Buy Kaynes Technologies; target of Rs 8200: Motilal Oswal

Motilal Oswal's research report on Kaynes Technologies

Kaynes Technologies (KAYNES) continued its strong operating performance in 2QFY26, with revenue growth of 58% YoY, while EBITDA grew at a much faster pace of 80% YoY. This was fueled by a gross/EBITDA margin expansion of 480bp/200bp YoY, driven by higher-margin projects, operational leverage, and product diversification. The company maintains its full-year revenue guidance of INR45b, indicating an implied growth of ~64% YoY in 2HFY26. KAYNES also
reiterated its EBITDA margin guidance of over 16% for FY26. However, working capital was elevated in 1HFY26, led by higher inventory levels toward the end of the quarter and a rise in trade receivables, reflecting strong growth and back-ended billing. The company is exploring multiple options, such as discounting and vendor inventory management, to reduce working capital.

Outlook

We estimate a revenue/EBITDA/adj. PAT CAGR of 52%/60%/64% over FY25 FY28. Reiterate BUY with a TP of INR8,200 (premised on 50x Sep’27E EPS).