Kaynes Technology India Limited announced its Q1 FY27 results, with total revenue reaching INR946 crores, a significant 40% year-on-year increase, primarily fueled by the robust performance of its EMS business. EBITDA stood at INR147.6 crores, reflecting a 31% YoY growth. The company also highlighted progress in its strategic expansion into OSAT and PCB manufacturing, alongside new customer wins and sustainability initiatives.
Strong Financial Performance in Q1 FY27
Kaynes Technology India Limited has reported a strong start to the fiscal year 2026-27, with its total revenue for the first quarter (Q1 FY27) reaching INR946 crores. This represents a substantial 40% year-on-year growth, largely driven by the company’s core Electronic Manufacturing Services (EMS) business. The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter was INR147.6 crores, marking a 31% increase compared to the previous year, with an EBITDA margin of 15.6%.
Strategic Growth Initiatives
The company detailed its strategic focus on two key growth engines: Kaynes Semicon and Kaynes Circuit. Despite some minor timing slippage in OSAT and PCB ramp-up schedules due to global supply chain disruptions, both Kaynes Semicon Unit 2 and Kaynes Circuit Chennai are on track for operational readiness by Q3 FY27. Kaynes is actively diversifying logistics routes and building strategic inventory to mitigate these challenges.
Business Segment Performance
The EMS business demonstrated exceptional growth, significantly outpacing the overall 40% growth rate. While the smart metering business saw a degrowth, this was a conscious decision aimed at improving the balance sheet and managing working capital constraints, especially following flood impacts on installations. The GridCrest (metering) business revenue was INR240 crores, with collections of INR88 crores, prompting a strategic pause in production and supplies to improve cash flow. The company expects to turn cash positive for the year.
New Business and Partnerships
Kaynes Technology has expanded its portfolio by adding a new top two-wheeler electric vehicle manufacturer and onboarding global brands from Germany and France. The company also received significant customer awards, including from Mahindra and Siemens, for quality and development support. Furthermore, Kaynes is advancing its space technology initiatives, with its first 3U satellite in the prototype phase, targeting a launch in mid-2027. Partnerships with ISRO, Crio Precision, and Aerotech Technologies are underway for titanium gas bottle manufacturing.
Financial Outlook and Balance Sheet Focus
The company is committed to strengthening its balance sheet, prioritizing profitability and disciplined capital allocation. A rolling 12-month view of key metrics will be provided going forward to offer a clearer picture of long-term growth. Kaynes expects the current cost escalations to normalize over the next couple of quarters. The company maintains a robust order book of approximately INR8,900 crores.
Investment in OSAT and PCB
Significant investments are being made in the OSAT and PCB segments. Approximately INR1,250 crores have been invested to date, with about INR700 crores allocated to OSAT and INR500 crores to PCB. The company anticipates revenue from these segments to commence from Q3 FY27, targeting a combined full-year revenue of INR450-500 crores for FY27. Government subsidies to the tune of INR170 crores have also been received for the OSAT business.
Source: BSE
