Kaynes Technology reports strong Q3 FY25 growth amid expanding market reach

Kaynes Technology India Limited, a leader in integrated IoT-enabled electronics manufacturing, delivered impressive results for the third quarter of FY25, reflecting its robust operational strategies and focus on high-growth markets. The company achieved a 30% year-on-year (YoY) revenue increase, with profits soaring by 47% YoY.

Consolidated revenue for Q3 FY25 reached INR 6,612 million, up from INR 5,093 million during the same period in FY24. The nine-month revenue ending December 31, 2024, was equally robust, growing 49% YoY to INR 17,373 million compared to INR 11,673 million in the corresponding period of the previous year.

Profit after tax (PAT) for the quarter stood at INR 665 million, a significant rise from INR 452 million in Q3 FY24. Kaynes Technology’s operational efficiency was evident in its improved margins—EBITDA margins rose to 14.2% from 13.7% YoY, while PAT margins climbed to 10.1%, a 120-basis-point improvement over the previous year.

What Factors Contributed to Kaynes Technology’s Success?

Kaynes Technology’s strong performance in Q3 FY25 can be attributed to its strategic investments in high-potential market segments and its commitment to enhancing operational efficiency. With a 30% YoY revenue growth and an expanding order book valued at INR 60,471 million, up from INR 37,980 million in Q3 FY24, the company continues to secure a competitive edge in the industry.

The company has maintained a keen focus on reducing its working capital cycle, which now stands at 107 days as of December 31, 2024, compared to 117 days in the same period last year. This improvement highlights Kaynes Technology’s efficiency in managing resources and optimizing its cash flow.

Why Is Kaynes Technology a Market Leader in IoT-Enabled Manufacturing?

Kaynes Technology is a prominent player in the Electronics System Design and Manufacturing (ESDM) sector, offering end-to-end solutions across diverse industries such as automotive, aerospace, medical devices, and industrial electronics.

With over three decades of expertise, the company specializes in conceptual design, process engineering, and life-cycle support. Its 16 advanced manufacturing facilities cater to the production of high-value, flexible-volume products tailored to various industry needs. This capability enables Kaynes Technology to serve high-demand segments such as strategic electronics, railways, and defence with precision and innovation.

Additionally, the company’s service centres in Mumbai and Cochin further enhance its capacity to meet client demands, particularly in aerospace and industrial sectors. This diversified approach has allowed Kaynes Technology to maintain its leadership in IoT-enabled manufacturing solutions.

What Are Industry Experts Saying About Kaynes Technology’s Growth?

Ramesh Kunhikannan, Managing Director and Promoter of Kaynes Technology, attributed the company’s remarkable growth to its strategic direction. “Our revenues for the nine-month period ending December 31, 2024, stand at INR 17,373 million, showcasing a 49% YoY growth. The strong order book of INR 60,471 million provides revenue visibility for FY25 and beyond. We are expanding our capabilities, geographies, and customer base to strengthen our position in high-margin and high-growth sectors.”

Kunhikannan emphasized the importance of sustaining momentum through targeted investments in emerging segments and the development of differentiated products. By focusing on sectors such as IoT and strategic electronics, Kaynes Technology is well-positioned to meet evolving market demands.

What Lies Ahead for Kaynes Technology?

Kaynes Technology’s strategic outlook for FY25 revolves around leveraging its robust order pipeline and expanding into new markets. With plans to enhance its capabilities and diversify its client portfolio, the company is poised to capitalize on growth opportunities across high-potential sectors.

The company’s strong foothold in IoT-enabled manufacturing and its focus on innovation will continue to drive its growth trajectory. As the demand for advanced electronics solutions rises across industries, Kaynes Technology is well-equipped to meet market expectations, further solidifying its leadership in the sector.