kaynes Technology latest updates

Recent Business and Financial Highlights Stock Volatility: The stock experienced a significant and sharp correction (around 40% over the last month) triggered by concerns flagged in an analyst report. This led to the share price hitting a 52-week low. Management Clarification: The company acknowledged that certain related-party transactions (RPTs) and financial details for FY2025 across its subsidiaries (like Iskraemeco) were inadvertently not disclosed in the standalone financial statements, though they were eliminated in the consolidated accounts. Management stated these were reporting and execution issues, not corporate governance lapses. Working Capital Pressure: Concerns were raised over the company's cash-flow generation and a stretched working capital cycle (up to 116 days in H1 FY26). This was primarily attributed to the higher contribution from the smart meter segment, which has a longer collection cycle (90-120 days). Business De-risking: Kaynes is taking steps to alleviate cash flow pressure by planning to reduce the revenue contribution from its smart meter segment in the second half of the year, shifting focus to its core Electronics Manufacturing Services (EMS) business which has a shorter working capital cycle. Growth and Expansion: The company reaffirmed its revenue guidance of $1.00 billion by FY28 and is actively pursuing its long-term plan for significant capital expenditure (Capex) in Outsourced Semiconductor Assembly and Test (OSAT) and High-Density Printed Circuit Board (HDPCB) manufacturing.