Revenue and Profit Growth
Kaynes Tech’s net sales have surged impressively from ₹368.24 crores in March 2020 to ₹2,721.75 crores in March 2025, reflecting a compounded expansion driven by increasing market demand and operational scale. Total operating income mirrored this trend, rising consistently each year without any contribution from other operating income, indicating core business strength.
The company’s operating profit before depreciation, interest, and tax (PBDIT) excluding other income grew from ₹41.34 crores in 2020 to ₹410.70 crores in 2025, with operating profit margins improving steadily to 15.09% in the latest fiscal year. Including other income, operating profit reached ₹517.66 crores in March 2025, more than a tenfold increase from ₹43.27 crores in 2020.
Profit before tax rose sharply from ₹11.28 crores in 2020 to ₹371.62 crores in 2025, while profit after tax (PAT) expanded from ₹9.36 crores to ₹293.43 crores over the same period. This translated into a PAT margin improvement from 2.54% to 10.78%, underscoring enhanced operational efficiency and cost management.
Earnings per share (EPS) followed a similar upward trajectory, climbing from ₹2.32 in 2020 to ₹45.79 in 2025, reflecting strong returns to shareholders amid equity capital increases.
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Balance Sheet and Asset Expansion
The company’s total assets have expanded substantially from ₹378.12 crores in 2020 to ₹4,641.22 crores in 2025, reflecting aggressive capital investment and growth initiatives. Net block of fixed assets increased markedly, supported by rising gross block values and capital work in progress, indicating ongoing capacity enhancement.
Shareholders’ funds have grown from ₹102.70 crores to ₹2,840.26 crores, driven by accumulated reserves and equity capital infusion. The book value per share has risen impressively from ₹25.17 to ₹443.21, signalling strong value creation for investors.
Liabilities have also increased, with total debt rising from ₹143.83 crores in 2020 to ₹875.48 crores in 2025, reflecting leveraged expansion. Current liabilities and trade payables have grown in line with business scale, while long-term borrowings remain moderate.
Cash and bank balances showed volatility, peaking at ₹1,525.56 crores in 2024 before settling at ₹1,056.31 crores in 2025, supported by positive net cash inflows from financing activities despite some negative operating cash flows in the latest year.
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Cash Flow and Operational Efficiency
Cash flow from operating activities has fluctuated, with a negative ₹82 crores in 2025 contrasting with positive inflows in prior years. This was influenced by significant changes in working capital, which saw a large outflow of ₹452 crores in 2025. Investing activities consistently reflected cash outflows due to capital expenditure, while financing activities provided strong inflows, particularly in recent years, supporting the company’s expansion strategy.
Despite some short-term cash flow pressures, Kaynes Tech’s overall financial health remains solid, supported by strong profitability, growing equity base, and substantial asset accumulation. The company’s ability to scale operations while improving margins and shareholder returns highlights its successful growth trajectory over the past six years.
Outlook and Investor Considerations
Kaynes Tech’s historical performance reveals a company in rapid expansion mode, with revenues and profits growing at a remarkable pace. The improving operating and PAT margins indicate effective cost control and operational leverage. However, investors should monitor the rising debt levels and working capital requirements, which have impacted cash flows recently.
Overall, the company’s track record of value creation, as evidenced by rising EPS and book value per share, positions it well for continued growth. Prospective investors may find Kaynes Tech an attractive opportunity within the industrial manufacturing sector, provided they consider the balance between growth ambitions and financial prudence.
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