KAYNES Q1 FY27 Guidance vs Delivery (KAYNES Management Mirror)

FY27 Revenue Guidance Strategy Shifted from Absolute Numbers to 2X Industry Growth Amid Geopolitical Volatility

Management's approach to top-line guidance evolved due to execution challenges and supply chain disruptions. In Dec'25 Qtr concall, management downgraded FY26 revenue guidance to INR 41,000 million from the initial INR 44,000 million, primarily due to the deferral of an INR 3,000 million Kavach order, while targeting Q4 FY26 revenue to cross a minimum of INR 17,000 million. In Mar'26 Qtr concall, it was reported that full-year FY26 revenue did not fully meet expectations, finishing at INR 3,626.4 crores (INR 36,264 million) vs. the revised guidance of INR 4,000 crores (INR 40,000 million). Q4 FY26 revenue came in at INR 12,426 million, missing the guided minimum of INR 17,000 million. Consequently, in Mar'26 Qtr concall, management transitioned away from providing specific absolute revenue numbers due to high market volatility, initiating a target to outgrow the market by doubling the industry's expected 16% to 18% growth rate. This qualitative guidance to grow at 2X the market rate for FY27 was Reaffirmed in Jun'26 Qtr concall. For Jun'26 Qtr, Quarterly Financial Results reported revenue of INR 9,460 million (+40.5% YoY), while Jun'26 Qtr concall reported total revenue of INR 946 crores, driven largely by 53% YoY growth in the standalone EMS business to INR 639 crores. Management reaffirmed its long-term revenue target of USD 1 billion by FY28 in Dec'25 Qtr concall.