Kaynes Technology India Limited Q2 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Cautiously Optimistic
Executive Summary
Kaynes Technology Q2 (30 Sep 2025): Revenue ₹906.22 Cr (+58.4% YoY), PAT ₹121.41 Cr (+101.7% YoY)
For the quarter ended 30 September 2025 Kaynes (consolidated) reported revenue of ₹9,062.18 Mn (₹906.22 Cr), up 58.4% YoY and 34.6% QoQ, driven by higher sales across subsidiaries. Profit after tax for the quarter was ₹1,214.13 Mn (₹121.41 Cr), up 101.7% YoY and 62.7% QoQ, with profit before tax at ₹1,516.77 Mn (₹151.68 Cr). Key balance-sheet moves include cash & cash equivalents of ₹559.17 Mn and total consolidated assets of ₹62,733.41 Mn as at 30 September 2025. The company continues capital deployment into OSAT and PCB capacity with material unutilised QIP proceeds and recent inorganic...Revenue (Consolidated) Q2 30 Sep 2025
₹9,062.18 Mn+58.4% YoY
Profit after tax (Consolidated) Q2 30 Sep 2025
₹1,214.13 Mn+101.7% YoY
Profit before tax (Consolidated) Q2 30 Sep 2025
₹1,516.77 MnBasic EPS (Consolidated) Q2 30 Sep 2025
₹18.56 per shareCash & cash equivalents (Consolidated) 30 Sep 2025
₹559.17 MnTotal assets (Consolidated) 30 Sep 2025
₹62,733.41 MnShort-term borrowings (Consolidated) 30 Sep 2025
₹5,379.21 MnKey Highlights
10
Consolidated revenue rose to ₹9,062.18 Mn in the quarter ended 30 Sep 2025 from ₹5,721.16 Mn in the quarter ended 30 Sep 2024, a 58.4% YoY increase, indicating strong top-line expansion across the Group.
Consolidated PAT more than doubled YoY to ₹1,214.13 Mn in Q2 30 Sep 2025 from ₹602.08 Mn in Q2 30 Sep 2024, implying meaningful operating leverage or consolidation benefits.
Cost of materials consumed in Q2 30 Sep 2025 was ₹6,414.79 Mn versus ₹4,068.72 Mn in Q2 30 Sep 2024, up ₹2,346.07 Mn YoY, showing raw material spend grew substantially with revenue scale.
Trade receivables increased to ₹11,223.18 Mn as at 30 Sep 2025 from ₹5,745.80 Mn as at 31 Mar 2025, indicating working-capital absorption related to higher sales and consolidation of receivables.
Inventories rose to ₹9,823.31 Mn as at 30 Sep 2025 from ₹8,144.23 Mn as at 31 Mar 2025, reflecting higher stocking for ramp-up or longer lead times for components.
Finance cost for the quarter was ₹227.69 Mn, which together with higher short-term borrowings of ₹5,379.21 Mn may pressure interest cover if margins compress.
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Key Highlights
10
Consolidated revenue rose to ₹9,062.18 Mn in the quarter ended 30 Sep 2025 from ₹5,721.16 Mn in the quarter ended 30 Sep 2024, a 58.4% YoY increase, indicating strong top-line expansion across the Group.
Consolidated PAT more than doubled YoY to ₹1,214.13 Mn in Q2 30 Sep 2025 from ₹602.08 Mn in Q2 30 Sep 2024, implying meaningful operating leverage or consolidation benefits.
Cost of materials consumed in Q2 30 Sep 2025 was ₹6,414.79 Mn versus ₹4,068.72 Mn in Q2 30 Sep 2024, up ₹2,346.07 Mn YoY, showing raw material spend grew substantially with revenue scale.
Trade receivables increased to ₹11,223.18 Mn as at 30 Sep 2025 from ₹5,745.80 Mn as at 31 Mar 2025, indicating working-capital absorption related to higher sales and consolidation of receivables.
Inventories rose to ₹9,823.31 Mn as at 30 Sep 2025 from ₹8,144.23 Mn as at 31 Mar 2025, reflecting higher stocking for ramp-up or longer lead times for components.
Finance cost for the quarter was ₹227.69 Mn, which together with higher short-term borrowings of ₹5,379.21 Mn may pressure interest cover if margins compress.
Depreciation and amortisation for Q2 30 Sep 2025 was ₹166.33 Mn (consolidated), up from ₹85.92 Mn in Q2 30 Sep 2024, reflecting ongoing capex and commissioning of assets.
The Group completed acquisition activity during the quarter—Kaynes Canada Limited acquired 100% stake in August Electronics Inc.—indicating inorganic growth execution.
Total comprehensive income for Q2 30 Sep 2025 was ₹1,218.08 Mn versus ₹603.75 Mn in Q2 30 Sep 2024, doubling consolidated shareholder return in the period.
Nine subsidiaries contributed material amounts to consolidated results; audited review notes state assets of those subsidiaries of ₹32,864.82 Mn and revenue (before consolidation) of ₹5,351.92 Mn for the quarter.
Guidance & Outlook
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Company is deploying QIP proceeds into OSAT and PCB capacity expansion with part-utilisation to date: OSAT allocation ₹7,567.11 Mn with ₹3,777.74 Mn utilised as at 30 Sep 2025, and PCB allocation ₹3,072.89 Mn with ₹1,494.71 Mn utilised as at 30 Sep 2025.
Net QIP proceeds unutilised remain parked in bank deposits and mutual funds as at 30 Sep 2025, supporting near-term liquidity for capex and inorganic moves.
Management continues to pursue inorganic growth—recent acquisition of August Electronics Inc. during the quarter signals further M&A-driven capability expansion.
Given higher inventories and receivables in Q2 30 Sep 2025, expect working-capital funding to remain a focus for the next quarter as revenues scale.
Capex-related depreciation increased (consolidated D&A ₹166.33 Mn in Q2 30 Sep 2025), indicating commissioning of new assets that should contribute to revenue ramp in ensuing quarters.
Risks & Concerns
5
Working-capital build
trade receivables rose to ₹11,223.18 Mn as at 30 Sep 2025, up materially from prior period, posing cash-conversion risk if collection lags.
Short-term borrowings of ₹5,379.21 Mn and finance cost of ₹227.69 Mn in Q2 30 Sep 2025 increase leverage and interest burden, which may pressure margins if revenue growth slows.
Raw-material consumption rose to ₹6,414.79 Mn in Q2 30 Sep 2025 versus ₹4,068.72 Mn YoY, exposing margins to commodity/commodity-supply volatility.
A portion of consolidated subsidiaries’ financials (nine entities outside India) were unaudited at quarter-end and conversion adjustments were made by management, which could introduce consolidation adjustments.
Large unutilised QIP/QIP-II proceeds (tables show multi-thousand‑million rupee balances) create execution risk on timely capex deployment and ROI if project timelines slip.
AI-generated analysis. May contain inaccuracies — verify against original sources.