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KAKAYNES

Kaynes Tech Q1 FY27 results (Apr–Jun 2026) and concall

Capital Goods · Concall AI · Call held 8 Aug 2026

Company page: Kaynes Tech share price, financials & guidance record

Source transcript

Management summary

Kaynes Technology delivered a strong Q1 FY27 with 40% YoY revenue growth and 31% EBITDA growth, underpinned by robust EMS performance and significant new order wins. Despite a strategic degrowth in the smart metering segment and margin pressures from global supply chain volatility, the company is on track for OSAT and PCB commercialization by Q3 FY27. Management remains focused on improving working capital, aiming for cash flow positivity by year-end, and maintaining balance sheet strength amidst strategic capacity expansions.

Highlights

  • Total revenue grew 40% YoY to ₹946 crores.

  • EBITDA grew 31% YoY to ₹147.6 crores, with a 15.6% margin.

  • Secured a robust order book of ₹9,000 crores, adding ₹1,500 crores in new orders this quarter.

  • Standalone EMS business (excluding metering) grew significantly by 53% YoY to ₹639 crores.

  • Overseas entities demonstrated strong growth of 327% YoY, reaching ₹102 crores.

  • August Electronics acquisition successfully integrated, providing good inroads into the North American market.

  • OSAT and PCB projects are on track for commercial revenue booking from Q3 FY27, with a full-year target of ₹500 crores.

Concerns

  • Smart metering business degrew by 12% YoY to ₹204 crores due to collection issues and a strategic decision to prioritize balance sheet health.

  • EBITDA margins were softer due to cost escalation from global supply chain issues, macro factors, and higher depreciation.

  • The company reported a negative cash flow from operations of ₹259 crores for the quarter, influenced by increased inventory and receivables.

  • Minor timing slippage in OSAT and PCB ramp-up schedules occurred due to the West Asia conflict affecting equipment imports and component logistics.

  • Working capital days increased to 105 days (from 96 days) due to a strategic inventory build-up to mitigate supply chain lead times.

Key financials

  1. Revenue ₹946 Cr +40%YoY
  2. EBITDA ₹147.6 Cr +31%YoY
  3. EBITDA Margin 15.6%
  4. Cash Flow from Operations ₹-259 Cr
  5. Inventory Increase ₹177 Cr
  6. Receivables Increase ₹68 Cr
  7. Consolidated Tax Rate 35%
  8. Debt-to-Equity Ratio 0.3

What they filed

Q1 FY27: revenue up 22.6%, net profit up 42.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue433 396 737 451 467 +8%522 +32%688 −7%553 +23%
EBITDA73 49 84 65 63 −14%74 +51%86 +2%68 +5%
Net profit63 38 60 54 63 +0%66 +74%71 +18%77 +43%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹945 Cr Total
  • Standalone EMS (excl. Metering) ₹639 Cr 67.6%
  • Smart Metering Business ₹204 Cr 21.6%
  • Overseas Entities ₹102 Cr 10.8%

Order book

high confidence

Total value

₹9,000 Cr

as of 2026-06-30 quantified

Inflow this quarter

₹1,500 Cr

Cancellations & deferrals

  • deferred: Minor timing slippage in OSAT and PCB ramp-up schedule due to West Asia conflict affecting equipment imports and component logistics.
The company has a robust order book and added significant new orders this quarter, despite minor timing slippages in new project ramp-ups due to external factors.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹230 Cr this quarter · ₹850 Cr (FY27) planned Internal funding for Semicon and Circuit, without taking approved long-term loans.
    • OSAT capacity expansion ₹300 Cr
    • PCB capacity expansion ₹300 Cr
    • EMS business expansion ₹250 Cr
    Our current goal is to capex at about INR300 crores for OSAT and PCB... this capex for this year is about INR300 crores for OSAT, INR300 crores for PCB, and about INR250 crores for EMS business. We are on track for that. The first quarter spent is about INR90 plus INR90, INR180 plus INR50, INR230 crores, all put together... Even for the approved loan for our long-term capital in Semicon and Circuit, we have not taken at this point of time. They're going through the internal funding, you all know.
  • Debt Gross ₹800 Cr
    The debt-to-equity ratio is good at about 0.3% at this point of time. The exact number I'm not able to tell, around INR800 crores total, but I think the team is picking it up.
  • M&A August Electronics Acquisition · Integrated

    Provided good inroads into the North American market and contributed to good EBITDA margins.

    Good EBITDA margin business, hopeful that growth will accelerate into overseas business and bring value additions to India.

    You all know that we acquired August Electronics in July of last year, and at this point of time, we have completed 1 year of a successful acquisition. As Mr. Vice Chairman said, this has given us a good inroads into the North American market, and our acquisition at this point of time shaping up very nicely, a good EBITDA margin business, and we are hopeful that growth will accelerate into our overseas business going forward, and also bringing in more of value additions to India, not just from our subsidiary, but also increasingly export-oriented business as well, with the key global players like Honeywell, Otis, Eaton, and many others.
  • Liquidity Liquidity disclosed Inventory levels increased by INR150 crores as a strategic decision to manage global market volatility and supply chain lead times. Receivables increased by INR68 crores, contributing to negative cash flow from operations.
    Though our inventory levels in terms of the working capital has gone up by about INR150 crores, as I said, this is a strategic decision that we took in the month of February, looking at the global market situation and the volatility... At the end of first quarter, I think we as we said, our inventory has gone up by INR177 crores, we have added up, and receivables we were short by INR68 crores, taking it to about a total of about INR259 crores of a negative cash flow, okay?

Guidance & targets

Revenue

  • Overall Revenue Growth Revenue · FY27 · High confidence 2x market growth
    Sir, revenue growth, we have committed the 2x of the market growth. The first quarter the market has grown at 17% and we have grown at more than 45% in our 48% in our EMS business.

    — N. Muthukumar

  • OSAT and PCB Revenue Revenue · FY27 · High confidence ₹500 crores
    As far as OSAT and PCB is concerned, we already told from third quarter the revenue starts in both the business, and we have committed a full year revenue of totally INR500 crores between both, which is what we are targeting at this point in time, we are on the target.

    — N. Muthukumar

Capex

  • OSAT Capex Capex · FY27 · High confidence ₹300 crores
    Our current goal is to capex at about INR300 crores for OSAT and PCB... this capex for this year is about INR300 crores for OSAT, INR300 crores for PCB, and about INR250 crores for EMS business.

    — N. Muthukumar

  • PCB Capex Capex · FY27 · High confidence ₹300 crores

    — N. Muthukumar

  • EMS Capex Capex · FY27 · High confidence ₹250 crores

    — N. Muthukumar

Working Capital

  • Cash Flow from Operations Working Capital · End of FY27 · High confidence Cash positive
    Having said that, we have taken up at all levels in the GridCrest business, and though late, we have got about INR200 crores of money in the first week of July, which gives us the confidence that whatever the commitment that we have given to you as a leadership team, that by end of the financial year we'll turn the cash positive, we are pretty confident on that.

    — N. Muthukumar

Balance Sheet

  • Balance Sheet Health Balance Sheet · Ongoing · Medium confidence Clean
    Having talked about the balance sheet, as Mr. Ramesh, our Executive Vice Chairman, said, we strongly believe that P&L is very important, but balance sheet is going to be clean. So, going forward, we'll continue to spend and ensure that the team is work making a balance sheet much, much better than what we are doing now.

    — N. Muthukumar

Smart Metering

  • Smart Metering Business Strategy Smart Metering · February earnings call · High confidence Update on strategy
    As we committed, we come back by our February month on our strategy to see how we're going to manage this business.

    — N. Muthukumar

What to watch in Q2 FY27

Smart Metering Business Strategy Update

February earnings call
Current Strategic degrowth due to collection issues, plans for potential divestment of service portion.
Target Clear strategy for smart metering business, potentially including divestment or improved collection mechanisms.

Why it matters

This will clarify the future of a segment that has been a drag on working capital and profitability.

As we committed, we come back by our February month on our strategy to see how we're going to manage this business.

Find out whether KAYNES delivers this. Inve re-checks your case every morning.

Risks & concerns

  • West Asia conflict impacting logistics

    high

    Escalation in West Asia affecting equipment imports and component logistics, leading to minor timing slippage in OSAT and PCB ramp-up.

    Management acknowledged

  • Smart metering receivables and working capital stress

    high

    Collections in the smart metering business were low (INR88 crores vs INR240 crores sales), leading to a strategic decision to stop production/supplies and degrow the segment.

    Management acknowledged

  • Global supply chain issues and macro factors impacting margins

    high

    Cost escalation driven by global supply chain issues, energy, crude prices, commodity prices, and forex movement are impacting EBITDA margins, expected to normalize in 2 quarters.

    Management acknowledged

  • PCB global shortage and lead times

    high

    PCB is in global shortage, requiring advance payments and facing 6-8 month lead times, posing challenges for the business.

    Management acknowledged

  • Component price increases and availability

    high

    Component prices are up 10-12% (some up 30-35%), and availability is a big problem, putting pressure on the bottom line in the coming quarter.

    Management acknowledged

Q&A highlights

7 direct
EMS Growth and Overall Revenue Mix Direct
in a stand-alone EMS business, which it includes other than metering business if you take it, and of course, other than foreign entities also, because our acquisition of the August Electronics was done only in July, so last year first quarter it was not there. So as a stand-alone EMS business if you see, our growth is 53%, from INR480 crores of last year to this year of INR639 crores stand-alone EMS business.

Clarifies the strong performance of the core EMS business, which is the primary growth driver, and differentiates it from the overall company growth.

Asked by Renu Baid

Smart Metering Business Strategy and Potential Divestment Partial
we have plans of various business model of divesting this other portion of its service provider separately, and making sure that the receivables from that is not impacting directly into our balance sheet. But having said that, this is not a simple thing that we need to do. We are working on this model. As we committed, we come back by our February month on our strategy to see how we're going to manage this business.

Addresses concerns about the smart metering business's impact on working capital and signals a potential strategic shift or divestment of the service portion to improve balance sheet health.

Asked by Renu Baid

Working Capital and Cash Flow from Operations Direct
At the end of first quarter, I think we as we said, our inventory has gone up by INR177 crores, we have added up, and receivables we were short by INR68 crores, taking it to about a total of about INR259 crores of a negative cash flow, okay? Having said that, the first quarter is very, very challenging quarter in terms of our businesses for most of the Indian entities.

Provides specific figures for the negative cash flow from operations and explains the contributing factors, highlighting the company's liquidity challenges in the quarter.

Asked by Siddhartha Bera

OSAT and PCB Commercialization Timelines and Investments Direct
Our commitments, as indicated by Executive Vice Chairman during last year, we are going to have a commercial revenue booking from this year, from third quarter and fourth quarter, and we are committed to that. And the project is on track.

Confirms the timeline for revenue generation from the new OSAT and PCB ventures, which are key strategic growth areas for the company.

Asked by Renu Baid

Impact of Component Cost Inflation and Margins Direct
There is a sharp increase that's happening in the entire supply chain, which is leading to lead time for supply to the extent of more than 6 to 8 months in some categories, and the management team has already taken initiative to ensure that enough materials in the pipeline is available with us to take care of the business commitments for the future quarters... The market is quite challenging. Looking forward, it is going to put a pressure on the bottom line in the coming quarter, because there is a huge impact that is happening.

Explains the reasons behind softer margins and the proactive steps taken by management to secure materials, while also cautioning about continued pressure on profitability.

Asked by Praveen Sahay

Overall Revenue Growth Guidance for FY27 Direct
Sir, revenue growth, we have committed the 2x of the market growth. The first quarter the market has grown at 17% and we have grown at more than 45% in our 48% in our EMS business. So we don't want to give an absolute number because there is so much of volatility in the market.

Reiterates the company's ambitious growth target relative to the market, while acknowledging market volatility prevents a specific numerical guidance.

Asked by Achal Lohade

Debt Levels and Funding Strategy Direct
The debt-to-equity ratio is good at about 0.3% at this point of time. The exact number I'm not able to tell, around INR800 crores total, but I think the team is picking it up. We are very well in control. Even for the approved loan for our long-term capital in Semicon and Circuit, we have not taken at this point of time. They're going through the internal funding, you all know.

Provides transparency on the company's debt position and reassures investors about its controlled capital structure and reliance on internal funding for new projects.

Asked by Sonali Salgaonkar

Space Technology Initiatives Progress Direct
Our first 3U satellite is currently in the prototype development phase, and we expect it to be ready to launch in middle of next year, once the required regulatory testing is complete.

Highlights the company's diversification into the strategic space technology sector and provides a timeline for its first satellite launch.

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Detailed narrative

Q1 FY27 Performance Overview

Kaynes Technology reported a total revenue of INR946 crores for Q1 FY27, marking a 40% year-on-year growth. EBITDA for the quarter stood at INR147.6 crores, translating into a 15.6% EBITDA margin and a 31% year-on-year growth. The company maintains a robust order book of approximately INR9,000 crores, with INR1,500 crores in new orders secured this quarter.

Despite these positive top-line figures, the company experienced a negative cash flow from operations of INR259 crores, primarily due to a strategic increase in inventory by INR177 crores and an increase in receivables by INR68 crores.

Strategic Growth Engines: OSAT and PCB Progress

The company's strategic growth engines, Kaynes Semicon (OSAT) and Kaynes Circuit (PCB), remain a key focus. Despite minor timing slippages due to global logistics disruptions from the West Asia conflict, both units are on track to be operational by Q3 FY27.

The company has committed a full-year revenue target of INR500 crores from OSAT and PCB for FY27, with commercial booking expected to commence from Q3. Total capital expenditure for FY26 was INR473 crores for OSAT and INR324 crores for PCB, with a current FY27 capex goal of INR300 crores for each segment, plus INR250 crores for EMS.

Smart Metering Business Challenges and Strategy

The smart metering business experienced a 12% year-on-year degrowth in Q1 FY27, with sales of INR204 crores compared to INR231 crores last year. This was a conscious decision by management to prioritize collections and improve the balance sheet, as collections for the segment were only INR88 crores against sales of INR240 crores.

The company acknowledges the challenges with receivables in this segment and is exploring options, including potentially divesting the service portion of the business, to de-risk its balance sheet. An update on this strategy is expected by the February earnings call.

Working Capital Management and Balance Sheet Focus

Working capital days increased to 105 days at the end of Q1 FY27, up from 96 days previously. This was attributed to a strategic decision in February to build up inventory by INR150-177 crores to mitigate global supply chain volatility and extended lead times (6-8 months for some components).

Management is committed to turning the cash flow positive by the end of FY27 and ensuring the balance sheet remains 'clean'. Efforts are ongoing to improve receivables, with a significant reduction in outstanding from a leading EV two-wheeler customer to below INR100 crores.

Impact of Global Supply Chain and Macro Factors on Margins

EBITDA margins faced pressure due to cost escalation driven by global supply chain issues, rising energy and crude prices, commodity price increases, and forex movements. The company expects profitability to normalize within the next two quarters. Despite these challenges, Kaynes has implemented strategic inventory build-up and back-to-back working with customers to minimize the impact.

While component prices have increased (10-12% for some, up to 3 times for PCBs), the company aims to pass on these costs, though adjustments may occur on a quarter-on-quarter basis.

New Customer Wins and Diversification

Kaynes Technology successfully onboarded India's second-largest two-wheeler EV manufacturer, with serial supplies already commenced. The company also secured new global brands from Germany and France, and a leading wireless communication company. The aerospace business saw a strong rebound this quarter.

Furthermore, Kaynes is diversifying into space technology, with its first 3U satellite in prototype development, expected to launch mid-next year. Subsidiaries Crio Precision and Aerotech Technologies are entering titanium gas bottle manufacturing for ISRO and DRDO, securing a second anchor customer from day one.

Summary of a publicly available earnings call transcript; see how call summaries are prepared. Not investment advice.