Kaynes Technology India Limited – Investor Presentation Summary

Key Operational Highlights

  • Company is transitioning from contract manufacturing to designing, developing and delivering complete technology products
  • Early engagements with global semiconductor companies across power electronics and OSAT programs represent a pipeline in excess of 2.0 billion components
  • New PCB facility: Finishing touches to building in progress, machines installation in final stage, trial productions started 1-Oct-2026
  • QMS Certification process initiated with Phase 1 completed, hiring of skilled workforce completed

Key drivers of operational performance: Strategic investments to move up electronics value chain, semiconductor engagements, new PCB facility development

Segment-wise Performance

  • Industrial: 34% of revenue
  • Automotive: 22% of revenue
  • Aerospace & Defense: 17% of revenue
  • Medical: 12% of revenue
  • IoT: 10% of revenue
  • Other: 5% of revenue

Explanation of significant changes in segment performance: Not specified

Financial Highlights

Revenue: ₹9,525 million (Q2 FY27), ₹18,987 million (H1 FY27)

EBITDA: ₹1,256 million (Q2 FY27), ₹2,681 million (H1 FY27)

PAT: ₹398 million (Q2 FY27), ₹852 million (H1 FY27)

EPS: Not specified

Margins: EBITDA margin 13.2% (Q2 FY27), 14.1% (H1 FY27); Net profit margin 4.2% (Q2 FY27), 4.5% (H1 FY27)

YoY/QoQ comparison: Q2 FY27 revenue grew 4.4% YoY but PAT declined 65.6% YoY; H1 FY27 revenue grew 17.9% YoY but PAT declined 53.3% YoY

Drivers of financial performance: Higher employee expenses (33.5% YoY increase in Q2), increased finance cost (191.0% YoY increase in Q2), higher depreciation (74.4% YoY increase in Q2)

Comparison to market estimates: Not specified

Key Risks: Raw material price increases (copper & aluminum at multi-year highs), input and freight inflation, working capital needs increase

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified

Regional Breakdown: Not specified

Balance Sheet Snapshot

Net Debt/Equity: Not specified

Reserves: Not specified

Current Assets/Liabilities: Current assets ₹41,575 million, current liabilities ₹21,886 million (H1 FY27)

Working Capital/Leverage Metrics: Inventories increased to ₹12,790 million from ₹9,917 million YoY; Trade receivables increased to ₹18,255 million from ₹15,550 million YoY

Financial Health Insights: Cash and cash equivalents decreased significantly to ₹1,067 million from ₹10,501 million YoY

Capex & Cash Flow Health

Capital Expenditure: Gross block increased to ₹23,819 million from ₹13,356 million YoY indicating significant capex

Free Cash Flow: Not specified

Operating Cash Flow: Net cash from operating activities was negative ₹2,784 million (H1 FY27)

Net Debt Movement: Borrowings increased to ₹5,709 million (non-current) and ₹12,389 million (short-term) from ₹3,430 million and ₹7,868 million respectively YoY

Investment Rationale: Strategic investments in capacity expansion and moving up value chain

Strategic & R&D Initiatives

Investments in Innovation: Moving from manufacturing services to designing, developing and delivering complete technology products

Expected impact on growth: Results expected in better returns, faster product development, greater customer stickiness, larger content with customer, sustainable competitive advantage

Strategic Rationale: Progressively moving up electronics value chain

Industry Trends & Business Environment

Macro/Industry Trends: Rupee depreciation (~₹95-96, down ~11%), RBI repo rate hike to 5.50%, monsoon deficiency (12.6% deficient), WPI near 10%, copper & aluminum at multi-year highs

Impact on Company: Rupee depreciation lifts INR value of export and USD-linked revenue but raises imported component costs; high input costs affect margins

Management Commentary & Growth Outlook

Strategic Outlook: Not specified

FY Guidance: Not specified

Market Share Targets: Not specified

Risks and Opportunities: Global uncertainties driving longer lead times; semiconductor engagements represent significant pipeline opportunity

ESG Updates

  • Eco Vadis Score: Achieved
  • MSIL Green Supplier Certification: Obtained
  • 24.7 acres of forest land adopted as carbon sink for next 5 years
  • Wind Power: 3.2M+ units generated in FY26
  • Solar Power: 3 MW installation across plants in progress
  • Energy Intensity reduction by 23% in last 2 years
  • Environmental Goals: 5 lakh tree plantation by 2030, CO2 emission net zero by 2050, 30% reduction of GHG by 2035, zero discharge to landfill by 2030
  • Employee initiatives: 280+ trainings across 12 categories, 60 man-hours training per annum per employee, sponsored overseas training opportunities

Governance

  • Zero tolerance towards corruption
  • Equitable and compliant labor policies
  • Protection of whistleblowers
  • Board independence
  • Insider trading prohibition