Kaynes Tech Aims To Turn New Acquisition Sensonic Margin Accretive By FY28
Sensonic, acquired by Kaynes Technology, integrates fibre optic sensing with AI and ML to monitor railway infrastructure across markets, including India, Australia, the UK, and the US.
Kaynes Technology India Ltd. expects its newly acquired business, Sensonic, to be margin-accretive by FY28, with results potentially beginning to reflect from the fiscal 2026-27, the company’s Whole Time Director and Chief Financial Officer Jairam Sampath has said.
Earlier this month, Kaynes Technologies announced the acquisition of an Austria-based company named Sensonic. The company provides Distributed Acoustic Sensing (DAS), a solution to monitor railway infrastructure that combines fibre optic sensing with artificial intelligence and machine learning.
Talking about the deal, Sampath told NDTV Profit that Sensonic is one of the most significant original design manufacturers (ODMs) that Kaynes has acquired.
“As far as Sensonic is concerned, let me tell you that it's cutting edge because it is one of the most significant ODM platforms that we get,” he said.
“That means it has a railway network safety-related, new-generation design and IP. They already are working in four countries—India, Australia, the UK, and the US,” the Kaynes Technology CFO added.
Sampath stated that Kaynes Technology will "augment" the operations of Sensonic, which will represent a different approach for the company compared to its previous ventures.
“We will augment their work, and they are working with some of the OEMs too. So it's kind of a different play than earlier,” Sampath said.
“Earlier, we used to have our own teams doing some design. But this one will kind of catapult us into a different stature altogether in terms of solution provider,” he explained.
This will generate hundreds of crores of businesses annually, with the acquisition being margin accretive by fiscal 2028, Sampath noted.
“So, you can say roughly these are all hundreds of crores of businesses every year. These are all businesses wherein you will not have too much cost pressure because this is based on IT. So we think that it will be margin accretive, say, by 2027-28,” the top executive noted.
He added that the results may also start to flow in by fiscal 2027 itself.
“Maybe you can start seeing results from 2026-27 onwards itself. I will not be able to give you a number right now, but it will be significant,” Sampath said.
Shares of Kaynes Technology India Ltd. were trading 8.82% higher at Rs 7,727.95 apiece at the NSE on Wednesday, against an 1.02% decline in NSE Nifty 50.
