Kaynes Technology misses Street estimates, FY26 guidance
Kaynes Technology India tumbled more than 19% on Thursday as India’s third-largest electronics maker drew investor ire for missing revenue and cash flow targets and failing to provide guidance for 2026-27.
He closed the year 2025-26 with the following income: ₹3,626.4 crore and net profit ₹363.9 crore, missing Bloomberg predictions ₹3,871 crore and ₹435 crore respectively.
The company’s operating income was also 19% below its initial forecast for the fiscal year. Management had projected this much revenue: ₹4,500 crore at the beginning of the year before lowering the target ₹4,000 crore in the December quarter, meaning full-year revenue was still 9.3% behind the revised guidance.
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Kaynes Technology’s stock price fell over 19% as the company failed to meet revenue and cash flow targets for FY26 and failed to provide guidance for FY27. Its revenue was below both initial and revised estimates, and it reported negative operating cash flow.
Kaynes Technology reported revenue of ₹3,626.4 billion and net profit of ₹363.9 billion in FY26, missing Bloomberg estimates. Operating income remained 9.3% below the revised guidance and the company ended with negative operating cash flow of ₹600 crore.
The general manager cited a significant drop in revenue from an order from an electric vehicle manufacturer and a delay in a government project. EV order revenue decreased by nearly 90% and the government project was delayed despite being approved.
The company does not provide a specific revenue growth figure for FY27 due to uncertainties in the growth rates of some of the new sectors it has entered. However, they are open to providing general income guidance.
Kaynes Technology missed the Street’s expectations, unlike Syrma SGS Technology and Dixon Technologies, which met or exceeded analysts’ expectations. Dixon Technologies saw 26% year-on-year growth in its top segment, and Syrma’s automotive and healthcare segments grew over 35%.
Additionally, it ended with negative operating cash flow. ₹600 crore, contrary to management’s prediction that the business would start generating cash.
Investor concerns
On the post-earnings analyst call, investors and analysts questioned Kaynes management, represented by chief executive Muthukumar Narayanaswamy, on how management failed to recognize market weakness halfway through the March quarter.
“About 75 days into the March quarter, management went on television and maintained its guidance. They only guided for marginal downsides on the operating cash flow side. 75 days into the 90-day quarter, both of these guidances were way off and that is concerning,” said Viral Shah, research analyst at brokerage firm Enam Holdings.
Narayanaswamy, who was appointed as managing director for a five-year term in 2025-26, blamed two projects for the discrepancy.
“We projected our confidence based on a large order for electrification of a vehicle from a manufacturer and an order from the government of India. The order from an electric vehicle manufacturer, one of the largest, fell by about 90% in revenue and we are their sole supplier. But we were confident of getting the government order. The project was postponed while the product was ready and approved,” he said.
Nitin Arora, equity fund manager at Axis Mutual Fund, questioned the company’s failure to provide guidance for 2026-27. “This is confusing for the industry because on the one hand you said this is a customer-focused business and you’ve seen demand is very good. What’s stopping you from providing growth guidance for investors to clarify? Are you seeing further deterioration in working capital, which will erode revenue growth this fiscal year?”
In this note, Narayanaswamy said: “We are not giving a revenue growth figure but we are open to giving a general revenue guidance.”
“We have seen the current revenue of the industry growing at 16-18% and we have grown at twice the rate of the industry. This year too, our commitment is to grow at twice the rate of growth of the industry. We are entering new verticals and we are not giving a specific number because some industries will grow at an unspecified growth rate,” he said.
poor appearance
The underperformance of Kaynes Technology India compared to peers such as Syrma SGS Technology and Dixon Technologies (India) is due to its failure to meet the Street’s expectations. Both Syrma and Dixon met or exceeded analysts’ expectations. Syrma’s automotive and health electronics segments recorded revenue growth of more than 35%, while Dixon recorded 26% annual growth in its top lines despite a slowdown in the mobile phone market.
Dixon’s shares rose 11% through Wednesday, a day after its earnings. However, Syrma’s shares received a negative response, falling 8% since Monday, after its bid to take over green energy company K-Solare Energy failed.
As a result, analysts predict that Keynes’ short-term growth will be uncertain.
“Company’s order book ₹With 8,000 crore remaining, the question raised by investors was that the management should have been frank with investors rather than predicting high growth but failing to deliver it. “Kaynes is likely to suffer significantly, at least in the first half of this financial year,” said Harshit Kapadia, vice president of Elara Capital.
He added that with market uncertainties present, “it may be difficult for Kaynes to immediately fix the weak points of his balance sheet, such as the negative cash flow he was unable to reverse in the last financial year.”
