According to reports from Prabhudas Lilladher, the brokerage has issued an 'Accumulate' rating on Kaynes Technology India with a target price of ₹3,506. The recommendation comes with a DCF-based target price implying a PE of 40x March 2028E earnings. The research report was dated May 14, 2026.
As reported by Prabhudas Lilladher, Kaynes Technology India missed its revenue and profitability guidance in FY26 primarily due to execution delays in two government-related smart meter projects in Q4FY26. The company also faced geopolitical disruptions, supply-chain challenges and weakness in a key EV customer. Despite these challenges, the automotive/Industrial segment grew by 19-31% in Q4FY26. The latest developments show Kaynes Tech plunged over 17% following the guidance miss, with JPMorgan also downgrading the stock.
According to the report, Kaynes Technology India ended FY26 with an order book of ₹84 billion, which was reduced from ₹91 billion by the end of 9MFY26. The company witnessed a significant decline in average monthly order inflow during the period. Additionally, working capital days increased by approximately 23 days year-on-year in FY26, mainly due to a 57-day rise in receivable days. Management indicated that working capital stress has likely peaked and expects 70-80% normalization over the next three quarters.
As reported by Prabhudas Lilladher, Kaynes Technology India refrained from providing absolute FY27 revenue guidance but expects the company to grow at nearly 2x the EMS industry growth rate of 15-16%. Management indicated that operating cash flow (OCF) is expected to be positive in FY27. The brokerage has downward revised FY27E/FY28E earnings by 29.3%/27.9% with the correction in guidance.
According to the research report, Prabhudas Lilladher estimates FY26-28E revenue/EBITDA/PAT CAGR of 39.0%/37.6%/26.3% respectively. The downgrade to 'Accumulate' rating reflects the revised earnings projections following the company's guidance correction and operational challenges faced in FY26.
