Semiconductor stock jumps 3% after partnering with 2 Japanese firms to strengthen its operations in India

Synopsis:- Shares rose over 3% after global partnerships boosted semiconductor ambitions. The firm reported 58% revenue growth to ₹906 crore, profit doubling to ₹121 crore, and a 49% YoY order book jump to ₹8,099 crore, supporting its $2 billion FY30 growth vision.

The shares of this semiconductor company gained up to 3.1 percent in today’s trading session after the company’s subsidiary announced two strategic partnerships with global technology leaders to strengthen its upcoming semiconductor manufacturing operations in India.

With a market capitalization of Rs 28,355.66 crore, the shares of Kaynes Technology India Ltd were trading at Rs 4,231.40 per share, increasing around 1.10 percent as compared to the previous closing price of Rs 4,185.40 apiece.

Partnerships

The shares of Kaynes Technology India Ltd have seen positive movement after its subsidiary, Kaynes Semicon, announced two strategic partnerships with global technology leaders AOI Electronics Co (Japan) and Mitsui & Co (Japan) to strengthen its upcoming semiconductor manufacturing operations in India.

Moreover, the technology tie-up with AOI strengthens advanced packaging and backend capabilities, enabling Kaynes to offer global-standard solutions across automotive, industrial, and consumer electronics segments.

Furthermore, the alliance with Mitsui addresses a critical challenge—supply chain reliability. By securing access to key raw materials and semiconductor-grade inputs, Kaynes reduces dependency risks and enhances operational resilience.

Additionally, these strategic alliances highlight India’s growing credibility in the global semiconductor ecosystem. By partnering with technology and supply-chain leaders, Kaynes Semicon accelerates advanced manufacturing capabilities while aligning with “Make in India” and “Atmanirbhar Bharat” goals. The collaborations strengthen India’s role across design, packaging, and materials, supporting both domestic demand and global supply chains.

Order Book Expansion

The company’s order book continues to expand impressively, rising from Rs 5,422 crore in Q2FY25 to Rs 8,099 crore in Q2FY26, marking nearly 49% growth year-on-year. This steady increase through consecutive quarters underscores strong demand momentum, healthy execution capabilities, and a robust project pipeline, positioning the firm well for sustained revenue growth ahead.

Additionally, the company demonstrates strong client retention across key verticals, with an average relationship span of 7–10 years among its top 10 customers. Notably, Industrial & EV, Medical, and Railways verticals lead with 10-year relationships, reflecting customer trust, consistent service quality, and long-term partnerships that strengthen business stability and recurring revenue visibility.

The company delivered a stellar performance in Q2FY26, with revenue surging 58 percent year-on-year to Rs 906 crore and net profit doubling to 101 percent to Rs 121 crore. The sharp growth highlights strong operational momentum, improved margins, and robust demand across business segments, reflecting effective execution and financial discipline.

Kaynes Technology India Ltd’s trade receivables rose sharply from Rs 575 crore in March 2025 to Rs 1,122 crore in September 2025, indicating nearly 95% growth within six months. This increase suggests higher sales activity but also points to delayed collections or extended credit cycles, which may temporarily impact the company’s cash flow and working capital efficiency.

FY30 Guidance

Kaynes Technology aims to achieve $2 billion in revenue by FY30, driven by growth in its OSAT and printed circuit board businesses. The OSAT segment targets  Rs 4,500 crore, while the PC Board unit expects  Rs 2,500 crore, highlighting ambitious expansion plans.

To support this growth, Kaynes has a total CapEx of  Rs 3,400 crore for its OSAT business, with 70% funded via government subsidies and the rest from internal investment. So far,  Rs 200–300 crore has been spent, with another  Rs 600–700 crore expected in FY26, underlining a phased approach to capacity building and scaling operations.

The company is a leading integrated and IoT-enabled solutions provider catering to diverse sectors like automotive, aerospace, railways, and medical. With 500+ customers across 30+ countries, it focuses on advanced manufacturing, OSAT, and HDI PCB expansion, and innovation in smart devices, IoT, and AR/VR, positioning itself for strong technological and global growth.

Kaynes Technology India is a leading end-to-end electronics manufacturing and IoT solutions provider, serving industries like automotive, aerospace, healthcare, and industrial automation. With strong design, manufacturing, and R&D capabilities, it focuses on innovation, global expansion, and advanced technologies such as OSAT, smart devices, and embedded systems to drive sustainable growth.

Written by Abhishek Singh

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