Kaynes Technology shares gained 1.87% to ₹3,713.35 on Tuesday, breaking a three-day losing streak. According to reports from Essential Business Intelligence, the stock had declined nearly 5% in the past three trading sessions before the recovery. At 9:45 AM, the shares were trading 1.18% higher at ₹3,688.00 on the BSE.
The government cleared 31 applications involving an investment of ₹7,877 crore under the fifth tranche of the Electronics Component Manufacturing Scheme (ECMS). As reported by the Ministry of Electronics and Information Technology (MeitY), these approvals are expected to translate into ₹82,243 crore of production. Among the projects cleared, Kaynes Technology's printed circuit board (PCB) plant is expected to become operational within a month, providing a significant boost to the company's electronics manufacturing capabilities. The approval comes as part of a broader government initiative to boost domestic manufacturing capabilities across key hardware and component sectors.
Multiple approved projects are set to become operational over the coming months, demonstrating accelerated manufacturing timelines. According to MeitY Secretary S Krishnan, applications for the ECMS are still pouring in, making it one of the government's most dynamic manufacturing programmes. The Kaynes Technology PCB plant is anticipated to go live in about a month, while Dixon Technologies will likely commission its authorised facility in roughly four months. The Kanchipuram facility of Motherson and Wipro's factory are expected to become operational in the next two to three months. This points to a quicker turnaround time between receiving regulatory permissions and actually being able to manufacture the product.
Kaynes Technology reported mixed financial results for Q1FY27. According to company data, net profit declined 24.4% to ₹56.4 crore compared to ₹74.6 crore in the corresponding period last year. However, revenue showed strong growth of 40.5% to ₹946 crore from ₹673.5 crore year-on-year. EBITDA increased 29.5% YoY to ₹147 crore, though EBITDA margin contracted to 15.5% from 16.9% in the previous year.
According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, Kaynes Technology has been consolidating within the ₹3,535 – ₹3,963 range since August. The RSI has cooled off from a high of 72 to 56, indicating a pause in momentum, while the ADX has plateaued, suggesting lack of strong trend strength. A decisive breakout on either side of this range is likely to provide the next directional cue for the stock.
