Kaynes Technology India Ltd Q2 FY27 Results Analysis: PAT Plunges 66%, Margin Compresses 324 bps
Kaynes Technology India Ltd reported Q2 FY27 numbers with revenue of Rs. 952.51 Cr (+4.43% YoY) and PAT growth of -65.60% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 15, 2026 |
|---|---|
| Revenue (Q2) | Rs. 952.51 Cr (+4.43% YoY) |
| PAT (Q2) | Rs. 39.80 Cr (-65.60% YoY) |
| EBITDA margin | 13.18% (-324 bps YoY) |
| EPS (Q2) | Rs. 6.76 (-61.68% YoY) |
Quarter Snapshot
Kaynes delivered consolidated revenue of Rs.952.51 cr (+4.43% YoY restated) but PAT fell 65.60% YoY to Rs.39.80 cr as EBITDA margin compressed 324 bps YoY to 13.18%, missing management's margin-recovery guidance. Net debt more than doubled to Rs.1,703.10 cr, H1 operating cash flow remained negative at −Rs.278.41 cr, and subsidiaries dragged consolidated PAT by Rs.51.65 cr below standalone. OSAT/PCB first billings guided for Q3 FY27 remain unbooked through H1, making the Rs.450-500 cr FY27 target difficult to achieve.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Revenue "likely ahead of market, off a high base" | +4.43% YoY consolidated — grew, but sharply decelerated | Contradicted |
| Margin recovery "at risk of arriving later or smaller than guided" | 13.18% vs 15.06% Q1 — compression | Played out |
| "Finance cost is the other watch" | Rs.38.73 cr, +4.28% QoQ, +191.99% YoY restated | Played out |
| OCF negative entry position | H1 OCF −Rs.278.41 cr vs −Rs.404.18 cr H1 FY26 — still negative, YoY improved | Partially |
| Q2 to confirm OSAT/PCB billing readiness | Not disclosed in filing | Not observable |
| Metering receivables turn to watch | Total TR −1.96% vs Mar-26; split not disclosed | Not observable |
| No-QIP reiteration | Rs.2.59 cr ESOP-only equity | Played out |
| Input-cost/FX pressure on gross margin | 31.96% (−196 bps QoQ) | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Revenue growth = 2x market growth, tracked quarterly | Q1 FY27 earnings call (Aug 8, 2026) and prior quarterly commitments | Consol revenue +4.43% YoY (restated); Q2 market print not in the filing | Too Early |
| OSAT + PCB combined Rs.450–500 cr FY27, first billings Q3 FY27 | Q1 FY27 earnings call (Aug 8, 2026) | No OSAT/PCB revenue disclosed; CWIP up Rs.333.71 cr QoQ to Rs.706.18 cr | Too Early |
| Capex Rs.300 cr OSAT + Rs.300 cr PCB + ~Rs.250 cr EMS annually | Q4 FY26 earnings call (May 14, 2026), reiterated Q1 FY27 | H1 capex Rs.556.41 cr = 130.9% of pro-rata plan | Met |
| Metering cash flow positive ~Q3 FY27; 70–80% of Rs.600 cr recovered by end-Q3 | Q4 FY26 earnings call (May 14, 2026) | Not separately disclosed; consol H1 OCF −Rs.278.41 cr (improved YoY) | Too Early |
| EBITDA (ex-OI) margin recovery from 15.6% "in the next two quarters" | Q1 FY27 earnings call (Aug 8, 2026) | 13.18%, down QoQ and YoY | Missed |
| NWC 70–85 days by Mar-26 | prior earnings calls | ~257 days on my construction vs ~230 at Mar-26 | Missed |
| No further QIP required | Q3 FY26 earnings call | No equity issuance in H1 (Rs.2.59 cr ESOP only) | On Track |
Key Investment Insights
Key Positives
- Standalone revenue grew 44.37% YoY to Rs.667.27 cr with standalone PAT up 295.86% YoY to Rs.97.07 cr
- H1 consolidated revenue grew 17.87% YoY to Rs.1,898.73 cr
- H1 operating cash outflow narrowed to −Rs.278.41 cr from −Rs.404.18 cr in H1 FY26
- Total trade receivables declined 1.96% vs Mar-26 to Rs.2,061.47 cr
- H1 capex of Rs.556.41 cr is on track against the ~Rs.850 cr annual plan (Rs.300 cr OSAT + Rs.300 cr PCB + ~Rs.250 cr EMS)
- No equity issuance in H1 (only Rs.2.59 cr ESOP proceeds), consistent with the no-further-QIP commitment
- JV with Toyokawa Techno approved 14 Nov 2026 for TFT module manufacturing in India (KTIL 90% / Toyokawa 10%)
Risk Factors
- Consolidated PAT fell 65.60% YoY to Rs.39.80 cr with basic EPS down to Rs.6.76 from Rs.17.64
- EBITDA (ex-OI) margin fell to 13.18%, down 324 bps YoY and 188 bps QoQ, contradicting management's margin-recovery guidance from 15.6%
- Consolidated revenue growth decelerated to +4.43% YoY from +58% pace in Q2 FY26
- Subsidiary drag widened to −Rs.51.65 cr (consolidated PAT-to-owners minus standalone PAT); 9 unreviewed subsidiaries posted a Q2 net loss of Rs.53.87 cr
- Net debt more than doubled in six months to Rs.1,703.10 cr; cash fell to Rs.67.93 cr from Rs.287.75 cr
- Effective tax rate jumped to 38.51% of PBT from 21.88%, amplifying the PAT decline
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.