Kaynes Technology India (KAYNES) Q2 25/26 earnings summary

Executive summary

• Q2 FY2026 revenue reached INR 9,062 million, up 58% year-over-year, with operational EBITDA at INR 1,480 million, up 80%, and PAT at INR 1,214 million, reflecting a PAT margin of 13.4%.

• H1 FY2026 revenue was INR 15,797 million, up 47% year-over-year, with operating EBITDA at INR 2,610 million, up 75%, and PAT at INR 1,960 million, with a PAT margin of 12.4%.

• The company is transitioning from EMS to a fully integrated ESDM model, focusing on end-to-end solutions and deeper customer relationships.

• Major milestones include the delivery of India's first commercially manufactured multi-chip module at the Sanand OSAT facility and government approval for advanced PCB manufacturing projects.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with results reviewed and unqualified by statutory auditors.

Financial highlights

• Q2 FY2026 EBITDA margin expanded by 190 bps year-over-year to 16.3%; PAT margin at 13.4%, up 290 bps.

• H1 FY2026 EBITDA margin expanded by 270 bps year-over-year to 16.5%; PAT margin improved to 12.4%.

• Order book for Q2 FY2026 stands at INR 80,994 million, up from INR 54,228 million in Q2 FY2025.

• Net debt reduced to INR 4,218 million, with net debt-to-equity at 0.1 in H1 FY2026.

• Net working capital days increased to 116 in H1 FY2026 from 108 in H1 FY2025.

Outlook and guidance

• Management remains confident of meeting full-year profit, EBITDA, and revenue targets despite quarterly fluctuations due to supply chain issues.

• Revenue guidance of INR 4,500 crore for FY2026 is reiterated, with strong growth expected in railways, aerospace, and IT/IoT segments in H2.

• Long-term guidance of $1 billion revenue by FY2028 and $2 billion by FY2030 is maintained, supported by robust order inflow.

• Strategic expansion into OSAT and HDI PCB manufacturing, with new facilities operational and further capacity ramp-up planned.

• Significant unutilised capital from recent QIP placements is earmarked for facility expansion, working capital, and strategic investments.