Kaynes Technology Q2 Profit Crashes 62% To ₹45 Crore, Rising Costs Hit Margins Despite Revenue Growth

Mumbai: Kaynes Technology reported a sharp 62% year-on-year decline in consolidated net profit to ₹45.4 crore for the second quarter ended September 30, 2026, as rising finance costs and employee expenses weighed heavily on profitability.

The electronics manufacturing services company’s revenue from operations increased 4% to ₹952.5 crore during Q2 FY27, compared with the corresponding quarter of the previous financial year, according to its stock exchange filing.

Profitability Under Pressure

Despite modest revenue growth, Kaynes Technology witnessed a deterioration in operating performance.

Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 15.7% year-on-year to ₹126.5 crore.

The company’s EBITDA margin contracted to 13.28% from 16.3% in the year-ago period, reflecting increasing pressure on operating profitability.

Finance costs more than tripled to ₹39 crore during the September quarter, compared with ₹13 crore a year earlier.

Employee benefit expenses also increased significantly to ₹103 crore from ₹77 crore, further impacting the company’s bottom line.

New Joint Venture Announced

Alongside its quarterly earnings, Kaynes Technology announced a joint venture agreement with Toyokawa Techno Pvt. Ltd. to strengthen its electronics manufacturing capabilities.

The proposed venture will focus on manufacturing, assembling and testing Thin-Film Transistor (TFT) display modules.

Its operations will also cover FOG/COG bonding, backlight assemblies, optical bonding, software development, research and automated manufacturing systems.

Kaynes Technology will hold a 90% equity stake through fresh subscriptions, while Toyokawa Techno will own the remaining 10%.

The venture will operate as a subsidiary with a five-member board, including two nominees from each company and one independent director.

Kaynes will provide operational and management support, while Toyokawa will contribute technical expertise.

Also Watch:

Share Price Performance

Kaynes Technology shares closed 1.5% lower at ₹3,430 on Friday.

Although the stock has gained approximately 5% over the past month, it remains down nearly 13% in 2026.

Investors will closely monitor margin recovery, cost management and execution of the proposed joint venture.

Disclaimer : This article is based on company disclosures and exchange filings. It is for informational purposes only, not investment advice.

Level up your brain the fun way. Play daily games and quizzes on FPJ Smart!

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/