Kaynes Technology responds to Kotak Equities report concerns

Kaynes Technology India Limited has provided comprehensive responses to points highlighted in a Kotak Institutional Equities report dated December 3, 2025. Regarding goodwill recognition, the company explained that unrecognised intangible assets, primarily customer contracts from the Iskraemeco acquisition, were recognised and amortised over the contract term, with intangible assets netted off against goodwill. These assets are evaluated annually.

The company addressed the increase in contingent liabilities to INR 520 Cr, attributing major additions to a Performance Bank Guarantee for Iskraemeco Projects of INR 96.8 Cr and corporate guarantees for subsidiaries totalling INR 132.5 Cr. These guarantees were necessary for funding requirements at Iskraemeco post-acquisition. Additionally, Kaynes clarified that purchases of INR 1.8 bn from Kaynes Electronics Manufacturing in FY2025 and related year-end payables and receivables were eliminated in consolidated financial statements but inadvertently omitted from standalone disclosures; this has since been rectified.

Concerning the average borrowing cost of 17.7% in FY2025, Kaynes stated that including bill discounting, the effective interest cost is 10%, noting that the FY2024 average borrowing cost was 25.3%. Lastly, Kaynes capitalised INR 1.8 bn in technical know-how in FY2025, comprising INR 115 Cr for large customer contracts, INR 26 Cr for development cost related to Iskraemeco, and INR 39 Cr from in-house R&D activities.