1. At a Glance – The EMS Kid Who Ate Everyone’s Lunch
Kaynes Technology today is that overachiever in the electronics manufacturing class who not only finishes the exam early but also corrects the teacher’s answer key. With a market cap of ₹24,818 Cr, a current price of ₹3,700, and a 3-month return of -40.6%, the stock has recently been punished harder than a PSU banker after an audit query.
But under that bruised share price sits a company that just reported ₹804 Cr quarterly revenue, ₹78 Cr PAT, and an operating margin of ~15%, while sitting on an order book of ₹6,047 Cr. That order book alone is nearly 1.8x FY25 revenues, which means Kaynes is booked, busy, and not accepting walk-ins.
Debt? A manageable ₹885 Cr, with Debt/Equity at 0.19. ROCE at 14.3%, ROE at 10.7% – not jaw-dropping yet, but improving. And yes, the P/E of ~64x makes value investors clutch their calculators nervously.
So the big question:
Is this a falling knife… or a future EMS heavyweight being temporarily mugged by market mood swings?
2. Introduction – From PCB Solder to Semiconductor Swagger
Kaynes Technology started life in 2008 as a respectable electronics manufacturing services (EMS) player. Fast-forward to 2026, and it now casually drops phrases like OSAT, HDI PCBs, multi-chip modules, and India Semiconductor Mission into investor calls, just to see who’s still awake.
What makes Kaynes interesting is not just growth, but directional ambition. This isn’t a “let’s keep assembling boards and chill” story. This is a “let’s vertically integrate, design more, manufacture deeper, and eventually touch silicon itself” story.
Revenue has compounded at ~49% CAGR over 5 years, profits at a borderline absurd ~95% CAGR, and yet the stock is down over 40% in 3 months. That disconnect is why Kaynes keeps showing up in serious portfolios… and serious arguments.
But ambition comes with baggage:
- Heavy capex
- Rising working capital
- Client concentration
- And expectations that can suffocate execution
So before we crown Kaynes the EMS
Maharaja, let’s tear open the wiring.
3. Business Model – WTF Do They Even Do?
Think of Kaynes as a full-stack electronics kitchen.
Segment 1: OEM – Turnkey PCB Assembly (47% of 9M FY25)
This is the classic EMS bread-and-butter:
- PCB assembly
- Component sourcing
- Prototyping
- Testing & validation
Margins are decent, competition is brutal, and scale matters. Kaynes has slowly reduced dependence here (63% in FY22 → 47%), which tells you management doesn’t want to die a low-margin EMS death.
Segment 2: OEM – Box Build (43% of 9M FY25)
This is where things get tastier.
- System integration
- Cable harnesses
- Plastic components
- End-product testing
Higher complexity = higher stickiness = better margins. The jump from 28% in FY22 to 43% now shows Kaynes is moving up the value chain instead of soldering forever.
Segment 3: ODM & IoT / Product Engineering (10%)
This is the nerdy, brainy side.
Design, embedded systems, software, product customization.
Small today, but strategically massive. Because once you design the product, you don’t get replaced easily. EMS companies dream of this mix.
So Kaynes isn’t just assembling electronics.
It’s trying to own the brain, the body, and soon the silicon.
4. Financials Overview – Numbers Don’t Lie, But They Do Smirk
Quarterly Performance (Q3 FY26 – Consolidated, ₹ Crore)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 804 | 661 | 906 | 21.6% | -11.3% |
| EBITDA | 119 | 94 | 148 | 26.6% | -19.6% |
| PAT | 78.2 | 66 | 121 | 17.7% | -35.4% |
| EPS (₹) | 11.43 | 10.38 | 18.11 | 10.1% | -36.9% |
Yes, QoQ looks ugly.
No,
