The share price of Kaynes Technology has plummeted by over 19% following management’s decision to revise down their FY25 guidance in light of the Q3 results.
Kaynes Technology experienced a significant drop in its share price on Tuesday, plummeting by over 19%. This decline was a direct result of the company’s announcement of a revised FY25 revenue guidance, which was lowered to ₹2,800 crore from the previously anticipated ₹3,000 crore.
As reported by CNBC-TV18, the company’s management acknowledged some execution delays during the December quarter, leading to the inability to complete orders totaling ₹100 crore in the industrials segment. They are optimistic that most of these orders will be fulfilled in the current quarter.
Looking towards the future, Kaynes Technology projects revenue of ₹4,500 crore for the financial year 2026, with expectations of achieving margins exceeding 15%. The company reported a 47% increase in its profit after tax (PAT), reaching ₹66.5 crore for the third quarter of FY25. Additionally, 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 significant growth, climbing by 35% year-on-year 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. 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 Technology expressed satisfaction with its 30% revenue year-over-year growth in Q3FY25, accompanied by healthy profit margins. The company’s revenues were ₹17,373 million for the 9-month period ended December 31, 2024, compared to ₹11,673 million for the 9-month period ended December 31
The net working capital cycle has shown improvement, decreasing to 107 days in the current quarter from 117 days in Q3 FY24. This positive trend reflects our ongoing investment in high potential and high margin segments. We believe that these investments will help us maintain our growth trajectory and establish Kaynes as a distinctive player in this sector,” stated Ramesh Kunhikannan, Managing Director & Promoter.
Today, Kaynes Technology’s share price opened at ₹4,877 per share on the BSE. The stock reached an intraday high of ₹4,917.45 and a low of ₹4,256.65.
Riyank Arora, Technical Analyst at Mehta Equities Ltd, noted that Kaynes Technology’s share price dropped by nearly 20% following the company’s reduction in FY25 revenue growth guidance. From a technical standpoint, the stock has broken below a key support level of 4566 and is currently trading below it. Any rebound towards 5000 – 5100 should be viewed as an opportunity to exit positions, as further weakness is anticipated in the stock. Investors are advised to consider exiting their positions on a minor rebound from current levels.
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