The industry is projected to grow at a compound annual growth rate (CAGR) of around 30% until FY28, driven by rising consumption of electronics, government support through PLI schemes, and supply chain shifts away from China.
Here are three EMS stocks to keep on your watchlist.
#1 Cyient DLM
Cyient DLM is a design-led manufacturing (DLM) company focused on engineering and producing complex electronic and mechanical systems. It provides printed circuit board (PCB) assembly, cable harness solutions, and box builds for critical applications including cockpits, inflight systems, and medical diagnostic equipment.
In Q1FY26, the company reported revenues of ₹2,784 million, compared with ₹2,579 million in the same period last year. Net profit fell to ₹75 million from ₹106 million year-on-year (YoY).
Looking ahead, Cyient DLM is focusing on a dual manufacturing footprint to combine onshore client proximity with offshore cost efficiency. It is targeting North America and ITAR work, while diversifying into medical and industrial sectors. On the inorganic growth front, the company is evaluating acquisitions in North America (NAM) and EMEA.
#2 Avalon Technologies
Avalon Technologies is a global, vertically integrated EMS player. It provides end-to-end solutions—PCB design, sourcing, assembly, prototyping, testing, box build, and system integration—for industries such as medical devices, telecommunications, railways, aerospace, defence, and industrial equipment.
In Q1FY26, Avalon posted sales of ₹3,233 million, up from ₹1,995 million in Q1FY25. Net profit stood at ₹142 million versus a loss in the year-ago quarter.
The company has also entered semiconductor equipment manufacturing through a partnership with a global player to produce Industry 4.0–compliant complex box builds. Its Q1 FY26 order book rose 22.5% YoY, offering strong revenue visibility.
Avalon plans to concentrate on India and the US—two fast-growing EMS markets—while focusing on high-margin sectors such as aerospace and complex, mission-critical products.
#3 Syrma SGS Technology
Founded in 2006, Chennai-based Syrma SGS Technology is a leading EMS provider specializing in high-mix, flexible-volume manufacturing. It designs and produces custom RFID solutions including tags, readers, and software, while partnering with original equipment manufacturers (OEMs) from concept to mass production.
In Q1FY26, revenues fell to ₹9,440 million from ₹11,600 million a year earlier, while net profit rose to ₹499 million from ₹203 million YoY.
Syrma SGS is pursuing growth in high-margin sectors such as industrials, automotive and electric mobility, healthcare, and smart metering electronics. It aims to increase exports and expand its non-consumer verticals. The company is also backward-integrating into PCB manufacturing through a joint venture with Shinhyup Electronics.
Conclusion
India’s skilled yet cost-effective workforce, strong design capabilities, and expanding ecosystem position the country as a potential global EMS hub. The industry is also adopting Industry 4.0 technologies—smart factories, AI-driven automation, and predictive maintenance—to improve efficiency and competitiveness.
With strong growth drivers, supportive government policies, and integration into global supply chains, India’s EMS sector looks set for significant expansion.
For investors, however, fundamentals, corporate governance, and valuations remain critical factors to evaluate before making any decisions.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
