Kains Technology Reports 62% Drop in Q2 Profit Amid Rising Costs

Mumbai, November 15 (Daily Kiran) : Kains Technology has reported a significant 62% decline in its profit for the second quarter of the fiscal year 2027, amounting to ₹45.4 crore. This drop is attributed to rising financial costs and increased employee-related expenses, while the company’s revenue saw only a modest increase during the same period.

According to the information disclosed on the stock exchange, the electronics manufacturing services company achieved a consolidated income of ₹952.5 crore for the second quarter, reflecting a 4% growth compared to the same quarter last year.

During the September quarter, the company’s financial costs surged more than threefold to ₹39 crore, up from ₹13 crore in the previous year. Additionally, expenses related to employee benefits rose sharply from ₹77 crore to ₹103 crore, further straining the company’s earnings.

Regulatory filings indicate that EBITDA fell by 15.7% year-on-year to ₹126.5 crore. The operational performance also faced pressure, leading to a decrease in EBITDA margin from 16.3% in the same quarter last year to 13.28%.

In conjunction with the quarterly results, Kains Technology announced the signing of a joint venture agreement with Toyokawa Techno Private Limited. This proposed joint venture will focus on the manufacturing, assembling, testing, and supply of thin-film transistor (TFT) display modules, FOC/COG bonding, backlight assembly, optical bonding, software, research and development (R&D), and automated manufacturing systems.

Kains Technology will hold a 90% stake in this joint venture through new equity subscriptions, while Toyokawa Techno will retain the remaining 10%. The joint venture will operate as a subsidiary of Kains Technology, with a five-member board consisting of two representatives from each company and one independent director appointed by mutual agreement.