For years, India’s electronics story was written somewhere else.
The phones in our pockets, the chips in our cars, the circuit boards inside almost every appliance we owned – all designed abroad, assembled abroad, and shipped in.
We were the market, rarely the maker. That equation is now shifting, and the pace of the shift has caught even seasoned investors off guard.
Electronics Manufacturing Services (EMS) sits at the center of this change. These are the companies that actually build the hardware: printed circuit boards, assembled modules, finished products that other brands put their name on.
While the segment is capital-hungry offering razor thin margins and demanding clients, it’s also one of the few corners of the Indian market where capacity itself has become the constraint.
Order books at several EMS firms stretch well beyond what their current factories can deliver, and that gap is exactly why expansion plans deserve a closer look.
In today’s editorial, we will look at five Electronics Manufacturing Services (EMS) stocks that have aggressive expansion plans lined up for the coming few years.
#1 Syrma SGS Technology
First on the list is Syrma SGS Technology.
The company manufactures various electronic sub-assemblies, assemblies and box builds, disk drives, memory modules, power supplies, fiber optic assemblies, magnetic induction coils and RFID products, and other electronic products.
It’s part of the Tandon Group with Sandeep Tandon at the helm.
Syrma has manufacturing facilities spread across Northern India (Bawal, Haryana, Manesar, Haryana, Gurgaon, Haryana, Baddi, Himachal Pradesh), Western India (Pune, Maharashtra) and southern India – Chennai (Tamil Nadu), Bengaluru (Karnataka).
The company also has three research centres, of which two are in India and one is in Germany. Since 2023, Syrma has emerged as one of the most sophisticated players in the Indian EMS ecosystem.
Unlike many of its peers who rushed headlong into high-volume, low-margin mobile assembly, Syrma carved out a reputation for high-mix, flexible-volume manufacturing.
Until 2020, Syrma was primarily known for its precision in Radio Frequency Identification (RFID) tags, magnetic segments, and specialized electronics for the healthcare and industrial sectors.
Its merger with SGS Tekniks in 2021 was a watershed moment, creating a combined entity with a massive pan-India footprint and a complementary client base.
This merger allowed Syrma to scale rapidly, moving from a boutique engineering firm to a EMS provider capable of handling complex PCBA (Printed Circuit Board Assembly) and box-build projects.
The spillover effect of the same is clearly visible in Syrma’s financials. Over the past five years, its sales and net profit have grown at a compounded annual rate (CAGR) of 57% and 33% respectively.
During the same period, it has reported standout return metrics. The return on equity (ROE) and return on capital employed (ROCE) have averaged 10% and 15%.
Syrma SGS – Financial Snapshot
| Particulars | FY21 | FY22 | FY23 | FY24 | FY25 |
| Revenue | 4,383.00 | 10,197.00 | 20,484.00 | 31,541.00 | 37,867.00 |
| Growth | 10.4 | 132.7 | 100.9 | 54 | 20.1 |
| Operating Profit | 544 | 1,089.00 | 2,357.00 | 2,606 | 3,727.00 |
| Margin | 12.4 | 10.7 | 11.5 | 8.3 | 9.8 |
| Net Profit | 286 | 541 | 1,231 | 1,243 | 1,845 |
| Net Margin | 6.5 | 5.3 | 6 | 3.9 | 4.9 |
| ROE | 11.8 | 9.5 | 8 | 7.7 | 10.6 |
| ROCE | 15.9 | 15.6 | 12.6 | 12.4 | 16.4 |
Data Source: Equitymaster, BSE
Going forward, Syrma is undertaking some serious expansion plans. It has invested heavily in state-of-the-art Surface Mount Technology (SMT) lines, allowing them to provide end-to-end solutions from design to assembly.
This focus on PCBAs is not just about assembly, it’s about vertical integration.
By handling the complexity of multi-layered PCB assemblies for the automotive (especially Electric Vehicles), aerospace, and medical sectors, Syrma has successfully insulated itself from the volatility of the pure consumer market.
The company’s expansion into these high-growth verticals ensures that even if one sector faces a downturn, the overall portfolio remains resilient.
As India moves toward 5G infrastructure, advanced automotive electronics, and indigenous defence production, the demand for high-reliability, high-tech manufacturing is skyrocketing.
Syrma SGS, with its established design capabilities and expanded manufacturing capacity, is a critical player in the EMS ecosystem, expected to ride these tailwinds.
By focusing on complex manufacturing, it can achieve a more favourable product mix and leverage its high-tech manufacturing.
#2 Aimtron Electronics
Second on the list is Aimtron Electronics.
Aimtron Electronics sits in a part of the EMS value chain that is quietly changing. It started as a typical electronics manufacturing services player, assembling boards and supplying to clients.
Over time, the company has moved into design, system integration and full product delivery.
The larger theme for the company is its move from assembly to an Original Design Manufacturer ODM. Aimtron is trying to capture more value per product by owning design, not just execution.
It currently has two manufacturing units in Vadodara and Bengaluru which are certified by ISO.
Recently, the company acquired International Control Services Inc. (ICS), a US-based engineering and ODM company headquartered in Illinois, to strengthen its ESDM capabilities and expand access to US industrial customers and OEM ecosystems.
The company expects this acquisition to generate revenue of around US$ 25-30 m annually over the long term.
Coming to Aimtron’s financials, its revenue has grown at a CAGR of 82% over the past 3 years, while its profit has grown from Rs 120 million to Rs 256 million during the same period.
The ROE and ROCE have averaged at 26% and 30% respectively.
Aimtron – Financial Snapshot
| Particulars | FY21 | FY22 | FY23 | FY24 | FY25 |
| Revenue | 528.00 | 263.00 | 835.00 | 930.00 | 1,592.00 |
| Growth | NM | -50.1 | 217.3 | 11.3 | 71.2 |
| Operating Profit | 217 | 0.00 | 227.00 | 245 | 370.00 |
| Margin | 41.2 | 0.1 | 27.1 | 26.4 | 23.2 |
| Net Profit | 157 | -18 | 120 | 136 | 256 |
| Net Margin | 29.8 | -6.8 | 14.4 | 14.6 | 16.1 |
| ROE | 73.3 | -8.8 | 34 | 26.3 | 16.5 |
| ROCE | 98.3 | -5.5 | 36.7 | 31.9 | 20.9 |
Data Source: Equitymaster, BSE
At present, the company has an order book in excess of Rs 5.2 billion (bn) driven by AI, EV, and defense demand.
Going forward, Aimtron expects to drive growth through backward integration, expanded SMT and cable assembly capacity, and international market expansion.
It’s targeting opportunities across medical devices, industrials, EVs, drones, defence, telecom and railways, while guiding for 40-50% CAGR over the next 3-5 years.
#3 Amber Enterprises
Third on the list is Amber Enterprises.
Over the years, Amber Enterprises has evolved from a prominent manufacturer of HVAC components into a diversified B2B solutions provider deeply integrated into India’s manufacturing ecosystem.
The company operates through three distinct business verticals comprising Consumer Durables, Electronics, Railway Subsystems and Defence. The consumer durables division remains the company’s largest segment, contributing approximately 73% of consolidated revenue.
This division includes the manufacturing of Room Air Conditioners (RAC), Commercial Air Conditioners (CAC), and non-RAC components such as motors, heat exchangers, and sheet metal, serving a majority of the RAC brands in India.
The electronics division, which contributes around 20%, has transformed into a full-stack EMS platform offering Printed Circuit Board Assemblies (PCBA) and bare PCBs. This segment caters to diverse sectors, including automotive, industrial, telecom, and consumer durables.
The third vertical, Railway Subsystems and Defence, accounts for about 5% of revenue and focuses on integrated solutions for rolling stock, including HVAC systems, doors, gangways, and pantographs for metros and Vande Bharat trains.
A major growth driver for the company is the rapid expansion of the Electronics division, which is moving up the value chain through strategic backward integration into bare PCB manufacturing and high-density interconnect (HDI) PCBs via a joint venture with Korea Circuit.
Furthermore, acquisitions such as Unitronics and Power-One Microsystems have strengthened Amber’s foothold in high-margin industrial automation and power electronics, expanding its total addressable market.
Coming to its financials, the company’s sales and net profit have grown at a CAGR of 20% and 9% respectively over the past 5 years.
Its ROE and ROCE have averaged 8% and 13% during the same time.
Amber Enterprises – Financial Snapshot
| Particulars | FY21 | FY22 | FY23 | FY24 | FY25 |
| Revenue | 30,305.00 | 42,064.00 | 69,271.00 | 67,293.00 | 99,730.00 |
| Growth | -23.5 | 38.8 | 64.7 | -2.9 | 48.2 |
| Operating Profit | 2,543 | 3,086.00 | 4,706.00 | 5,472 | 8,370.00 |
| Margin | 8.4 | 7.3 | 6.8 | 8.1 | 8.4 |
| Net Profit | 833 | 1,113 | 1,638 | 1,395 | 2,512 |
| Net Margin | 2.7 | 2.6 | 2.4 | 2.1 | 2.5 |
| ROE | 5.2 | 6.5 | 8.8 | 7 | 11.2 |
| ROCE | 9.1 | 9.6 | 13.6 | 13.4 | 18.1 |
Data Source: Equitymaster, BSE
In the consumer durables space, the company is capitalising on the low penetration of air conditioners in India and a shift toward domestic supply chains, bolstered by a strategic cooperation agreement with GMCC for compressor supplies.
Management has guided the Electronics division is on track to achieve US$ 1 bn in revenue within the next 3 years, due to capacity expansion in the PCB vertical and new industrial partnerships.
#4 Avalon Technologies
Fourth on the list is Avalon Technologies.
The company distinguishes itself through a high-mix, flexible-volume manufacturing model focused on complex, mission-critical products rather than high-volume consumer electronics.
Avalon functions as a “one-stop shop” for its clients, offering capabilities such as Printed Circuit Board (PCB) design and assembly, cable and wire harness manufacturing, sheet metal fabrication, machining, injection moulding, and magnetics.
Its business is diversified across several key industry verticals, including power & automation (largest contributor), Mobility (Rail, Aerospace, and Automotive), Clean Energy, Medical, and Communications.
Geographically, the company has a significant exposure to the United States, with US customers contributing approximately 57% of revenue, while Indian customers contributed 43%.
Coming to its financials, over 5 years, its sales and net profit have grown at a CAGR of 11% and 39% respectively over the past 5 years.
The ROE and ROCE have averaged 31% and 34% during the same period.
Avalon Technologies – Financial Snapshot
| Particulars | FY21 | FY22 | FY23 | FY24 | FY25 |
| Revenue | 6,905.00 | 8,407.00 | 9,447.00 | 8,672.00 | 10,981.00 |
| Growth | 7.6 | 21.8 | 12.4 | -8.2 | 26.6 |
| Operating Profit | 716 | 1,085.00 | 1,271.00 | 774 | 1,320.00 |
| Margin | 10.4 | 12.9 | 13.5 | 8.9 | 12 |
| Net Profit | 231 | 675 | 525 | 280 | 634 |
| Net Margin | 3.3 | 8 | 5.6 | 3.2 | 5.8 |
| ROE | 38.5 | 76 | 24.2 | 5.1 | 10.4 |
| ROCE | 39.6 | 67.8 | 38.1 | 9.1 | 16.5 |
Data Source: Equitymaster, BSE
Going forward, the company plans to capitalise its dual-shore model, which allows US clients to incubate manufacturing locally in the US before shifting production to India for cost arbitrage.
The management maintains a robust growth outlook, having upped the guidance on the back of broad-based demand and a strong order pipeline. The company is sitting on an order book of Rs 20 billion (bn) to be executed over the next 12-14 months.
#5 Kaynes Technology
Last on the list is Kaynes Technology India.
Kaynes is actively transitioning from a traditional Electronic Manufacturing Services (EMS) provider to a comprehensive Electronics System Design and Manufacturing (ESDM) entity.
This evolution means Kaynes does not merely assemble components but is deeply involved in the entire value chain, offering conceptual design, process engineering, and lifecycle support to original equipment manufacturers (OEMs).
Currently, the company’s portfolio is heavily weighted toward the Industrial and Electric Vehicle (EV) segments, which collectively contributed approximately 56% of its revenue.
The Automotive vertical serves as the second largest pillar, accounting for roughly 26% of the topline.
The remaining revenue is derived from specialised, high-margin sectors, including Railways, IoT/IT, Medical, and Aerospace and Strategic Electronics.
Coming to Kaynes Technology’s financials, its sales and net profit have grown at a CAGR of 49% and 99% respectively over the past 5 years.
The ROE and ROCE have averaged 11% and 21% respectively during the same time.
Kaynes – Financial Snapshot
| Particulars | FY21 | FY22 | FY23 | FY24 | FY25 |
| Revenue | 4,206.00 | 7,062.00 | 11,261.00 | 18,046.00 | 27,218.00 |
| Growth | 14.2 | 67.9 | 59.4 | 60.3 | 50.8 |
| Operating Profit | 461 | 993.00 | 1,813.00 | 3,126 | 5,221.00 |
| Margin | 11 | 14.1 | 16.1 | 17.3 | 19.2 |
| Net Profit | 97 | 417 | 952 | 1,833 | 2,934 |
| Net Margin | 2.3 | 5.9 | 8.5 | 10.2 | 10.8 |
| ROE | 7 | 20.6 | 9.9 | 7.4 | 10.3 |
| ROCE | 23.1 | 37.1 | 16.7 | 11.5 | 16.4 |
Data Source: Equitymaster, BSE
Going forward, the management anticipates that the contribution from the railway, aerospace, and defence sectors will reach double-digit percentages as new facilities and certifications come online.
Kaynes has done a strategic expansion into the semiconductor value chain through Outsourced Semiconductor Assembly and Test (OSAT) services and the manufacturing of High-Density Interconnect (HDI) printed circuit boards (PCBs).
The company has bolstered its capabilities through strategic acquisitions, such as Iskraemeco for smart metering and Sensonic for AI-driven railway safety, to capitalise on government infrastructure pushes like the Kavach train protection system.
The management has a revenue guidance of US$ 1 bn by FY28 and scaling to US$ 2 bn by FY30.
The growth relies heavily on the commercialisation of its new OSAT and PCB facilities, which are expected to begin contributing to revenue from FY27 onwards.
Conclusion
Every company on this list has told the market what it intends to build, but the harder question is which of them will actually convert announced capex into running plants, full utilisation, and the kind of margins that justify the spending.
Also, aggressive capex can be a double-edged tool – it rewards companies that have demand visibility and execution discipline, and it punishes those that build ahead of orders that never show up.
Margins in this business are structurally thin, so the firms moving toward higher-value components and backward integration are the ones with the clearest path to widening them.
Before investing in any of them, investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence.
Happy investing.
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