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KAKAYNES

Kaynes Tech Q4 FY26 results (Jan–Mar 2026) and concall

Capital Goods · Concall AI · Call held 14 May 2026

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

Source transcript

Management summary

Kaynes Technology delivered strong FY26 revenue and EBITDA growth, despite missing its revised guidance due to geopolitical disruptions and customer deferments. The core EMS business showed improved working capital, though the metering segment impacted overall OCF. The company is strategically investing in OSAT and PCB, with significant long-term revenue visibility, and is focused on transitioning to a product-driven enterprise while strengthening operational excellence.

Highlights

  • Full Year FY26 consolidated revenue grew 33.2% YoY to INR3,626.4 crores.

  • Full Year FY26 EBITDA increased 39.8% to INR574.1 crores, with an EBITDA margin of 15.8%.

  • Q4 FY26 revenue grew 26% YoY to INR1,242.6 crores, with an EBITDA margin of 15.6%.

  • Core EMS business significantly improved working capital days from 83 in FY24 to 53 in FY26.

  • OSAT segment shows strong order outlook with revenue visibility of over INR2,500 crores over the next 5 years.

Concerns

  • FY26 revenue guidance was missed, ending at ~INR3,600 crores against a revised target of INR4,000 crores and initial INR4,500 crores.

  • Consolidated working capital days stood at ~122 days in FY26, primarily due to the smart meter segment, contributing to a negative OCF of ~INR600 crores in Q3 FY26.

  • Amortization of INR32 crores for intangible assets in Q4 FY26 impacted PBT.

Key financials

2 periods

Q4 FY26

  • Total Revenue
    ₹1,242.6 Cr
    YoY +26%
  • Operational EBITDA
    ₹193.7 Cr
  • EBITDA Margin
    15.6%
  • PAT
    ₹91.2 Cr

FY26

  • Total Revenue
    ₹3,626.4 Cr
    YoY +33.2%
  • EBITDA
    ₹574.1 Cr
    YoY +39.8%
  • EBITDA Margin
    15.8%
  • PAT
    ₹363.9 Cr
  • PAT Margin
    10%
  • EPS (Basic)
    ₹54.9
  • Working Capital Days
    122 days
  • Core EMS WC Days
    53 days

What they filed

Q4 FY26: revenue down 6.6%, net profit up 18.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26
Revenue433 396 737 451 467 +8%522 +32%688 −7%
EBITDA73 49 84 65 63 −14%74 +51%86 +2%
Net profit63 38 60 54 63 +0%66 +74%71 +18%
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
₹4,926 Cr Total
  • Core EMS Business ₹2,655 Cr 53.9%
  • Mysore Facility ₹1,000 Cr 20.3%
  • Metering Business ₹971 Cr 19.7%
  • Other Foreign Entities ₹300 Cr 6.1%

Order book

high confidence

Total value

₹9,000 Cr

as of 2026-03-31 quantified

Execution

Metering business pending order expected to be completed in 2-3 months, with confidence to finish in 3 quarters.

Composition

  • Metering Business (product) ₹1,400 Cr
  • OSAT (segment) ₹2,500 Cr

Pipeline

other

PCB robust and confirmed demand pipeline for next 5 years.

Cancellations & deferrals

  • cancelled: Largest electric vehicle OEM dropped 90% of revenue.
  • deferred: Two government orders delayed.
  • deferred: Geopolitical disruption, customer deferment, supply chain delays, and product timing shift.
Order book remains healthy, diversified, and noncancelable, with strong engagement across multiple strategic sectors.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Debt disclosed
    Our debt-to-equity ratio stood at approximately 0.2 in FY '26, reflecting a prudent disciplined capital structure even during the face of significant expansion.
  • M&A Iskraemeco Acquisition · Integrated

    Contributed to intangible asset capitalization and expanded EMS presence.

    Capitalized intangible asset of INR320 crores from Iskraemeco and August Electronics, leading to INR32 crores amortization in Q4 FY26.

    I think if you go back to the 2 quarters before, we did 2 acquisitions. One is in Iskraemeco, and second is August Electronics, which is in Canada and supplying in the EMS space to the big players in the North America. The intangible asset that has been capitalized on these 2 is about INR320 crores, and there was a clear thing on what is the order book and it's based on the current accounting standards, and we did INR320 crores.
  • M&A August Electronics Acquisition · Integrated

    Contributed to intangible asset capitalization and expanded EMS presence in North America.

    Capitalized intangible asset of INR320 crores from Iskraemeco and August Electronics, leading to INR32 crores amortization in Q4 FY26.

    I think if you go back to the 2 quarters before, we did 2 acquisitions. One is in Iskraemeco, and second is August Electronics, which is in Canada and supplying in the EMS space to the big players in the North America. The intangible asset that has been capitalized on these 2 is about INR320 crores, and there was a clear thing on what is the order book and it's based on the current accounting standards, and we did INR320 crores.

Guidance & targets

Revenue Growth

  • Market Growth Outperformance Revenue Growth · this year next year · High confidence 2x market growth
    We say we'll outgrow the market, we'll penetrate into each and every segment, and we'll double the growth of market growth is what the commitment that we have done.

    — N. Muthukumar

Product Mix

  • NPD-led Solutions Contribution to Revenue Product Mix · coming years · High confidence nearly 30%
    Our goal is to steadily increase the contribution of NPD-led and value-added solutions to nearly 30% of the total revenue in the coming years.

    — N. Muthukumar

Operating Cash Flow

  • Metering Business OCF Operating Cash Flow · by year-end (within 3 quarters) · Medium confidence 70-80% reduction in negative OCF, aiming for positive

    From INR600 crores negative today

    Sir, the INR600 crores by end of the third quarter will come to around we will try to work on the positive, but at least 70% to 80% of this will come down for sure. And by end of the year, we'll be positive.

    — N. Muthukumar

Rail Business

  • Rail Business Growth Rail Business · this year · High confidence 20-25%
    So rail business, I'm expecting this year to grow by around 20%, 25% because of these coming in.

    — N. Muthukumar

  • Rail Business Margins Rail Business · this year · High confidence north of current 30% plus
    And the margins are going to be north of current 30% plus.

    — N. Muthukumar

Revenue

  • PCB Revenue Revenue · FY27 · Medium confidence INR300-400 crores
    This is our first year. I'm sure and certain we will do a good number of PCB of around INR300 crores to INR400 crores, and OSAT of around INR250 crores to INR300 crores.

    — Ramesh Kunhikannan

  • OSAT Revenue Revenue · FY27 · Medium confidence INR250-300 crores

    — Ramesh Kunhikannan

What to watch in Q1 FY27

Metering Business OCF Improvement

within 3 quarters (by year-end)
Current ~INR600 crores negative OCF (Q3 FY26)
Target 70-80% reduction in negative OCF, aiming for positive

Why it matters

Improvement in OCF from the metering business is crucial for overall cash flow and financial health.

Sir, the INR600 crores by end of the third quarter will come to around we will try to work on the positive, but at least 70% to 80% of this will come down for sure. And by end of the year, we'll be positive.

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

Risks & concerns

  • Working capital intensity of smart meter segment

    high

    The metering business model, with payment linked to installation and government delays, significantly increased consolidated working capital days and led to negative OCF.

    Management acknowledged

  • Geopolitical disruption and customer deferments

    medium

    West Asia conflict led to last-minute customer deferment, supply chain delays, and product timing shifts, impacting near-term revenue.

    Management acknowledged

  • Volatile market conditions

    medium

    Market volatility, such as changing automotive industry projections, makes specific revenue guidance challenging.

    Management acknowledged

  • Execution complexities of scaling new platforms

    medium

    Managing the core EMS business while simultaneously scaling new strategic platforms like OSAT and PCB adds operational complexities.

    Management acknowledged

  • Public sector project execution delays

    medium

    Government projects, particularly smart meter installations, face delays due to various state government activities and on-site challenges.

    Management acknowledged

Q&A highlights

3 direct, 1 evasive
FY26 Revenue Guidance Miss Partial
We did an aggressive top line growth in the year based on the order book and we got the electrification of the vehicle. And of course, the government projects where we are working is going to be at the faster pace... And one of the largest electric vehicle OEM manufacturers has completely dropped by about 90% of the revenue, wherein we were the single supplier which has dropped our numbers.

Analyst challenged the significant variance between initial guidance (INR4,500cr) and actual FY26 revenue (~INR3,600cr), questioning management's credibility and the factors leading to the miss.

Asked by Viral Shah

Negative Operating Cash Flow (OCF) Direct
Stand-alone EMS business, I wanted to bring it to all your notice that as a stand-alone EMS business, our cash flow was INR250 crores positive when compared to INR65 crores last year. However, as a consolidation entry, see 65% of our revenue today comes from EMS business where we are cash flow positive. The metering business, which is a specific model, this is the first full year we have taken and we are getting matured into this business.

Analyst questioned the INR600 crores negative OCF, which was contrary to prior guidance. Management clarified it was due to the metering business model, not core EMS.

Asked by Viral Shah

Future Revenue Guidance Approach Evasive
We say we'll outgrow the market, we'll penetrate into each and every segment, and we'll double the growth of market growth is what the commitment that we have done... But at the same time, we want to be a little cautious because the market is in a highly volatile condition. Nothing to do with our ability to deliver.

Analyst pressed for specific revenue guidance, but management opted for qualitative statements about outgrowing the market due to volatile conditions, creating uncertainty for investors.

Asked by Nitin Arora

Metering Business Working Capital & Receivables Direct
I think the inflection point has stopped and will come into the reduction, and we will come back in 3 quarters with positive results on specifically this entity. But on EMS business, we have demonstrated our ability of how to bring back both by working on supplier side and also on the customer side and brought it back. The numbers are available in this.

Analyst raised concerns about the high receivables (INR1,300 crores) and the impact on working capital from the metering business, seeking a clear strategy and timeline for improvement.

Asked by Nitin Arora

Intangible Asset Increase and Amortization Direct
I think if you go back to the 2 quarters before, we did 2 acquisitions. One is in Iskraemeco, and second is August Electronics... The intangible asset that has been capitalized on these 2 is about INR320 crores... So in the last quarter, we amortized these intangible assets and that has added to our depreciation and amortization to a level of about INR32 crores.

Analyst inquired about the significant increase in intangible assets, leading to management clarifying it was due to recent acquisitions and the impact of amortization on Q4 PBT.

Asked by Sumant Kumar

OSAT and PCB Revenue Targets Partial
We have not given any guidance like this. This is our first year. I'm sure and certain we will do a good number of PCB of around INR300 crores to INR400 crores, and OSAT of around INR250 crores to INR300 crores.

Analyst sought clarity on previously discussed OSAT (INR1,000cr) and PCB (INR500cr) revenue targets, which management clarified were not formal guidance and provided new, lower estimates for FY27.

Asked by Achal Lohade

3 min read 7 chapters

Detailed narrative

FY26 Financial Performance and Guidance Miss

Kaynes Technology reported a consolidated total revenue of INR3,626.4 crores for FY26, reflecting a 33.2% year-on-year growth. EBITDA for the period was INR574.1 crores, growing 39.8% with a margin of 15.8%, and PAT stood at INR363.9 crores (10% margin). However, the company missed its revised FY26 revenue guidance of INR4,000 crores, having initially targeted INR4,500 crores.

This miss was attributed to geopolitical disruptions, customer deferments, a 90% revenue drop from a major EV OEM, and delays in two government projects.

Working Capital Challenges from Metering Business

While the core EMS business demonstrated improved working capital efficiency, with days reducing from 83 in FY24 to 53 in FY26, the consolidated working capital days for FY26 stood at approximately 122 days. This was primarily due to the smart meter segment, which contributed to a negative operating cash flow of around INR600 crores in Q3 FY26.

Management acknowledged the challenge, stating that the metering business receivables increased from INR521 crores to INR1,300 crores, but expressed confidence in mitigating this impact and improving OCF within three quarters.

Strategic Shift Towards Product-Driven Enterprise

Kaynes Technology is actively transitioning from an EMS-led organization to a differentiated ESDM and product-driven enterprise. The company aims to increase the contribution of NPD-led and value-added solutions to nearly 30% of its total revenue in the coming years. This transformation is supported by investments in engineering capabilities, a co-development model, digital infrastructure, and R&D, with the goal of improving margins and establishing Kaynes as a strategic technology partner.

Scaling New Growth Engines: OSAT and PCB

The company is making significant progress in its new growth engines. OSAT Unit 1 is fully operational, and Unit 2 is expected to commercialize by Q2 FY27. The OSAT segment has a strong order outlook, with revenue visibility exceeding INR2,500 crores over the next five years.

Similarly, the PCB segment has a robust and confirmed demand pipeline for the next five years, with customers indicating a need for additional capacity expansion. For FY27, management expects PCB revenue to be INR300-400 crores and OSAT revenue to be INR250-300 crores.

Rail Business Outlook and Growth Targets

The rail business, particularly the Kavach product, has received initial approval and trial orders, and is currently in the execution stage. Management anticipates completing all necessary approvals in H1 FY27 and securing a large portion of orders in H2 FY27. For the current year, the rail business is expected to grow by 20-25%, with margins projected to be north of 30%.

Leadership Strengthening and Operational Excellence

Kaynes is enhancing its leadership and governance structure by bringing in new board members with diverse expertise in finance, public sector electronics, space technology, and automotive operations. The company is also committed to operational excellence, implementing initiatives such as predictive maintenance, advanced quality systems, and Industry 4.0 integration to improve productivity, reduce process variability, and strengthen supply chain integration.

Intangible Assets and Amortization Impact

The intangible asset on the balance sheet increased by approximately INR300 crores from FY25 to FY26, reaching INR536 crores. This increase is primarily attributed to the acquisitions of Iskraemeco and August Electronics, which involved a capitalized intangible asset of INR320 crores.

In Q4 FY26, the company amortized INR32 crores of these intangible assets, which impacted the Profit Before Tax (PBT). Going forward, Kaynes plans to shift to quarterly amortization of these assets.

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