Shares of Kaynes Technology India Ltd experienced a significant drop, falling almost 20 percent on Thursday. The sharp decline followed the company's disappointing financial performance for the March 2026 quarter, missing analyst expectations and its own revenue guidance.
The stock plummeted 19.4 percent in early trading, reaching Rs 3,366 from its previous close of Rs 4,177.85. This downturn erased approximately Rs 5,445 crore from the company's market capitalization in a single day, bringing it down to Rs 22,563.86 crore.
Disappointing Q4 2026 Performance
For the quarter ending March 31, 2026, Kaynes Technology reported a 21.5 percent year-over-year fall in net profit, settling at Rs 91.2 crore. While revenue saw a 26.2 percent increase year-over-year to Rs 1,242.6 crore, it still fell short of the company's revised FY26 revenue guidance of Rs 4,100 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 15.4 percent year-over-year to Rs 193.6 crore, but EBITDA margins contracted by 140 basis points to 15.6 percent.
Additionally, the company's finance costs doubled to Rs 41 crore, and depreciation expenses surged by 178 percent during the reported period. Despite an order book exceeding Rs 8,000 crore as of March 31, 2026, the overall financial picture was largely weaker than anticipated.
Brokerage Downgrades and Price Target Cuts
Several institutional brokerages reacted to Kaynes Technology's results with downgrades and revised price targets:
- Nuvama Institutional Equities noted the weaker-than-expected Q4, with adjusted PAT declining 21 percent year-over-year. They highlighted a negative operating cash flow of Rs 600 crore, contrary to guidance, due to increased working capital days. Nuvama cut their FY27E/28E EPS by 22 percent and 20 percent respectively, downgrading the stock to 'hold' and slashing its March 2027 target price by 35 percent, from Rs 5,500 to Rs 3,550.
- JP Morgan also downgraded the stock from 'overweight' to 'neutral' and cut its target price by over 33 percent, from Rs 6,000 to Rs 4,000. The firm reduced Kaynes Tech's earnings estimates for the next two years by 12 percent to 17 percent, citing cuts across both the core Electronic Manufacturing Services (EMS) and Outsourced Semiconductor Assembly and Test (OSAT) businesses.
- CLSA, another global brokerage, had anticipated a negative reaction to the stock following the results and a further deterioration in the balance sheet. Despite this, CLSA maintained an 'outperform' rating with a price target of Rs 4,200.
The stock's current performance marks a significant decline from its 52-week high of Rs 7,705, hit in October 2025, with shares tanking more than 56 percent since then.