Kaynes Technology India (KAYNES IN) – Q1FY27 Result Update – Core EMS Delivers; New Businesses Poised to Accelerate – ACCUMULATE
Published on 10 Aug 2026
KAYNES maintained its growth outlook, expecting revenue growth at nearly 2x the EMS industry growth of ~15–17%, supported by deeper customer penetration, new product additions and diversification, while refraining from providing absolute revenue guidance. OSAT and PCB commercial revenues are expected from Q3FY27, with FY27 revenue targeted at INR 4.5–5.0bn. Smart-metering revenue declined 12% YoY as supplies were deliberately moderated amid elevated receivables, while management is evaluating divestment of the service/installation business and expects greater clarity by Feb’27. KAYNES added several new customers, including a leading electric two-wheeler manufacturer, global European brands and a wireless communication company, and entered a strategic partnership with Mitsui for semiconductor packaging. OCF remained negative at ~INR 2.6bn, although management expects cash flows to turn positive by FY27-end. KAYNES appointed Walker Chandiok & Co LLP as statutory auditor for five years. We had tweaked our earnings estimates for FY27E/FY28E and Maintain ‘Accumulate’ rating. Our DCF-based TP is INR 4,390, implying PE of 50x Mar’28E earnings We estimate FY26-28E revenue/EBITDA/PAT CAGR of 41.6%/40.1%/23.9%.
