Kaynes Technology Financial Results: Revenue, Profit & EPS Analysis

Introduction: Why Kaynes Technology’s Financial Results Matter

Kaynes Technology India Limited is one of the best-known names in India’s electronics manufacturing story. It started as an electronics system design and manufacturing (ESDM) company serving automotive, industrial, aerospace and defence customers. It has since moved into smart metering, printed circuit boards (PCBs) and semiconductor packaging.

That makes the Kaynes Technology financial results more than a routine quarterly update. Many investors see the company as a proxy for India’s “Make in India” electronics push and the government’s semiconductor ambitions. When the results show a gap between growth and profit, as they have recently, that gap tells you something important about the business.

Two recent result sets drive today’s debate. In May 2026, the company reported its Q4 and full-year numbers for FY26. The shares plunged over 19% intraday on 14 May after profit fell 21.5% year-on-year and the company missed its revised FY26 revenue guidance. Then in August 2026, the Kaynes Technology Q1 FY27 results repeated the same pattern: strong revenue and weaker profit.

In this analysis you will learn:

• What the Kaynes Technology revenue and profit numbers actually were
• How the Kaynes Technology EPS has moved, and why quarterly EPS needs careful reading
• Why margins shrank even though sales grew
• What the Kaynes Technology order book says about future growth
• How analysts and the market reacted
• The main risks and the key things to track next

This article is for education and research. It is not investment advice. Please read the disclaimer at the end.

Kaynes Technology at a Glance: Company Snapshot

Before the numbers, it helps to know what Kaynes does, because its business mix explains most of its financial behaviour.

Kaynes describes itself as an end-to-end, IoT-enabled integrated electronics manufacturer. It says it has three decades of experience and 16 advanced manufacturing facilities and service centres. The company’s main revenue verticals include: constructionworld

• Industrial (including EV): Industrial remained the largest vertical at about 55% of FY26 revenue, with automotive at about 25%.
• Smart metering: a fast-growing segment that has become important for revenue, and for working capital pressure.
• Aerospace, defence and space electronics: higher-margin, long-cycle work.
• Semiconductors (OSAT) and PCBs: the newest growth bets, still in early commercial stages.

The business model is based on long customer relationships and a growing order book. That brings visibility, but it also brings lumpy revenue. Product approvals, customer readiness and project timing can shift revenue from one quarter to the next. On the Q4 FY26 earnings call, management said that some revenue recognition shifted because it is linked to customer project readiness and approval cycles, even though the orders stayed valid.

Keep this in mind as you read the numbers. A single quarter rarely tells the whole story for a company at this stage.

Kaynes Technology Q1 FY27 Results: The Headline Numbers

The company released its unaudited consolidated results for the quarter ended 30 June 2026 on 7 August 2026. Here is the snapshot.

Sources for these figures: consolidated net profit fell 24.37% to ₹56.43 crore from ₹74.61 crore, while revenue from operations rose 40.47% to ₹946.02 crore, and PBT fell 8.54% to ₹87.88 crore. The company reported a PAT margin of 6.0% for the quarter. The Q1 FY26 PBT and PAT margin are my own back-calculations from the reported percentages, so treat them as approximate.

The pattern is simple. Revenue and EBITDA beat expectations, but net profit missed. Profit was below the market estimate of ₹69 crore, while revenue and EBITDA were higher than estimates of ₹866 crore and ₹130 crore.

So the question is not “is Kaynes growing?” It clearly is. The question is “where is the growth leaking away before it reaches shareholders?” The next sections answer that.

Kaynes Technology Revenue Analysis

Revenue momentum is strong

Revenue from operations of ₹946 crore in Q1 FY27 is a very healthy 40% year-on-year increase. In a sector where many manufacturers report single-digit or low-double-digit growth, this stands out.

The quarter is also notable for how it follows a seasonally lumpy period. Look at the recent sequence:

• Q3 FY26: revenue of about ₹804 crore
• Q4 FY26: revenue of ₹1,242.6 crore, up 26.2% year-on-year
• Q1 FY27: ₹946 crore, up 40.5% year-on-year

Notice that Q1 FY27 is lower than Q4 FY26 in absolute terms. That is normal for companies where the last quarter of the financial year is usually the strongest, because customers push deliveries before the March year-end. Year-on-year comparison is therefore the fairer test, and on that basis the growth is excellent.

What is driving revenue growth?

Several drivers appear in the company’s commentary and in analyst notes:

1. Industrial and EV electronics: the largest vertical, with steady demand from long-term customers.
2. Smart metering: metering revenue was around ₹971 crore in FY26, roughly 24 to 25% of consolidated revenue.
3. New facilities: the OSAT and PCB units are close to commissioning.
4. Acquisitions: earlier deals, including August Electronics and Iskraemeco India, widen the product and geographic base.

Revenue quality matters as much as quantity

Fast revenue growth is only valuable if it converts into cash and profit. The company’s smart-metering business is a good illustration. It adds a lot of revenue, but it also ties up working capital, because customers (often utilities) pay slowly and the company must hold inventory. We cover this later in the working capital section.

Revenue outlook for FY27

Analysts remain constructive on top-line growth. JPMorgan maintained its FY27/FY28/FY29 EMS revenue growth estimates at 41%, 33% and 29% respectively. If the Q1 pace continues, FY27 revenue could land well above FY26’s ₹3,626 crore, though the company missed its own guidance last year, so projections deserve a margin of safety.

Kaynes Technology Profit Analysis: Why Net Profit Fell

This is the part of the Kaynes Technology financial results that worries investors the most. Revenue rose 40%, EBITDA rose 31%, yet net profit fell 24%. How does that happen?

Step 1: Gross margin compression

The first leak is at the gross margin level. Gross margin declined to 34.4% from 41.1%, as raw material costs increased 57% year-on-year to ₹620.5 crore from ₹395.6 crore. Revenue rose 40% but raw material costs rose 57%, so costs grew faster than sales.

The company attributed the gross-margin pressure to higher supply-chain, energy, commodity and foreign exchange costs. Electronics manufacturers face this combination often, particularly when component prices swing and the rupee weakens against the dollar, since many components are imported.

Step 2: Operating costs partly absorbed the squeeze

At the EBITDA level the damage was smaller. EBITDA rose 31% and the margin slipped about 120 basis points to 15.6%. This suggests the company controlled other operating expenses reasonably well, or benefited from operating leverage on higher volumes.

Step 3: Depreciation, interest and a higher tax rate

Between EBITDA and net profit, three items squeezed earnings further:

• Depreciation: new plants (OSAT and PCB) add depreciation before they add revenue. Nomura said higher depreciation and tax rates led it to cut EPS estimates by 6-9% over FY27-28F.
• Interest costs: working capital needs push up borrowing.
• Tax: JPMorgan cut its EPS estimates by 7-9%, mainly due to a higher tax rate.

Using the reported figures, I estimate the implied tax and minority outflow in Q1 FY27 at roughly ₹31 crore (₹87.88 crore PBT minus ₹56.43 crore PAT), or about 36% of PBT. In the year-ago quarter the equivalent figure was around 22%. This is my own approximation and may include other items, but it shows how much a changed tax profile affected the bottom line.

Step 4: The PBT versus PAT gap

Profit before tax fell only 8.5%, while PAT fell 24%. That difference is almost entirely tax-related. In plain terms, roughly two-thirds of the profit decline in Q1 FY27 came from a higher tax charge rather than from weaker core operations. That is a useful nuance. It does not make the result “good,” but it tells you the operating business is under less stress than the headline PAT decline implies.

Management’s view

Management has acknowledged the pressure. The company said FY27 would be a challenging year but expects profitability to normalise over the next couple of quarters. Investors should treat that as a claim to be tested, not a promise. The next two quarterly results will show whether margins truly recover.

Kaynes Technology EPS Analysis

Earnings per share (EPS) is the profit that belongs to each equity share. It is one of the most important numbers for valuation, because it feeds directly into the price-to-earnings (P/E) ratio.

Annual EPS: FY26 versus FY25

On a full-year basis, EPS grew nicely. Annual EPS stood at ₹54.85 compared with ₹45.82 in the previous financial year. That is a rise of about 19.7%, slightly lower than the roughly 24% growth in net profit. The gap exists because the share count rose, mainly due to equity raised through a qualified institutional placement (QIP).

This matters for readers: profit growth and EPS growth are not the same thing. When a company issues new shares, profit must grow even faster just to keep EPS growing at the same rate. The company has been using QIP proceeds for the OSAT facility, PCB capacity, acquisitions and working capital. Those investments should add earnings later, but until they do, EPS growth lags profit growth.

Quarterly EPS: what to expect

I could not find a verified Q1 FY27 EPS figure in the sources I reviewed, so please confirm it from the company’s exchange filing before relying on it. As a rough estimate only: FY26 profit of ₹363.89 crore against EPS of ₹54.85 implies about 6.6 crore shares. Dividing Q1 FY27 PAT of ₹56.43 crore by a share count of roughly 6.6 to 6.7 crore gives a quarterly EPS of around ₹8 to ₹9. That is an approximation, not a reported figure.

For context, that quarterly level is well below the FY26 average of about ₹13.7 per quarter (₹54.85 divided by four). A single Q1 is not the full year, but it shows how much the profit shortfall affects per-share earnings.

Why analysts cut EPS estimates

After the Q1 results, brokerages revised their forecasts:

• JPMorgan cut its EPS estimates by 7-9%, mainly due to the higher tax rate.
• Nomura cut EPS estimates by 6-9% over FY27-28F and said Kaynes trades at 45x FY28F EPS, adjusted for investments, which it considers the fair-value zone.

The takeaway is that the market’s view of future EPS has moved down modestly, not collapsed. Analysts still expect strong earnings growth, only a bit less than before.

How to read Kaynes Technology EPS correctly

A few practical tips:

1. Use trailing twelve-month (TTM) EPS for valuation, not one quarter.
2. Check for one-offs such as exceptional items, tax adjustments and minority interests.
3. Watch dilution: Any future fundraising changes the share count.
4. Compare with peers on a like-for-like basis, since some competitors have very different business mixes.

Kaynes Technology EBITDA Margin: The Core Profitability Test

Of all the metrics, margins best show whether the business model is working.

Recent margin trend

So on a full-year basis, FY26 margins actually improved. The weakness showed up in the most recent two quarters. This distinction is important: the long-term trend is intact, but the near-term trend is negative.

Why margins are under pressure

• Input costs: component, energy and commodity prices rose.
• Currency: a weaker rupee raises imported component costs.
• Mix: a large share of low-margin smart metering revenue dilutes overall margins.
• Start-up costs: the new OSAT and PCB plants incur costs before they generate revenue.

Why margins could recover

• Operating leverage: fixed costs get spread over higher volumes.
• New high-value businesses: semiconductors and PCBs typically carry better margins once utilisation rises.
• Pricing power: long-term contracts often have pass-through clauses, though with a lag.

The key point for investors is timing. Margin recovery depends on new plants ramping up, and plant ramp-ups often take longer than planned.

Kaynes Technology Order Book Analysis

The order book is the single biggest source of comfort in the Kaynes story.

The numbers

The order book grew to ₹89,038 million (about ₹8,904 crore) as of 30 June 2026, from ₹74,011 million a year earlier. That is a 20.3% year-on-year increase. Against FY26 revenue of ₹3,626 crore, the order book is about 2.5 times last year’s sales. In the previous quarter, the order book stood at ₹8,366.3 crore, so it rose roughly ₹540 crore in a single quarter.

What this tells us

• Visibility: a book worth more than two years of current revenue reduces demand uncertainty.
• Growth gap: order book growth (20%) is slower than revenue growth (40%). If this persists, revenue growth will eventually slow down, unless new orders accelerate. That is worth tracking.
• Execution risk: an order book only turns into revenue and cash if the company delivers on time, and that has been the harder part recently.

OSAT order outlook

On the Q4 call, management said OSAT revenue visibility is over ₹25,000 million (₹2,500 crore) over the next five years. That is a meaningful figure for a business that only began commercial operations in 2026.

Kaynes Technology FY26 Results: The Full-Year Picture

To understand Q1 FY27, we need the FY26 backdrop.

FY26 annual numbers

Sources: consolidated net profit climbed 24.01% to ₹363.89 crore on a 33.24% increase in revenue from operations to ₹3,626.35 crore. EBITDA excluding other income was ₹5,741 million, up 39.8%, with a PAT margin of 10.0% versus 10.8% a year earlier. The FY25 net profit figure is my back-calculation from the reported 24% growth.

Q4 FY26: the disappointing quarter

The fourth quarter drew the sharpest reaction:

• Revenue rose 26.2% year-on-year to ₹1,242.6 crore.
• Net profit fell 21.5% to ₹91.2 crore from ₹116.2 crore.
• PAT margin fell to 7.3%.
• EBITDA margin dropped to 15.6%.

On a sequential basis, profit improved from ₹76.6 crore in Q3 FY26, so the quarter was not a collapse, just a miss against expectations.

The guidance miss

The bigger issue was credibility. Kaynes had projected FY26 revenue of ₹4,500 crore before lowering that to ₹4,100 crore, and then fell short of the lowered target. Actual revenue was ₹3,626 crore. Missing a guidance figure twice damages management’s forecasting credibility, and the market punished it. Shares tumbled nearly 25% over three sessions, and Elara downgraded the stock to “Accumulate”.

The positive side of FY26

Not everything was negative:

• Revenue and EBITDA grew at a very fast pace.
• The OSAT facility in Sanand, Gujarat began commercial operations within 14 months.
• The Mysore facility crossed ₹10,000 million in revenue.

Quarterly Trend Summary: Revenue, Profit and EPS Side by Side

The trend is consistent. Revenue is climbing, but profit per rupee of sales has been falling for several quarters. This is the central tension in the Kaynes Technology financial results.

Working Capital and Cash Flow: The Hidden Concern

Many analysts argue that the biggest issue in the Kaynes story is not profit but cash.

What the market is worried about

The biggest investor concern in FY26 was not revenue growth, but cash conversion, and smart-metering working capital dominated the discussion. After the Q1 results, analysts flagged working capital days as a key concern.

Working capital is the money a company ties up in inventory and receivables. If customers pay slowly and inventory piles up, a profitable company can still run short of cash and need to borrow, which raises interest costs and hurts net profit.

Why smart metering is a factor

Smart metering projects are often executed for utilities. They involve large inventories, long project cycles and slower payments. With metering at roughly a quarter of revenue, this segment has a major effect on cash flow.

Management’s promise

Kaynes is guiding for positive operating cash flow by the end of FY27. This is arguably the most important target to track. If operating cash flow turns positive and working capital days fall, the market will probably reward the stock. If not, the doubts about earnings quality will deepen.

Growth Engines: OSAT, PCB and Defence Electronics

The long-term investment case rests on new businesses that are only just starting.

Kaynes Technology OSAT

OSAT stands for Outsourced Semiconductor Assembly and Test. These are facilities that package and test chips made elsewhere. The OSAT unit in Sanand commenced commercial operations within 14 months of its groundbreaking ceremony. In June 2026, the chip division also partnered with AOI Electronics to strengthen its semiconductor assembly footprint.

PCB manufacturing

The HDI PCB unit was described as nearing operational readiness. Making PCBs in-house reduces dependence on imports and can improve margins over time.

Combined revenue target

CLSA said Kaynes is on track to commission its OSAT and PCB facilities in Q3 FY27 and targets revenue of ₹450 to ₹500 crore from them in FY27. That would be about 10% or more of expected FY27 revenue, which is significant but also leaves little room for delay.

Space and defence

The company is also expanding into space and defence electronics. These segments typically offer stickier customers and better margins, though approval cycles are long.

Share Price Reaction: How the Market Responded

The market has reacted sharply to both result sets.

After Q4 FY26 (May 2026)

The share price fell 15% to ₹3,551.60 on the day after results. Intraday, the drop reached about 19%. Just before the announcement, shares had closed 3.28% higher at ₹4,182.

After Q1 FY27 (August 2026)

The stock settled at ₹3,850 on 7 August 2026, the day of the announcement. On the next trading day, shares fell as much as 9% in early trade on 10 August. The stock then recovered sharply from the initial selloff, as investors weighed strong revenue growth against the profit decline.

What explains the pattern?

Investors seem to be debating two ideas:

1. The growth story is intact: Revenue is up 40%, the order book is large, and new plants are coming.
2. The profit story is delayed: Margins, tax, depreciation and working capital are eating into earnings.

Until profit growth catches up with revenue growth, expect volatility in the Kaynes Technology share price. For the live price, check NSE or BSE directly.

Analyst Views After the Q1 FY27 Results

Brokerages gave a mixed picture, which reflects the mixed results.

• CLSA: called the quarter operationally strong, with revenue and EBITDA ahead of estimates.
• JPMorgan: cut EPS estimates by 7-9% on the tax rate but kept its revenue growth forecasts.
• Nomura: cut EPS estimates by 6-9% and said the stock is in the fair-value zone at 45x FY28F EPS.
• Overall: analysts remain largely cautious despite the strong operational performance.

The common thread is that analysts like the operations and growth, but they are cautious on earnings quality and cash flow. I would add that analyst targets change quickly, so check the latest reports before drawing conclusions.

Valuation Perspective: Is Growth Already Priced In?

At a share price near ₹3,800, and FY26 EPS of ₹54.85, the trailing P/E works out to roughly 70 times. (This is a simple calculation: ₹3,800 divided by ₹54.85. Your data provider’s TTM figure may differ.) That is a premium multiple, even for a high-growth company.

Nomura’s comment that the stock trades at 45 times FY28 estimated EPS, adjusted for investments, shows how much future growth is built into the price. A premium multiple has a few implications:

• Little room for error: Any further miss on margins, cash flow or guidance can trigger sharp falls, as seen in May.
• Strong reward for delivery: If OSAT and PCB ramp up on schedule and margins recover, earnings could grow fast enough to justify the valuation.
• Time horizon matters: Short-term traders face high volatility; long-term investors need patience for new plants to mature.

Valuation is a judgement call, and reasonable analysts disagree. I’m presenting the facts, not telling you whether to buy or sell.

Key Risks to Watch

1. Margin pressure may last longer than management expects: Input costs and currency are hard to control.
2. Working capital stress: Slow collections in smart metering could keep borrowing and interest costs high.
3. Execution of new plants: Delays in OSAT or PCB commissioning would push out revenue and keep depreciation weighing on profit.
4. Guidance credibility: After a missed and revised FY26 target, the market will scrutinise every forecast.
5. Customer concentration and project timing: Revenue recognition depends on customer readiness, which can shift quarters.
6. Tax rate: A higher effective tax rate can reduce EPS even when operations are fine.
7. Dilution: Further equity raising could reduce EPS growth.
8. Global electronics cycle: Demand shifts in automotive, industrial and semiconductor markets would affect volumes.

Bull Case vs Bear Case

The bull case

• Revenue growing at 30% to 40% with a growing order book
• OSAT and PCB plants adding higher-value revenue from Q3 FY27
• Management expecting margin normalisation and positive operating cash flow by the end of FY27
• Structural tailwinds from India’s electronics and semiconductor policy push
• Operating results (revenue, EBITDA) beating estimates

The bear case

• Net profit falling despite revenue growth for consecutive quarters
• Gross margin down sharply, from 41.1% to 34.4%
• Heavy working capital needs and cash flow concerns
• Prior guidance misses
• High valuation leaving little buffer

Both cases contain truth, which is why the stock moves so sharply on every result.

What to Watch in the Next Kaynes Technology Financial Results

When the Q2 FY27 numbers arrive, these indicators will matter most:

1. Gross margin: does it stabilise above 34%, or recover toward 40%?
2. EBITDA margin: is it back above 16%?
3. Effective tax rate: does the PAT-to-PBT gap narrow?
4. OSAT and PCB progress: have the plants been commissioned on schedule?
5. Working capital days: do receivable and inventory days fall?
6. Order inflows: does the order book keep growing as fast as revenue?
7. Operating cash flow: is the path to positive cash flow on track?
8. EPS: is quarterly EPS trending toward earlier levels?

Frequently Asked Questions (FAQs)

What were the Kaynes Technology Q1 FY27 results?
Revenue from operations was ₹946.02 crore, up 40.47% year-on-year. Net profit was ₹56.43 crore, down 24.37%. EBITDA was ₹147.6 crore with a margin of 15.6%.

What was the Kaynes Technology revenue in FY26?
Revenue from operations in FY26 was ₹3,626.35 crore, up about 33% from ₹2,721.8 crore in FY25.

What was the Kaynes Technology profit in FY26?
Consolidated net profit was ₹363.89 crore, up about 24% year-on-year, with a PAT margin of around 10%.

What is the Kaynes Technology EPS?
FY26 EPS was ₹54.85, compared with ₹45.82 in FY25. For quarterly EPS, check the latest exchange filing, because quarterly figures are not annualised.

Why did Kaynes Technology profit fall in Q1 FY27 despite higher revenue?
Mainly because gross margin fell as raw material and other costs rose faster than sales, and because depreciation and tax charges were higher. Roughly two-thirds of the decline comes from the gap between PBT and PAT, which points to taxes.

What is the Kaynes Technology order book?
It stood at about ₹8,904 crore as of 30 June 2026, up about 20% year-on-year.

Why did the Kaynes Technology share price fall after results?
Investors reacted to profit declines, margin pressure, working capital concerns and a guidance miss in FY26. The stock fell sharply after both the Q4 FY26 and Q1 FY27 announcements, then partly recovered after the latter.

Is Kaynes Technology a good stock to buy?
This article cannot answer that. It depends on your goals, time horizon and risk appetite. The facts show strong growth alongside weaker profitability. Consider speaking with a SEBI-registered advisor.

What is the Kaynes Technology OSAT business?
OSAT stands for Outsourced Semiconductor Assembly and Test. Kaynes began commercial operations at its Sanand facility in 2026 and expects revenue visibility of over ₹2,500 crore across five years.

When will Kaynes Technology announce its next results?
Companies usually announce quarterly results about 5 to 6 weeks after the quarter ends. Q2 FY27 results (quarter ending 30 September 2026) are expected around November. Check the official board meeting intimation on NSE or BSE for the exact date.

Conclusion

The Kaynes Technology financial results tell a clear but complicated story. On the positive side, revenue is growing at a rapid pace (+40% in Q1 FY27 and +33% in FY26), EBITDA is rising, and a large order book of nearly ₹8,900 crore supports demand. New businesses in semiconductors and PCBs are about to start contributing.

On the other side, Kaynes Technology profit has been falling for several quarters, with net profit down 24% in Q1 FY27 and 21.5% in Q4 FY26. Gross margins have narrowed, working capital remains a concern, the tax rate has risen, and the Kaynes Technology EPS growth has lagged revenue growth. Management has also missed its own FY26 guidance, which makes the market more skeptical.

In my reading, Kaynes is in a transition phase. The company is investing heavily ahead of revenue, and its financial results will look uneven until the new plants scale up and cash conversion improves. The next two to three quarters are decisive. If margins recover and operating cash flow turns positive as promised, the current dip could look like a temporary cost of growth. If they don’t, the premium valuation will be hard to defend.

Whatever your view, base decisions on primary sources, namely the company’s quarterly filings, investor presentations and earnings call transcripts on the NSE, BSE and Kaynes investor relations pages.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment, financial or legal advice. I am not a SEBI-registered advisor. Figures are drawn from publicly reported news sources and company releases as of 10 October 2026, and some values marked as estimates are my own calculations. Please verify all data with official filings before making any decision. Investing in equities involves risk, including loss of capital.