Shares of Kaynes Technology India came under heavy selling pressure on Thursday, with the stock hitting the 15% lower after the company reported its Q4 FY26 earnings. Investors reacted negatively to margin pressure and a sharp decline in quarterly profit despite healthy revenue growth.
The electronics manufacturing services (EMS) company posted consolidated revenue of Rs 1,242.6 crore for the March quarter, registering a 26.2% year-on-year growth compared to Rs 984.5 crore in the corresponding quarter last year.
However, operational performance remained under pressure. EBITDA rose 15.4% YoY to Rs 193.7 crore from Rs 167.9 crore in Q4 FY25. EBITDA margin declined 140 basis points to 15.6% against 17.0% a year ago, indicating rising cost pressures.
Net profit fell sharply by 21.5% YoY to Rs 91.2 crore compared to Rs 116.2 crore in the year-ago quarter, disappointing market participants and triggering a sharp correction in the stock price.
The decline in profitability despite strong topline growth suggests higher operating expenses and margin compression weighed on overall earnings during the quarter.