Kaynes Technology share price slumps over 19% as management cuts FY25 guidance post Q3 results

Kaynes Technology share price took a significant hit on Tuesday, dropping over 19% after the company lowered its FY25 revenue guidance to ₹2,800 crore from the previously anticipated ₹3,000 crore.

According to a report by CNBC-TV18, the company's management acknowledged some execution delays during the December quarter, which resulted in the inability to complete orders amounting to ₹100 crore in the industrials segment. They anticipate that most of these orders will be fulfilled in the current quarter.

Looking ahead, for the financial year 2026, the company projects revenue of ₹4,500 crore, with expectations of achieving margins exceeding 15%.

The firm reported a 47% increase in its profit after tax (PAT), reaching ₹66.5 crore for the third quarter of FY25. In addition, the revenue for this quarter amounted to ₹661.2 crore, representing a 30% rise from ₹509.3 crore in Q3 FY24. Furthermore, the EBITDA (excluding other income) saw considerable growth, climbing by 35% year-on-year (YoY) to ₹94 crore from ₹69.90 crore during the same period last year.

The EBITDA margin of the company (excluding other income) increased by 50 basis points, achieving 14.2% in Q3 FY25, up from 13.7% in Q3 FY24, while the PAT margin also grew by 120 basis points, reaching 10.1% in Q3 FY25 compared to 8.9% in the same quarter from the previous year.

“Kaynes achieved an impressive 30% revenue YoY growth in Q3FY25 with healthy profit margins. Our revenues were ₹17,373 mn for the 9 months ended December 31, 2024, as against ₹11,673 mn for the 9 months ended December 31, 2023, establishing a growth of 49%. Our orderbook stood at ₹60,471 million as of December 31, 2024, providing strong revenue visibility for FY25 and beyond. The net working capital cycle has improved to 107 days during the current quarter, compared to Q3 FY24 where it was 117 days. We continue to invest in high potential & high margin segments and expect these to help us sustain the growth momentum and make Kaynes, a differentiated player in this segment," said Ramesh Kunhikannan, Managing Director & Promoter.

Kaynes Technology share price today

Kaynes Technology share price opened at ₹4,877 apiece on the BSE. The stock touched an intraday high of ₹4,917.45, and an intraday low of ₹4,256.65.

According to Riyank Arora, Technical Analyst, Mehta Equities, Kaynes Technology share price fell nearly 20% after the firm trimmed FY25 revenue growth guidance. 

“Technically, the stock has given a good breakdown below its major support mark of 4566 and trading well below the same. Any pull-back from here towards 5000 - 5100 should be considered as an exit opportunity as weakness is expected to deepen in the stock going forward. Investors are advised to exit their position on a minor pullback from here,” said Arora.

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