Kaynes Technology reported a 37% YoY revenue growth for the nine months ending December 2025, with total revenue reaching INR 23,837 million. Operational EBITDA grew by 55% YoY, resulting in an expanded margin of 15.9%. Management emphasized that the current phase is one of consolidation as strategic building blocks, including the Sanand OSAT facility (now FSA approved) and the new Chennai HDI PCB unit, are being executed for accelerated future growth, supported by an order book of INR 90,000 million.
Financial Performance Snapshot (9M FY’26)
Kaynes Technology presented a positive financial overview for the first nine months of FY ’26, ending December 2025. Total revenue stood at INR 23,837 million, marking a significant year-on-year growth of 37%. Operational EBITDA saw a substantial increase of 55% over the same period last year, reaching INR 3,778 million. This operational efficiency translated to an EBITDA margin of 15.9%, an expansion of 190 basis points compared to the previous year. Profit after tax was reported at INR 2,726 million, yielding a PAT margin of 11.4%.
Order Book and Execution Strategy
The company maintains a robust order book of approximately INR 90,000 million. Management noted that the current quarter reflected a phase of consolidation as the focus shifts to strengthening execution across strategic initiatives. The order book currently represents about 1.5 years’ worth of orders on a 12-month rolling forward basis, primarily comprising EMS orders.
Delays in revenue translation, leading to a current execution shortfall of about 20% against the plan, were attributed to project alignment issues, customer inventory management, and the time required for agency approvals, such as the recently approved FSA for the OSAT facility.
Strategic Growth Pillars Update
Two major backward integration initiatives are progressing decisively. The OSAT facility at Sanand is now operational and ramping up, with the FSA approval now in place. This milestone significantly improves visibility regarding central and state government capital subsidies. Secondly, the new PCB manufacturing initiative in Chennai is expected to unlock a potential business value of about INR 15,000 crores based on current investment levels and customer relationships.
Working Capital Management
The net working capital days elevated to 139 days for the quarter, primarily due to prioritizing order execution over immediate efficiency, resulting in higher inventory levels needed for bespoke, custom-built orders. The company reaffirmed its commitment to bringing net working capital down to the 70 to 85-day range by March ’26, leveraging factors like a larger Q4 sales base, inventory consumption, and the use of supply chain finance to reduce receivables.
Segment Growth and Diversification
Management confirmed that growth is strong across all segments outside of the metering business. The core EMS business growth (excluding metering) for the nine months was approximately 40% YoY. While smart metering revenue for the full year is projected between INR 700 crores and INR 800 crores, the company is actively converting this into a device/ODM model to avoid future annuity payment exposures. The firm’s current order book indicates that ODM products account for a minimum of 20%, with expectations for this share to increase as projects like Kavach finalize their product revisions.
Capital Expenditure Outlook
Regarding Capex, the focus for the current year is completing Phase 1 of the new businesses. The company anticipates spending about another INR 400 crores in Capex during Q4. Total planned Capex includes INR 1,700-1,800 crores for OSAT Phase 1 and INR 1,400 crores for PC Board. The management confirmed that the company is adequately funded and expects to achieve positive Operating Cash Flow (OCF) at the consolidated level by the end of the fiscal year, targeting positive OCF across EMS, OSAT, and PCB by FY ’28.
Source: BSE
