Kaynes Technology ratings reaffirmed amidst expansion and strong order book

Kaynes Technology India Limited (KTIL) announced on December 19, 2025, that CARE Ratings Limited has reaffirmed its "CARE A-; Stable / CARE A2+" rating for the company's long-term and short-term bank facilities. The rating action reflects KTIL's established presence in the electronics system design and manufacturing (ESDM) segment, expanding order book, and diversification across business verticals. The company's order book surged from ₹5,422 crore as of September 30, 2024, to ₹8,099 crore as of September 30, 2025, with H1FY26 revenue of ₹1,579 crore and a PBDIT margin of 16.52%.

The reaffirmation also considers KTIL's substantial capex plan of ~₹4,700 crore over the next five years, primarily funded by government subsidies and QIP proceeds, with minimal debt reliance. The company raised ₹1,600 crore through a QIP in June 2025, with ₹841 crore utilized for working capital repayment in H1FY26. Ongoing projects include an OSAT unit in Sanand, Gujarat, and a bare PCB unit, both expected to receive Union and state government subsidies. The first phase of the OSAT facility is complete, with initial products dispatched for customer approval.

Despite the working capital-intensive nature of the ESDM industry and negative cash flows from operations due to rapid expansion, KTIL's strong liquidity is supported by healthy cash accruals and unutilized QIP proceeds of ₹1,486.5 crore as of September 30, 2025. The company's total operating income was ₹2722.26 crore in FY25, with a PAT of ₹293.43 crore. Overall gearing stood at 0.38 times and interest coverage at 3.94 times for FY25.