Shares of Kaynes Technology India witnessed significant downward pressure on Tuesday, November 18, declining nearly 6 percent as the company's shareholder lock-in period concluded. This development made approximately 11.6 million shares eligible for trading in the open market after a mandatory holding period of one-and-a-half years and longer durations.
Lock-In Period Expiry Impact
According to research from Nuvama Alternative and Quantitative Research, the newly released shares represent 20 percent of Kaynes Technology's outstanding equity. The lock-in mechanism typically applies to promoters, pre-IPO investors, and anchor investors, preventing them from selling their holdings immediately after listing to maintain stock price stability.
At Monday's closing price, the total value of shares that became available for trading amounts to ₹7,233 crore. Market analysts note that while the lock-in expiry doesn't guarantee these shares will be sold immediately, it does create potential selling pressure that can influence near-term price movements based on investor sentiment and supply dynamics.
Strong Quarterly Performance Despite Market Pressure
Despite the stock price decline, Kaynes Technology delivered impressive financial results for the second quarter. The company reported a net profit of ₹121.4 crore, marking a substantial 102 percent increase compared to ₹60.2 crore in the same quarter last year.
Revenue performance was equally robust, climbing 58.4 percent to ₹906.2 crore in Q2FY26 from ₹572 crore in the corresponding period of the previous fiscal year. The company's operational efficiency also improved significantly with EBITDA surging 80.6 percent to ₹148 crore in the September quarter, up from ₹82 crore a year earlier.
Margin expansion was another highlight, with the company improving its margin to 16.3 percent from 14.3 percent in the prior-year period. The order book showed healthy growth, advancing to ₹8,099.4 crore in the September quarter compared to ₹5,422.8 crore a year ago.
Strategic Expansion and Future Outlook
Ramesh Kunhikannan, Executive Vice-Chairman and Promoter of Kaynes Technology, emphasized the company's strategic initiatives across the technology value chain. "Building on our strong financial and operational performance, we are strengthening our capabilities across the technology value chain, ranging from semiconductors and HDI PCBs to system integration and advanced manufacturing," he stated.
The company recently achieved a significant milestone by launching India's first manufactured IPM multi-chip module through its wholly-owned subsidiary, Kaynes Semicon Private Ltd. Kunhikannan also highlighted new initiatives in AR/VR, space-tech, and strategic electronics segments, coupled with global expansion efforts that position the company at the intersection of innovation and industrial transformation.
Stock performance metrics reveal that Kaynes Technology hit an intraday low of ₹5879.95 during Tuesday's trading session, representing a 5.8 percent decline. Despite recent pressure, the stock has delivered exceptional returns from its IPO price of ₹587 per share, appreciating almost 11 times since its public debut.
The stock currently trades 25 percent below its 2-week high of ₹7,824.95 reached in January 2025, but maintains a 53 percent premium over its 52-week low of ₹3,835.00 touched in February 2025. Year-to-date performance shows a 22 percent decline for 2025, though the stock has gained 12 percent over the past year.
