Kaynes Technology shares surge 10% post Q1 earnings; should you buy?

The company's profit after tax (PAT) for the quarter ended June 30, 2025, stood at ₹74.6 crore, as compared to ₹50.8 crore recorded in Q1FY25.

Kaynes Technology share price today: Shares of end-to-end electronics manufacturing services (EMS) provider, Kaynes Tech, zoomed 10 per cent to an intra-day high of ₹6,201.5 on Thursday, July 31, 2025, after the company reported a 47 per cent jump in Q1 net profit.

At 11:50 AM, Kaynes Technology shares were trading at ₹6,201.50, up by nearly 10 per cent on the National Stock Exchange. In comparison, Nifty50 was trading in red, down by 45 points or 0.18 per cent, quoting 24,809.35 level. The total market capitalisation of the company stood at ₹41,523.44 crore.

Kaynes Technology Q1FY26 earnings

The company's profit after tax (PAT) for the quarter ended June 30, 2025, stood at ₹74.6 crore, as compared to ₹50.8 crore recorded in the corresponding quarter of the last financial year, marking a 47 per cent increase. Consolidated revenue surged 34 per cent year-on-year (Y-o-Y) to ₹673.5 crore during the quarter under review. The same stood at ₹504 crore during the first quarter of the last financial year.

 

Profit margins for Q1FY26 stood at 11.1 per cent, indicating a rise of 100 basis points (bps). The company's earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at ₹113 crore, indicating a 69 per cent rise from ₹66.9 crore reported in the year-ago period. Meanwhile, ebitda margins advanced 350 bps to 16.8 per cent during the quarter under review.

The company's orderbook grew to ₹7,401.1 crore as of June 30, 2025, from ₹5,038.6 crore recorded in the same period of the last financial year.

"Our consistent focus on complex, high-margin verticals–such as industrial and EV, aerospace, smart infrastructure, etc-has helped sustain profitable growth. Further, we remain committed to expanding our capabilities and geographic reach through strategic investments in emerging and high potential verticals, ODM segment and strategic electronics...," said Ramesh Kunhikannan, managing director and promoter, Kaynes Technology India Ltd.  Check List of Q1 results today

Kaynes Technology - Should you buy?

Ravi Singh, SVP-retail research at Religare Broking, took a bullish stance on the stock, pointing out that the growing orderbook of the company provides strong revenue visibility for the current financial year.

"On technical charts, Kaynes has recently taken a reversal from ₹5,400 level, which is strong support with the highest Put OI build up at ₹5,500 strike. At ₹6,000 call strike, we have witnessed strong OI build up with rising prices indicating fresh long build-ups for the Aug series. Overall stock remains on the buy side, with fresh buying can be triggered at the ₹6,000 level with stop loss at ₹5,600 for the upside potential of ₹6,550-₹6,700 in the coming months. Existing investors can carry long positions or trail stop losses to cost," he said.

JM Financial has maintained its 'Hold' rating on the stock. While the Kaynes Tech missed revenue estimates projected by D-street analysts, gross margins rose to 41.3 per cent during the quarter, sustaining optimism, according to the brokerage firm. That apart, the revenue contribution from the company's original design manufacturing (ODM) and product engineering segment surged to 36 per cent, up sharply from just 1 per cent Y-o-Y.

"This appears to be a key driver of the gross margin expansion, given a similar trend was seen in 4Q with both, the share of ODM and overall margin expansion," the brokerage firm said in its first-cut market note.