Kaynes Technology’s stock slumps—but its $1 billion growth push is just beginning

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Shares of Kaynes Technology India Ltd have fallen roughly 25% from their peak of 7,705 in October, amid a management reshuffle and the expiry of the lock-in period for pre-IPO shareholders.

Despite the dip, the company’s growth outlook remains robust, supported by a substantial order book and significant capital expenditure (capex) across a range of electronic products, with commercial production for some expected to begin over the next two quarters. At a recent analysts’ meet, management expressed confidence in achieving $1 billion in revenue ahead of the initial FY28 target.

Kaynes is executing several key projects, including an outsourced semiconductor assembly and test (OSAT) facility in Gujarat and a printed circuit board (PCB) plant in Tamil Nadu, slated to begin commercial production in Q4FY26 and Q1FY27, respectively. Customers have already been onboarded for these products, with expected revenues of 1,000 crore from OSAT and 500 crore from the PCB plant in FY27. The PCB facility will gradually ramp up to high-density interconnect PCBs, which are projected to make up nearly 20% of total output and deliver higher margins.

On a firm footing (Split Bars)

The company is also investing in CCL (copper-clad laminate, an intermediate product used in PCBs) and camera modules. Total planned capex across all projects is about 8,500 crore during FY26-29, nearly double its FY25 balance sheet size of 4,600 crore. Of this, around 3,500 crore, or 40% of the total, is expected to come as subsidies from the central and state governments under initiatives aimed at building a domestic electronics manufacturing ecosystem.

“We remain positive on Kaynes, led by strong momentum in India EMS (on import substitution, with Kaynes enjoying industry-leading margin and robust order inflows),” said Elara Capital in a report dated 25 November, projecting earnings per share growth of 49% CAGR over FY25-28. The company has also ventured into satellite and drone electronics.

Kaynes’ financials mirror the strong business environment. Revenue in H1FY26 rose 47% year-on-year to 1,600 crore, while Ebitda grew at a sharper 75% to 260 crore, aided by slower input cost growth and better operating leverage. Management has maintained its guidance of clocking 4,500 crore in revenue for FY26, implying a 65% year-on-year growth, supported by an order book of 8,000 crore. FY25 revenue growth was 51%.

The stock trades at 57x FY27 estimated earnings, according to Bloomberg. Consistent performance over the coming quarters, along with ramp-up of production at new facilities, will be key drivers of the stock’s trajectory.



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