The Kaynes Technology India shares continue to be under pressure. In two days, the stock has fallen over 20% after its Q4FY26 results came in lower than expectations. This resulted in several brokerage houses slashing the target price and rating on the stock.
Nomura on Kaynes Technology
Nomura, an international brokerage house, has slashed the target price to Rs 3,720 from Rs 4,992, implying an upside of 11.5%. The brokerage also downgraded the stock to ‘Neutral’ from ‘Buy’ and prefers Dixon Technologies (India) in the sector.
The scale-down in the smart meter segment has been slower than anticipated. Also, pending orders will continue to drag NWC in H1 FY27. Given the significant investment required across new projects, net cash of only Rs 200 crore (FY26-end), and high dependence on government subsidy, the weak CFO generation can strain the balance sheet further.
“We maintain our target P/E at 35x for EMS (near the lower end of the 30-45x trading band) on FY28F EPS and roll forward it to June 2027, and also add Rs 463 for the OSAT/PCB businesses (close to book value),” said Nomura.
Also, Kaynes Technology’s orderbook remains exposed to govt-backed segments (40%), where risks of further delay in execution can arise in the current inflationary environment.
Nuvama on Kaynes Technology
Nuvama Institutional Equities maintained its ‘Hold’ rating on Kaynes Tech, and said that the near-term looks challenging. The brokerage house also cut the target price to Rs 3,150 from Rs 3,550, implying a downside of 5.6%.
Kaynes posted a weaker-than-expected Q4 as it missed its guidance on revenue, operating cash flow, and working capital levels. The company attributed this to geopolitical disruptions affecting order flows, execution, and supply.
Considering the volatile market environment, the company now guides for 2x industry growth (estimated to be 16–18% for FY27) while refraining from any explicit absolute revenue and growth guidance. We are cutting FY27, FY28, and FY29 EPS by 1–9% to factor in this guidance,” said Nuvama.
JM Financial on Kaynes Technology
JM Financial said that the disappointment stemmed from a miss on FY26 revenue guidance and hazy FY27 and FY28 visibility. Also, working capital of 179 days (March 2026), plus, the smart meter business is operating at a more than 500 days receivable cycle, with any major normalisation unlikely, as its Rs 500 crore order book (OB) awaits execution and the company remains open to state government orders.
Lastly, negative operating cash flow of Rs 600 crore in FY26, which is likely to persist in FY27, risking incremental dilution and elevated debt to fund FY27 growth and Rs 8,000 crore in capex over the next few years.
Owing to all these factors, JM Financial slashed the target price to Rs 3,820 from Rs 4,350, implying a downside of 8.6% from the current market price. The brokerage house retained a ‘Reduce’ rating on the stock.
“In all, we are cutting FY27–29 EPS by 0–5% and target P/E for the EMS business to 40x (from 45x) as we brace for sustained stress on the balance sheet,” said JM Financial.
Kaynes Technology Q4 FY26 results
The company reported a consolidated net profit of Rs 91 crore for Q4 FY26, compared to Rs 116 crore in the same period a year back, a fall of 22% year-over-year (YoY).
Its revenue from operations rose 26% YoY to Rs 1,243 crore for the reporting quarter from Rs 984 crore posted a year ago. Its total income for the quarter surged 28% to Rs 1,284 crore as against Rs 1,005 crore in Q4 FY25.
Its total expenses during Q4 rose 33% YoY to Rs 1,144 crore from Rs 863 crore in the same period last year. The cost of materials consumed rose 44% YoY to Rs 921 crore in Q4FY26 from Rs 638 crore a year ago.
For the whole of FY26, the company reported a consolidated net profit of Rs 364 crore, up 24% from Rs 293 crore in FY25. Annual revenue from operations climbed 33% to Rs 3,626 crore compared with Rs 2,722 crore in the previous financial year.
Kaynes Technology’s share price performance
The share price of Kaynes Technology has collapsed 27% in the last five trading sessions. The stock has fallen 18% in the past one month and erased 47.5% of investors’ wealth in the last six months. Kaynes Technology’s stock price has dropped 48% over the previous one year.