# semiconductor earnings — X 热门讨论 (2026-10-02 05:31 UTC)
## @cmagurvinder (CMA Gurvinder Malhotra) · 10-01 14:06 · ♥31 ↻4 💬1 𝗧𝗛𝗘 𝗖𝗔𝗣𝗘𝗫 𝗧𝗛𝗘𝗠𝗘 — 𝟬𝟵 🏭
𝗞𝗔𝗬𝗡𝗘𝗦 𝗧𝗘𝗖𝗛𝗡𝗢𝗟𝗢𝗚𝗬 𝗜𝗡𝗗𝗜𝗔
CMP: ₹3,399 Market Cap: ₹22,810 Cr
A Mysore-based electronics maker has spent ₹2,572 Cr on plant in just three years.
That's more than 3× its total profit over the same period.
And now it is building two capabilities India has historically relied heavily on imports for:
𝗣𝗮𝗰𝗸𝗮𝗴𝗲𝗱 𝗦𝗲𝗺𝗶𝗰𝗼𝗻𝗱𝘂𝗰𝘁𝗼𝗿𝘀 + 𝗕𝗮𝗿𝗲 𝗣𝗖𝗕𝘀
🏭 𝗧𝗛𝗘 ₹𝟮,𝟱𝟳𝟮 𝗖𝗥 𝗖𝗔𝗣𝗘𝗫
🔹 ₹383 Cr spent in FY24 🔹 ₹949 Cr spent in FY25 🔹 ₹1,240 Cr spent in FY26 🔹 FY26 alone: ₹473 Cr for semiconductor packaging 🔹 FY26: ₹324 Cr for bare PCB manufacturing 🔹 Semiconductor facility at Sanand 🔹 PCB facility at Chennai 🔹 ₹511 Cr still sitting in unfinished plant 🔹 Fixed assets increased from ₹319 Cr to ₹1,594 Cr in two years 🔹 ₹170 Cr of government subsidy already received for the semiconductor business
Kaynes has spent decades manufacturing electronics for other companies across automotive, railways, medical and aerospace.
These new plants move the company deeper into the electronics value chain.
From assembling and manufacturing electronic systems…
To producing two critical components that India still imports heavily:
𝗣𝗮𝗰𝗸𝗮𝗴𝗲𝗱 𝗰𝗵𝗶𝗽𝘀 + 𝗕𝗮𝗿𝗲 𝗰𝗶𝗿𝗰𝘂𝗶𝘁 𝗯𝗼𝗮𝗿𝗱𝘀.
The order book stands at around ₹9,000 Cr, with ₹1,500 Cr of fresh orders added in the June quarter alone.
📈 𝗧𝗛𝗘 𝗕𝗨𝗦𝗜𝗡𝗘𝗦𝗦 𝗜𝗦 𝗘𝗫𝗣𝗔𝗡𝗗𝗜𝗡𝗚
The transformation isn't limited to two new plants.
The company has expanded into:
🔹 Semiconductor packaging through Kaynes Semicon, with Mitsui of Japan as a partner 🔹 Bare PCB manufacturing through Kaynes Circuits 🔹 North America through the August Electronics acquisition 🔹 Space technology
Overseas revenue also increased sharply — from ₹24 Cr to ₹102 Cr year-on-year in the June quarter.
💰 𝗖𝗔𝗣𝗘𝗫 𝗛𝗔𝗦 𝗦𝗨𝗥𝗚𝗘𝗗
FY24: ₹383 Cr spent
FY25: ₹949 Cr spent
FY26: ₹1,240 Cr spent
That's roughly 12× its annual depreciation.
The aggressive expansion has also impacted cash generation.
FY26 free cash flow stood at −₹1,841 Cr.
Funding has come largely through equity, with reserves rising from ₹2,776 Cr to ₹4,681 Cr, while borrowings remained around ₹913 Cr.
For FY27, management currently guides for around ₹300 Cr of capex across the two new businesses — with a deliberately modular approach.
🎯 𝗪𝗛𝗔𝗧'𝗦 𝗡𝗘𝗫𝗧?
The next 12 months are about execution:
🔹 Start commercial production at the bare PCB plant 🔹 Complete validation and begin commercial billing for semiconductor packaging 🔹 Get Semicon Unit 2 and the Chennai PCB plant operational by Q3 FY27 🔹 Convert the ₹9,000 Cr order book into revenue 🔹 Close a deal with one of the world's largest EV manufacturers
Revenue grew 33% to ₹3,626 Cr in FY26.
June-quarter revenue rose another 40% to ₹946 Cr.
Management has highlighted the learning curve associated with the new businesses, while West Asia disruption has also affected the timing of the ramp-up.
📊 𝗧𝗛𝗘 𝗡𝗨𝗠𝗕𝗘𝗥𝗦
🏷️ 56% below its 52-week high of ₹7,705
Over the last 5 years:
54% Sales CAGR 104% Profit CAGR 10% ROE
The business has expanded from contract electronics manufacturing into semiconductors and PCB manufacturing.
But the transition comes with a cost.
ROE remains around 9%.
The stock trades at roughly 66× earnings.
FY26 operating cash flow was −₹600 Cr as inventory and receivables increased sharply.
The key question is whether the new assets can now start generating returns at scale.
🔄 𝗧𝗛𝗘 𝗖𝗔𝗣𝗘𝗫 𝗦𝗧𝗢𝗥𝗬
The interesting part is the sequence:
𝗖𝗔𝗣𝗘𝗫 → 𝗦𝗘𝗠𝗜𝗖𝗢𝗡𝗗𝗨𝗖𝗧𝗢𝗥 & 𝗣𝗖𝗕 𝗖𝗔𝗣𝗔𝗖𝗜𝗧𝗬 → 𝗩𝗔𝗟𝗜𝗗𝗔𝗧𝗜𝗢𝗡 & 𝗔𝗣𝗣𝗥𝗢𝗩𝗔𝗟𝗦 → 𝗢𝗥𝗗𝗘𝗥 𝗕𝗢𝗢𝗞 𝗖𝗢𝗡𝗩𝗘𝗥𝗦𝗜𝗢𝗡 → 𝗣𝗢𝗧𝗘𝗡𝗧𝗜𝗔𝗟 𝗠𝗔𝗥𝗚𝗜𝗡 𝗜𝗠𝗣𝗥𝗢𝗩𝗘𝗠𝗘𝗡𝗧
The plants are nearing completion.
First commercial billing is expected to begin this quarter.
₹511 Cr is still sitting in unfinished plant.
Now the focus shifts from building capacity to filling it.
𝗖𝗔𝗣𝗘𝗫 𝗖𝗬𝗖𝗟𝗘 → 𝗖𝗔𝗣𝗔𝗖𝗜𝗧𝗬 𝗨𝗧𝗜𝗟𝗜𝗦𝗔𝗧𝗜𝗢𝗡 → 𝗕𝗨𝗦𝗜𝗡𝗘𝗦𝗦 𝗘𝗫𝗣𝗔𝗡𝗦𝗜𝗢𝗡
That's the part I'm tracking.
Educational purposes only. Not a buy/sell recommendation.
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𝗖𝗔𝗣𝗘𝗫 𝗧𝗛𝗘𝗠𝗘 — 𝟬𝟵
More companies from the CAPEX cycle coming next. https://x.com/cmagurvinder/status/2105660618560971179