On January 28, 2025, shares of Kaynes Technology India Ltd experienced a dramatic decline of nearly 19% following the company’s announcement of a revised revenue forecast for the fiscal year 2025.
Yet, the company posted a 47% YoY increase in PAT to Rs 66.5 crore from Q3 FY25.
At the same time, the Q3 FY25 revenue was stated at Rs 661.2 crore, up 30% from Rs 509.3 crore recorded in Q3 FY24. The other metric that saw strong year-on-year growth is EBITDA (excluding other income), which stood at ₹94 crore, up 35% YoY from ₹69.90 crore in the same period last year.
Operating margin expressed as EBITDA margin excluding other income increased by 50 basis points to 14.2% in Q3 FY25 as against 13.7% in Q3 FY24, and the PAT margin also expanded by 120 basis points and reached 10.1% in Q3 FY25 as compared to 8.9% in Q3 FY24.
Revenues of Rs 1,737.30 crore for the nine months ended December 31, 2024, asserted a growth of 49% over the same period of the previous year.
The company’s order backlog rose to Rs 6,047 crore at the end of Q3FY25 from Rs 3,798 crore in the Q3FY24 period.
“We still remain focused on executive segments with high potential & high operating margins. We anticipate these segments shall assist in maintaining the growth trend and turn Kaynes into a player in this segment.
As seen in the Q3 report by the company, Ramesh Kunhikannan, Managing Director & Promoter of Kaynes Technology, said, “We are continuously developing new capacities, exploring new territories and seeking to diversify our customers – essentially focusing on large clients and attractive segments.”
Market Reaction And Stock Performance
The market’s response was swift and severe. Following the announcement, Kaynes Technology’s shares fell by 19.79%, marking a stark contrast to its previous closing price of ₹5,268.95. This decline is part of a broader trend; since reaching an all-time high of ₹7,824.95 on January 1, 2025, the stock has now dropped approximately 46%.
The volatility of Kaynes Technology shares is notable, as they have fluctuated significantly over the past year, gaining around 184% in 2024 alone.