Electronics component maker, Kaynes Technology India Limited, on Monday (August 4), said its wholly owned subsidiary, Kaynes Circuits India Private Limited, has entered into a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu. The MoU outlines a proposed investment of approximately ₹4,995 crore over the next six years.

The investment is aimed at establishing new manufacturing facilities, including greenfield projects and capacity expansions within the state. The MoU is designed to facilitate discussions on financial incentives, industrial policies, and structured assistance packages offered by the state government, including subsidies and other financial benefits.

Also Read: Kaynes Technology eyes ₹4,525 crore revenue, export surge in FY26

The Government of Tamil Nadu, through its nodal agency Guidance, has agreed to extend necessary support in terms of infrastructure facilitation and regulatory clearances in accordance with applicable laws and policies.
It is clarified that the MoU is a statement of mutual intent and does not constitute a legally binding commitment by either party.

First Quarter Results

Kaynes Technology’s net profit in the first quarter jumped 47% YoY to ₹74.6 crore rose from ₹50.8 crore in Q1FY25. This exceeded the CNBC-TV18 poll estimate of ₹70.4 crore. Similarly, the earnings before interest, taxes, depreciation and amortisation (EBITDA) expanded 68% to ₹113 crore year-on-year while also topping the Street estimate of ₹111 crore.

The Mysore-based company’s margins also improved to 16.7% from 13.3% a year ago. Though the company’s topline climbed 33.6% year-on-year to ₹673.4 crore, it missed the CNBC-TV18 poll estimates by ₹85.6 crore.

Also Read: Kaynes Technology maintains $1 billion revenue target for FY28

Shares of Kaynes Technology India Ltd ended at ₹6,297.00, down by ₹73.40, or 1.15%, on the BSE.