Kaynes Technology India (KAYNES) Q3 24/25 earnings summary

Executive summary

• Achieved operating revenue of INR 17,373 million for the first three quarters of FY 2025, up 49% year-over-year, and Q3 FY 2025 revenue was INR 6,612 million, a 30% year-over-year increase.

• Profit after tax rose 47% year-over-year in Q3 FY25 and 74% year-over-year in 9MFY25, with PAT margin at 10.1% in Q3 and 10.2% in 9MFY25.

• Order book grew to INR 60,471 million as of Q3 FY25, driven by expansion in industrial, EV, aerospace, medical, and automotive verticals.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on January 27, 2025.

• Statutory auditor review reports are unqualified, with no material misstatements identified.

Financial highlights

• Q3 FY25 operational EBITDA was INR 940 million, up 35% year-over-year, with a margin of 14.2%; 9MFY25 EBITDA at INR 2,431 million, up 53% year-over-year, with a 14.0% margin.

• Q3 FY25 PAT was INR 665 million, up 47% year-over-year, with a margin of 10.1%; 9MFY25 PAT at INR 1,774 million, up 74% year-over-year.

• Net working capital days reduced to 107 from 117 year-over-year; inventory days at 117 due to advance purchases.

• Net debt increased to INR 5,996 million, with net debt/equity at 0.2 and net debt/EBITDA at 2.5x.

• Basic EPS (consolidated) for Q3 FY25 was INR 10.39, compared to INR 7.72 in Q3 FY24.

Outlook and guidance

• Annual operating revenue growth expected to exceed 55% year-over-year for FY 2025, with EBITDA margin guidance for FY 2025 at 15%+ and similar or higher margins expected in FY 2026.

• Revenue guidance for FY 2025 is INR 2,800–2,900 crores; FY 2026 revenue target is INR 4,500 crores (excluding M&A).

• Significant ramp-up expected in aerospace, railways, and smart meters in FY 2026.

• Unutilised IPO and QIP proceeds as of December 31, 2024, are temporarily invested in deposits and mutual funds, supporting future expansion.

• Strategic acquisitions and facility expansions are expected to strengthen market position.