Kernex Microsystems (India) [NSE: KERNEX], a prominent player in the electronics sector, reported its Q1 FY26 results on Thursday, 14th August 2025. The results showed a 94.9% year-on-year increase in revenue, while net profit saw a remarkable 108.3% year-on-year growth. Kernex Microsystems (India) stock price has reacted positively to this surge in profitability, with the company continuing to pursue strategic investments for future growth.
For Q1 FY26, the company reported revenue growth of 94.9% YoY, reaching ₹55.9 crore compared to ₹28.7 crore in Q1 FY25, while net profit increased by 108.3% from ₹3.6 crore in Q1 FY25 to ₹7.5 crore in Q1 FY26.
Key Financial Results for Kernex Microsystems (India) Q1 FY26:
| Particulars | Q1 FY26 (₹ Cr) | Q4 FY25 (₹ Cr) | Q1 FY25 (₹ Cr) | YoY Growth (%) | QoQ Growth (%) |
| Revenue from operations | 55.9 | 83.1 | 28.7 | 94.9% | -32.7% |
| Total income | 56.3 | 83.7 | 28.9 | 94.9% | -32.7% |
| Net Profit/Loss | 7.5 | 32.6 | 3.6 | 108.3% | -77.1% |
| Basic EPS (₹) | 4.45 | 19.44 | 2.16 | 105.6% | -77.2% |
| Diluted EPS (₹) | 4.44 | 19.40 | 2.16 | 105.6% | -77.2% |
Important Updates from Kernex Microsystems (India) Latest Financial Results
Pressure on Working Capital:
Kernex Microsystems (India) continues to face pressure on its working capital. The company has trade receivables of ₹4.2 crore that have been pending for over 3 years. Additionally, the company has set aside a significant ECL provision of ₹2.1 crore, indicating potential credit risk related to these receivables. Management is optimistic that these receivables will eventually be recovered, and they do not anticipate a loss from realizing these deposits, even though they are locked with banks due to customer guarantees.
Unresolved Credit and Contractual Matters:
Kernex Microsystems holds a ₹13 crore investment in Avant-Garde Infosystems, a subsidiary with an eroded net worth. Despite this, the company has not recognized any impairment on the investment, given its strategic importance to the group. Similarly, the company has not made any impairment provision on its ₹6.3 crore investment in the Kernex TCAS JV, even though the JV’s net assets have dropped to ₹3 crore. Management believes that these losses are temporary and expects the future cash flows from the projects to recover the investment.
Revenue Growth & Profitability:
Kernex Microsystems has posted significant growth in its top-line revenue, with a 94.9% increase YoY, indicating strong demand for its products and services. However, the company experienced a 77.1% decline in net profit compared to Q4 FY25, dropping from ₹32.6 crore to ₹7.5 crore in Q1 FY26. Despite the decline in profit, the company’s ability to generate substantial revenue growth underscores its operational resilience.
Looking Forward
Kernex Microsystems (India) continues to face challenges with its working capital, including trade receivables and locked margin money deposits. However, the company is optimistic about the eventual recovery of these amounts and expects no loss from the realization of deposits. Additionally, the company remains confident in the long-term value of its strategic investments, such as its stake in Avant-Garde Infosystems and the Kernex TCAS JV.
To stay updated with daily financial results, market insights, and developments, make sure to follow Torus Digital!
