Kaynes Technology upholds $1 billion revenue goal for FY28.

Kaynes Technology upholds $1 billion revenue goal for FY28.
Mysuru-based Kaynes Technology has reaffirmed its revenue target of $1 billion by the fiscal year 2027-28 (FY28), despite one of its promoters selling a 1.8% stake valued at ₹624 crore to finance a long-term initiative in Mysuru. The firm announced its commitment to meeting its growth objectives and is preparing to generate ₹1,600 crore through a qualified institutional placement (QIP) to facilitate its upcoming phase of expansion.

Jairam Sampath, Whole-Time Director and CFO of Kaynes Technology, detailed the reasoning behind the recent promoter stake sale. “One promoter aims to establish the Kaynes Centre in Mysuru,” he remarked. “It will encompass educational and scientific exploration elements. He has considered this for years, and now is the right moment to initiate it.”

Sampath confirmed that there are no intentions for additional stake sales this year.

Regarding business prospects, the company maintains a positive growth outlook. Sampath stated, “We previously discussed a billion-dollar sales goal by 2027-28, and that now appears achievable. By fiscal year 2029-2030 (FY30), we aim to reach $2 billion.” To support this ambition, the company intends to allocate the ₹1,600 crore from the QIP into three main areas—₹800 crore for global expansion, and ₹400 crore each for enhancing design capabilities and intensifying its technology focus.

Also Read | Kaynes Technology targets ₹4,525 crore revenue, export growth in FY26

The company has already made strategic purchases to expand its global footprint, including Digicom Electronics and August Electronics in Canada. Sampath emphasized that these acquisitions will enable Kaynes to “establish a presence for sales,” particularly in the US market, which he described as “the largest for our type of electronics.”

For the fiscal year 2025-26 (FY26), the firm anticipates overall revenues of around ₹4,525 crore, which includes ₹175 crore from its recent acquisition in Canada. Exports are projected to account for 15–20% of total revenue, with an increasing share from the US. “By fiscal year 2026-27 (FY27), we expect exports to reach around 25%, predominantly from the US and some from Europe,” Sampath noted.

Also Read | India’s EMS boom: Dixon & Kaynes optimistic about sustained growth

Kaynes also foresees margin enhancements in the near future. “We have indicated an expanded EBITDA margin of approximately 15.6%,” he added.

On the demand front, Sampath mentioned that risks are minimal. “Most demand centers might not be located in the US, but components transit through there and return as products used in India. Therefore, from this perspective, demand risks are negligible,” he stated, indicating that India’s standing as a trade partner has improved under the current US administration.

In the smart meters sector, Kaynes plans to double its revenue this year to ₹1,000 crore, up from ₹500 crore last year. However, revenue from Ola Electric is expected to dip in 2025-26 as the client revises its strategy. “It is not a significant figure. We will see as they return,” Sampath remarked.

The company, currently valued at ₹36,944.60 crore, has witnessed its shares rise over 84% in the past year.

For the full interview, watch the accompanying video

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