Kaynes Technology India (KAYNES) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue rose 40% year-over-year to INR 946 crores (₹9,460 million), driven by EMS business growth and international expansion.

• EBITDA for Q1 FY27 was INR 147.6 crores with a 15.6% margin, up 31% year-over-year, though margin declined by 120 bps.

• Net profit after tax for Q1 FY27 was ₹564 million, down 32% year-over-year, with net margin at 6.0%.

• Robust order book exceeded INR 8,900 crores (₹89,038 million), with strong customer additions and global expansion.

• Board approved unaudited financial results and appointed new statutory auditors for a five-year term.

Financial highlights

• EMS business revenue grew 48% year-over-year, standalone EMS revenue at INR 639 crores.

• Metering business revenue declined 12% year-over-year to INR 204 crores.

• Overseas entities revenue grew 327% year-over-year, from INR 24 crores to INR 102 crores.

• Consolidated revenue for Q1 FY27 was ₹12,426.38 million, up from ₹9,460.17 million in Q1 FY26.

• Negative operating cash flow of INR 259 crores, improved from INR 379 crores negative in Q1 last year.

Outlook and guidance

• Management targets revenue growth at twice the market rate, with market growth at 17% and EMS business exceeding 48%.

• OSAT and PCB businesses expected to contribute INR 450 crores in revenue for FY27, with commercial revenue starting Q3.

• Macro headwinds include rupee depreciation, high inflation, and commodity price volatility.

• The group continues to focus on expansion and capital expenditure, with significant investments in new facilities and technology.

• Margin normalization expected as supply chain and commodity price pressures ease.