India Ratings has affirmed Kaynes Technology India Limited’s long-term rating at IND A-/Stable and short-term rating at IND A1. A new INR1.45 billion bank loan facility has been assigned the IND A-/Stable/IND A1 rating. The ratings reflect the company’s strong operating performance, healthy order book, and diversified revenue profile.
Credit Rating Update
India Ratings and Research has announced the affirmation of the IND A-/Stable rating for the long-term bank loan facilities and IND A1 rating for the short-term facilities of Kaynes Technology India Limited (KTIL). This decision reflects a comprehensive analysis of KTIL’s financial health and operational efficiency.
Key Rating Drivers
The ratings are underpinned by several factors contributing to KTIL’s robust performance:
- Strong Operating Performance: KTIL has demonstrated consistent growth in revenue and profitability, supported by a healthy order book.
- Diversified Revenue Profile: The company benefits from a diversified revenue stream across various industry segments, mitigating risks associated with sector-specific downturns.
- Comfortable Credit Metrics: Supported by successful fund raising, KTIL maintains comfortable credit metrics.
New Facility Rated
In addition to affirming existing ratings, India Ratings has assigned a rating of IND A-/Stable/IND A1 to a new bank loan facility amounting to INR 1.45 billion. This assignment further validates the agency’s confidence in KTIL’s financial stability and future prospects.
Factors to Monitor
While the outlook is stable, certain factors could influence future rating actions:
- Large Capex Plans: KTIL’s significant investment plans in OSAT and PCB facilities require careful monitoring to ensure timely implementation and realization of projected benefits.
- Working Capital Management: Efficient management of working capital is crucial, especially given the capital-intensive nature of KTIL’s operations.
Financial Performance Highlights
KTIL reported a 51% increase in consolidated revenue for fiscal year 2025, reaching INR 27.218 billion, driven by strong domestic demand and effective order execution. This positive momentum continued into the first half of fiscal year 2026, with revenue growing by 47% to INR 15.797 billion. EBITDA margins also improved to 15.1% in FY25 and 16.5% in the first half of FY26, supported by a higher proportion of high-margin smart-meter business.
Source: BSE
