CARE Ratings has reaffirmed Kaynes Technology India Limited’s (KTIL) credit ratings at CARE A-; Stable / CARE A2+. This reflects KTIL’s established presence in the ESDM sector, growth in operations, and expanding order book. The rating considers KTIL’s entry into niche technology segments, supported by government initiatives. While substantial capital expenditure is planned, funding will come from subsidies and QIP proceeds, which are key monitorables.
Credit Rating Reaffirmed
Kaynes Technology India Limited (KTIL) has received reaffirmation of its credit ratings by CARE Ratings. The ratings stand at CARE A-; Stable / CARE A2+ for long-term and short-term bank facilities, respectively. This announcement was made on December 18, 2025.
Factors Supporting the Rating
The reaffirmation reflects several key strengths of KTIL, including:
- Established presence in the Electronics System Design and Manufacturing (ESDM) segment.
- Sustained growth in operations.
- Expanding order book and diversification across multiple business verticals.
- Status as one of the few domestic players approved under the Government of India’s Semicon programme.
Financial Considerations
The company’s operational scale is expected to improve, backed by a strong order book that should generate robust cash accruals. A successful second QIP in June 2025 has alleviated pressure on working capital borrowings.
Ongoing Projects
KTIL is undertaking projects in outsourced semiconductor assembly and testing (OSAT) and printed circuit board (PCB) manufacturing. The first phase of the OSAT facility is complete, and initial products have been dispatched for customer approval.
Additional Points
A stock exchange filing on December 5, 2025, addressed observations regarding financial reporting and accounting practices in the FY25 audited annual report. Clarifications were provided related to goodwill accounting and related-party transactions. Measures are being implemented to strengthen internal controls and enhance transparency.
Rating Sensitivities
Factors that could lead to a positive rating action include achieving steady-state revenue from ongoing capex and a total debt/profit before depreciation, interest, and taxes (PBDIT) ratio of less than 1.5x. Negative factors include delays in project implementation or an inability to ramp up operations.
Source: BSE