Kaynes Technology shares drop 25% in three sessions, here is why

Shares of Kaynes Technology dropped for a third straight session on Monday, May 18. In the last three trading sessions, the stock has fallen as much as 25% to hit an intraday low of ₹3,132 on the National Stock Exchange (NSE). In intraday deals, Kaynes Technology shares fell as much as 4.27% from its previous close of ₹3,271.90.

The stock came under selling pressure after the company's March quarter earnings failed to impress investors.

Kaynes Technology posted a 21.5% year-on-year (YoY) decline in its consolidated net profit to ₹91.2 crore during the quarter under review, compared to ₹116.2 crore in Q4 of the 2024-25 fiscal year (Q4 FY25).

Its revenue from operations, however, surged 26.2% YoY to ₹1,242.64 crore in the March quarter of FY26, as against ₹984.48 crore in the same period last year.

At an operational level, the firm’s EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, stood at ₹1,937 crore for the reporting quarter, marking a 15.4% YoY increase from ₹1,679 crore in Q4 FY25.

However, its EBITDA margin contracted by 150 basis points (bps) YoY to 15.6% in the latest March quarter, compared to 17.1% in the year-ago period.

In FY26, its net working capital days stood at 125, up from 87 in the previous fiscal year. Working capital days represent the number of days it takes for a company to convert its current assets into cash.

Commenting on the results, Ramesh Kunhikannan, Executive Vice Chairman and Promoter, Kaynes Technology India Limited, said that the firm achieved revenues of ₹3,626.4 crore during FY 2026, registering a growth of 33% YoY, along with steady YoY growth in difficult market situations. The company’s order book stood at upwards of ₹8,000 crore as of FY26, providing strong revenue visibility for the future.

“During the quarter, our Company achieved a significant milestone with the inauguration of our OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand, Gujarat,” Kunhikannan stated, adding that Kaynes Tech’s OSAT unit has rapidly scaled up and, within 14 months, commenced commercial operations.

He added that the firm’s HDI PCB (High-Density Interconnect Printed Circuit Board) manufacturing unit has been nearing its operational readiness, improving execution visibility and supporting scalable growth.

Kaynes Tech has continued to see strong customer engagement, healthy long-term demand visibility, and increasing strategic relevance across key sectors, he said.

“With our expanding capabilities in high-value electronics manufacturing, OSAT, PCB, and design-led solutions, we remain confident about the long-term growth potential of the company,” Kunhikannan added.

As of 1:01 pm, Kaynes Technology shares traded 3% lower at ₹3,172, underperforming the NIFTY Smallcap 100 index which was down 1.5%.