KAYNES TECHNOLOGY (=) : 4QFY26 conf call feedback: No respite in sight

Research evidence excerpt

KAYNES TECHNOLOGY (=) : 4QFY26 conf call feedback: No respite in sight

EQUITIES

IT HARDWARE

KAYNES TECHNOLOGY NEUTRALPRICE* INR4,178  TARGET PRICE INR4,060 (DOWNSIDE 3%)

FLASH NOTE

4QFY26 conf call feedback: No respite in sight

14 MAY 2026 Securities Research Report Production time: 08:19* (London time)

Research Analyst & Publishing Entities

Nirransh Jain BNP Paribas Securities India Private Limited +91 22 6196 5039 nirransh.jain@asia.bnpparibas.com

KAYNES is down c19% at the time of publication. In the 4Q conf. call management attributed the guidance miss

(revenue, BS) to the geopolitical disruptions that led to customer deferments, supply chain delays and shift in the project

execution timelines, along with the execution lapses in its smart meters’ installation business. The key takeaways

include:

Growth guidance: The company refrained from giving absolute FY27 revenue guidance but aims to achieve 2x the

EMS industry growth rate (c15%+) at c30%. However, we note the industry growth rate expectation to be substantially

lower vs. peers’ expectations.

Smart meters: Smart meter business clocked cINR9.7b revenue in FY26 (c27% mix). The company attributed the

major rise in receivables (cINR13.6b) to the installation delays, that’s likely to take another 2 quarters for the full

execution - post which it intends to shift focus to products vs. AMISP model. On receivables factoring, it cited delays in

its securitisation ability that are linked to the installations and should likely trigger from 3QFY27.

Other segmental guidance: In railways, it expects to deliver c20-25% revenue growth in FY27 (c30% margin), with

‘Kavach’ orders full approvals likely in 1HFY27, and execution in 2HFY27. In FY27, it expects cINR2.5-3b revenue from

OSAT and cINR3-4b from PCB.