Kaynes Tech shares crash 8% after weak Q1 results: What are Nomura and Motilal Oswal saying

Net profit stood at Rs 56.4 crore in the April-June quarter, down from Rs 74.6 crore in the same period last year. Revenue, however, jumped 40.5% YoY to Rs 946 crore from Rs 673.5 crore in Q1 FY26. EBITDA increased 29.5% to Rs 147.5 crore from Rs 113 crore last year, while the EBITDA margin narrowed to 15.6% from 16.7%.

Kaynes Technology saw pressure at the gross margin level as its cost of goods increased to Rs 620 crore from Rs 396 crore a year ago. Gross margin consequently narrowed to 34.4% from 41.1%. The company attributed the compression to higher supply-chain, energy, commodity and foreign exchange (forex) costs.

At the end of the June quarter, the company’s order book stood at Rs 8,900 crore, up 20% YoY and 6% sequentially. The order book-to-trailing 12-month sales ratio remained stable at 2.3x.

Kaynes Tech shares: Buy, sell or hold?

Motilal Oswal maintained its ‘Buy’ rating with a target price of Rs 5,000, implying around 30% upside from current levels. It expects Kaynes Technology to maintain strong growth momentum, supported by a robust order book of Rs 89 billion as of June 2026, up 20% YoY. The brokerage said the company delivered a healthy operating performance in Q1 FY27, with growth across all segments. Going ahead, growth is expected to be led by the continued scaling of its core EMS business across verticals, while OSAT and PCB are likely to emerge as key growth drivers, with commercialisation targeted for Q3/Q4 FY27. Its expansion into space and defence electronics should also help diversify the company's growth profile.## Management outlook

Kaynes Technology has described FY27 as a challenging year, but stated that it expects to respond to changing conditions more quickly than its peers. The company also expects profitability to normalise over the next few quarters.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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