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Informist, Friday, Aug. 7, 2026

 

By Ritwika Dutta 

 

MUMBAI – Kaynes Technology India Ltd. is expected to post an on-year decline in its June quarter net profit due to negative operating cash flow, according to brokerages tracking the company. The company will, however, post an on-year growth in revenue, driven by strong performance across segments.

 

Kaynes is expected to report a consolidated net profit of nearly INR 619 million for the June quarter, down 17% on year and 32% on quarter, according to the average of estimates from eight brokerages. The highest estimate for the consolidated net profit is INR 870 million from Elara Securities (India) Pvt. Ltd. and the lowest is INR 397 million from Nuvama Wealth Management Ltd.

 

The company's consolidated net sales are expected to be INR 8.6 billion for the June quarter, up 28% on year but down 30% on quarter. The highest estimate for the June quarter consolidated net sales is INR 9.1 billion from Nuvama and the lowest is INR 8.4 billion from PhillipCapital (India) Pvt. Ltd. The company had reported net sales of INR 6.7 billion a year ago and of INR 12.42 billion a quarter ago.

 

The company is expected to report strong revenue growth in its industrial, electric vehicle, and automobile segments, according to brokerages. Both the outsourced semiconductor assembly and testing segment and the printed circuit board segment will contribute their first revenue to the company in the June quarter, Nuvama said.

 

"While the firm has ramped up its electronics manufacturing services significantly in the last three years, for FY26 (2025-26 [Apr-Mar]) and beyond, a significant chunk of growth is expected to come from smart metering, which is facing slight slowdown in execution," PhillipCapital (India) Pvt. Ltd. said. 

 

The company's net profit is expected to be affected by persistent working capital issues along with a negative operating cash flow. The company's earnings before interest, tax, depreciation, and amortisation for the June quarter are expected at INR 1.3 billion, up 15% on year but down 33% on quarter, according to the estimates. Outsourced semiconductor assembly and testing will pose a challenge for the industry due to China's dominance, PhillipCapital said, and added Kaynes is likely to rely more on exports, which will improve its EBITDA margin.

 

The company's earnings growth is expected to remain muted for the financial year 2026-27 (Apr-Mar), which will weigh on the stock price, the brokerage added. At 1322 IST, the company's shares traded at INR 3,856 on the National Stock Exchange, up almost 1%. The stock is up almost 16% since the company reported its March quarter earnings on May 13.

 

Of the eight brokerage reports on the company available with Informist, three have a 'buy' recommendation on the stock with an average target price of INR 3,945 per share. This signifies an upside of 2.3% from the current market price.

 

The following are the June quarter earnings estimates for Kaynes from eight brokerages in descending order of the estimates of net profit in INR million:

 

Brokerage	Net Sales	Net Profit	EBITDA
Elara Securities (India) Pvt. Ltd.	8,738	870	1,413
Kotak Securities Ltd.	8,755	757	1,277
Nomura Equity Research	8,620	682	1,309
JM Financial Institutional Securities Pvt. Ltd.	8,519	600	1,332
PhillipCapital (India) Pvt. Ltd.	8,410	563	1,290
Prabhudas Lilladher Pvt. Ltd.	8,418	543	1,244
HDFC Securities Ltd.	8,553	540	1,300
Nuvama Wealth Management Ltd.	9,116	397	1,209
Average	8,641.13	619	1,296.75

 

End

 

Edited by Pankaj Aher

 

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