1. Opening Hook
In a world where semiconductor talk is mostly PowerPoint deep and policy wide, Kaynes just went ahead andactually made chips.Not tweets, not promises — silicon with sweat. The Mysore-born EMS player turned ESDM powerhouse now sounds more like Taiwan Inc. than Tier-2 India.From building India’sfirst multichip moduleto charming Mitsui and Infineon into its orbit, Kaynes is scripting the kind of “Make in India” fairytale bureaucrats only dream of. But before you pop the champagne — working capital’s still thirsty, and receivables are playing marathon.Read on — this call had everything: semiconductors, sarcasm, subsidies, and the CFO’s version of cash flow yoga.
2. At a Glance
- Revenue ₹906 crore (+58% YoY):CFO swears it wasn’t Excel inflation, just real growth magic.
- EBITDA ₹148 crore (+80% YoY):Profit’s on steroids — someone’s optimizing margins, not just machines.
- EBITDA Margin 16.3%:Expanded 190 bps — finally, leverage flexed without breaking.
- PAT ₹121 crore (+60% YoY):Even net profit joined the semiconductor boom party.
- Order Book ₹8,099 crore:Feels like pre-orders for the “India Chip 2.0” season.
- Stock up (unofficially):Traders heard “semiconductors” and forgot to read “receivables.”
3. Management’s Key Commentary
“We delivered India’s first commercially manufactured multichip module.”(Translation: We did what the country’s been PowerPointing about for five years. 😏)
“Our OSAT facility in Sanand is now operational.”(Read: Gujarat finally got its silicon without another MoU selfie.)
“The PCB factory in Chennai will make India self-reliant.”(Or at least make customs officials miss those import duties.)
“Our partnerships with Infineon, Mitsui, and AOS are building a new ecosystem.”(Translation: We finally got the cool kids to sit at our lunch table.)
“Order book stands at ₹8,099 crore vs ₹5,422 crore last year.”(Basically, we’re booked out — just don’t ask when the cash arrives.)
“Automation, IoT 4.0, and TPM will define our next phase.”(They’re digitizing everything — except the receivable reminders.)
“Quality is no longer a differentiator; speed and reliability are.”
(They’ve entered their Formula 1 phase — but on an Indian highway.) 🚗
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Growth | Commentary |
|---|---|---|---|
| Revenue | ₹9,062 mn | +58% | Topline sprinting like it saw subsidies. |
| EBITDA | ₹1,480 mn | +80% | Efficiency plus leverage = happy CFO. |
| EBITDA Margin | 16.3% | +190 bps | Margins grew faster than patience. |
| PAT | ₹1,214 mn | +60% | Profit pipeline unclogged at last. |
| H1 Revenue | ₹15,797 mn | +47% | Half-year already hotter than FY25. |
| H1 EBITDA Margin | 16.5% | +270 bps | CFO’s spreadsheet deserves an award. |
| Order Book | ₹80,994 mn | +49% | Pipeline longer than startup pitch decks. |
Quick take:Kaynes is balancing capex expansion with margin magic — and pretending working capital isn’t holding a knife.
5. Analyst Questions
Kotak:“Cash flows negative; receivables high?”CFO:“Relax, we’ll discount ₹300 crores and call it innovation.”
Dymon Asia:“Why miss guidance again?”CFO:“Short-term misses, long-term legend — classic EMS rhythm.”
Morgan Stanley:“PCB tech partner, margins?”CFO:“Margins higher than company average; tech still top secret — even from Excel.”
Nomura:“Capex & subsidies?”CFO:“₹3,700 crore plan, 70% subsidized — India’s new welfare state for fabs.”
Investec:“₹55
