KAYNES
Small CapKaynes Technology India Limited
IT
Kaynes Technology is an integrated electronics manufacturing services (ESDM) provider in India, offering conceptual design, process engineering, integrated manufacturing, and lifecycle support. It serves diverse verticals like automotive, aerospace, industrial, and medical, with capabilities spanning EMS, OSAT, and PCB manufacturing.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
medium confidence · 6/16 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 2/100PAT -22% YoY · margin compression · Rev +26% YoY · +55% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,243 Cr | +26.3% | +54.6% |
| EBITDA | ₹194 Cr | +15.5% | +63.0% |
| Operating margin | 16.0% | -100 bps | +100 bps |
| PAT | ₹91 Cr | -21.6% | +18.2% |
| PAT margin | 7.3% | -447 bps | -226 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
FY26 Revenue grew 33% YoY to INR 36,264mn, with EBITDA up 40% YoY to INR 5,741mn (margin 15.8%, +70bps). However, Q4FY26 PAT declined 21% YoY to INR 912mn (margin 7.3%, -450bps) despite 26% YoY revenue growth. Net working capital days increased to 125 from 87.
While FY26 showed strong top-line and EBITDA growth, the significant Q4 PAT margin compression and substantial increase in net working capital days raise concerns about operational efficiency and cash conversion. The strategic backward integration into OSAT and HDI PCB is positive, but execution and ramp-up are critical to justify the increased capital employed.
Revenue by vertical (FY26)
Latest issuer-disclosed distribution across 6 reported categories.
Diversified Verticals
Caters to automotive, aerospace, industrial, railways, medical, and IT/IoT, serving 500+ customers in 30+ countries.
Integrated ESDM Capabilities
Evolving as an integrated electronics player by moving into OSAT and HDI PCB, redefining its position in the ESDM ecosystem.
Design-led ODM Solutions
Offers ODM solutions in smart devices, IoT, brushless drive technology, and Gallium Nitride technology, including acquisition of Mustard into AR/VR.
Strategic Expansion
Expanding in different geographies to be closer to customers and moving into OSAT and HDI PCB manufacturing.
Chamarajanagar Expansion
Phase-I (Alpha & Beta) ready (~100K sq ft); Phase-II (Gamma) ready for operations (~240,000 Sq feet) with Class 10K Clean Room, Wire Bonding, Box Build, and Aerospace vertical focus.
Hyderabad New Plant
Upcoming new plant of 150K SFT in Kongara Kalan, near Hyderabad Airport.
Sanand OSAT Facility
Semicon Plant 1 (Pilot line) for OSAT already operational; Unit 2 also ready to be operational by July. Launched India's first commercial Multi-chip module.
Chennai PCB Unit
PCB Unit 1 will be operational by July 2026, targeting about 5 Million SQ MT of PCB manufacturing capacity for multi-layer, HDI, and flexible PCBs.
Global ESDM Shift
Industry shifting from traditional OEM-led production to integrated system-level partnerships, favoring end-to-end solution providers.
India's PCB Market Growth
India’s PCB market projected to grow from USD 6.3 billion in 2024 to USD 24.7 billion by 2033 at a CAGR of 15.6%.
Government Incentives
Growth fueled by government incentives (PLI, Make in India) and localization of electronics supply chains.
5G Infrastructure & Advanced Technologies
Telecom (5G) infrastructure and a surge in advanced multi-layer and flexible PCB technologies are driving demand.
Q4 PAT Margin Compression
Q4FY26 PAT margin declined by 450 bps YoY to 7.3%, indicating pressure on profitability in the latest quarter.
Increased Finance Cost
Finance cost increased by 38.7% YoY in Q4FY26 to INR 409 mn, impacting bottom-line profitability.
Net Working Capital Deterioration
Net working capital days increased significantly to 125 days in FY26 from 87 days in FY25, indicating higher capital blockage.
Rising Trade Receivables
Trade receivables more than doubled to INR 15,276 mn in FY26 from INR 5,746 mn in FY25, posing a cash flow risk.
Execution Risk of New Capacities
Significant capacity additions in OSAT and HDI PCB require successful ramp-up and customer acquisition to realize benefits.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is essential for assessing annual growth and overall business trajectory. QoQ is crucial for understanding sequential momentum, particularly given the notable decline in Q4 PAT margin and the increase in working capital days, which indicate potential short-term operational shifts.
Revenue from operations
FY26: INR 36,264 mn (33.2% YoY); Q4FY26: INR 12,426 mn (26.2% YoY)
EBITDA Margin
FY26: 15.8% (+70 bps YoY); Q4FY26: 15.6% (-150 bps YoY)
Net Profit After Tax (PAT)
FY26: INR 3,639 mn (24.0% YoY); Q4FY26: INR 912 mn (-21.5% YoY)
Net Working Capital Days
FY26: 125 days (vs 87 days in FY25)
Integrated Electronics Player
Management aims to evolve as an integrated electronics player by moving into OSAT and HDI PCB, spanning wafer to end-user product.
Fully Integrated ODM
Strategic integration of EMS, OSAT, and PCB manufacturing capabilities aims to accelerate time-to-market and become a fully integrated electronics ODM.
Mass Production Ramp-up
Ramping up mass production of IPMs from Sanand OSAT Facility by July 2026 nationwide.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Working Capital Days | 125 days (FY26) | Stabilization or reduction in working capital days to improve cash conversion cycle. |
| PAT Margin Trend | 7.3% (Q4FY26) | Reversal of the Q4 margin compression and sustained improvement in profitability across quarters. |
| OSAT & PCB Capacity Utilization | Pilot line operational, Unit 2 ready by July (OSAT); PCB Unit 1 operational by July 2026 | Timely commissioning and ramp-up of new OSAT and PCB facilities, along with order book conversion. |
| Trade Receivables | INR 15,276 mn (FY26) | Control over the growth of trade receivables relative to revenue to manage cash flow effectively. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
The balance capex requirement for OSAT of INR 10.3 billion will be spread over five years.
"capex spread over five years"
The company will endeavor to ensure that smart meter receivables do not cross collection periods of 90 days.
"do not cross collection periods of 90 days"
Management plans to discount approximately INR 240 crores of smart meter receivables to reduce the outstanding amount before the fiscal year ends.
"approximately INR240 crores of such receivables will anyway get discounted"
Smart metering business execution in the second half is planned to be of the nature of about INR 300-odd crores.
"execution, which will be of the nature of about INR300-odd crores"
Outcome check: Revenue YoY averaged 26.3% across 1 later quarter(s).
Working capital normalization measures are expected to show visible improvement going forward.
"expected to show visible improvement going forward"
The company does not expect free cash flow from the EMS business in the near term as cash will be reinvested for growth.
"FCF, I'm not sure in the near-term that will happen"
Outcome check: Revenue YoY averaged 26.3% across 1 later quarter(s).
Kaynes plans to transition away from being an AMISP company to solely being a device company to various AMISPs.
"We will no longer be an AMISP company"
Approval from three OSAT customers is expected to help the company generate good revenues starting from FY 2027 onwards.
"help us to do good revenues, starting from FY '27 onwards"
Outcome check: Revenue YoY averaged 26.3% across 1 later quarter(s).
Trend score and candlestick chart
43NeutralSMA20 -14.3% / mo · near 52W low
Technical chart
KAYNESdaily · 6M-21.0%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 36. Wait for confirmation.
- SMA20 falling (~30.5% over last month) — short-term momentum negative.
- RSI(14) at 36 — sideways, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 21/25 to the score.
- Balance sheet contributes 10/15 to the score.
- Cash flow contributes 1/10 to the score.
Main drags
- Fair-value margin of safety is negative at -57.6%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 2/30; verify the latest quarterly trend.
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Management has 83% delivered/partly-delivered outcomes on 6 checked claims, with 1 adverse claim outcome. It ranks around the 67th percentile of the scored universe and 60th percentile within IT. Main check: cash conversion is weak at 40/100.
Healthy Trust: 6/16 extracted management claims have outcome checks; 83% were fully delivered and 0 were partially delivered. 1 claim(s) were contradicted or failed. Key concern: Operating cash flow is negative at ₹-600 Cr.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 60th pctile, median 68 · Small: 72nd pctile, median 65
6/16 claims have outcome checks.
6/16 claims checked · 1 contradicted/failed claim
How to read this Trust Score
Healthy Trust · medium confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸3/4 latest quarters had positive YoY PAT growth.
- ▸OPM spread across recent quarters is 4%.
Trust risks
- ▸Operating cash flow is negative at ₹-600 Cr.
Intrinsic value
Fundamentals
Valuation
- P/E
- 56.30
- P/B
- 4.34
- EV/EBITDA
- 31.58
- Market Cap
- 20595.00Cr
Profitability
- ROE
- 9.64%
- ROCE
- 13.20%
- ROA
- 5.28%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 54.00%
- EPS 5Y
- 108.00%
- Revenue 3Y
- 48.00%
- EPS 3Y
- 57.00%
Balance Sheet
- Debt/Equity
- 0.19
- Interest Coverage
- 4.91×
- Altman Z
- 7.76
- Book Value
- 708.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- -600.00 Cr
- EPS TTM
- 54.28
Shareholding
- Promoter Hold
- 53.46%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 2%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.