Following the company’s revision of its FY25 sales projection from ₹3,000 crore to ₹2,800 crore, Kaynes Technology’s share price fell by more than 19%. The firm reported a 47% rise in profit for Q3 FY25, with sales up 30% year over year despite execution delays.
The share price of Kaynes Technology plummeted by more than 19% on Tuesday. This drop came when the business revealed an updated FY25 revenue estimate, which was earlier projected to be ₹3,000 crore but was now just ₹2,800 crore.
The firm’s management admitted to inevitable execution delays during the December quarter, which prevented them from fulfilling orders of ₹100 crore in the industrial area, according to a report by CNBC-TV18. The majority of these orders are expected to be completed this quarter. The business anticipates generating ₹4,500 crore in sales for the fiscal year 2026, with at least 15% margins.
For the third quarter of FY25, the company’s profit after tax (PAT) increased by 47% to ₹66.5 crore. Furthermore, this quarter’s sales of ₹661.2 crore represented a 30% increase over Q3 FY24’s revenue of ₹509.3 crore. In addition, EBITDA (excluding other income) increased significantly, rising 35% year over year to 94 crore from 69.90 crore in the same period the previous year.
The PAT margin also improved by 120 basis points, reaching 10.1% in Q3 FY25 from 8.9% in the same quarter last year, while the company’s EBITDA margin (excluding other income) climbed by 50 basis points, reaching 14.2% in Q3 FY25 from 13.7% in Q3 FY24.
In Q3FY25, Kaynes achieved a remarkable 30% YoY growth in sales while maintaining reasonable profit margins. Our revenue for the nine months ending December 31, 2024, was ₹17,373 million, a 49% increase over the nine months ending December 31, 2023, when it was ₹11,673 million. As of December 31, 2024, we had ₹60,471 million in our order book, which gives us good revenue visibility for FY25 and beyond.
Compared to Q3 FY24, when it was 117 days, the net working capital cycle has improved to 107 days this quarter. To maintain the growing momentum and establish Kaynes as a unique competitor in this market, we want to keep investing in high potential and high-profit categories,” stated Ramesh Kunhikannan, Managing Director & Promoter. The BSE started Kaynes Technology’s shares at ₹4,877 per. The stock reached an intraday high of ₹4,917.45 and a low of ₹4,256.65.
The share price of Kaynes Technology dropped by around 20% when the company lowered its FY25 revenue growth projections, according to Riyank Arora, Technical Analyst at Mehta Equities Ltd. Technically speaking, the stock has broken far below its main support level of 4566 and is currently trading well below it. Since more market deterioration is anticipated, any pullback from here towards 5000–5100 should be viewed as an exit opportunity. On a little decline from here, investors are recommended to sell.
