Kaynes Technology India Posts
47% Jump in Q1 FY26 Profit, Sales Climb 34% Amid Robust Demand
Bengaluru, July 31, 2025
Kaynes Technology India, a prominent Electronics Manufacturing Services (EMS)
company, delivered an impressive financial performance in the first quarter of
fiscal year 2025–26 (Q1 FY26). The company reported a 46.93% year-on-year (YoY) increase in consolidated net profit,
reaching ₹74.61 crore for the June 2025 quarter. The revenue from operations
surged 33.63% YoY, totaling
₹673.47 crore.
This remarkable growth underscores the company’s strong order book, expanding customer base, and robust momentum in the electronics and embedded systems space.
Kaynes Technology India Financial Highlights – Q1 FY26 vs Q1 FY25
| Particulars | June 2025 | June 2024 | % Change YoY |
|---|---|---|---|
| Net Sales (₹ Cr) | 673.47 | 503.98 | +33.63% |
| Operating Profit Margin | 16.78% | 13.27% | ↑ |
| PBDT (₹ Cr) | 111.71 | 72.48 | +54.14% |
| PBT (₹ Cr) | 96.09 | 64.12 | +49.83% |
| Net Profit (₹ Cr) | 74.61 | 50.78 | +46.93% |
What’s Driving Kaynes’ Stellar Performance?
1. Strong Manufacturing Demand Across Sectors
Kaynes Technology is a key player in the
design-led electronics manufacturing sector. With clients across automotive,
aerospace, medical devices, railways, and industrial automation, the company
has benefited from increasing demand for sophisticated electronic solutions.
The Make in India and PLI (Production Linked Incentive) initiatives have also contributed to increased domestic manufacturing, helping Kaynes secure multiple new contracts in FY25.
2. Rapid Expansion of Embedded Systems & IoT Offerings
The company’s strategy to move beyond traditional manufacturing and into the embedded systems and IoT services space has started paying off. Kaynes has been investing in high-end design services, which now contribute significantly to its margins. Its end-to-end capabilities from product concept to volume production give it a competitive edge.
3. Global Market Penetration
Kaynes continues to diversify geographically, exporting to more than 25 countries. The June 2025 quarter saw higher contributions from the European and North American markets, driven by auto electronics and EV components.
Stock Market Reaction: Kaynes Shares Trade Higher
Following the earnings release, Kaynes Technology stock rose over 3% intraday
on the NSE, signaling investor optimism about the company's trajectory. The
stock has been on a steady uptrend in the past year, delivering over 95% return in the last 12 months.
Brokerages remain bullish on Kaynes, citing solid order visibility, strong margin expansion, and increasing contribution from value-added services.
Detailed Segment-Wise Growth
Automotive Electronics
This continues to be the top revenue
contributor. With EV penetration increasing, Kaynes' EMS solutions for battery
management systems (BMS), powertrain electronics, and telematics have seen a
huge surge.
Medical Devices
Increased demand for diagnostic equipment and
wearable health devices helped this segment grow over 30% YoY.
Industrial Automation & Aerospace
Kaynes has gained notable traction in supplying to aerospace and railway OEMs, especially in embedded controller boards and sensor systems. Order inflows were robust in Q1 FY26.
Management Commentary
Mr.
Ramesh Kannan, Managing Director of Kaynes Technology, stated:
“We are pleased to report a strong Q1 FY26
performance with consistent growth across verticals. Our focus on design-led
manufacturing and building intellectual property is helping us improve
profitability and customer stickiness.”
He added that the company is ramping up production capacities at its Mysuru and Hyderabad units and expects double-digit growth momentum to continue through FY26.
Capex and Expansion Updates
Kaynes plans to invest around ₹300 crore over the next 18 months to
expand facilities in Tamil Nadu and Telangana. This includes:
·
Setting up a dedicated IoT/embedded R&D center
·
Capacity expansion for automotive and aerospace
components
· Hiring 500+ engineers and technicians to support demand
Analyst Views: What Do Experts Say?
Motilal Oswal
“Kaynes' Q1 FY26 results reaffirm its
leadership in EMS and embedded design. Margin expansion, high RoCE, and client
diversification bode well for FY26–27.”
ICICI Securities
“The growth in higher-margin design services is notable. We expect PAT CAGR of ~35% over FY25–FY27. We retain our BUY rating.”
Risk Factors Investors Should Watch
Despite the bullish outlook, investors should
remain aware of certain risks:
1. Component
Shortage:
While easing globally, disruptions in
semiconductor supply chains could still impact delivery timelines.
2. Client
Concentration Risk:
A few major clients account for a significant
portion of revenue. Any loss in key accounts could hurt the topline.
3. High
Valuations:
The stock is currently trading at over 60x trailing 12-month earnings, which may limit near-term upside unless earnings continue to outperform.
About Kaynes Technology India
Founded in 1989 and headquartered in Mysuru,
Karnataka, Kaynes Technology India Ltd
is a leading end-to-end and IoT-enabled integrated electronics manufacturer. It
provides:
·
Embedded product design
·
PCBA (Printed Circuit Board Assembly)
·
Product engineering
·
Box build and systems integration
·
Original Design Manufacturing (ODM) services
Kaynes went public in November 2022 and is listed on both NSE and BSE.
Investment Advisory
This article is for informational purposes only and does not constitute
investment advice. Please consult a certified financial advisor before making
investment decisions.
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