Kaynes Tech eyes 30% FY27 growth, 17% margin by FY27

What Kaynes Technology announced

Kaynes Technology India Limited has published its audited financial results for the quarter and year ended March 31, 2026. The company also filed its Q4FY26 Investors or Earnings Presentation with the stock exchanges under Regulation 30 of SEBI (LODR) on May 13, 2026. Kaynes said the presentation will be used for meetings with analysts or institutional investors up to June 30, 2026.

The update matters because FY26 delivered strong revenue growth, but Q4 profitability weakened, and multiple brokerages flagged execution and working capital risks. Management guidance for FY27 is now a key focus as the company ramps up new capacity, including OSAT and PCB.

FY26: Revenue up 33.2%, profit up 24%

On a consolidated basis, Kaynes reported FY26 revenue from operations of ₹3,626.4 crore, up 33.2% year-on-year from ₹2,721.8 crore in FY25. Consolidated net profit for FY26 rose 24% to ₹363.9 crore from ₹293.4 crore in FY25.

Full-year EBITDA increased to ₹574.1 crore from ₹410.7 crore, taking the EBITDA margin to 15.8% in FY26 versus 15.1% in FY25. The company also reported a rise in employee expenses and raw material costs during the year, reflecting expansion and higher activity levels.

Q4FY26: Profit fell 21.5% as margins narrowed

For Q4FY26, Kaynes reported consolidated revenue from operations of ₹1,242.6 crore, up 26.2% from ₹984.5 crore a year earlier. EBITDA rose to ₹193.7 crore from ₹167.9 crore, but the margin fell to 15.59% from 17.05%, a contraction of 146 basis points.

Net profit after tax declined 21.5% to ₹91.2 crore from ₹116.2 crore in Q4FY25. The quarter also saw higher finance costs and a sharp jump in depreciation and amortisation, alongside a steep increase in employee expenses.

FY27 guidance: 30% revenue growth, ~17% EBITDA margin

According to CNBC TV18, Kaynes has guided for 30% revenue growth for FY27. It also expects to reach around a 17% EBITDA margin by FY27.

This guidance comes after FY26 delivered an EBITDA margin of 15.8% on a consolidated basis, while Q4 margins were lower at 15.59%. The FY27 margin target implies that execution, product mix, and ramp-up performance in newer lines will be closely tracked.

Brokerages: Ratings reflect execution and working-capital concerns

After the Q4FY26 print, several brokerages revised views on Kaynes Technology, focusing on working capital stretch, cash flow pressure, and the reliability of guidance.

Separately, JM Financial Institutional Securities downgraded the stock to ‘Reduce’ from ‘Buy’, pointing to a miss on FY26 revenue guidance, a working capital cycle of 179 days (as cited by the brokerage), and continued cash burn.

Working capital and operating cash flow: the pressure point

Kaynes reported net cash from operating activities of -₹600.4 crore in FY26. The company attributed the operating cash outflow to a significant increase in trade receivables of -₹1,023.9 crore and inventory build-up of -₹288.8 crore.

Broker notes cited in the update also highlighted net working capital days moving higher, including references to 125 days and 137 days, and a longer cycle in JM Financial’s commentary. These indicators are important because they affect liquidity, funding costs, and the company’s ability to scale without stressing the balance sheet.

Cash flow from investing activities was -₹917.2 crore in FY26, while financing activities generated ₹1,579.6 crore. Cash and cash equivalents at March 31 stood at ₹109.4 crore.

Balance sheet expansion: assets up to ₹6,894 crore

The FY26 balance sheet reflects significant expansion in the asset base. Total assets rose to ₹6,894.0 crore in FY26 from ₹4,641.2 crore in FY25. Net block (tangible assets) increased to ₹1,109.7 crore from ₹504.5 crore, while intangible assets rose to ₹536.4 crore from ₹238.1 crore.

On the liabilities side, long-term borrowings increased to ₹337.0 crore from ₹67.5 crore, while short-term borrowings declined to ₹537.9 crore from ₹808.0 crore. Total equity and reserves stood at ₹4,762.5 crore as of FY26.

Operations: OSAT begins commercial operations, PCB unit timeline

Kaynes said its order book stood at ₹8,366.3 crore as of Q4FY26, and management commentary referenced an order book “upwards of ₹8,000 crore” for FY26.

The company also announced that its OSAT facility in Sanand, Gujarat has commenced commercial operations, including the launch of India’s first commercial multi-chip module and shipment of IPMs to AOS. Kaynes added that its HDI PCB manufacturing unit is nearing readiness, with PCB Unit 1 expected to be operational by July 2026.

Kaynes currently operates 22 advanced manufacturing and design facilities and serves 500+ customers across 30+ countries.

Market reaction: sharp fall after results

The stock saw heavy selling after the Q4FY26 numbers. The update cited a 1-day move of -19.20% for Kaynes, while the BSE Sensex was up 0.31% at 74,837.13. The stock was also cited trading around ₹3,370 on the BSE in afternoon trade after a steep intraday fall.

Technical commentary in the update referenced support levels around ₹3,350-₹3,300, with resistance cited near ₹3,600-₹3,700.

Key numbers at a glance

Why the FY27 guide will be judged on cash conversion

Kaynes’ FY27 guidance of 30% revenue growth and ~17% EBITDA margin sets a clear operational bar, but the market’s immediate attention is on execution and cash conversion. The FY26 operating cash flow was negative, and receivables and inventories expanded sharply, both of which can dilute the benefits of revenue growth.

The ramp-up of the Sanand OSAT facility and the upcoming PCB Unit 1 start in July 2026 are critical milestones because they can influence the revenue mix, depreciation load, and working capital needs. Brokerages have also indicated they want clearer evidence of stable execution and guidance delivery.

Conclusion

Kaynes ended FY26 with strong revenue growth and higher full-year EBITDA, but Q4 profitability and cash flows weakened amid higher costs and heavier balance sheet absorption. The company’s stated FY27 goals, including 30% revenue growth and ~17% EBITDA margin, will now be assessed alongside working capital movement and progress at OSAT and PCB facilities, with PCB Unit 1 expected to be operational by July 2026.