Summary:
Kaynes Technology reported 40% YoY revenue growth to ₹946 crore in Q1 FY27, while EBITDA rose 31% to ₹147.6 crore. However, PAT declined 24% to ₹56.4 crore as higher raw material, depreciation, finance and tax costs pressured margins. The company's order book remained strong at ₹8,903.8 crore, but the cash conversion cycle widened to 163 days, raising working capital concerns. Kaynes shares fell over 9% after the results as investors focused on weaker profitability and margin pressure, although strong revenue growth and order visibility supported a partial recovery.
Kaynes Technology India reported a strong revenue performance in Q1 FY27, with consolidated revenue rising 40% YoY to ₹946 crore from ₹673.5 crore in Q1 FY26. EBITDA increased 31% YoY to ₹147.6 crore from ₹113 crore, while EBITDA margin moderated to 15.6% from 16.8%.
However, PAT declined 24% YoY to ₹56.4 crore from ₹74.6 crore, with PAT margin falling to 6% from 11.1%. The profit was below the market estimate of ₹69 crore, while revenue and EBITDA were higher than estimates of ₹866 crore and ₹130 crore, respectively.
Margins Under Pressure Despite Revenue Growth
Kaynes Technology’s gross margin declined to 34.4% from 41.1% as raw material costs increased 57% YoY to ₹620.5 crore from ₹395.6 crore. Employee expenses rose 44% to ₹85.1 crore, while other expenses declined 12% to ₹92.9 crore.
Depreciation and amortisation increased 137% to ₹37 crore from ₹15.6 crore, while finance costs rose 31% to ₹37.1 crore. Other income declined 47% to ₹14.4 crore from ₹27.1 crore. Total tax expenses increased 46% to ₹31.4 crore. The company attributed gross margin pressure to supply-chain, energy, commodity and forex cost escalation.
Explore Why: Kaynes Technology Shares Tumbled to 19% on 14th May
Order Book Remains Strong
The company’s order book stood at ₹8,903.8 crore as of June 30, 2026, up from ₹7,401.1 crore a year earlier and 6% higher sequentially. The order book-to-TTM sales ratio remained stable at 2.3x.
However, the average cash conversion cycle increased to 163 days from 122 days, reflecting higher working capital requirements. The company said FY27 would be a challenging year but expects profitability to normalise over the next couple of quarters.
Diversified Revenue Mix
Industrial remained the largest revenue contributor at 55%, followed by automotive and EVs at 26%, IT, IoT, consumer and other businesses at 9%, railways at 5%, medical at 2%, and aerospace, outer space and strategic electronics at 2%.
By business segment, OEM turnkey box-build solutions contributed 51% of revenue, OEM turnkey PCBA accounted for 23%, while ODM, product engineering and IoT solutions contributed 25%.
Why Kaynes Technology Stock Fell After Q1 Results?
Kaynes Technology shares fell as much as 9% in early trade on August 10 after the Q1 results. The key concerns were the 24% decline in PAT, margin compression, higher depreciation and tax costs, and a sharp increase in the cash conversion cycle.
The stock, however, recovered most of its opening losses within the first 30 minutes. Strong revenue and EBITDA growth, a robust order book and better-than-expected operating performance supported the recovery.
Growth Plans and Outlook
Kaynes expects its smart metering business to turn cash positive by year-end and plans to announce a detailed de-risking strategy in February 2027. The company is also in advanced talks with a large global EV manufacturer.
Its space business targets a prototype satellite launch by mid-2027, while two subsidiaries are entering the titanium-gas bottle supply business for ISRO and DRDO. OSAT and PCB are expected to become key growth engines from Q3 and Q4 FY27.
Overall, while strong revenue growth and order visibility remain positives, profitability and working capital will remain key factors to watch in the coming quarters.
