Kaynes Technology shares experienced a significant decline of over 19% on Thursday following the company’s underwhelming performance for the March quarter. This downturn was exacerbated by brokerage firm JP Morgan’s downgrade of the stock, citing concerns regarding slowing growth and reduced visibility in execution.
At 9:57 AM, shares were trading at ₹3,438.30 on the National Stock Exchange (NSE), having previously dropped to a low of ₹3,366.10 from the previous close of ₹4,178.40.
The steep drop in share value followed the release of quarterly results that failed to meet market expectations across key metrics. Brokerages also highlighted deteriorating balance sheet conditions and a weaker revenue forecast.
Kaynes Technology reported a year-on-year increase of 17% in standalone net profit, amounting to ₹70.94 crore for the March quarter, compared to ₹60.4 crore in the same quarter last year. However, revenue from operations fell by 6.5% year-on-year to ₹688.1 crore, down from ₹736.5 crore the previous year, and demonstrated a quarterly decline due to weaker business activity.
For the entire financial year FY26, the company recorded a profit after tax of ₹254.1 crore, an increase from ₹209.9 crore the previous year.
JP Morgan downgraded Kaynes Technology’s rating from “overweight” to “neutral,” reducing its price target to ₹4,000 from a prior target of ₹6,000. The brokerage lowered its earnings projections for the company by 12% to 17% over the next two years, primarily due to diminished expectations for the core Electronics Manufacturing Services (EMS) and Outsourced Semiconductor Assembly and Test (OSAT) segments.
Furthermore, the brokerage adjusted the valuation multiple for its core EMS business, decreasing it from 45 times to 33 times amid expectations of slower revenue growth both in the near term and over the medium-to-long term, along with increasing net working capital days.
Despite maintaining a forecast for a robust 40% compound annual growth rate (CAGR) in revenue and 45% in earnings from 2026 to 2028, driven by growth in the OSAT and Printed Circuit Board (PCB) sectors, JP Morgan indicated that the stock would be perceived as a “show me” stock until discrepancies between actual performance and the company’s guidance are resolved.
Brokerage firm CLSA also projected a negative response to the stock following the results, citing further balance sheet deterioration as a significant concern. Nevertheless, CLSA upheld its “outperform” rating for the stock, setting a price target of ₹4,200.
Published on May 14, 2026
