While most tech companies are busy crying over semiconductor shortages, Kaynes Technology decided to casually drop numbers that make investors choke on their coffee. With revenue up 34% and EBITDA skyrocketing 69%, it seems Kaynes is not just assembling circuits – it’s assembling investor dreams.

Here’s what we decoded from this electrifying concall.

At a Glance

• Revenue surged 34% YoY – apparently, everyone wants their electronics “Kaynes-made.”
• EBITDA up 69% – CFO claims it’s efficiency; skeptics call it sorcery.
• PAT rose 47% – margins flexed at 11.1%.
• Order book at ₹74,011 mn – enough backlog to make competitors jealous.
• ROCE dipped to 15.4% – management says it’s “strategic,” like my Netflix bingeing.

The Story So Far

Kaynes has evolved from a humble ESDM player to a full-stack design-to-delivery powerhouse. Over three decades, it’s built relationships with over 500 customers across 30 countries – from automotive biggies to aerospace nerds. FY25 saw revenue explode by 51% CAGR over the last three years, proving this isn’t just another PCB assembler.

This quarter? More expansions, more orders, and more investor FOMO. The company is diving into OSAT and HDI PCB manufacturing, just to remind everyone it’s playing the big league.

Management’s Key Commentary

1. On Order Book: “We have a robust ₹74 bn order book.”
   ➝ Translation: we’re booked till your grandkids graduate.
2. On Margins: “EBITDA margin expanded to 16.8%.”
   ➝ Translation: operational efficiency, baby.
3. On Expansion: “Facilities in Chamarajanagar and Hyderabad will drive future growth.”
   ➝ Translation: we’re building factories like they’re Lego sets.
4. On R&D: “Strong R&D drives innovation in IoT and EV segments.”
   ➝ Translation: we’re the nerds everyone wants to copy.
5. On Debt: “Net debt to equity remains low at 0.2x.”
   ➝ Translation: banks love us, investors too.

Numbers Decoded – What the Financials Whisper

Analyst Questions That Spilled the Tea

Analyst: “Any slowdown risk in exports?”
Management: “Demand remains strong globally.”
Translation: stop worrying, we’ve got this.

Analyst: “When will OSAT start contributing?”
Management: “Soon.”
Translation: soon™ – the corporate version of ‘loading.’

Guidance & Outlook – Crystal Ball Section

Kaynes expects to ride the EV, IoT, and aerospace tailwinds with double-digit growth. Management is betting on capacity expansions to fire up FY26 revenue. The only caution: margin pressure may creep in if raw material prices misbehave.

Risks & Red Flags

• Component supply volatility – chips don’t always play nice.
• High employee cost growth – up 76% YoY, someone got raises.
• Execution risks – new facilities need to ramp up without hiccups.
• Global uncertainty – customers love orders, but hate recessions.

Market Reaction & Investor Sentiment

The stock danced like a semiconductor at a rave – investors loved the order book and margin expansion. However, some raised eyebrows at rising costs and longer working capital days (132 vs 121 last year). Sentiment: cautiously ecstatic.

EduInvesting Take – Our No-BS Analysis

Kaynes is becoming the poster child of India’s ESDM dream. Order book? Massive. Margins? Expanding. Expansion plans? Aggressive. Risks? Sure, but manageable. For investors, this is a classic growth story with tech sauce. Just remember: execution is key, and this stock is priced for perfection.

Conclusion – The Final Roast

The call was a cocktail of confidence, expansion buzzwords, and a sprinkle of reality checks. Kaynes is firing on all cylinders – as long as it keeps delivering, this chip-maker’s future looks fully charged.

Written by EduInvesting Team
Data sourced from: Company concall transcripts, investor presentations, and filings.

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