrowing

Finance costs for H1 FY26 were INR 16.58 Cr, up 27.8% YoY from INR 12.97 Cr. The company utilizes significant working capital limits, with short-term borrowings at INR 344.52 Cr as of September 2025.

⚙️ Operational Drivers

Raw Materials

Copper is the primary raw material, accounting for approximately 88.9% of total revenue (COGS of INR 1,130.19 Cr vs Revenue of INR 1,270.86 Cr in H1 FY26).

Import Sources

Sourced from both domestic vendors and international markets to support a global supply chain reaching 20+ countries including the USA, Brazil, and Germany.

Key Suppliers

Not specifically named in the documents, but the company procures copper on a back-to-back basis against customer orders to mitigate price volatility.

Capacity Expansion

Current installed capacity is 29,045 MTPA. The company is executing a Phase II expansion at Supa, which will increase total capacity to 59,045 MTPA by FY27, a 103% increase.

Raw Material Costs

Raw material costs (COGS) were INR 1,130.19 Cr in H1 FY26, up 40.2% YoY from INR 806.09 Cr. The company uses a pass-through model where LME copper prices are directly billed to clients.

Manufacturing Efficiency

Capacity utilization reached 90%+ in Q2 FY26, a significant improvement from 81.1% in Q2 FY25. Sales volume grew 15% YoY to 13,151 MT in H1 FY26.

Logistics & Distribution

Distribution and other expenses accounted for 2.4% of revenue in H1 FY26. The company services 120 global and domestic OEM customers.

📈 Strategic Growth

Expected Growth Rate

35.55%

Growth Strategy

Growth will be driven by doubling production capacity to 59,045 MTPA by FY27, increasing the share of high-margin specialized winding wires (currently 77%), and expanding international wallet share with 120+ existing OEM clients.

Products & Services

Magnet Winding Wires, including specialized Continuously Transposed Conductors (CTC), Paper Insulated Copper Conductors (PICC), and standard winding wires for power generation and T&D applications.

Brand Portfolio

KSH International (part of KSH Group); operates under an exclusive license agreement with HPW Metallwerk GmbH for certain specialized products.

New Products/Services

Focus on higher value-added specialized products which now represent 77% of revenue, up from 72% in the previous quarter, contributing to a 159 bps expansion in EBITDA margins.

Market Expansion

Expanding international presence in 20+ countries including the USA, Brazil, Romania, and Japan. Exports grew 21.7% YoY in Q2 FY26.

Market Share & Ranking

India's largest exporter and one of the leading manufacturers of magnet winding wires.

Strategic Alliances

Maintains an exclusive license agreement with HPW Metallwerk GmbH for specialized winding wire technology.

🌍 External Factors

Industry Trends

The industry is shifting toward high-efficiency specialized conductors for large transformers. KSH is positioned as a leader with 77% revenue from specialized products and a 35.5% revenue CAGR.

Competitive Landscape

Competes with domestic and global winding wire manufacturers; maintains leadership through higher EBITDA per ton (INR 65,515) compared to peers.

Competitive Moat

Moat is built on long-term OEM relationships (40-year vintage with oldest client), high switching costs due to stringent quality approvals, and a 90%+ repeat business rate.

Macro Economic Sensitivity

Highly sensitive to global T&D (Transmission and Distribution) and power generation capex cycles, which drive demand for magnet winding wires.

Consumer Behavior

Shift toward green energy and grid modernization is increasing demand for high-quality specialized winding wires in the power sector.

Geopolitical Risks

Exposure to trade barriers in 20+ export markets; however, diversified geographic reach across Americas, Europe, and Asia mitigates single-region risk.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to international manufacturing standards for power equipment and B2B OEM quality certifications.

Environmental Compliance

Not specifically disclosed in INR, but the company emphasizes improving sustainability efforts as a core strategic pillar.

Taxation Policy Impact

Effective tax rate for H1 FY26 was 25.4% (INR 17.80 Cr tax on INR 70.07 Cr PBT).

Legal Contingencies

Not disclosed in the provided financial summaries.

⚠️ Risk Analysis

Key Uncertainties

Working capital management is a key risk, with net debt/EBITDA at 5.48x as of September 2025 due to high inventory and receivable levels during high-growth phases.