Archive · 5 Nov 2025
Kaynes Technology Posts Q2 Profit Jump Amid Cash Flow Concerns
Imagine a company that makes cool electronics.
It made a lot more money this past quarter than before, and its profits went up a lot too!
However, it spent more money than it earned, like when you spend your allowance on toys but don't have any left for candy.
This means the company has a negative cash flow, which is like having no money in your pocket right now.
They are trying to fix this by getting money from old customer payments and focusing on new projects.
Even though they have this cash flow problem for now, they are still growing well and have lots of orders for the future.
They believe they will have positive cash flow by the end of the year.
Kaynes Technology's Q2 revenue rose 35% sequentially to ₹906 crore, and net profit jumped 61% to ₹121 crore.
Despite profit growth, the company reported a negative operating cash flow of ₹218 crore for the quarter.
The target to become net cash positive has been postponed to the end of the current fiscal year.
Reasons for negative cash flow include aggressive growth, acquisitions like August Electronics, and legacy receivables.
Analysts view the cash flow as a near-term concern but acknowledge Kaynes' strong organic growth and position as a top electronics manufacturer.
- Who
- Kaynes Technology, an electronics manufacturer
- What
- Reported a 35% sequential jump in revenue and 61% jump in net profit, but a negative cash flow of ₹218 crore, pushing back the net cash positive target to the end of the fiscal year.
- When
- Second quarter earnings announced Tuesday; new target for end of current fiscal year.
- Where
- Bengaluru-based; acquisition of Canadian firm August Electronics; factories planned in Tamil Nadu; Osat facility in Sanand, Gujarat.
- Why
- Negative cash flow attributed to aggressive growth, acquisitions, and a legacy receivable not yet due.
- Company
- Kaynes Technology
- Reporting Period
- Q2 (ended September)
- Revenue
- ₹906 crore (35% sequential jump)
- Net Profit
- ₹121 crore (61% sequential jump)
- Operating Cash Flow
- Negative ₹218 crore
- Acquisition
- August Electronics for ₹347 crore
- Order Book
- ₹8,000 crore (as of September)