Kaynes Technology India Limited addressed recent observations regarding its financial disclosures on 08 December 2025, clarifying that a missing note on related party transactions was a clerical error rather than a governance lapse. The company reiterated its growth outlook, highlighting progress in its outsourced semiconductor assembly and test (OSAT) division and a strategic shift in its smart metering business.
Kaynes Technology India Limited, an end-to-end and Internet of Things (IoT) solutions-enabled integrated electronics manufacturer, convened the conference call to address queries concerning accounting presentations and acquisition accounting.
Management acknowledged that a disclosure regarding related party transactions was inadvertently omitted from the standalone financial statements of a subsidiary due to a typographical oversight. The company stated that the underlying financial statements were correct, the transaction was recorded in both entities, and the amounts were appropriately eliminated in the consolidated financial statements in accordance with Ind AS.”These were errors in reporting of disclosure in notes to accounts and not lapse of intent, governance or conduct,” said Ramesh Kunhikannan, Executive Vice Chairman of Kaynes Technology.
The company also refuted external analysis claiming an unusually high net margin for its subsidiary, Iskraemeco, in the second half of the fiscal year 2025. Management clarified that Iskraemeco reported revenues of INR 5,327 million and a profit after tax of INR 489 million for the period, resulting in a net margin of approximately 9 percent, contrasting with the 28 percent figure cited in external reports. The loss reported in the first half of the fiscal year was attributed to lower revenues of INR 851 million and inventory write-offs amounting to INR 440 million.
Regarding the accounting treatment of its recent acquisitions, Kaynes Technology explained that it recognized INR 1,150 million in intangible assets for customer contracts related to Iskraemeco. This recognition resulted in a capital reserve, which was netted off against goodwill from the acquisition of Sensonic to present the financial statements reliably. The company noted that the difference between consideration paid and net assets acquired for Iskraemeco was credited to capital reserve as permitted under paragraph 13 of Ind AS 103.
On the operational front, the company provided updates on its OSAT initiatives, confirming it has acquired three customers: Alpha Omega Semiconductor, Infineon, and a division of Fujitsu General Semiconductor acquired by Larsen & Toubro. Samples have been shipped, and the company expects significant revenue contributions from the fiscal year 2027 onwards. The balance capital expenditure requirement for the OSAT project stands at INR 10.3 billion, which will be funded through a qualified institutional placement (QIP), internal accruals, and debt.
Kaynes Technology also announced a strategic pivot in its smart metering business. The company plans to transition from an Advanced Metering Infrastructure Service Provider (AMISP) model to a device and product solution manufacturer. “We will no longer be an AMISP company. We will be only device company to various AMISPs,” said Kunhikannan.
The company maintains a focus on its core electronic manufacturing services (EMS) business, citing strong growth prospects in the automotive, industrial, railway, and aerospace sectors. Management confirmed there are no plans for promoter stake dilution in the near term.
Kaynes Technology India Limited is an Indian company engaged in the design and manufacturing of advanced electronic modules and solutions for various industries, including automotive, aerospace, and medical systems.