Kaynes Technology India (KAYNES) Q4 25/26 earnings summary

Executive summary

• Achieved consolidated FY26 revenue of ₹36,264 million, up 33.2% year-over-year, with EBITDA of ₹5,741 million, EBITDA margin at 15.8%, and PAT of ₹3,639 million, up 24% year-over-year.

• Q4 FY26 revenue was ₹12,426 million, up 26% year-over-year, with operational EBITDA of ₹1,940 million and PAT of ₹912 million, though Q4 PAT declined 21% year-over-year.

• Maintained a strong order book at ₹83,663 million as of FY26, reflecting robust demand across verticals.

• Expanded manufacturing and R&D capabilities, including new OSAT and PCB facilities, and launched India's first commercial multi-chip module.

• Mysore facility crossed ₹10,000 million in revenue, reflecting operational maturity and customer confidence.

Financial highlights

• PAT for FY26 was ₹3,639 million, with a PAT margin of 10%.

• Debt-to-equity ratio at 0.2, reflecting prudent capital structure; net debt reduced to ₹2,074 million, with net debt-to-equity at 0.0.

• EPS grew from ₹13 in FY24 to ₹54.85 in FY26.

• Working capital days at 122–125 for FY26, mainly due to Smart Meter segment; core EMS business improved from 83 to 53 days.

• Standalone EMS business generated ₹2,500 million positive cash flow, while consolidated OCF was negative due to metering business.

Outlook and guidance

• Management targets to outgrow the EMS market, aiming for double the industry growth rate (market at 16-18%).

• Strategic expansion into OSAT and HDI PCB manufacturing, with new units operational or set to launch by July 2026.

• No specific revenue guidance provided due to market volatility; focus on execution and risk mitigation.

• Expectation to resolve metering business working capital issues within three quarters and return to positive cash flow.

• 30% of future revenue targeted from new product development and value-added solutions.