Kaynes Technology
Kaynes Technology shares plunge 19% after March-quarter results miss expectations
Mumbai/IBNS: Shares of Kaynes Technology Ltd. plunged nearly 19 percent on Thursday after the company reported an underwhelming performance for the March quarter of FY2026, media reports said.
The sharp decline in the stock also came after brokerage firm JPMorgan reportedly downgraded the company following the earnings announcement.
Profit declines despite strong revenue growth
Kaynes Technology India Ltd. posted a mixed set of results for the fourth quarter, with robust revenue growth overshadowed by a decline in profitability due to margin pressure.
The company’s consolidated net profit fell 21.5 percent year-on-year to around ₹91 crore in Q4 FY26.
However, revenue from operations rose nearly 26 percent YoY to approximately ₹1,243 crore, driven by strong demand in its electronics manufacturing services (EMS) business.
Margins under pressure
The company’s EBITDA margins contracted during the quarter amid rising operational costs and higher depreciation expenses, raising concerns among investors and analysts.
For the full financial year FY26, Kaynes Technology reported revenue growth of over 33 percent to nearly ₹3,626 crore, while annual profit increased around 24 percent to ₹364 crore.
Strong order book offers long-term visibility
Despite the weak quarterly profitability, the company maintained a strong order book of over ₹8,000 crore, providing visibility for future growth.
Market participants, however, reacted negatively to the earnings miss and margin compression, triggering a sharp selloff in the stock.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
