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Kaynes Technology has reported a strong set of numbers for the September quarter, with solid growth across key financial metrics. The semiconductor and industrial manufacturing company saw its net profit double year-on-year, though revenue and margins came in a touch below Street expectations. Brokerages have maintained a positive stance on the stock.

For the quarter ended September, the company’s revenue rose 58.4 per cent to Rs 906 crore compared with Rs 572 crore a year earlier. This was slightly under analysts’ projections of Rs 972 crore. Operating profit, or EBITDA, came in at Rs 148 crore, up over 80 per cent from last year, but still below the forecast of Rs 157 crore. Margins expanded to 16.3 per cent from 14.3 per cent in the year-ago period — broadly in line with expectations.

Net profit stood at Rs 121 crore, a jump of 101 per cent from Rs 60 crore last year, and marginally ahead of brokerage estimates of Rs 112 crore. The industrial division led growth with a 74 per cent rise in revenue, while the automotive and railway segments grew 26 per cent and 53 per cent respectively.

The company expects the growth trend to continue in the second half of FY26, guiding for a revenue increase of around 50 to 60 per cent. Management said margins are likely to remain firm, supported by capacity expansion in multi-layer and HDI PCB manufacturing. Kaynes also pointed to approvals received under the government’s Electronic Component Manufacturing Scheme (ECMS) as an additional boost to future growth.

Global brokerage houses maintained a positive outlook on the stock after the results.

Jefferies has a ‘Buy’ rating and raised the target price to Rs 7,780 from Rs 7,600, saying the company has multiple growth levers despite a sharp rally in recent months. It expects OSAT production to begin by FY27 and estimates annual sales of Rs 3,500 crore by FY30. The firm, however, flagged concerns about the company’s high working capital cycle at 116 days.

CLSA retained its ‘Hold’ rating while trimming the target to Rs 6,375 from Rs 6,410, noting that results were broadly in line but cash flow conversion remains weak. It warned that sustained pressure on free cash flow could lead to further fund-raising needs.

Nomura remained upbeat, maintaining its ‘Buy’ call and increasing the target to Rs 8,478 from Rs 7,877. The brokerage said the growth outlook remains strong and projected an earnings CAGR of about 51 per cent through FY30.

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff