KEI Industries' stock price drops despite strong YoY growth due to weak QoQ performance in Q1FY26.

KEI Industries' share price fell despite reporting healthy YoY growth due to weak Q-o-Q performance in Q1FY26. The stock dropped up to 2.61% to hit an intraday low of ₹3,884.50 per share. KEI Industries reported healthy year-on-year growth, but investors reacted negatively to the company's weak sequential performance in Q1FY26.

Title: KEI Industries' Share Price Falls Despite Healthy YoY Growth in Q1 FY26

KEI Industries' share price experienced a significant drop on Wednesday, despite reporting healthy year-on-year (YoY) growth in the first quarter (Q1) of FY26. The stock declined by up to 2.61% to hit an intraday low of ₹3,884.50 per share, according to market data.

The company's consolidated net profit dropped 13.6% to ₹195.75 crore on an 11.13% decline in revenue to ₹2,590.32 crore in Q1 FY26 compared to Q4 FY25. However, on a year-on-year basis, the company's net profit rose by 30.28% to ₹195.75 crore, with revenue increasing by 25.44% to ₹2,590.32 crore [2].

Investors reacted negatively to the company's weak sequential performance in Q1 FY26, despite the YoY growth. The stock was trading slightly lower at ₹3,876.30 on Wednesday, following an 8% rally over the last two sessions. The overall market sentiment on Stocktwits turned ‘bullish’ on KEI Industries, supported by the recent rally [1].

SEBI-registered analyst Deepak Pal noted that the stock is consistently finding support near its previous day’s low and the 50-day moving average, which strengthens the technical setup for further gains. While the stock faces minor resistance near ₹3,900, the overall trend remains firmly upward. A sustained move above this resistance zone could lead the stock towards the ₹4,200 - ₹4,300 range in the short to medium term, representing a 10% upside [1].

KEI Industries manufactures wires and cables (W&C) like EHV cables, HT cables, and LT cables, and sells them in India and overseas. The company's fundamentals remain solid, with strong demand and low debt levels. Ongoing investments in capacity and R&D position the company well to capitalize on India’s infrastructure and electrification push.

References
[1] https://stocktwits.com/news-articles/markets/equity/kei-industries-could-see-10-upside-above-3-900-says-sebi-ra/ch8h2hXR58N
[2] https://www.business-standard.com/markets/capital-market-news/kei-industries-slips-after-q1-pat-slides-14-qoq-to-rs-196-crore-125072300279_1.html