Kaynes Technology shares fell 3.14% to ₹3,735.10 on Monday after tumbling as much as 8.33% to ₹3,535 during intraday trade, despite delivering strong Q1 FY27 results. The stock had declined nearly 9% to a low of ₹3,535 per share on the NSE after results were reported post market hours last Friday, before later paring losses. According to Moneycontrol, the sharp decline appeared to be a reaction to the company's earnings, with analysts remaining largely cautious despite strong operational performance. Elevated working capital, higher receivables and inventory remain key concerns for investors, with net working capital days rising to 163 days from 125 days in Q4, driven by smart meter collections spilling over into July and increased inventory days due to supply-side challenges.
Kaynes Technology delivered robust first-quarter results that exceeded market expectations, with revenue reaching ₹946.02 crore, representing a 40.47% year-on-year growth and surpassing the CNBC-TV18 poll estimate of ₹863 crore. The company beat expectations on both revenue and margins for the first time in at least five quarters, with revenue growing 10% and 12% ahead of consensus estimates and JPMorgan's estimates, respectively. As per Moneycontrol, EBITDA margin declined 120 basis points year-on-year to 15.6%, but was 50 basis points and 60 basis points ahead of consensus estimates and JPMorgan's estimates, respectively. The core EMS business, excluding smart meters and August Electronics, grew 66% year-on-year in the first quarter, demonstrating strong operational momentum across key business segments. According to Motilal Oswal's latest research report dated August 8, 2026, EBITDA growth of 31% YoY to ₹1.5 billion was largely fueled by strong growth in the core EMS business, which more than offset the decline in smart-metering revenue.
Despite strong operational performance, working capital remains a key concern for investors. Elevated inventory and receivables led to negative operating cash flow of ₹250 crore during the quarter, although collections from the smart metering business picked up. According to Moneycontrol, the company is guiding for positive operating cash flow by the end of FY27, with the smart metering business expected to turn cash positive by the end of the year. Kaynes Technology is on track to commission its OSAT and PCB facilities in the third quarter of FY27 and targets revenue of ₹450-₹500 crore from these facilities in FY27. The company plans to issue a detailed de-risking strategy in February next year, with clarity on the service-to-product model expected to emerge by the third quarter. As per Moneycontrol, the company is prioritising collections and core EMS growth as it prepares for its next capex-led expansion cycle.
Multiple brokerage firms maintained positive ratings on Kaynes Technology following the Q1 results, though some have revised their estimates downward. Motilal Oswal maintained its 'Buy' rating with a price target of ₹5,000, indicating an upside potential of 30% from current levels. CLSA maintained its 'Hold' rating and raised its price target to ₹3,650, while JPMorgan retained its 'Neutral' rating with a price target of ₹3,600. However, JPMorgan cut its EPS estimates by 7-9% mainly due to a higher tax rate, and Nomura cut its EPS estimates by 6-9% over FY27-28F due to higher depreciation and tax rates. As reported by Moneycontrol, the positive brokerage views reflect the company's operationally strong first quarter performance with revenue and EBITDA ahead of estimates, though analysts remain cautious about execution and working capital management.
Kaynes Technology demonstrated strong business momentum with order book standing at ₹8,903.8 crore as of June 30, 2026, compared with ₹7,401.1 crore as of June 30, 2025, reflecting a 20.3% year-on-year increase and providing healthy revenue visibility. The order book-to-trailing 12-month sales ratio remained stable at 2.3x, indicating robust demand visibility. According to Moneycontrol, the company described FY27 as a tough year but expects to respond faster to changing situations compared with its peers. Kaynes Technology is an end-to-end, IoT-enabled integrated electronics manufacturer offering services across the Electronics System and Design Manufacturing (ESDM) spectrum. The company's diversified portfolio showed strong growth across multiple segments, with Automotive/Industrials/Aerospace/Medical/IT/Railways growing 35%/31%/2.8x/2.8x/69%/81% YoY to ₹2.5 billion/₹5.2 billion/₹189 million/₹189 million/₹568 million/₹851 million respectively.
