Kaynes Technology Reports Strong Q2 FY26 Growth, Advances in OSAT and PCB Manufacturing

Kaynes Technology India Limited , a leading electronic manufacturing services (EMS) company, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth and progress in its strategic initiatives.

Financial Highlights

Metric	Q2 FY26	YoY Growth
Revenue	9,062.00	58%
Operational EBITDA	1,480.00	80%
EBITDA Margin	16.30%	190 bps expansion
Profit After Tax	1,214.00	-
PAT Margin	13.40%	-
Order Book	80,994.00	-

The company's performance in Q2 FY26 showcases its strong market position and execution capabilities in the rapidly growing electronics manufacturing sector.

Strategic Developments

OSAT Facility Progress

Kaynes Technology has made significant strides in its semiconductor ambitions with the Sanand OSAT (Outsourced Semiconductor Assembly and Test) facility. The company successfully delivered India's first commercially manufactured multichip module, IPM5, in collaboration with Alpha & Omega Semiconductor and Mitsui & Company. This achievement marks a crucial milestone in India's journey towards semiconductor self-reliance.

PCB Manufacturing Expansion

The company has received government approval for its advanced PCB (Printed Circuit Board) manufacturing projects. Kaynes is setting up a multilayer HDI PCB facility in Chennai, positioning itself to capture a significant share of the growing PCB market, which is projected to cross USD 100 billion globally by 2030.

Strategic Collaborations

Kaynes has formed strategic partnerships with industry leaders such as Infineon, Alpha & Omega Semiconductor, L&T Semiconductor, and Mitsui. These collaborations are expected to strengthen the company's position in various segments, including MEMS-based true wireless stereo packaging and consumer electronics.

Operational Focus

Dr. Muthukumar Narayanaswamy, Managing Director, emphasized the company's focus on transitioning from a service-led EMS model to a product-led ESDM (Electronic System Design and Manufacturing) enterprise. Key initiatives include:

Implementing enterprise-wide systems and process harmonization
Driving improvements in productivity, cost, and delivery
Embedding a culture of total predictive maintenance
Undertaking business process restructuring and digital transformation

Future Outlook

Kaynes Technology maintains its revenue guidance of $1 billion by FY28 and $2 billion by FY30. The company's expansion into high-value manufacturing segments like OSAT and advanced PCB production is expected to drive margin accretion and sustainable value creation for stakeholders.

While the company faces challenges in working capital management, particularly in receivables, management has outlined strategies to improve cash flow and reduce net working capital days by the end of the fiscal year.

As Kaynes Technology continues to evolve from an EMS player to a fully integrated ESDM company, it is well-positioned to capitalize on India's growing electronics manufacturing sector and contribute to the country's technological self-reliance.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-6.20%	-10.68%	-25.24%	-13.24%	-19.82%	+621.50%

Kaynes Technology India Limited , a leading electronic manufacturing services (EMS) company, has reported strong financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

Metric	Q2 FY26	YoY Growth
Revenue	9,062.00	58%
Operational EBITDA	1,480.00	80%
EBITDA Margin	16.30%	190 bps expansion
Profit After Tax (PAT)	1,214.00	-
PAT Margin	13.40%	-

The company's order book increased to INR 80,994.00 million, up from INR 54,228.00 million in the previous year, indicating strong demand for its services.

Half-Yearly Performance

For the first half of FY26, Kaynes Technology reported:

Metric	H1 FY26	YoY Growth
Total Revenue	15,797.00	47%
Operating EBITDA	2,610.00	75%
EBITDA Margin	16.50%	270 bps expansion
Profit After Tax (PAT)	1,960.00	-
PAT Margin	12.40%	-

Key Developments

OSAT Facility Milestone: Kaynes Technology successfully delivered India's first commercially manufactured multi-chip module at its Sanand OSAT facility, in collaboration with Alpha Omega Semiconductor and Mitsui Company.
Government Approval: The company received government approval for advanced PCB manufacturing projects, marking a significant step in its transition from an EMS player to a fully integrated ESDM company.
Strategic Collaborations: Kaynes has entered into partnerships with global leaders such as Infineon, Alpha & Omega Semiconductor, and L&T Semiconductor, positioning itself at the forefront of India's semiconductor ecosystem.
PCB Manufacturing Expansion: The company is setting up a multilayer HDI PCB facility in Chennai, with plans for further expansion in the southern region of India.
Inorganic Growth: The integration of August Electronics is expected to add synergies, accessing new talent pools, customer bases, and high-margin markets.

Future Outlook

Kaynes Technology maintains its revenue guidance of $1 billion by FY28 and $2 billion by FY30. The company is focusing on:

Transitioning from a service-led EMS model to a product-led ESDM-driven enterprise
Implementing enterprise-wide systems and process harmonization
Driving improvements in productivity, cost, and delivery
Investing in IoT 4.0, low-cost automation, and advanced quality management systems

Ramesh Kannan, Executive Vice Chairman, commented on the results, stating, "These results reaffirm that meaningful growth comes from the alignment of vision, strategy and disciplined execution, a balance that enables us to build capabilities, deepens partnerships and shape the future of electronics manufacturing."

The company's strong performance and strategic initiatives position it well to capitalize on the growing demand for electronic manufacturing services in India and globally.