Kaynes Tech Q1 FY27 Results (NSE: KAYNES)
Signal: Growth reaccelerated
The read
The trajectory has shifted from the prior two-quarter run of YoY margin expansion to a gross-margin headwind: consolidated revenue grew 40.5% YoY to ₹9460.17 million, but raw material cost rose 63.0%, gross margin fell 686bps to 34.4%, and PAT dropped 24.4% to ₹564.26 million even as EBITDA margin held at 17.1%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹946.02 Cr | +40.5% | -23.9% |
| EBIT | ₹125.01 Cr | N/A | N/A |
| Net profit | ₹56.43 Cr | -24.4% | N/A |
| EPS | ₹8.42 | -27.6% | N/A |
| EBIT margin | 17.1% |
P&L walk
Consolidated revenue rose 40.5% YoY to ₹9460.17 million, but material costs increased 63.0% YoY and compressed gross margin to 34.4%; EBITDA margin nevertheless held at 17.1%, while PAT fell 24.4% to ₹564.26 million after higher depreciation and tax.
Segments
The filing identifies a single ESDM segment, so no segment-level momentum split is available; the material divergence is between standalone PAT of ₹769.12 million, up 41.7% YoY, and consolidated PAT of ₹564.26 million, down 24.4%, largely reflecting standalone other income of ₹639.47 million versus consolidated other income of ₹144.31 million.
Key positives
- Consolidated revenue was ₹9460.17 million, up 40.5% YoY, reaccelerating from the prior Q4FY26 growth rate of 26.3%.
- EBITDA margin was 17.1%, up 10bps YoY and 110bps QoQ, despite a 686bps YoY gross-margin contraction.
- Employee plus other expenses rose 8.1% YoY to ₹1779.86 million, substantially slower than revenue growth of 40.5%.
- QIP-funded expansion is progressing, with ₹7315.55 million utilised toward the OSAT facility and ₹3072.89 million toward the PCB facility by June 30, 2026.
Key concerns
- Gross margin fell 686bps YoY to 34.4% as raw material cost increased to 70.7% of revenue from 60.9%; the filing does not disclose the cause or extent of pass-through.
- Consolidated PAT declined 24.4% YoY to ₹564.26 million despite 40.5% revenue growth, while depreciation increased 136.8% YoY to ₹369.88 million.
- Standalone PAT of ₹769.12 million was supported by ₹639.47 million of other income, equal to 63.3% of standalone PBT; consolidated earnings are materially weaker than the parent-only result.
- Consolidated basic EPS fell 27.6% to ₹8.42, lagging PAT decline by 3.2pp after the equity base increased and 187837 ESOP shares were allotted.
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