Kaynes Technology India share price came under heavy selling pressure to hit its 52-week low of ₹3,182.55 after the company reported a sharp decline in fourth-quarter profitability, triggering concerns over margins, execution and working capital requirements. The stock has fallen more than 24% over the last two trading sessions following the earnings announcement.
Kaynes Technology shares had plunged over 20% in the previous session. In Friday’s trade, the stock slipped another 4.7% to hit an intraday low of ₹3,182.55 before witnessing some recovery through value buying and rising to an intraday high of ₹3,328.40.
The sharp reaction came after the company reported weaker-than-expected Q4FY26 earnings after market hours on May 13. Consolidated net profit for the March quarter declined 21.5% year-on-year to ₹91.22 crore compared with ₹116.20 crore reported in the same period last year.
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Kaynes Technology’s share price dropped over 24% in two days after reporting a sharp decline in Q4 FY26 net profit by 21.5% year-on-year to ₹91.22 crore, despite healthy revenue growth. This decline was attributed to concerns over margins, execution, and working capital requirements.
In Q4 FY26, Kaynes Technology reported a consolidated net profit of ₹91.22 crore, a 21.5% decrease year-on-year. Revenue from operations increased by 26% to ₹1,243 crore, but EBITDA margin declined by 150 basis points to 15.6%, and PAT margin contracted by 450 basis points to 7.3%.
Following the disappointing Q4 FY26 results, multiple brokerages downgraded Kaynes Technology. Jefferies reduced its target price but maintained a ‘Buy’ rating, while JPMorgan downgraded to ‘Neutral’, and Avendus Capital Spark downgraded to ‘Reduce’.
Kaynes Technology missed its revenue and cash flow targets due to a significant drop in revenue from a large electric vehicle project and delays in a government order. Management also faced questions for maintaining guidance despite market weaknesses identified late in the quarter.
Kaynes Technology underperformed its peers like Syrma SGS Technology and Dixon Technologies, which met or exceeded analyst expectations. While Syrma saw strong growth in automotive and healthcare electronics, and Dixon grew despite a slowdown in the mobile phone market, Kaynes struggled to meet its targets.
Despite the profit decline, the company continued to report healthy revenue growth. Revenue from operations during Q4FY26 increased 26% year-on-year to ₹1,243 crore from ₹984 crore in the corresponding quarter last year. Total income for the quarter also rose 28% to ₹1,284 crore from ₹1,005 crore in Q4FY25.
Kaynes Technology shares are currently down nearly 3% on a year-to-date basis compared with an 8% decline in the Sensex. Over the past one year, the stock has fallen around 11%. The stock had touched a 52-week high of ₹7,705 on October 7 last year.
Margins under pressure despite strong revenue growth
Kaynes Technology reported EBITDA of ₹193.7 crore during the March quarter, reflecting a 15% year-on-year increase. However, operating profitability weakened during the quarter as EBITDA margin declined 150 basis points year-on-year to 15.6%. PAT margin also contracted sharply by 450 basis points to 7.3%.
The decline in margins came amid a sharp rise in expenses. Total expenses during the quarter increased 33% year-on-year to ₹1,144 crore compared with ₹863 crore in the same quarter last year.
The company’s cost of materials consumed jumped 44% year-on-year to ₹921 crore from ₹638 crore, indicating higher production activity and execution scale as the company continued expanding operations.
Executive Vice Chairman and promoter Ramesh Kunhikannan said the company achieved revenue of ₹3,626.4 crore during FY26, representing a growth of 33% year-on-year. He added that the company’s order book stood at more than ₹80,000 million at the end of FY26, providing strong revenue visibility for future growth.
For the full financial year FY26, Kaynes Technology reported consolidated net profit of ₹364 crore, up 24% from ₹293 crore recorded in FY25. Annual revenue from operations climbed 33% to ₹3,626 crore compared with ₹2,722 crore in the previous financial year. Profit before tax for FY26 increased 36% year-on-year to ₹504 crore from ₹372 crore.
The company has emerged as one of India’s major electronics manufacturing and embedded design players, benefiting from rising localisation trends, government-led manufacturing incentives and growing outsourcing demand across sectors such as automotive, aerospace, railways, industrial electronics and defence.
Brokerages downgrade after earnings miss
The disappointing quarterly performance triggered multiple brokerage downgrades and target price cuts.
According to media reports, Jefferies maintained its ‘Buy’ rating on the stock but reduced its target price to ₹3,970 from ₹4,515 earlier. The revised target still implies a potential upside of 19% from current levels.
Jefferies said it cut its FY27-FY28 earnings per share estimates by 16%-17% to account for the earnings miss and weak management commentary. However, the brokerage expects Kaynes Technology’s EPS to grow at a CAGR of 43% during FY26-FY29, supported by OSAT and PCB sales ramp-up expected during the current financial year.
The brokerage also noted that despite raising more than ₹3,000 crore through two institutional share sales, including QIPs, the company may still require additional debt because of working capital concerns.
Jefferies added that it had reduced its target price-to-earnings multiple to 35 times from historical levels because of persistently high working capital and weak execution trends. However, it retained the ‘Buy’ recommendation as the stock has already corrected nearly 55% from its October 2025 peak and is currently trading below historical valuation averages.
According to CNBC-TV18, JPMorgan downgraded the stock to ‘Neutral’ from ‘Overweight’ and slashed its target price to ₹4,000 from ₹6,000 earlier.
Meanwhile, Avendus Capital Spark downgraded the stock to ‘Reduce’ from ‘Add’ and lowered its target price to ₹3,208 from ₹3,578 earlier.
IIFL Capital Services Institutional Equities also downgraded Kaynes Technology to ‘Add’ from ‘Buy’ and cut its target price sharply to ₹3,835 from ₹5,015 earlier.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
