The Electronics Manufacturing Services (EMS) sector plays a vital role in India’s manufacturing ecosystem, supporting industries like electronics, automotive, telecommunications, and consumer goods.
As the demand for electronics continues to grow, driven by trends like 5G, AI, IoT, and renewable energy, EMS companies are becoming increasingly important for product assembly, testing, and distribution. India’s focus on becoming a global manufacturing hub, along with government initiatives like the Production Linked Incentive (PLI) Scheme, has spurred significant investment in this sector.
Key players such as Dixon Technologies, Syrma, and Cyient DLM are leading the way, while numerous smaller players contribute to the market’s expansion. The EMS sector in India has substantial growth potential, with rising domestic demand, export opportunities, and ongoing technological advancements positioning it for strong future growth, especially in high-tech and specialized manufacturing.
Share Price
The shares of Cyient DLM Ltd. are currently trading at Rs. 524.45 down by 12.02% from its previous close of Rs. 596.1 as of January 22, 205. The stock also touched an intraday low of Rs. 515. The stock is down 40% from its peak of ₹883.
Q3 Results
The company reported a 40.4% decline in profit, with net profit falling to Rs 10.99 crore compared to Rs 18.44 crore in the previous year period. Despite this, revenue saw a strong growth of 38.4%, reaching Rs 444.2 crore, up from Rs 321 crore.
However, EBITDA experienced a slight decline of 4.4%, coming in at Rs 28.1 crore, down from Rs 29.4 crore. The margin also dropped significantly to 8.1% from 9.1% on a year-over-year basis.
While revenue growth indicates strong demand, the profit and margin contraction highlights rising costs or pressures on operational efficiency.
Strong Growth Across Segments
The company saw significant growth in its various business segments, with the PCBA business leading the charge, recording a robust 46% year-on-year growth. The box build, cable, mechanical, and other segments also performed well, growing by 16% and 49%, respectively.
The company’s global footprint expanded, with an increased share of business from the Rest of the World (ROW), driven by higher demand from aerospace and defense customers outside India. The Indian business mix, at 39%, remains largely dominated by the defense segment.
Segment-wise Performance and Acquisitions
The defense segment showed a solid 31% year-on-year growth, while the aerospace sector grew by 14%.
The acquisition of Altek significantly contributed to the industrial segment, which grew by 47%, while the medtech segment saw an impressive 156% growth.
These strong performances highlight the company’s strategic focus on expanding its product offerings and tapping into high-growth industries like defense, aerospace, industrial, and medtech.
About the Company
Cyient DLM is a leading player in electronics system design and manufacturing, specializing in system design, integration, testing, and the production of electronic components and subsystems. The company serves original equipment manufacturers (OEMs) across aerospace, defense, and other high-tech engineering sectors. With a strong global presence, Cyient DLM caters to customers in India, Europe, North America, China, and Japan.
The company focuses on Low Volume, High Mix (LVHM) products, which involve contract manufacturing with a strong emphasis on quality, precision, and customization to meet specific customer requirements. Cyient DLM’s expertise in this specialized manufacturing setup allows it to deliver tailored solutions for complex and demanding industries, making it a trusted partner for high-tech OEMs worldwide.
Written by Dipangshu Kundu
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