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Earnings Call Transcript

Kaynes Technology India Earnings Call Transcript: Key Takeaways

Kaynes reported 40% YoY revenue growth driven by EMS, though smart metering was intentionally de-grown to manage working capital. Management remains optimistic on new OSAT and PCB ventures despite global supply chain headwinds.

Guidance and delivery
Management target Revenue 34.0% FY27
Highlights
Revenue growth40% YoY revenue growth driven by 48% growth in core EMS business.
MarginsMargins impacted by component cost inflation; management expects normalization over two quarters.
Order bookOrder book stands at ₹9,000 Cr with robust new client additions.
Demand visibilityStrong demand in aerospace, automotive, and EVs; order book at ₹9,000 Cr.
Management confidenceConfident but cautious regarding global supply chain disruptions and component logistics.

Growth

EMS business grew 48% YoY, offsetting a 12% decline in metering; growth is volume-led across most segments.

Outlook

OSAT and PCB units to be operational by Q3 FY27; guiding 450-500 Cr revenue from these segments.

Risks

Significant inventory buildup and negative operating cash flow of ₹259 Cr due to component shortages and OSAT/PCB capex.

Last quarter's promises, checked

Delivered

  • Guided EMS cash flow positive → delivered EMS OCF ₹250 Cr (= BEAT)
  • Guided OSAT Unit 1 operational → delivered Unit 1 fully operational (= BEAT)
  • Guided core EMS WC days reduction → delivered 83 to 53 days (= BEAT)

Partly delivered

  • Guided OSAT Unit 2 commercialization Q2 FY26 → delivered in progress for Q2 (= PARTIAL)
  • Guided securitization of ₹250 Cr receivables → delivered only ₹40 Cr (= PARTIAL)
  • Guided 2 government orders in Q4 → delivered delayed but products approved (= PARTIAL)

Missed

  • Guided FY26 Revenue ₹4,500 Cr (later ₹4,000 Cr) → delivered ₹3,626 Cr (= MISS)
  • Guided OCF neutral/slightly negative → delivered ₹600 Cr negative (= MISS)
  • Guided smart meter FY26 Revenue ₹800 Cr → delivered ₹971 Cr (over-shot target but caused WC stress) (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: KAYNES. Summary written with AI assistance from the document.

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Kaynes Technology India Ltd: key numbers

Share price
₹3,650.00
Market cap
₹24,468 Cr
Revenue (annual)
₹3,626 Cr
Net profit (annual)
₹363.9 Cr
P/E (TTM)
70.8×Sector 45.9×
Promoter holding
53.46%+0.00% QoQ
FII holding
5.82%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Annual General Meeting

Kaynes Technology India Annual General Meeting

Kaynes Technology held its 18th Annual General Meeting on September 17, 2026, transacting ordinary and special business items as scheduled.