Kaynes Technology India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Kaynes Technology India Ltd filed with BSE on 12 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Kaynes Technology reported Q1 FY27 total revenue of Rs 946 crores, up 40% year-on-year, driven largely by the EMS business, while the smart metering business was deliberately scaled down due to working capital constraints. EBITDA for the quarter was Rs 147.6 crores, translating to a 15.6% margin and 31% year-on-year growth. Management said escalation in West Asia caused minor timing slippage in the OSAT and PCB ramp-up schedules, and operating cash flow was negative Rs 259 crores for the quarter due to higher inventory and receivables.
Numbers mentioned
Total revenue: INR946 crores (Q1 FY27)
p. 3
“Our total revenue stood at INR946 crores, reflecting an year-on-year growth of 40%, which is largely driven by EMS business.”
Ramesh Kunhikannan, page 3 of the filed PDF · View the filing
EBITDA: INR147.6 crores (Q1 FY27)
p. 3
“EBITDA for the quarter was INR147.6 crores, translating into an EBITDA margin of 15.6% and 31% year-on-year growth.”
Ramesh Kunhikannan, page 3 of the filed PDF · View the filing
Order book: around INR9,000 crores
p. 3
“We have a robust order book of around INR9,000 crores.”
Ramesh Kunhikannan, page 3 of the filed PDF · View the filing
Standalone EMS business growth: 53% (Q1 FY27 vs Q1 FY26)
p. 11
“So as a stand-alone EMS business if you see, our growth is 53%, from INR480 crores of last year to this year of INR639 crores stand-alone EMS business.”
N. Muthukumar, page 11 of the filed PDF · View the filing
Overseas entities revenue growth: 327% (Q1 FY27 vs Q1 FY26)
p. 11
“My overseas entities if you take, from INR24 crores last year to INR102 crores, which has grown at 327%, there is a new acquisition that happened.”
N. Muthukumar, page 11 of the filed PDF · View the filing
Metering business revenue growth: -12% (Q1 FY27 vs Q1 FY26)
p. 11
“At the metering business, last year first quarter our sales was INR231 crores, and this year it is INR204 crores, which means a minus 12% growth.”
N. Muthukumar, page 11 of the filed PDF · View the filing
Operating cash flow: negative INR259 crores (Q1 FY27)
p. 11
“taking it to about a total of about INR259 crores of a negative cash flow, okay?”
N. Muthukumar, page 11 of the filed PDF · View the filing
Capex OSAT and PCB FY26: INR473 crores for OSAT and INR324 crores for PCB (FY26)
p. 7
“The capex done in FY26 was INR473 crores for OSAT and INR324 crores for PCB.”
N. Muthukumar, page 7 of the filed PDF · View the filing
Government subsidy received in OSAT: INR170 crores (till July 26)
p. 8
“We also received, happy to say that we also received the government subsidy to the tune of INR170 crores in OSAT business till July 26.”
N. Muthukumar, page 8 of the filed PDF · View the filing
Total investment OSAT and PCB: about INR1,200 crores
p. 12
“Both put together is INR1,200 crores, maybe about INR700 crores in OSAT and INR500 crores in our PCB.”
N. Muthukumar, page 12 of the filed PDF · View the filing
Total receivables: INR1,925 crores (Q1 FY27)
p. 14
“We started this quarter with about INR1,765 crores in total, including current and non-current assets, and that has gone to INR1,925 crores.”
N. Muthukumar, page 14 of the filed PDF · View the filing
Inventory days: 105 days (Q1 FY27)
p. 17
“On the first quarter end, we have gone up to about 105 days.”
N. Muthukumar, page 17 of the filed PDF · View the filing
Effective tax rate (consolidated): 35% (Q1 FY27)
p. 17
“effective tax rate is around 23%, and at the consolidated level, it is at 35%.”
Senthil, page 17 of the filed PDF · View the filing
Debt-to-equity ratio: 0.3%
p. 17
“The debt-to-equity ratio is good at about 0.3% at this point of time.”
N. Muthukumar, page 17 of the filed PDF · View the filing
Order book: more than about INR8,900 crores
p. 19
“So, very strong order book of more than about INR8,900 crores is in the system, and things are shaping up much faster.”
N. Muthukumar, page 19 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
OSAT and Kaynes Circuit Chennai operational date — operational · Q3 FY27
stated firmly by Ramesh Kunhikannan
p. 4
“Both Kaynes Semicon Unit 2 and Kaynes Circuit Chennai remain on the track to be operational by quarter 3 FY27, and we will continue to update you transparently on our progress every quarter.”
Ramesh Kunhikannan, page 4 of the filed PDF · View the filing
Revenue growth — 2x market growth · FY27
stated conditionally by N. Muthukumar
p. 14
“Sir, revenue growth, we have committed the 2x of the market growth.”
N. Muthukumar, page 14 of the filed PDF · View the filing
OSAT and PCB full year revenue — INR450 to INR500 crores · FY27
stated firmly by N. Muthukumar
p. 14
“we have committed a full year revenue of totally INR500 crores between both, INR450 to INR500 crores, which is what we are targeting at this point in time, we are on the target.”
N. Muthukumar, page 14 of the filed PDF · View the filing
Capex guidance — INR300 crores for OSAT, INR300 crores for PCB, INR250 crores for EMS · FY27
stated firmly by N. Muthukumar
p. 16
“We said we will be funding for this capex for this year is about INR300 crores for OSAT, INR300 crores for PCB, and about INR250 crores for EMS business.”
N. Muthukumar, page 16 of the filed PDF · View the filing
Metering business receivables turnaround — cash positive · end of financial year
stated conditionally by N. Muthukumar
p. 6
“we are pretty confident on that.”
N. Muthukumar, page 6 of the filed PDF · View the filing
Satellite launch readiness — ready to launch · middle of next year
stated conditionally by N. Muthukumar
p. 8
“Our first 3U satellite is currently in the prototype development phase, and we expect it to be ready to launch in middle of next year, once the required regulatory testing is complete.”
N. Muthukumar, page 8 of the filed PDF · View the filing
Metering business turnaround in receivables — turnaround · end of this year
stated conditionally by N. Muthukumar
p. 13
“But we are pretty confident that we will be able to do the turnaround by end of this year in terms of receivables from the metering business.”
N. Muthukumar, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management clarified EMS grew 40% and metering grew 28%, with combined growth exceeding 48%.
Answered by N. Muthukumar
Asked by Renu Baid: Clarification on EMS growth rate versus overall growth and mix with metering business.
p. 9
“Yes, the overall EMS business growth is 40%, the metering is 28%, so the total growth is more than 48%.”
N. Muthukumar, page 9 of the filed PDF · View the filing
Management said they are looking at options to de-risk the metering business receivables and will share strategy details in the February call.
Answered by N. Muthukumar
Asked by Renu Baid: Is there any plan to divest the smart metering business given sub-optimal returns?
p. 10
“you will hear more from us about our strategy to de-risk the receivables portion of the metering business.”
N. Muthukumar, page 10 of the filed PDF · View the filing
Management gave a negative operating cash flow of INR259 crores and detailed the revenue split between EMS and metering.
Answered by N. Muthukumar
Asked by Siddhartha Bera: What was the cash flow from operations for the quarter and the split of smart meter versus EMS revenue?
p. 11
“we have added up, and receivables we were short by INR68 crores, taking it to about a total of about INR259 crores of a negative cash flow, okay?”
N. Muthukumar, page 11 of the filed PDF · View the filing
Management said they are targeting 2x market growth rather than an absolute number, citing material availability volatility, and reiterated OSAT/PCB revenue starting Q3.
Answered by N. Muthukumar
Asked by Achal Lohade: What revenue growth guidance should be modeled for FY27 and how will OSAT/PCB scale in FY27 and FY28?
p. 14
“So we don't want to commit on the top-line number, but whatever the market growth is there, because of the strategic initiatives of keeping the inventory, keeping the manufacturing flexible, and having a very committed people, we are quite confident of achieving the twice the market growth.”
N. Muthukumar, page 14 of the filed PDF · View the filing
Management acknowledged pricing pressure and said it will be a difficult, tough year but they will try to meet plans.
Answered by Ramesh Kunhikannan
Asked by Praveen Sahay: How much of the component cost inflation has been captured and will there be margin compression going forward?
p. 16
“Yes, its a difficult year. This year is a difficult year, but I don't think for us whatever we have planned, we will try and meet the requirement. But it is not going to be an easy year. It is going to be a tough year.”
Ramesh Kunhikannan, page 16 of the filed PDF · View the filing
Management said it is too early to give a clear direction on PCB margins.
Answered by Ramesh Kunhikannan
Asked by Inderjeet Agarwal: What margins can be expected from the PCB business given rising input costs like CCL?
p. 16
“But it is too early for me to give any clear direction on this.”
Ramesh Kunhikannan, page 16 of the filed PDF · View the filing
Management gave the standalone effective tax rate and the consolidated rate along with reasons for the higher consolidated figure.
Answered by Senthil
Asked by Sonali Salgaonkar: What is the current tax rate and will it normalize for the full year?
p. 17
“effective tax rate is around 23%, and at the consolidated level, it is at 35%.”
Senthil, page 17 of the filed PDF · View the filing
Management said there could be timing delays impacting margins but committed to minimizing impact relative to peers.
Answered by N. Muthukumar
Asked by Aditya Bhartia: Given availability and cost issues, should investors anticipate lower margins in coming quarters?
p. 19
“So our aspirations and our working is towards not to have any impact on the bottom line, but having said that, there'll be some timing delay between this which will have an impact.”
N. Muthukumar, page 19 of the filed PDF · View the filing
Risks flagged
Escalation in West Asia disrupting equipment imports and component logistics, causing timing slippage in OSAT and PCB ramp-up.
p. 4
“Like the rest of the industry, we saw some disruption this quarter from the escalation in the West Asia affecting equipment imports and component logistics globally, not specific to Kaynes.”
Ramesh Kunhikannan, page 4 of the filed PDF · View the filing
Sharp increase in supply chain lead times of up to 6 to 8 months for some component categories.
p. 5
“There is a sharp increase that's happening in the entire supply chain, which is leading to lead time for supply to the extent of more than 6 to 8 months in some categories”
N. Muthukumar, page 5 of the filed PDF · View the filing
Cost escalation from global supply chain issues, energy and crude prices, commodity prices, and forex movement impacting margins.
p. 5
“we also see the impacts on margins due to cost escalation driven by global supply chain issues and the macro factors, such as rise in the energy and the crude prices, the commodity prices, and the forex movement, which in turn led to a rise in the commodity prices.”
N. Muthukumar, page 5 of the filed PDF · View the filing
Flood-related natural calamity impacting meter installation operations.
p. 5
“The current situation in the places where we are doing the installation of meter, due to the natural calamity of flood, which has also impacted this”
N. Muthukumar, page 5 of the filed PDF · View the filing
Global PCB shortage requiring advance payments and long order booking lead times.
p. 8
“PCB is one component where it is getting into the global shortage at this point of time. The suppliers are demanding that we need to pay advance, and it takes about 6 to 8 months even for order booking.”
N. Muthukumar, page 8 of the filed PDF · View the filing
Component industry conditions comparable to COVID times, with availability being a major problem alongside price increases.
p. 15
“See, this component industry is gone back to COVID times.”
Ramesh Kunhikannan, page 15 of the filed PDF · View the filing
Foreign exchange movement impacting EBITDA by about 3.3% on import levels.
p. 15
“there's been an impact of about more -- when compared to the last year to this year is about 3.3% of our import level, what we are doing on the EBITDA impact.”
N. Muthukumar, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.