Kaynes profit falls 21.50% despite 26.22% revenue growth
Higher depreciation, interest and tax offset operating growth, while other income contributed 29.82% of pre-tax profit.
Filed 17 May 2026, 18:09 IST · after market close · Kaynes Technology India Ltd (KAYNES)
Key takeaways
- Consolidated revenue grew 26.22% year on year, but net profit fell 21.50% as interest, depreciation and tax costs rose faster.
- Operating margin recovered 0.75 percentage points sequentially as expenses grew slower than revenue, but remained 1.46 percentage points below Q4FY25.
- The stock fell 20.15% in the initial reaction, far beyond its 6.31% median move after the previous eight results.
Price around the results
Revenue growth did not convert into higher profit
Consolidated revenue grew 26.22% year on year, but expenses grew faster at 28.45%, limiting operating-profit growth to 15.39%. Interest rose 38.73% and depreciation increased 221.19%, while the tax rate rose 16.82 percentage points to weigh on net profit, which fell 21.50%. Other income contributed 29.82% of pre-tax profit, making reported earnings less representative of operating performance.
Sequential margin recovery remains below last year
Revenue rose 54.55% sequentially while expenses increased 53.19%, so operating margin widened by 0.75 percentage points. The 15.59% margin was 0.07 percentage points below the 15.66% median for 71 Industrials peers that had reported the quarter. Margin has recovered from 14.84% in Q3FY26, but remains below 17.05% in Q4FY25 after declining through the first three quarters of FY26.
Management is expanding beyond electronics manufacturing services
Management said Kaynes is moving into OSAT and HDI PCB to build an integrated electronics business. It said the OSAT pilot line at Semicon Plant 1 is operational, with Unit 2 expected to be operational by July, while PCB Unit 1 is planned to be operational by July 2026. The presentation also said the company launched a commercial multi-chip module from its Sanand OSAT facility, is shipping IPMs to AOS, acquired Mustard for AR/VR capabilities and is developing a 150,000-square-foot Hyderabad plant.
The market reaction was unusually severe
The stock fell 20.15% in the initial reaction and was down 24.02% five sessions after the results anchor date. That was sharply outside its recent pattern: six of the previous eight result reactions were positive, and the median absolute move was 6.31%.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,243 cr | ₹804 cr | +54.55% | +26.22% |
| Other income | ₹42 cr | ₹42 cr | -1.06% | +104.30% |
| Expenses | ₹1,049 cr | ₹685 cr | +53.19% | +28.45% |
| Operating profit | ₹194 cr | ₹119 cr | +62.35% | +15.39% |
| Operating margin (%) | 15.59% | 14.84% | — | — |
| Interest | ₹41 cr | ₹25 cr | +64.40% | +38.73% |
| Depreciation | ₹54 cr | ₹20 cr | +166.72% | +221.19% |
| Profit before tax | ₹140 cr | ₹116 cr | +20.56% | -1.20% |
| Tax | ₹49 cr | ₹40 cr | +23.54% | +90.48% |
| Net profit | ₹91 cr | ₹77 cr | +19.02% | -21.50% |
| EPS (₹) | ₹13.32 | ₹11.34 | +17.46% | -26.49% |
Operating margin of 15.59% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -20.15% | -21.33% |
| Next session | -21.69% | — |
| 5 sessions | -24.02% | -25.05% |
| 15 sessions | -25.29% | — |
| 30 sessions | -24.60% | — |
Volume on the results session was 8.43× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Kaynes is moving into OSAT and HDI PCB to become an integrated electronics player.
- Semicon Plant 1's OSAT pilot line is operational, and Unit 2 is expected to be operational by July.
- PCB Unit 1 is planned to be operational by July 2026.
- Kaynes is developing an upcoming 150,000-square-foot plant in Hyderabad.
- Kaynes Semicon has a 236,000-square-foot Phase 2 expansion planned at Sanand.
New products
- Kaynes launched India's first commercial multi-chip module from its Sanand OSAT facility and is shipping IPMs to AOS.
New initiatives
- The company acquired Mustard for AR/VR capabilities.
What to watch
- Whether operating margin holds above 15.59% after the sequential recovery.
- Whether depreciation remains below the Q4FY26 level of Rs 54.41 cr as new capacity is added.
- Progress on management's July 2026 milestones for OSAT Unit 2 and PCB Unit 1, alongside the planned 236,000-square-foot Sanand Phase 2 expansion.