The shares of this small cap company majorly engaged in manufacturing and exporting of magnet winding wires, also into several sectors such as data centres, EV, T&D and many more were in focus after the company sees increasing opportunity in these sectors.
With the market capitalization of Rs. 6,962 Crores, the shares of KSH International Ltd were trading at around Rs. 1028 per share which is 3 percent discount from its 52 week high of Rs. 1,060 per share and is trading at a P/E of 53.2 whereas industry P/E stands at 28.2
Specialized Wires Lead the Business Mix
The specialized winding-wire business of KSH International was still the core revenue generator in Q1 FY27. The revenue from specialized wires surged by 113% YoY, up from the 62% growth registered in FY26, due to higher contribution from CTC (Continuously Transposed Conductor) and exports. The contribution from CTC has touched an all-time high, with CTC contributing between 50–75% of specialized-wire sales revenue. Within CTC, more than 25% of sales volume is being generated from large power transformers of 765 kV and HVDC (High-Voltage Direct Current).
T&D Continues to Anchor Demand
Around 75% of KSH’s revenues are generated through large power transformers which find use in T&D, renewable energy, rail and data centres, where CTC is a major product offering. The management mentioned that transformer OEMs have 3-5 years of orders ahead of them and are also scaling up their production capacity, thus driving steady demand for winding wires. KSH has also inked a five-year supply agreement with Hitachi Energy Global for their India and select global facilities, though volumes and prices are yet to be finalized.
EV Opportunity Builds Beyond the Core
Also, the management has plans to tap into the market for EV motors using custom winding wire. There have been reports of the demand being very high in the electric two-wheeler and three-wheeler category, while significant incremental volumes from the passenger car segment are likely by FY28-FY29. This suggests that the company is adding EV-specific capacity during phase 2, and EVs are now seen as another growth segment besides the T&D business.
Data Centres Expand the Addressable Market
Multiple demand points are available for KSH in the data center ecosystem. Besides high-kV transformers, data centers need distribution transformers and UPS systems that may require specific winding wire or general purpose winding wire. Another potential area that has been identified by management is DG sets, which act as backup power for data centers.
Standard Wires Also See Strong Traction
The opportunities do not only lie in the specific products. Regular winding wire income rose by 83% YoY in Q1 FY27, as the company continued to acquire customers from segments like EVs, AC compressors, motors, and DG set alternators. Total volume sold amounted to close to 8,000 MT, compared to about 7,600 MT during Q4 FY26 and 6,100 MT the previous year, indicating 30% YoY and 5% QoQ growth in volumes.
Exports Add to the Business Mix
Now exports have become yet another significant contributor, with exports revenues rising by 76% on a YoY basis and 12% on a QoQ basis in Q1 FY27. The growth has been underpinned by higher wallet share from existing clients along with more OEMs getting onboard. Exports contributed around 27% to the total operating income in Q1, whereas the long-term goal of the management is to return exports’ contribution to the previous level of 40%.
Capacity Expansion to Support the Mix
For this reason, KSH is increasing its existing capacity from 43,445 MT as on June 30, 2026 to approximately 59,000 MT till March 2027. Out of the targeted expansion of 30,000 MT for Supa, 14,400 MT was done till Q1 and the next expansion will be in Q2. The management is also considering 10 acres of land for further expansion in Supa MIDC along with the existing plant which can give 10,000 to 12,000 MT extra capacity.
Conclusion:
KSH International is focusing on the specialized wires with more value, especially CTC, while T&D remains the primary demand for the company. EVs, data centers, and exports are broadening the scope of its business opportunities. As the company is growing and expanding, the management’s key objective now should be to increase utilization and build better customer relations, which would enable more efficient operations and cash generation, as well as diversification.