Kaynes Technology Conference call takeaways: Smart meters creating pain; no guidance for FY27

Research evidence excerpt

Kaynes Technology Conference call takeaways: Smart meters creating pain; no guidance for FY27

J P M O R G A N Asia Pacific Equity Research

15 May 2026

Kaynes Technology Neutral

KAYN.NS, KAYNES IN

Conference call takeaways: Smart meters creating Price (14 May 26):Rs3,336.50

pain; no guidance for FY27 Price Target (Dec-26):Rs4,000.00

We see three main takeaways from the earnings call: 1) Management highlighted IT Services, EMS, Telecom, and

that it saw two large government orders become delayed that led to guidance miss Internet Research

for 4Q in addition to ramp down of 90% of revenues at an EV OEM client that drove Bhavik Mehta, CFA AC

the miss for full year revenue guidance, 2) Kaynes decided to not give any revenue (91-22) 6157-3871

guide for FY27 given the sharp miss in FY26, 3) NWC remained elevated at 125 bhavik.mehta@jpmchase.com

days driving negative OCF due to pick up in smart meters revenues (higher than J.P.Tower,MorganSantacruz(E),India PrivateMumbaiLimited,- 400098,J.P. MorganSEBI

guide) and delay in discounting of legacy receivables due to push out of Registration: INH000001873, (91-22) 6157-3000.

installations. We believe the stock will remain a ‘show me’ stock until we see Ankur Rudra, CFA

revenue growth picking up and WNC days coming down significantly. Hence, we (65) 6801-3237

would stay on the sidelines. Remain N. ankur.rudra@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited

• Delays in order execution and client issue drives guidance miss.

Management highlighted that it saw two large government orders become

delayed that led to guidance miss for 4Q in addition to ramp down of 90% of

revenues at an EV OEM client that drove the miss for full year revenue

guidance. We estimate the combined impact of these to be Rs5.2bn (Rs2.5bn