Kaynes Technology Shares Crash 19% After Q4 Earnings Miss, JPMorgan Downgrade

14 May 2026 , 12:03 PM

Shares of Kaynes Technology India witnessed sharp selling pressure on May 14, plunging more than 19% intraday after the company reported weaker-than-expected Q4FY26 earnings and faced a rating downgrade from JPMorgan Chase.

The stock opened sharply lower at ₹3,760.10 compared to its previous close of ₹4,177.85 and slipped further to hit an intraday low of ₹3,366. At current levels, the stock remains significantly below its 52-week high of ₹7,705 touched in October 2025.

Kaynes Technology Results: Profit Falls Despite Strong Revenue Growth

For the fourth quarter of FY26, Kaynes Technology reported consolidated net profit of ₹91.22 crore, down 21.5% year-on-year from ₹116.20 crore in the corresponding quarter last year.

Despite the decline in profitability, revenue from operations rose 26.2% YoY to ₹1,242.64 crore, reflecting continued demand momentum in the company’s electronics manufacturing business.

EBITDA during the quarter increased 15% YoY to ₹193.7 crore. However, operating margins came under pressure, with EBITDA margin contracting 150 basis points YoY to 15.6%.

The company also witnessed a sharp fall in profitability ratios, with PAT margin declining 450 basis points to 7.3%, highlighting pressure from rising costs and execution challenges.

JPMorgan Downgrades Kaynes Technology Share Price Outlook

Following the quarterly earnings announcement, JPMorgan downgraded Kaynes Technology stock to “Neutral” from “Overweight” and slashed its target price sharply to ₹4,000 from ₹6,000.

According to the brokerage, the company missed its own Q4FY27 revenue guidance by nearly 27%. The reported revenue also came in below Street estimates by 18% and below JPMorgan’s projections by 13%.

The brokerage further highlighted concerns regarding elevated working capital levels. Net working capital days stood at 125, significantly above the company’s guidance of 85 days, raising concerns over cash flow efficiency and execution.

JPMorgan reduced earnings estimates for Kaynes Technology by 12–17% over the next two financial years across its core EMS, OSAT, and PCB business segments.

In addition, the brokerage cut the valuation multiple assigned to the company’s core EMS business to 33x from 45x, citing expectations of slower growth and higher working capital intensity going forward.

Long-Term Growth Visibility Remains Intact

Despite near-term operational challenges, Kaynes Technology maintained strong long-term business visibility.

For FY26, the company reported revenue of ₹3,626.4 crore, marking a robust 33% YoY growth. The company’s order book remained strong at over ₹80,000 million at the end of FY26, providing healthy revenue visibility for upcoming quarters.

Management stated that the company continues to witness a strong order pipeline across segments, which is expected to support long-term growth despite temporary margin pressures.

Kaynes Technology operates as an end-to-end integrated electronics manufacturer and IoT solutions provider in India, catering to sectors including automotive, industrial, aerospace, railways, medical, and defence electronics.

Kaynes Share Price Technical Outlook

Technical analysis of the stock define that Kaynes share price has slipped below key exponential moving averages (EMAs), indicating weakening market structure and bearish momentum in the near term.

The Relative Strength Index (RSI) is also nearing oversold territory, suggesting continued selling pressure on the counter.

Immediate support for the stock is placed near ₹3,299, while resistance levels are seen around ₹3,600 and ₹3,700.

As volatility remains elevated, investors are expected to closely monitor upcoming management commentary, order execution trends, and margin recovery signals in the coming quarters.

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