Kaynes Technology India (KAYNES) Q2 25/26 earnings summary

Executive summary

• Q2 FY2026 revenue reached INR 9,062 million, up 58% year-over-year, with operational EBITDA at INR 1,480 million (80% growth) and PAT at INR 1,214 million (PAT margin 13.4%).

• H1 FY2026 revenue was INR 15,797 million, up 47% year-over-year, with operating EBITDA of INR 2,610 million (75% growth) and PAT of INR 1,960 million (PAT margin 12.4%).

• The company is transitioning from EMS to a fully integrated ESDM model, focusing on end-to-end solutions and deeper customer relationships.

• Major milestones include India's first commercial multi-chip module at the Sanand OSAT facility, government approval for advanced PCB manufacturing, and significant capital raising activities.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with results reviewed and unqualified by statutory auditors.

Financial highlights

• Q2 FY2026 EBITDA margin expanded by 190 bps to 16.3% year-over-year; PAT margin at 13.4%.

• H1 FY2026 EBITDA margin was 16.5%, up 270 bps year-over-year; PAT margin at 12.4%.

• Order book for Q2 FY2026 stood at INR 80,994 million, up from INR 54,228 million in Q2 FY2025.

• Net debt reduced to INR 4,218 million, with net debt-to-equity at 0.1 in H1 FY2026.

• Operating cash flow was negative at about INR 180 crore, expected to turn positive by year-end.

Outlook and guidance

• Management remains confident in meeting annual profit, EBITDA, and revenue targets despite quarterly fluctuations due to supply chain issues.

• Revenue guidance of $1 billion by FY2028 and $2 billion by FY2030 is reaffirmed, with strong order inflow and business momentum.

• Strategic expansion into OSAT and HDI PCB manufacturing, with new facilities operational and further capacity ramp-up planned.

• Mass production of India’s first commercial multi-chip module from Sanand OSAT Facility to begin by Jan 2026.

• Significant unutilised capital from recent QIP placements is earmarked for facility expansion, working capital, and strategic investments.