Kaynes Technology shares tumble 19% as Q4 numbers disappoint; Here’s what analysts at JPMorgan, Morgan Stanley said

At around 11:22 AM, the stock was trading 18.45% higher at ₹3,407.60 per equity share.

The scrip has fallen 22% in the past week and 12% over the month. On a year-to-date basis, it has lost 13%.

While the share hit a 52-week high of ₹7,705 per unit on October 7, 2025, it touched a year’s low of ₹3,294.90 on January 27, 2026.

Kaynes Tech Q4 results

The company 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 of the preceding fiscal 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.

What the management said

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.

What analysts said

The analysts cut its earnings estimates by 12-17% over the next two years, led by cuts across core EMS (Electronics Manufacturing Services), OSAT, and PCB businesses. Additionally, they cut core EMS multiples to 33x from 45x, led by:

• A cut in revenue growth over the next two years, as well as a cut in discounted cash flow over the medium and long term.
• An increase in its net working capital days over the medium term in its discounted cash flow.

The analysts still expect a strong 40% and 45% revenue and earnings compound average growth rate (CAGR) over FY26-28E, respectively, driven by a ramp-up of OSAT and PCB businesses.

Kaynes Technology has a total market capitalisation of ₹22,835.35 crore as of May 14, 2026, according to data on the NSE.