India, recognized as a leading manufacturing hub, has significantly increased its domestic electronics production from US$ 29 billion in 2014-15 to US$ 101 billion in 2022-23. The Indian electronics sector now contributes approximately 3.4% to the nation’s Gross Domestic Product (GDP).
The government has pledged nearly US$ 17 billion over the next six years to support four Production Linked Incentive (PLI) Schemes such as Semiconductors and Design, Smartphones, IT Hardware, and Components, according to the India Brand Equity Foundation.
The Ministry of Electronics & Information Technology expects India’s electronics manufacturing industry to expand from US$ 75 billion in 2020-21 to US$ 300 billion by 2025-26.
The growth in India’s electronic manufacturing sector is expected to drive the production of various electronics products, including mobile phones, IT hardware (laptops, tablets), consumer electronics (TV and audio), industrial electronics, automotive electronics, electronic components, LED lighting, strategic electronics, printed circuit board assembly (PCBA), wearables, and telecom equipment.
Here are four electronics manufacturing services companies that management anticipates strong growth guidance in FY25 and FY26.
Dixon Technologies Limited
Dixon Technologies Limited is the largest company engaged in manufacturing products in the consumer durables, lighting, and mobile phone markets in India.
Dixon Technologies Ltd, the world’s fourth-largest and India’s biggest LED light manufacturer has seen its shares rise by 15% in the last month and gain 39% year-to-date.
The company’s diverse product portfolio includes consumer electronics, home appliances such as washing machines, lighting products like tube lights and downlighters, mobile phones, and more.
Dixon Technologies Ltd. has seen impressive growth, with its shares surging by 95% over the past six months and a staggering 197% over the last year.
In Q4 FY24, Dixon Technologies Ltd. experienced a significant 52% surge in revenue, growing from ₹3,065 crores in Q4 FY23 to ₹4,658 crores. Net profit also rose by 21%, increasing from ₹80 crores to ₹97 crores.
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The company holds substantial market shares across various sectors: 35% in LED TVs, 30% in washing machines, 25% in security surveillance systems, and 50% in lighting solutions. Notably, Dixon Technologies is the fourth-largest LED light manufacturer globally.
Morgan Stanley forecasts a robust 42% compound annual growth rate (CAGR) for Dixon’s earnings from FY 2024 to FY 2028. The company plans to invest $30 million in manufacturing display modules for mobiles, as highlighted by Morgan Stanley.
The management anticipates a 200-250% growth in the telecom sector, driven by new product additions in its joint venture with Airtel, which includes manufacturing modems, routers, set-top boxes, and Internet of Things (IoT) devices.
For FY26, Dixon has projected a 20% growth in mobile phone manufacturing, targeting 35–40 million units, expected to generate approximately ₹2,500 crores in revenue.
Dixon plans to invest significantly in capital expenditure, with estimates of ₹550 crore for FY2025 and ₹450 crore for FY2026. As of July 5, Dixon Technologie’s shares declined by 1.19%, and closed at ₹12,508 per share, with a market capitalization of ₹74,867 crore.
Kaynes Technology India Ltd
Kaynes Technologies India Limited is an end-to-end and Internet of Things (IoT) solutions-enabled integrated electronics manufacturer.
Kaynes Technologies boasts a robust customer base, featuring industry giants like Hitachi, Siemens, Tonbo Imaging, and more. They specialize in solutions for Box Build, Printed Circuit Board Assemblies (PCBAs), ODM, Product Engineering, IoT Solutions, smart metering technology, smart street lighting, and inverter technology.
In 2025, Kaynes Technologies projects over 60% revenue growth, with an operational EBITDA margin improvement exceeding 100 basis points, aiming for a 15% EBITDA margin growth and over 10% PAT growth.
Management anticipates securing a significant contract with a multinational corporation in the Medical Equipment sector by the end of this financial year. Morgan Stanley forecasts Kaynes Technologies revenue to hit $1 billion by FY28, with the core EMS business contributing nearly 75%.
The company’s revenue from operations surged by 75% YoY, from Rs. 364.58 Crores in Q4FY23 to Rs. 637.30 Crores in Q4FY24, and its net profit increased by 97%, from Rs. 41.28 Crores in Q4FY23 to Rs. 81.25 Crores.
On July 5, Kaynes Technologies India Limited shares rose by 5.76%, and closed at Rs. 4,239 per share, with a market capitalization of Rs. 27,091 crore. Kaynes Technology India Ltd shares have appreciated by 66% over the past six months and by 163% over the past 12 months.
Amber Enterprises India Ltd
The company specializes in manufacturing durable consumer products, including room air conditioners (RAC), RAC & non-RAC components, and HVAC solutions for mobility applications.
Amber Enterprises, a leading player in the Indian Room Air Conditioner (RAC) original equipment manufacturer (OEM) sector, commands over 70% of the RAC OEM market and 26.5% of the overall RAC market in FY2023.
The company’s consumer durable division has seen a 100 basis point increase in operating EBITDA margins, now reaching 7%. Recently, Amber received a PLI grant of ₹.15 crores for manufacturing AC components.
To Strengthen its position in the consumer durable space, Amber has formed a joint venture with Resojet Private Limited to manufacture fully automatic top and front-load washing machines.
The company has planned a Capex of ₹.350 to 375 crores for FY25. Mass production from the new plant is set to commence in the second half of this year, with an expected output of around 40,000 washing machines this year, increasing to 1,25,000 in the next financial year.
Additionally, Amber has also partnered with Titagarh Rail Systems Limited to establish a new facility for manufacturing railway components.
The company anticipates significant growth in the railway segment, with the addressable market size expected to reach ₹ 75,000-80,000 crore in the next 5-6 years. A Capex of ₹. 200-225 crores is planned over the next two years for a new Greenfield facility in Faridabad.
Despite a slight decrease in annual revenue by 6.5%, from ₹3,003 crores in Q3 FY24 to ₹2,805 crores in Q4 FY24, and a decrease in net profit from ₹108 crores to ₹99 crores, Amber Enterprises India Ltd. shares have gained 38% in the last six months and 102% in the last 12 months.
As of July 5, shares closed at Rs 4,496 per share, with a market capitalization of Rs 15,154 crore.
Syrma SGS Technology Ltd
Syrma SGS Technology Limited is engaged in the business of engineering and design of electronics manufacturing services (EMS). The company provides integrated services and solutions to original equipment manufacturers (OEMs) from the initial product concept stage to volume production.
SYRMA SGS Technology Ltd anticipates a revenue growth of 40% to 45%, with an operating EBITDA margin of around 7%. The company expects exports to increase by about 30% by FY25.
Management targets a Return on Capital Employed (RoCE) of approximately 25%+, with an EBITDA of around ₹ 3-3.5 billion on a deployed capital of ₹14-15 billion. The company aims to achieve an asset turnover of approximately 6x by the end of FY25 and targets an asset turnover of 6-7x in the near term.
For the railway business segment, SYRMA forecasts revenue of ₹700-800 million in FY25, while the healthcare vertical is expected to generate revenue of ₹3.75-4 billion in FY25.
In terms of capital expenditures, the company spent nearly ₹250 crores during the year and plans to spend another ₹150-180 crores in FY25 towards the project.
SYRMA has increased its Surface Mount Technology (SMT) capacity to approximately 6.3 million components, up from about 3.2 million earlier.
The company invested approximately ₹2.5 billion in capex in FY24 and expects a capex of ₹1.5-1.8 billion in FY25, primarily for the Pune design center and other ongoing expansions.
Revenue from operations grew by 66.7% year-over-year, from ₹ 680 crores in Q4FY23 to ₹ 1,134 crores in Q4FY24. Net profit increased by 4.6%, from ₹43 crores in Q4FY23 to ₹ 45 crores in Q4FY24.
On July 5, SYRMA SGS Technology Ltd’s shares declined by 0.87% and closed at ₹502 per share, with a market capitalization of ₹ 8,914 crore.
Written by Omkar Chitnis
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