India’s semiconductor sector is booming, with the market size rising from $38 billion in 2023 to $45–50 billion in 2025, and is projected to hit $100–110 billion by 2030. Major investments, over ₹1.60 lakh crore, fuel local chip manufacturing, with ten sanctioned projects across six states, marking India’s push towards self-reliance and innovation.
With a market capitalization of Rs 48,048.43 crore, the shares of Kaynes Technology India Ltd closed at Rs 7,167.70 per share, increased around 0.66 percent as compared to the previous closing price of Rs 7,120.85 apiece.
Orderbook growth
Kaynes Technology has reported a robust surge in its order book, rising from Rs 30,004 million in Q1FY24 to Rs 74,011 million in Q1FY26, marking an impressive 146 percent growth in just two years.
This sharp expansion highlights strong demand visibility, reflecting customer confidence and positioning the company for sustained growth in India’s fast-evolving semiconductor and electronics manufacturing sector.
Operations & Financial Highlights
The company delivered strong financial growth in Q1FY26, with revenue climbing 34% to Rs 673 crore from Rs 504 crore in Q1FY25. Net profit surged 47% to Rs 75 crore, reflecting operational efficiency, robust demand, and improved margins, showcasing sustained momentum and healthy business expansion.
Kaynes is evolving from a pure EMS provider into an integrated ESDM player, strengthening capabilities in embedded design, prototyping, high-end electronics, and system integration. By increasing ODM contributions, the company aims to boost margins and deepen customer relationships, positioning itself as a strategic thought partner rather than just a contract manufacturer.
The company’s acquisition of August Electronics marks 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.
The company reaffirmed FY26 revenue guidance of ₹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 ramp-up from Q2 and improved working capital management should drive robust cash flows.
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The Sanand OSAT facility is progressing well, with proto shipments already underway and commercial production targeted for December 2025. With a planned capex of Rs. 3,400 crore, over half will be deployed by FY27. Backed by three anchor clients and MoUs with four more, the project emphasizes exports initially, with a long-term focus on India’s import substitution.
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 has established a strong foothold in the aerospace and defense sector, leveraging over eight years of expertise. As a trusted supplier to global defense firms and Bharat Electronics Ltd, it delivers high-precision electronic systems.
With key certifications like AS/EN 9100 and IPC Class 3 compliance, the company ensures world-class quality and reliability in critical defense applications, and also the company has also maintained its revenue target to achieve $1 billion in revenue by the fiscal year 2027-28 (FY28)..
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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