Revenue miss and brokerage downgrades triggered heavy selling as investors questioned near-term execution visibility despite profit growth.
Shares of Kaynes Technology India Ltd plunged more than 19 per cent on Thursday after the company’s March-quarter earnings disappointed investors, triggering brokerage downgrades and raising concerns over near-term growth visibility.
The stock dropped to an intraday low of ₹3,366.10 on the NSE from its previous close of ₹4,178.40. By mid-morning trade, shares were hovering around ₹3,438, reflecting strong selling pressure as investors reacted to weaker revenue performance and cautious analyst commentary.
The sharp correction came despite a rise in profitability. For the March quarter, the company reported standalone net profit of ₹0.71 billion, up 17 per cent year-on-year from ₹0.60 billion in the same period last year. However, revenue from operations declined 6.5 per cent to ₹6.88 billion from ₹7.37 billion a year earlier, falling short of market expectations and signalling softer business momentum.
On a full-year basis, profit after tax for FY26 stood at ₹2.54 billion compared with ₹2.10 billion in FY25. While annual earnings growth remained positive, investors focused largely on slowing revenue expansion and execution concerns reflected in the quarterly performance.
Following the results, JPMorgan Chase & Co. downgraded the stock to “neutral” from “overweight” and slashed its price target to ₹4,000 from ₹6,000 earlier. The brokerage reduced earnings estimates by 12–17 per cent for the next two years, citing weaker expectations for both the core electronics manufacturing services (EMS) business and the OSAT segment, along with rising working capital requirements.
CLSA Limited also warned of continued near-term pressure on the stock and highlighted balance-sheet concerns, although it retained an “outperform” rating with a price target of ₹4,200.
The steep decline underscores growing investor caution, with the market now seeking clearer earnings delivery before reassessing the stock’s growth premium.
