KERNEXNSEKernex Microsystems (India) Limited· Computers - SoftwareHighNeutral
Announced Fri, 29 May · 13:28 IST

Kernex Microsystems (India) Limited has submitted to the Exchange, the financial results for the period ended March 31, 2026.

Revenue Growth 20pctPat Growth 25pctEmphasis Of MatterNegative Operating CashflowResults View source PDF

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AI summary

Kernex Microsystems reported strong financial performance for FY26 with revenue from operations growing 127% to Rs 43,022 lakhs from Rs 18,977 lakhs in FY25. Profit after tax increased 76% to Rs 8,824 lakhs from Rs 5,005 lakhs. However, the company reported negative operating cash flows of Rs 9,974 lakhs driven by significant working capital buildup. Trade receivables surged to Rs 31,626 lakhs from Rs 2,365 lakhs, and inventories jumped to Rs 37,132 lakhs from Rs 5,258 lakhs. The company has an order book of Rs 4,150 crores with CLW being the major order. The auditor issued an unmodified opinion but included an Emphasis of Matter regarding recoverability of trade receivables of Rs 422.73 lakhs outstanding for more than 3 years and bank guarantees of Rs 265.03 lakhs under arbitration.

Likely market impact

Despite robust revenue and profit growth, the massive negative operating cash flow and surge in working capital are concerning. The Emphasis of Matter on old receivables and contingent bank guarantees adds risk. The appointment of a related party (Mrs. Parvathi Manthena, wife of Non-Executive Director) as Non-Executive Director requires shareholder approval.