Kaynes Technology India (KAYNES) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue reached ₹9,844.83 million, up 34% year-over-year, with PAT at ₹746 million, a 47% increase, and strong growth across all business verticals, especially from new clients in electric vehicles, aerospace, industrial, and rail sectors.

• Operational EBITDA grew 69% year-over-year to ₹1,130 million, with EBITDA margin expanding by 350 basis points to 16.8%.

• Order book increased to ₹74,011 million, reflecting robust demand and strong business pipeline.

• Strategic shift underway from pure EMS to integrated ESDM, supported by international expansion, acquisition of August Electronics in Canada, and incorporation of new subsidiaries in Canada and the space sector.

• Board approved unaudited financial results for Q1 FY26 and key appointments, including new Secretarial Auditor and ESOP allotments.

Financial highlights

• Consolidated revenue for Q1 FY26: ₹9,844.83 million, up from ₹6,734.66 million in Q1 FY25.

• EBITDA: ₹1,130 million (+69% YoY), margin at 16.8%.

• PAT: ₹746 million (+47% YoY), margin at 11.1%.

• Net worth increased to ₹45,028 million as of Q1 FY26.

• Net debt stood at ₹9,905 million, with a net debt to equity ratio of 0.2.

Outlook and guidance

• FY26 revenue guidance maintained at ₹45,000 million+, including contributions from core EMS/ESDM, OSAT, and Canadian acquisition.

• EBITDA margin expected to meet or exceed 15.6% guidance, with Q1 margin already at 16.8%.

• Positive operating cash flow expected for FY26, with targeted improvement in working capital days to around 70 by year-end, excluding extraordinary items.

• Continued focus on expansion, capital expenditure, and strategic investments, with AGM scheduled for September 11, 2025.