The broker said it identified mismatches in FY2025 filings made by Kaynes Technology, Kaynes Electronics Manufacturing and its subsidiary Iskraemeco, prompting concerns over the accuracy of inter-company transactions and year-end balances.
According to the brokerage, Iskraemeco reported purchases of Rs 180 crore from Kaynes Electronics Manufacturing that were not reflected in Kaynes Electronics Manufacturing’s own related-party disclosures. It also disclosed year-end payables of Rs 320 crore to Kaynes Technology and Rs 180 crore to Kaynes Electronics Manufacturing, along with receivables of Rs 190 crore from Kaynes Technology. These balances were also missing from the parent companies’ disclosures. Nearly all of Iskraemeco’s receivables were from Kaynes Technology, including Rs 45.8 crore outstanding for more than a year.
The broker also highlighted concerns around goodwill recognition in the Iskraemeco acquisition, a rise in contingent liabilities to Rs 520 crore and a high average borrowing cost of 17.7% for FY2025. It noted that Kaynes capitalised Rs 1.8 billion as technical know-how, including designs and prototypes, during the year.
In a detailed clarification, Kaynes Technologies said the concerns were largely due to disclosure omissions in its standalone financial statements, which have since been rectified. It said the related-party balances and transactions were eliminated at the consolidated level in line with Indian Accounting Standards, but were inadvertently not reported in the standalone accounts. On goodwill, the company said intangible assets related to customer contracts under Ind AS 103 were recognised and netted off against goodwill, and are evaluated annually. It added that contingent liabilities rose mainly due to performance guarantees and corporate guarantees issued to subsidiaries following the Iskraemeco acquisition. Kaynes also defended its borrowing-cost calculations, stating that the effective rate including bill discounting was 10%.
The company maintained that all transactions were part of the overall financial statements and that it has noted the lapses for future compliance.
Kaynes Technology is an end-to-end, IoT-enabled integrated electronics manufacturer offering services across the Electronics System and Design Manufacturing (ESDM) spectrum.
The company posted a strong performance in Q2 FY26. Consolidated net profit jumped 102% year-on-year to Rs 121.4 crore, while revenue rose 58% to Rs 906.2 crore. The order book increased to Rs 8,099.4 crore as of 30 September 2025, compared with Rs 5,422.8 crore a year earlier.