Kaynes Technology shares tumble 19% even as firm reports 47% jump in Q3 profit; here is why

Kaynes Technology shares tumbled significantly on Tuesday after the company announced revised FY25 revenue guidance. The electronics manufacturing firm lowered FY25 revenue guidance to ₹2,800 crore from the previously anticipated ₹3,000 crore.

At 11 AM, shares of the company were trading at ₹4,239.20 on BSE, tanking 19.54% after opening at ₹4,877 apiece. On NSE, the scrip was down 19.77% at ₹4,226.35.

The technology firm reported a 47% rise in its profit after tax (PAT) at ₹66.5 crore for the December quarter of FY25. In addition, the revenue during the reporting quarter stood at ₹661.2 crore, increasing 30% from ₹509.3 crore in Q3 FY24. EBITDA (excluding other income) saw considerable growth, climbing by 35% year-on-year to ₹94 crore from ₹69.90 crore during the same period last financial year.

Looking ahead, for the financial year 2026, the company projects revenue of ₹4,500 crore, with expectations of achieving margins exceeding 15%. The EBITDA margin of the company (excluding other income) increased to 14.2% in Q3 FY25 as compared to ₹13.7% during the same period last fiscal. In Q3FY25, Kaynes’s orderbook grew to ₹6,047 crore from ₹3,798 crore in Q3FY24.

Commenting on the result, managing director and promoter of Kaynes Technology Ramesh Kunhikannan, said: “We continue to invest in high potential & high margin segments and expect these to help us sustain the growth momentum and make Kaynes, a differentiated player in this segment. We are consistently adding new capabilities, and new geographies and looking to expand our customer base, with a specific focus on large customers and high growth segments.”