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Kaynes Technology India reported mixed set of results with revenue growing 40% YoY

ICICIdirect Research 10 Aug 2026 DISCLAIMER

News: Kaynes Technology India reported mixed set of results with revenue growing 40% YoY (-24% QoQ) to ₹946 crore. Wherein growth was witnessed across segments i.e. Auto (+35% YoY), Industrials (+31% YoY), Railways (+81% YoY), IoT (+69% YoY) and aerospace and medical grew by 181% YoY respectively. Gross margins declined by 685 bps YoY on high base to 34.4% (while up 270 bps QoQ), due to higher input costs, ~3.5% EBITDA impact from forex movement and timing lag in passing on cost inflation to customers, amid elevated commodity and energy prices. EBITDA came in at ₹147 crore with EBITDA margins of 15.6% which declined by 119 bps YoY while flat sequentially. PAT came in at 56.4 crore which declined by 24.4% YoY and 38.1% QoQ impacted by lower other income and higher depreciation. Net working capital days continues to stay elevated at 163 days vs 122 days in Q1FY26.

View: Revenue growth was healthy at 40% YoY despite caution in smart meter business. However, working capital remained elevated, with receivables staying high in the smart metering business, while inventory rose as the company proactively stocked components amid extended lead times. Management states to prioritise balance-sheet discipline over near-term metering growth, with tighter collections while this execution remains key factor for stock re-rating. Earnings momentum to improve in medium term as OSAT and PCB operations commence from Q3/Q4FY27 and overseas operations scale up. Working-capital normalisation, particularly in smart metering, remains the key monitorable, with management targeting positive operating cash flow by FY27-end while execution on the same to be watched out.

Impact: Neutral

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