Synopsis:
Shares of a semiconductor solutions provider rose 3% following the rollout of India’s first commercially manufactured Intelligent Power Module. Strong financial growth, strategic acquisitions, OSAT and PCB expansions, and a high-margin industrial and aerospace focus support robust revenue, margin, and cash flow momentum.
The shares of the semiconductor solution provider gained up to 3 percent in today’s trading session after the company announced a collaboration to deliver India’s first manufactured IPM Multi-Chip Module.
With a market capitalization of Rs 47,346.24 crore, the shares of Kaynes Technology India Ltd were trading at Rs 7,062.95 per share, increasing around 1.49 percent as compared to the previous closing price of Rs 6,959.30 apiece.
Significant achievement
The shares of Kaynes Technology India Ltd have seen positive movement after Kaynes Semicon, wholly owned subsidiary of the company, in collaboration with AOS and Mitsui, has rolled out India’s first commercially manufactured Intelligent Power Module (IPM5) from its Sanand OSAT facility.
The 900-unit shipment demonstrates India’s capability to produce complex multi-chip modules domestically, supporting global semiconductor leaders, advancing motor control applications, and marking a major milestone in the country’s semiconductor manufacturing and OSAT ambitions.
Moreover, Kaynes Semicon’s Sanand facility is set to achieve a full capacity of 6.3 million chips per day, marking a major milestone in India’s semiconductor manufacturing. Commercial production for AOS has begun, with initial output expected at 1.5 million chips daily by Q1 FY27, highlighting the facility’s potential to scale rapidly and support global semiconductor supply chains.
Brokerage Recommendation
Recently, ICICI Direct, one of the well-known brokerages in India, gave a ‘Buy’ rating on this semiconductor stock with a target price of Rs 8,900 apiece, indicating a potential upside of 26 percent from Thursday’s price of Rs 7,041.85 per share.
According to the brokerage, Kaynes Technology is rapidly expanding as a margin-focused EMS player, emphasising low-volume, high-value businesses and robust design capabilities. Investments in PCB manufacturing and OSAT facilities enhance backward integration, cost efficiency, and supply chain resilience, supporting scalable, profitable long-term growth.
Additionally, Kaynes consistently achieves industry-leading gross margins above 30% (41% in Q1FY26) and EBITDA margins over 15% (16.8% in Q1FY26). Focus on high-margin sectors like industrials, railways, aerospace, and defence, along with expanding PCB and OSAT operations, is expected to further boost margins and profitability.
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.
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Operations & Financial Highlights
The company delivered strong financial growth in Q1FY26, with revenue climbing 34 percent to Rs 673 crore from Rs 504 crore in Q1FY25. Net profit surged 47 percent to Rs 75 crore, reflecting operational efficiency, robust demand, and improved margins, showcasing sustained momentum and healthy business expansion.
Recently, the company acquired August Electronics, marking a strategic entry into North America, adding high-margin customers and new capabilities, with Rs 175 crore FY26 revenue contribution expected. Its inorganic strategy focuses on targeted acquisitions across North America and Europe, strengthening ODM capabilities, design talent, and global market access while positioning India-Canada as a strong alternative to China.
As per the recent concall, the company reaffirmed FY26 revenue guidance of Rs 4,500 crore, with strong contributions from EMS, OSAT, and its Canadian acquisition. EBITDA margins are expected to stay above 16.8%, supported by product mix and leverage. Execution will ramp up, and improved working capital management should drive robust cash flows.
Management remains highly optimistic, expressing confidence in achieving and even surpassing revenue and margin targets. With strong order book visibility and contributions from new verticals like aerospace, railways, and OSAT, growth momentum looks robust. Additionally, focus on cash flow and working capital improvements ensures stability, supported by structured plans for timely normalization.
Kaynes Technology is a pioneering integrated electronics manufacturer that provides comprehensive end-to-end and IoT-enabled solutions across a diverse range of industries. Driven by customer needs, the company is dedicated to solving real-world challenges, from everyday hurdles to groundbreaking innovations, creating impactful solutions that make a difference.
Written by Abhishek Singh
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