A leading semiconductor stock drew investor attention after the company unveiled robust capital expenditure (capex) plans aimed at expanding manufacturing capabilities and strengthening its supply chain. Alongside the investment announcement, the company also provided strong topline guidance for FY26, signaling confidence in sustained demand and long-term growth opportunities in the global semiconductor market.
During Tuesday’s trading session, shares of Kaynes Technology India Ltd reached an intra-day high of Rs.5689.95 apiece, rising slightly from its previous closing price of Rs.5652.75 apiece. However, the stock retreated later and is currently trading at Rs.5614.00 apiece. Over the past five years, the stock has delivered over 4,400 percent returns.
Capex Plans
In an interview with CNBC TV18, Mr. Jairam Sampath, CFO and Managing Director of Kaynes Technology, stated that the company is targeting $1 billion in revenue by FY28, supported by robust expansion plans across multiple verticals.
He highlighted that Rs.800 crores have been earmarked for expanding into new geographies, while an additional Rs.400 crores will be invested in strengthening the company’s presence in high-tech domains.
Mr. Sampath also addressed promoter shareholding, clarifying that while a portion of promoter stake was earlier sold to fund the Kaynes Centre for Technology and Innovation in Mysore, no further stake sales are planned, signaling continued promoter commitment to the company’s long-term vision.
Separately, during the recent conference call, the company disclosed a total capex of Rs.3,400 crores for its semiconductor business, along with Rs.1,400 crores for printed circuit board (PCB) manufacturing. These investments are expected to be executed over the current and next financial years, with a minor spillover anticipated thereafter.
Financial Highlights
In the Q4 of FY25, Kaynes Technology India Ltd reported revenue of Rs. 1,004.9 crore, marking a strong year-on-year growth of approximately 50.7 percent compared to Rs. 666.7 crore in Q4 FY24. On a sequential basis, revenue rose by around 46.5 percent from Rs. 685.9 crore in Q3 FY25, reflecting solid operational execution and growing demand across key segments.
Net profit for Q4 FY25 stood at Rs.116.2 crore, up by 43.1 percent year-on-year from Rs.81.2 crore in the corresponding quarter of the previous year. Sequentially, net profit surged by 75 percent from Rs.66.4 crore in Q3 FY25, indicating a significant improvement in profitability and operating leverage.
Segmental Revenue
In FY25, Kaynes Technology’s revenue breakdown across segments reveals a varied portfolio. The largest portion at 43 percent stems from OEM Turnkey PCBA solutions which focus on printed circuit board assemblies. Following this 39 percent comes from OEM Turnkey Box Build involving full product assembly. The remaining 18 percent arises from ODM Product Engineering and IoT solutions highlighting innovation-driven services.
Looking at industry verticals Kaynes Technology earns 55 percent of its revenue from the Industrial sector including Electric Vehicles. The Automotive sector accounts for 26 percent reflecting its involvement in vehicle electronics. Aerospace and Strategic Electronics contribute 1 percent while Medical adds 2 percent. Railways contribute 7 percent while IoT IT Consumer and other segments together make up 8 percent showing a wide market reach.
Geographical Revenue
In FY25, Kaynes Technology’s revenue distribution across geographies shows a dominant 91 percent from India. North America contributes 5 percent, while Europe accounts for 4 percent. SE Asia and other regions each add 1 percent, reflecting a strong domestic focus with a minor international presence.
Written by – Siddesh S Raskar
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