One of the leading player in the Electronics System Design & Manufacturing (ESDM) and IoT technology, Kaynes Technology FY25 results reported a strong financial results, which reflects its operational strength and strategic positioning in the fast changing global manufacturing landscape.
Despite the seasonal headwinds in the EMS industry, Kaynes has reported year-over-year growth across all key parameters – revenue, profitability, margins and orderbook – driven by strong execution, expanded capabilities and focused push into high value segments.
Kaynes Technology FY25 Highlights
- Revenue: INR 2,721.8 crore — up 51% YoY from INR 1,804.6 crore in FY24
- EBITDA: INR 410.7 crore — up 62% YoY, EBITDA margin up to 15.1% from 14.1%
- PAT (Net Profit): INR 293.4 crore — up 60% YoY from INR 183.3 crore
- PAT Margin: Up to 10.8% from 10.2% last year
- Orderbook: Up 60% YoY to INR 6,596.9 crore from INR 4,115.2 crore as of 31 March 2024
- Net Working Capital Days: Up to 87 days from 83 days YoY
Kaynes management attributes this performance to its focus on complex, high margin verticals like automotive, aerospace, defense, industrial IoT and electric vehicles. The company now boasts 16 advanced manufacturing facilities and continues to leverage its design-to-delivery ESDM capabilities to cater to global customers.
Kaynes Technology Q4 FY25 Performance
- Revenue: INR 984.5 crore in Q4 FY25 — up 54% YoY vs. INR 637.3 crore in Q4 FY24
- EBITDA: INR 167.9 crore — up 76% YoY, margin expanded to 17.1%
- PAT: INR 116.2 crore — up 43% YoY
- PAT Margin: 11.8%, down 95 bps YoY due to cyclical volume and seasonality effects
A separate report indicated a different revenue figure of INR 1,588.2 crore for Q4 FY25, which may include other income streams or alternate consolidation methods. Nevertheless, both data sets emphasize strong YoY growth and an improving operational profile.
Strategic Outlook: Positioned for Global Expansion
Kaynes continues to execute a dual-pronged growth strategy — combining organic capacity expansion and inorganic acquisitions. The acquisition of August Electronics in Canada further strengthens its North American presence, bringing in high-margin customers and manufacturing synergies.
According to Managing Director & Promoter Ramesh Kunhikannan, the Canada-India manufacturing alliance now offers a credible alternative to China-based sourcing, opening new opportunities with global OEMs seeking reliable, geopolitically diversified partners.
“Our FY25 revenue growth of 51% and orderbook jump to nearly INR 6,600 crore reflect the momentum behind our solutions and the trust of our global clientele. With a firm eye on operational efficiencies, margin expansion, and capability enhancement, we remain confident about our FY26 trajectory,” Kunhikannan stated.
Operational Resilience in a Cyclical Industry
From a investor’s perspective, Kaynes’ ability to grow profitably in a sector known for cyclicality speaks volumes about its execution rigor and scalability. The post-festival slowdown — typical in EMS — was effectively offset by strategic order execution and cost management, visible in the consistent expansion of EBITDA margins.
The company also stands to benefit from secular tailwinds:
- Government-backed incentives for domestic electronics manufacturing (PLI scheme)
- Rising demand for automotive and industrial electronics
- Nearshoring trends driven by global supply chain diversification
With a solid backlog of orders, improving profitability, and strategic international positioning, Kaynes Technology is in a strong position to deliver sustained shareholder value in FY26 and beyond.
Key Takeaway for Investors:
- Consistent double-digit margin growth
- Record orderbook visibility
- Entry into North American markets via acquisition
- High-growth sectors exposure: EVs, aerospace, medical, and IoT
Given its track record and strategic direction, Kaynes is emerging as a formidable force in the global ESDM and EMS space, worthy of close investor attention.
Disclosure: The author has no direct financial interest in the company discussed but follows Indian industrial mid-caps and electronics manufacturing trends as part of regular institutional research coverage.