Mumbai, Nov 15 : Kaynes Technology has reported a sharp 62 per cent year-on-year (YoY) decline in consolidated net profit to Rs 45.4 crore for the September quarter (Q2 FY27).
The company's profitability was weighed down by higher finance costs and employee expenses, while revenue growth remained modest during the quarter.
The electronics manufacturing services company reported consolidated revenue of Rs 952.5 crore for the second quarter of FY27, marking a 4 per cent increase from the corresponding period last financial year (Q2 FY26), according to its stock exchange filing.
EBITDA declined 15.7 per cent year-on-year (YoY) to Rs 126.5 crore, as per its regulatory filing. The company's operating performance also remained under pressure, with EBITDA margin contracting to 13.28 per cent from 16.3 per cent in the year-ago quarter.
The sharp decline in profitability came amid a significant increase in expenses. Finance costs more than tripled to Rs 39 crore during the September quarter, compared with Rs 13 crore in the corresponding period last year. Employee benefit expenses also increased to Rs 103 crore from Rs 77 crore a year ago, adding further pressure on the company's earnings.
Alongside its quarterly results, Kaynes Technology announced the execution of a joint venture agreement with Toyokawa Techno Pvt. Ltd.
The proposed joint venture will focus on manufacturing, assembling, testing and supplying Thin-Film Transistor (TFT) display modules, FOG/COG bonding, backlight assemblies, optical bonding, software, research and development, and automated manufacturing systems.
Kaynes Technology will hold a 90 per cent stake in the joint venture through fresh equity subscriptions, while Toyokawa Techno will own the remaining 10 per cent.
The joint venture will operate as a subsidiary of Kaynes Technology and will have a five-member board comprising two nominees each from Kaynes and Toyokawa, along with one mutually appointed independent director.
Under the proposed arrangement, Kaynes Technology will provide operational, administrative and management support, while Toyokawa Techno will contribute technical support services.
Shares of Kaynes Technology ended 1.5 per cent lower at Rs 3,430 on Friday. Despite gaining around 5 per cent over the past month, the stock remains down approximately 13 per cent so far in 2026.
