While there are more than 5,000 companies listed on the Indian stock exchanges today, we are going to talk about a powerhouse witnessing a strategic shift from being a pure EMS company to becoming an integrated ESDM player, whose offerings have expanded from delivering circuit boards to next-gen semiconductor systems, Kavach safety solutions to protect lives, aerospace-grade hardware for the skies, and beyond.
It is none other than Kaynes Technology Ltd, which is an India-based electronics company offering end-to-end and IoT-enabled integrated electronics manufacturing solutions. It operates across the ESDM Spectrum, providing design, process engineering, product realisation, and life-cycle support for markets such as automotive, Industrial, aerospace, outer space, defence, medical, railways, IoT, and others.
It delivers both OEM (turnkey & box-build) and ODM services, inclusive of PCBA assemblies, cable harnesses, plastic moulding, testing hardware, firmware/software design, etc. It has around 21 advanced manufacturing & design facilities serving over 500+ customers across 30+ countries.
Listing & Stock Performance
The shares of Kaynes Technology India Ltd hit the stock exchanges on 22nd November 2022 at a price of Rs. 778 per share with a premium of 33 percent against the issue price of Rs. 587. With its share price soaring from Rs. 778 to Rs. 7,100 today, Kaynes Technology has delivered a return of 860% demonstrating exceptional growth, driven by exceptional business performance, strategic expansions, and a robust order book.
After seeing a hint of what the company does and how it has performed over the years, let’s dig into its plans, recent strategic organic and inorganic expansions and more that are shaping the company’s future across various verticals.
NextGen Semiconductor
Industry Overview and Capex Allocation
Firstly, coming to the most talked about and rapidly evolving sector of recent times, driven by ambitious government initiatives and significant private investments, is the Semiconductor sector, valued at around $38 billion in 2023 and projected to grow to $45–50 billion by the end of 2025. Through further expansion, it is expected to reach $100–110 billion by 2030, with India envisioning to capture about 11% of the global semiconductor market by 2030, up from about 6.6%.
Looking at India’s future semiconductor potential and potent integration with business, Kaynes Technology India Ltd entered the space by establishing Kaynes Semicon Pvt Ltd in 2023 and announced a capex of Rs. 3,400 Crores to establish the Semiconductor Outsourced Semiconductor Assembly and Test(OSAT) facility in Sanand, Gujarat.
To support the initiative as part of the India Semiconductor Mission (ISM) the Government approved a Rs. 76,000 Crores support scheme, from which Kaynes Semicon was approved for a 50% incentive as well as Rs. 661 Crore support by the Gujarat govt, taking the total support to 70% of the project which would be incentivised following successful commissioning of the plant.
Operations, Strategic Acquisitions & Future Outlook
The OSAT plant has begun pilot operations, commercial scale deliveries are expected to begin by October and full mass production by January 2026, with an expected capacity of ~6.3 million chips per day, and projected revenue of Rs. 100 Crores. Out of the Rs. 3,400 Crore capex, 50% be utilised by FY27, and the rest will be utilised based on further developments and client acquisitions.
At present, Kaynes Semicon has partnered with several leading semiconductor players, such as US Technology International, Lightspeed Photonics, Aptos Tech, AOI, and Alpha & Omega Semiconductor(AOS), to focus on semiconductor manufacturing, packaging, testing, technology transfer, and supply. Among the above, US Technology International Private Limited (UST) and AOS have acquired 10% and 8.25% respectively, in Kaynes Semicon.
It has MOUs signed with another four clients, as well as discussions for forging potential partnerships with larger global semiconductor majors such as Qualcomm, Broadcom, Intel, STMicroelectronics, ROHM Semiconductor, and Infineon to expand its client base.
Coming to Acquisitions, Kaynes Semicon has acquired the power module production lines and related manufacturing assets of Fujitsu General Electronics, Japan, focused on high-reliability power semiconductor modules for about Rs. 85 Crores, catering to automotive, industrial, and consumer sectors where power modules are critical components.
While Kaynes took over the production lines, Larsen & Toubro Semiconductor Technologies (LTSCT), a wholly owned subsidiary of Larsen & Toubro, acquired the power module design assets and intellectual property from Fujitsu General Electronics Limited.
Kaynes Semicon benefits from this deal as the production facilities related to the acquired business were acquired by Kaynes, which will serve as the contract manufacturer for LTSCT, thus gaining access to cutting-edge process lines, global clients, and expertise from both Fujitsu and L&T, greatly enhancing its manufacturing footprint and technological capability in power modules
Further, Kaynes Technology India Limited acquired a 13.2% stake in Mixx Technologies Inc, a US-based deeptech semiconductor startup, for $3 million in January 2024, as part of the seed funding round, to establish itself as a” silicon to systems” manufacturer for artificial intelligence (AI) and high-performance computing infrastructure.
This allows Kaynes Semicon access to advanced photonic circuit design and packaging technologies, crucial for next-generation semiconductor solutions in artificial intelligence (AI) and high-performance computing, as Mixx Technologies specialises in enabling three-dimensional scalability for AI and HPC applications, serving rapidly growing sectors like generative AI, data centers, industrial automation, and automotive electronics.
Latest CEO Outlook & Potential IPO
Raghu Panicker, CEO, Kaynes Semicon, commented that Kaynes Semicon has aggressive expansion plans with the company investing close to $20 million in research and development (R&D) in FY26 and aims to achieve a revenue target of Rs. 100 crore by this fiscal year.
He continued, “In the next two years, we aim to become a $100 million company, and over the following three years, we plan to build a fabrication facility or a compound fab, along with a dedicated design lab. We intend to invest nearly $150 million in cutting-edge technologies such as silicon photonics, 2.5D, and 3D ICs within the next year.
With momentum growing behind indigenous GPU development, we also plan to enter that space within the two-year horizon. An IPO is possible within three years. We envision evolving into an original design manufacturer (ODM), which is our plan for the next phase.”
Kavach Systems
Moving to the next segment that’s been in focus in recent times is the Kavach Systems i.e., the indigenously developed Automatic Train Protection (ATP) system designed to significantly enhance railway safety to prevent train collisions.
In India, the railway equipment market, which includes safety systems, was valued at USD 12.31 billion in 2024 and is forecasted to grow to USD 15.9 billion by 2030, with a CAGR of 3.6%.
Followed by recent train incidents, India’s current plans for the Kavach Automatic Train Protection system involve deploying it across about 15,000 route kilometres and fitting it on 20,000 locomotives by 2030, with Rs. 1,673 Crores allocated for FY25-26.
Considering the industry potential, Kaynes Tech decided to enter the Kavach Systems through the acquisition of a controlling 54% stake in Sensonic GmbH, Austria, specializing in advanced railway infrastructure monitoring using fiber optic sensing technology combined with artificial intelligence and machine learning, offering track condition monitoring, landslide detection, security, and more.
The Kavach development program is progressing well with designs based on German technology and is currently nearing pilot Implementation. The necessary clearances will be received shortly, and commercial operations will begin soon thereafter.
Kaynes Technology is targeting to capture a 15% market share with a revenue potential of Rs. 2,000 Crores across 4-5 years. The railway segment is said to contribute 10-12% of the total sales by year’s end and further continue growth & development while integrating it with existing business and strengthening its portfolio and reach.
Smart Meters
As part of strategic initiatives to diversify beyond its core semiconductor and electronics manufacturing business, tap into the strong government-driven push for smart grid and energy efficiency solutions, Kaynes Technology India Ltd entered the smart meter segment in 2023-24.
The Indian smart meter market is projected for robust growth, with its size expected to reach approximately USD 763.2 million by 2031, growing from around USD 250.7 million in 2023 at a compound annual growth rate (CAGR) of about 14.9%, and the government plans to replace ~250 million conventional electricity meters with smart meters by 2027. As of 2025, around 14% of the target has been achieved, signalling larger potential penetration opportunities still available.
Kaynes started manufacturing and supplying smart meters to L&T and Iskraemeco in 2023, and further expanded by inaugurating a smart meter manufacturing facility in Hyderabad in 2024, over a land parcel of 46 acres, with an annual capacity of 4 million smart meters, to become one of the largest smart meter manufacturers in India.
Kaynes is projecting to capture a 15-20%market share and generate a minimum of Rs. 1,000-2,000 Crores every year, with plans to expand the production capacity to 10 million smart meters per year, catering to Advanced Metering Infrastructure Service Providers (AMISPs).
To further strengthen its capabilities, it has made strategic partnerships with many players, including Brightgrid Technologies, a prominent player in India’s smart metering sector, which holds substantial orders for smart meters from various states and electricity boards across India.
Coming to the latest developments, Kaynes acquired a 100% controlling stake for Rs. 42 Crores in Iskraemeco India Private Limited, a Smart Meter Solutions and Services Provider, which is a subsidiary of Iskraemeco, a global leader in energy and water efficiency, headquartered in Slovenia.
Aerospace, Satellite, Automotive, EV, and others
Followed by major developments across the Semiconductor, Kavach systems and smart meters, Kaynes Technology India is making moves across booming sectors like Aerospace, Satellite, Automotive, EV, and many others.
Recently, it formed a new WOS named Kaynes Space Technologies Private Limited to design, develop, and manufacture satellites of all classes and mission-specific payloads for diverse applications such as communication, Earth observation, defence, and scientific research. It will also create modular satellite platforms and indigenous launch vehicles for various orbits, focusing on cost-effective, reusable, and sustainable technologies
Additionally, Kaynes has strengthened its aerospace and defence capabilities through acquisitions, including a 76% stake each in Aerocaliph Components and Cryo Precision Technologies, both aerospace manufacturers, and an 11.13% stake in Tranzmeo IT Solutions, a deep-tech company specializing in intelligent fiber-optic sensing networks with applications in defence and infrastructure.
Coming to the business front, Kaynes makes just 1-2% of its revenue from aerospace, which is said to increase to around 8%. It is followed by onboarding various clients and receiving work orders from large OEMs, one of the largest being $10 million.
EMS & PCB
Kaynes Technology has made two strategic acquisitions, i.e., August Electronics in Canada and Digicom Electronics in California, to strengthen its Electronics Manufacturing Services (EMS) footprint internationally and provide scalable manufacturing solutions spanning from prototyping to mass production for diverse industries, including automotive, aerospace, medical, energy, and telecom.
Kaynes Technology is also establishing a High-Density Interconnect (HDI) PCB plant in Chennai to produce advanced multi-layered circuit boards, with building construction complete and operational readiness expected by January 2026.
Alongside, it has recently signed an Rs. 5,000 Cr MoU with the Government of Tamil Nadu focused on PCB manufacturing, strengthening its EMS position, catering to complex, high-precision electronics for sectors like automotive, aerospace, and defence, leading to high-margin business.
As each day passes, Kaynes Technology India is making strides across various verticals, including automotive, aerospace and defence, medical devices, railways, IoT solutions, and industrial electronics, each demonstrating robust growth driven by strategic investments and strong client relationships, making it a noteworthy player to look for.
Financials & Future Outlook
Kaynes Technology India Limited’s revenue has grown by 51 percent from Rs. 1,805 Crores in FY24 to Rs. 2,722 Crores in FY25, accompanied by profits of Rs. 183 Crores to Rs. 293 Crores.
Its revenue and profit have grown at a 5-year CAGR of 49 percent and 95 percent, respectively and in FY25 it has delivered an OPM of 15 percent, an NPM of 11 percent and an EPS of Rs. 45.84. It also has a robust order book of Rs. 7,400 Crores.
Net working capital days for Q1FY26 stood at about 132 days from 87 days, with inventory going up from 113 to 115. The increase in working capital days is due to the receivables of Rs. 350 Crores received through the acquisition of August Electronics.
The management is taking measures, including working with suppliers to stock inventory locally, so that the burden to fund the inventory, at least the bulk of the inventory, is reduced till it gets balanced out. Kaynes expects a better than 100 days of WC days and to reduce the working capital to 70 days by FY26 if the extraordinary item is dealt with.
The management of Kaynes Technology India Limited has given an outlook to achieve a revenue target of $1 Billion by 2028 and $ 2Billion by FY30 driven by expansions in its outsourced semiconductor assembly and test (OSAT) and PC (printed circuit) board businesses.
With ongoing developments and a promising future outlook, Kaynes Technology stands out as a true gem in India’s EMS space, with smart diversification across industrials, automotive, aerospace & defence, railways, semiconductor and smart metering, truly earning the title: “Jack of all trades, master of none, but oftentimes better than master of one.”
Written by Bharath K.S
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