India’s semiconductor and Electronics Manufacturing Services (EMS) industry is growing fast, driven by rising demand and government support. Companies like Kaynes Technology and Syrma SGS Technology are competing to lead in this space. In this article, we compare both companies based on their growth plans, capital expenditure (Capex), order books, and financial performance to see who is ahead in the race.
Stock movement:
With a market capitalization of Rs. 26,115.11 crores, the shares of Kaynes Technology India Limited were currently trading at Rs. 4079.80 per equity share, down nearly around 1.72 percent from its previous day’s close price of Rs. 4151.40. The stock is down by 46.95 percent from the 52-week high of Rs. 7,824.95 compared to the previous day’s close.
Similarly, Syrma SGS Technology Limited‘s share reached an intraday high of Rs. 423.25 per equity share, rising 2.22 percent from its previous day’s close price of Rs. 414.05. The market capitalization now stands at approximately Rs. 7,345.45 crore and is down by 35.96 percent from the 52-week high of Rs. 646.50 compared to the previous day’s close.
Company Overview:
Kaynes Technology India Limited was established in 1988 and is a leading electronics manufacturer offering end-to-end solutions across various sectors like automotive, aerospace, and medical. It provides design, manufacturing, and lifecycle support with multiple certifications and facilities across India.
Correspondingly, Syrma SGS Technology Limited was founded in 2004 and is an Indian electronics manufacturing services (EMS) company based in Chennai. It specializes in electronic system design and manufacturing, offering services like product engineering, RFID solutions, and MedTech products.
Guidance and Future Outlook:
Kaynes Technology aims to reach Rs. 4,500 crores in revenue for FY26. The management is confident in maintaining EBITDA margins above 15 percent for FY25, expecting better profitability as new teams contribute more to revenue growth.
Likewise, Syrma SGS targets a strong 30-35 percent revenue growth in FY26, along with higher EBITDA margins. The company’s long-term goal is to achieve a 20 percent return on capital employed (ROCE) within two years, focusing on efficient operations and steady profitability improvements.
Capex Plans:
Kaynes Technology plans to invest Rs. 4,800 crores in new projects over the next few years. The company is investing Rs. 2,800 crore to establish a semiconductor OSAT and compound semiconductor facility in Kongara Kalan, near Hyderabad. Additionally, its wholly-owned subsidiary will set up a semiconductor manufacturing unit in Sanand, Gujarat, with an estimated investment of Rs. 3,307 crore by September 2024.
Similarly, Syrma SGS has spent Rs. 180 crores on capex in the first nine months of FY25, mainly for new facilities in Pune and Germany. Total FY25 capex is estimated at Rs. 200-245 crores, while FY26 capex is expected to be lower, around Rs. 100-150 crores.
Order Book:
Kaynes Technology continues to see strong business momentum, with its order book rising from Rs. 5,422.8 crores at the end of Q2 FY25 to Rs. 6,047.1 crores by the end of Q3 FY25. This significant growth reflects increasing demand and a strong pipeline of future projects.
Correspondingly, Syrma SGS has an open order book of Rs. 5,300 crores, driven by strong demand across key sectors. The automotive segment contributes 30 percent, consumer electronics makes up 38-40 percent, and the industrial segment accounts for 20-22 percent, ensuring a well-diversified revenue stream.
Semiconductor Segment:
Kaynes Technology is strengthening its semiconductor presence with a new manufacturing facility focused on advanced packaging technologies to enhance margins. It targets Rs. 4,000 crore in revenue for its semiconductor unit in Gujarat by the fiscal year 2029-30, leveraging its EMS expertise and partnerships to capitalize on India’s expanding semiconductor market and drive growth.
Likewise, Syrma SGS has expanded its semiconductor focus by establishing Syrma Semicon Private Limited (SSPL) in November 2023. SSPL specializes in designing, manufacturing, and distributing semiconductor-related products like memory chips and PCB assemblies. The company is also exploring opportunities in the OSAT market, assessing technology, joint ventures, and supply chain feasibility.
Financial Highlights:
While comparing the financial performance, Kaynes Technology India Limited’s revenue has increased from Rs. 509 crore in Q3 FY24 to Rs. 661 crore in Q3 FY25, which has grown by 29.86 percent. The net profit has also grown by 46.67 percent from Rs. 45 crore in Q3 FY24 to Rs. 66 crore in Q3 FY25.
Similarly, Syrma SGS Technology Limited’s revenue has increased from Rs. 707 crore in Q3 FY24 to Rs. 869 crore in Q3 FY25, which has grown by 22.91 percent. The net profit has also grown by 165 percent from Rs. 20 crore in Q3 FY24 to Rs. 53 crore in Q3 FY25.
Written By – Nikhil Naik
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