Kaynes Technology India (KAYNES) Q3 24/25 earnings summary

Executive summary

• Achieved strong revenue and profitability growth for Q3 FY25 and 9MFY25, with operating revenue of INR 17,373 million for the first three quarters, up 49% year-over-year.

• Q3 FY25 revenue was INR 6,612 million, a 30% year-over-year increase, with PAT margin at 10.1%.

• Maintained a diversified business profile across multiple industry verticals and geographies, with ongoing expansion in manufacturing capacity and investments in R&D.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on January 27, 2025.

• Statutory auditor review reports are unqualified, with no material misstatements identified.

Financial highlights

• Q3 FY25 operational EBITDA was INR 940 million, up 35% year-over-year, with a margin of 14.2%; PAT for Q3 FY25 was INR 665 million, up 47% year-over-year.

• 9MFY25 order book stood at INR 60,471 million, up from INR 37,890 million as of Dec-23.

• ROE and ROCE (adjusted) for the first three quarters were 17.3% and 17.7%, respectively.

• Net working capital days reduced to 107 from 117 year-over-year.

• Consolidated net profit for Q3 FY25 was INR 664.62 million, compared to INR 451.94 million in Q3 FY24.

Outlook and guidance

• Annual operating revenue growth expected to exceed 55% year-over-year for FY 2025, with EBITDA margin guidance for FY 2025 at 15%+ and similar or higher margins expected in FY 2026.

• Revenue guidance for FY 2025 is INR 2,800–2,900 crores; FY 2026 revenue target is INR 4,500 crores (excluding M&A).

• Ongoing expansion in manufacturing facilities, including new units in Chamarajanagar and Hyderabad, to support future demand.

• Unutilised IPO and QIP proceeds as of December 31, 2024, are temporarily invested in deposits and mutual funds, supporting future expansion.

• Strategic acquisitions and facility expansions are expected to strengthen market position.