Kaynes Technology India LimitedQ1 FY27 Results & Financial Update
Kaynes Technology India Limited: Q1 FY27 consolidated results and company financials – revenue ₹946.00 Cr, PAT ₹56.40 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Chart · Market context
Kaynes Technology India price & chart
Quarter overview
Quarterly earnings analysis
Consolidated total revenue for FY26 stood at INR3,626.4 crores, up 33.2% year-on-year. EBITDA reached INR5,741 million (up 39.8%) with an EBITDA margin of 15.8%, and PAT was INR3,639 million (10% PAT margin).
Near-term top-line performance missed market expectations due to geopolitical disruptions, particularly the West Asian conflict, causing last-minute customer deferments, supply chain delays, and product timing shifts.
Consolidated working capital days stood at around 122 days for FY26, heavily impacted by the metering subsidiary model. Stand-alone EMS business working capital days improved from 83 days in FY24 to 53 days in FY26.
01 · Business model
What does Kaynes Technology India do?
Kaynes Technology is an electronics-manufacturing-services company involved in design, manufacturing and integrated electronics solutions. Q1 FY27 is a good example of why revenue alone gives an incomplete picture: the top line grew strongly, while PAT moved the other way.
02 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q1 FY27 | Year-ago |
|---|---|---|
| Revenue | ₹946.00 Cr | ₹673.50 Cr |
| EBITDA excl. other income | ₹147.60 Cr | ₹113.00 Cr |
| PAT | ₹56.40 Cr | ₹74.60 Cr |
| EBITDA margin | 15.60% | 16.80% |
03 · Why it moved
Why the quarter looked the way it did
What drove revenue
Revenue grew about 40.5% YoY.
PAT declined despite the higher revenue and EBITDA.
Order-book value increased year on year.
What drove margins
Intangible assets increased from INR238 crores in FY25 to INR536 crores in FY26 following acquisitions like Iskraemeco and August Electronics, adding approximately INR32 crores of quarterly depreciation and amortization.
The company targets increasing New Product Development (NPD)-led and value-added solutions to nearly 30% of total revenue over coming years to drive margin expansion.
04 · Demand, customers & order book
Where demand is coming from
The company's order book remains healthy, diversified, noncancelable, and exceeds INR9,000 crores.
Core EMS growth is increasingly broad-based across automotive, EV, industrial, aerospace, and railway segments, reducing single-line dependency.
05 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
OSAT Unit 1 is fully operational and Unit 2 enters commercialization by Q2 FY26, deepening backward integration and high-value manufacturing.
Plant plants are integrating Industry 4.0, total predictive maintenance, and advanced quality systems to improve manufacturing metrics and execution discipline.
06 · Reported developments
What changed operationally
The Mysore facility crossed INR10,000 million in revenue during FY26, reflecting scale, maturity, and strong customer confidence.
OSAT Unit 1 is fully operational, and Unit 2 is slated for commercialization by Q2 FY26. OSAT revenue visibility exceeds INR25,000 million over the next 5 years, alongside a robust 5-year confirmed demand pipeline in PCB.
Standalone EMS business generated positive cash flow of over INR250 crores in FY26, compared to INR65 crores in the previous year.
07 · Pressure points & risks
What is not going smoothly
Actual FY26 revenue of ~INR3,600 crores fell significantly short of initial guidance of INR4,500 crores and subsequent downward revision to INR4,000 crores.
One of the largest electric vehicle OEM customers in 2-wheelers dropped production significantly by about 90%, impacting anticipated offtake where Kaynes was the single supplier.
Metering subsidiary receivables expanded to INR1,365 crores due to delayed site installations, particularly across rural government tenders, causing substantial negative operational cash flow impacts.
08 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Future metering orders will avoid complete installation-linked execution models; Kaynes will focus primarily on component/meter supply to specialized project execution teams.
Debt-to-equity ratio stood at approximately 0.2 in FY26, reflecting a disciplined capital structure during expansion.
Management expects to resolve metering subsidiary working capital and reduce receivables significantly, targeting positive cash flow or substantial reversal within three quarters.
09 · Management guidance & targets
What management is targeting from here
Management explicitly stepped away from hard absolute revenue guidance figures given past volatility and external uncertainties beyond operational control.
Management is refraining from providing strict numerical revenue guidance due to macroeconomic volatility, instead committing to outgrow and double the market growth rate (market growing at 15% to 16%).
Management anticipates PCB production volume around INR300 crores to INR400 crores, and OSAT production of around INR250 crores to INR300 crores for FY27.
10 · Management call deep dive
What management said on the conference call
Operating takeaways
12 key pointsManagement explicitly stepped away from hard absolute revenue guidance figures given past volatility and external uncertainties beyond operational control.
Future metering orders will avoid complete installation-linked execution models; Kaynes will focus primarily on component/meter supply to specialized project execution teams.
The company's order book remains healthy, diversified, noncancelable, and exceeds INR9,000 crores.
Core EMS growth is increasingly broad-based across automotive, EV, industrial, aerospace, and railway segments, reducing single-line dependency.
OSAT Unit 1 is fully operational and Unit 2 enters commercialization by Q2 FY26, deepening backward integration and high-value manufacturing.
Plant plants are integrating Industry 4.0, total predictive maintenance, and advanced quality systems to improve manufacturing metrics and execution discipline.
Intangible assets increased from INR238 crores in FY25 to INR536 crores in FY26 following acquisitions like Iskraemeco and August Electronics, adding approximately INR32 crores of quarterly depreciation and amortization.
The company targets increasing New Product Development (NPD)-led and value-added solutions to nearly 30% of total revenue over coming years to drive margin expansion.
Debt-to-equity ratio stood at approximately 0.2 in FY26, reflecting a disciplined capital structure during expansion.
Management expects to resolve metering subsidiary working capital and reduce receivables significantly, targeting positive cash flow or substantial reversal within three quarters.
Management is refraining from providing strict numerical revenue guidance due to macroeconomic volatility, instead committing to outgrow and double the market growth rate (market growing at 15% to 16%).
Management anticipates PCB production volume around INR300 crores to INR400 crores, and OSAT production of around INR250 crores to INR300 crores for FY27.
Important analyst Q&A
4 key pointsViral Shah (Enam Holdings) questioned the vast variance between guidance and actual results on both P&L and OCF sides. Management apologized for delays and attributed the OCF deficit to metering project installation lags.
Nitin Arora (Axis Mutual Fund) and Dhaval Somaiya (Axis Mutual Fund) pressed management on what triggers will normalize INR600 crores of negative working capital. Management reiterated that 70% to 80% of metering receivables stress will normalize by Q3 as installations accelerate.
Amber Singhania (Nippon India AMC) asked about metering revenues, total receivables (INR1,365 crores), and stalled securitization. Management clarified that bank securitization has only discounted about INR40 crores so far due to installation completion prerequisites.
Sumant Kumar (Motilal Oswal) queried the increase in intangible assets to INR536 crores. Management explained it reflects acquisitions of Iskraemeco and August Electronics, with quarterly amortization now hitting depreciation lines.
11 · Key Q&A
The quarter, answered directly
What does Kaynes Technology India do?
Kaynes Technology is an electronics-manufacturing-services company involved in design, manufacturing and integrated electronics solutions. Q1 FY27 is a good example of why revenue alone gives an incomplete picture: the top line grew strongly, while PAT moved the other way.
What is the clearest takeaway from Q1 FY27?
Consolidated total revenue for FY26 stood at INR3,626.4 crores, up 33.2% year-on-year. EBITDA reached INR5,741 million (up 39.8%) with an EBITDA margin of 15.8%, and PAT was INR3,639 million (10% PAT margin).
What drove revenue or demand?
Revenue grew about 40.5% YoY.
What mattered most for margins or profitability?
Intangible assets increased from INR238 crores in FY25 to INR536 crores in FY26 following acquisitions like Iskraemeco and August Electronics, adding approximately INR32 crores of quarterly depreciation and amortization.
What changed operationally beyond the headline numbers?
OSAT Unit 1 is fully operational and Unit 2 enters commercialization by Q2 FY26, deepening backward integration and high-value manufacturing.
What is management guiding or targeting from here?
Management explicitly stepped away from hard absolute revenue guidance figures given past volatility and external uncertainties beyond operational control.
12 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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13 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Why PAT diverged from revenue and EBITDA and whether that reverses.
- 02
EBITDA-margin direction in the next quarter.
- 03
Conversion of the reported order book into revenue.
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