'Nothing Ambiguous' About FY25 Annual Report, Says Kaynes Tech In Fresh Response To Kotak Report

The management of Kaynes Technology India Ltd. has issued a fresh response to Kotak Institutional Equities, which had dropped a critical report last week flagging the company's 'ambigious' accounting practices.
In an analyst call on Monday, the management of Kaynes has reiterated that there is 'nothing ambiguous' about the company's FY25 annual report while responding directly to several allegations from Kotak.
"The company has issued a detailed clarification and will ensure such situations do not to happen again," said the management during the analyst call.
"There are no inconsistencies and ambiguities. Most of the conclusions or implications made are actually not valid," they added.
On Friday, Kaynes Tech's management had told NDTV Profit that there were no inconsistencies in the FY25 annual report, but admitted there were specific lapses regarding disclosures of the Iskraemeco transaction.
Addressing the sharp drop in stock sentiment following the report, Kunhikannan conceded the company could have managed the narrative better.
"I think somewhere we would have a lack of communication which we could have clarified better," he said, describing the downturn as a "passing phase" and reiterating that "business numbers are looking very promising."
Kotak’s note highlighted the influence of the Iskraemeco smart metering business, which drove 44% of Kaynes’s profit growth for FY25. The brokerage pointed to the subsidiary’s 28% reported net margin in the second half of the year and an implied payback period of six months.
It also criticised what it described as ambiguous accounting around the acquisition of Iskraemeco and Sensonic, which Kaynes bought for Rs 8.3 crore but later reflected through goodwill and other adjustments in the consolidated balance sheet.
The stock has faced immense pressure in the recent past, even more so after the Kotak report, falling as much as 30% in the last 30 days.