Integrated manufacturing company Kaynes Technology missed market expectations, posting a 21.5 per cent year-on-year (y-o-y) decline in net profit for the fourth quarter of FY26 to ₹91.2 crore, compared with ₹116.2 crore in the corresponding quarter last year, due to higher raw material and employee costs.
The company’s shares were hammered by 20 per cent on the BSE and ended the day at ₹3,339.25.
Raw material costs rose 26.9 per cent during the quarter to ₹848.5 crore, while employee costs increased 94.7 per cent to ₹90.8 crore. However, revenue rose 26.2 per cent y-o-y to ₹1,242.6 crore during the quarter.
On a full-year basis, the company reported a 24 per cent rise in net profit to ₹363.9 crore, while revenue increased 33.2 per cent to ₹3,626.4 crore.
OEM business
About 39 per cent of the company’s revenue came from OEM turnkey box-build solutions, 43 per cent from OEM turnkey PCBA, and the remaining 18 per cent from ODM, product engineering, and IoT solutions. The automobile segment was the largest revenue contributor, accounting for 26 per cent of total revenue.
Brokerage firm JM Financial said the company missed its FY26 revenue guidance despite several downward revisions, while concerns remain around the sustainability of its FY28 revenue target of ₹8,500 crore, which implies a CAGR of over 50 per cent between FY26 and FY28.
Working Capital
The brokerage also highlighted the company’s stretched working capital cycle of 179 days as of March 2026, with receivable days doubling year-on-year. It noted that the smart meter business continues to operate on a cycle exceeding 1 year, with limited near-term normalisation prospects, as smart meters are viewed as a major growth opportunity.
JM Financial further flagged continued cash burn, with negative operating cash flow of ₹600 crore in FY26, which could lead to incremental dilution or higher debt to fund the planned capex of over ₹8,000 crore until FY28.
The company’s order book stood at over ₹8,000 crore at the end of FY26, providing strong revenue visibility going forward, said Kaynes in its company filing to exchanges.
Published on May 14, 2026