Backed by strong order growth, global partnerships, and ambitious expansion in the OSAT and PCB segments, the firm continues to demonstrate robust momentum. Strategic investments, margin improvement, and government support strengthen its long-term outlook, though rapid scaling raises questions about sustainability amid sector-wide competition and capital intensity.
India’s semiconductor sector is accelerating on policy push and demand, with a market size around US$45–50 billion by 2025 and a path to US$100–110 billion by 2030. The ₹76,000 crore Semicon India program anchors fabs and ATMP units, led by Tata-PSMC and Micron, catalyzing jobs and supply-chain depth as electronics output nears ₹9.8 lakh crore in 2024.
With a market capitalization of Rs 41,558.47 crore, the shares of Kaynes Technology India Ltd were trading at Rs 6,199.55 per share, decreasing around 2.46 percent as compared to the previous closing price of Rs 6,356.05 apiece.
Order Book Expansion
The company’s order book continues to expand impressively, rising from Rs 5,422 crore in Q2FY25 to Rs 8,099 crore in Q2FY26, marking nearly 49% growth year-on-year. This steady increase through consecutive quarters underscores strong demand momentum, healthy execution capabilities, and a robust project pipeline, positioning the firm well for sustained revenue growth ahead.
Additionally, the company demonstrates strong client retention across key verticals, with an average relationship span of 7–10 years among its top 10 customers. Notably, Industrial & EV, Medical, and Railways verticals lead with 10-year relationships, reflecting customer trust, consistent service quality, and long-term partnerships that strengthen business stability and recurring revenue visibility.
The company delivered a stellar performance in Q2FY26, with revenue surging 58 percent year-on-year to Rs 906 crore and net profit doubling to 101 percent to Rs 121 crore. The sharp growth highlights strong operational momentum, improved margins, and robust demand across business segments, reflecting effective execution and financial discipline.
Kaynes Technology India Ltd’s trade receivables rose sharply from Rs 575 crore in March 2025 to Rs 1,122 crore in September 2025, indicating nearly 95% growth within six months. This increase suggests higher sales activity but also points to delayed collections or extended credit cycles, which may temporarily impact the company’s cash flow and working capital efficiency.
FY30 Guidance
Kaynes Technology aims to achieve $2 billion in revenue by FY30, driven by growth in its OSAT and printed circuit board businesses. The OSAT segment targets Rs 4,500 crore, while the PC Board unit expects Rs 2,500 crore, highlighting ambitious expansion plans.
To support this growth, Kaynes has a total CapEx of Rs 3,400 crore for its OSAT business, with 70% funded via government subsidies and the rest from internal investment. So far, Rs 200–300 crore has been spent, with another Rs 600–700 crore expected in FY26, underlining a phased approach to capacity building and scaling operations.
The company is a leading integrated and IoT-enabled solutions provider catering to diverse sectors like automotive, aerospace, railways, and medical. With 500+ customers across 30+ countries, it focuses on advanced manufacturing, OSAT, and HDI PCB expansion, and innovation in smart devices, IoT, and AR/VR, positioning itself for strong technological and global growth.
Kayne’s strategic acquisitions strengthen its global and technological presence. August Electronics in Canada enhances manufacturing capabilities and North American reach. Tranzmeo IT Solutions adds AI-driven analytics and fiber-optic sensing expertise, while Sensonic GmbH in Austria boosts smart rail and IoT solutions. Together, these investments drive innovation and expand the company’s footprint across key international markets.
Kaynes Technology’s rapid growth, strong order book, and expanding global footprint reflect solid execution and industry leadership. However, the sharp rise in trade receivables and ambitious capex plans highlight near-term cash flow and execution risks. Sustained profitability will depend on timely collections, disciplined expansion, and maintaining operational efficiency as the company scales its global operations.
Kaynes Technology India is a leading end-to-end electronics manufacturing and IoT solutions provider, serving industries like automotive, aerospace, healthcare, and industrial automation. With strong design, manufacturing, and R&D capabilities, it focuses on innovation, global expansion, and advanced technologies such as OSAT, smart devices, and embedded systems to drive sustainable growth.
Conclusion
Kaynes Technology’s rapid growth, strong order book, and expanding global footprint reflect solid execution and industry leadership. However, the sharp rise in trade receivables and ambitious capex plans highlight near-term cash flow and execution risks. Sustained profitability will depend on timely collections, disciplined expansion, and maintaining operational efficiency as the company scales its global operations.
Written by Abhishek Singh
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