Atmanirbhar Bharat – a tagline that has been resonating since the pandemic struck in 2020, causing disruptions in the supply chain. This call for self-reliance has grown louder in recent years as India strives to strengthen its domestic manufacturing and reduce its dependence on imports. But, in an economic sense, self-dependence is not feasible in every sector.
Hence, it promotes self-reliance in electronics and defence. Indeed, electronics production has grown sixfold over the past decade, from ₹1.9 trillion in FY15 to ₹11.3 trillion in FY25. At the same time, exports have grown eightfold, from a mere ₹380 billion to ₹3.3 trillion. Electronics value addition has increased from 30% to 70%, with a target to reach 90% by FY27.
India’s electronics industry expands rapidly
Its success can also be gauged by foreign direct investment (FDI). The sector has attracted FDI inflows of over US$4 billion since FY21, with nearly 70% of this FDI coming from beneficiaries of the Production-Linked Incentive (PLI) scheme. The government has also approved the Electronics Component Manufacturing Scheme worth ₹229.2 billion this March.
The scheme is expected to attract an Investment of ₹593.5 billion, resulting in the production of ₹4.5 trillion worth of products. Among companies, Dixon Technologies is synonymous with being a pioneer in this manufacturing boom. But beyond that, these are three companies that are also riding the tailwind and eying massive expansion. Which are they? Let’s take a look…
#1 Kaynes Technology India
Kaynes Technologies provides design, process, engineering, integrated manufacturing, and life-cycle support to original equipment manufacturers. It is a leading integrated and Internet of Things (IoT)- enabled solutions provider, with capabilities across the entire spectrum of Electronic System Design & Manufacturing (ESDM).
The company caters to multiple industry verticals, including automotive, aerospace, defence, and railways. It is transforming from a pure EMS provider to an integrated ESDM company. Towards this end, it has several ongoing projects.
Moves into OSAT and HDI PCB manufacturing
The company is also entering into the Outsourced Semiconductor Assembly and Test (OSAT) and High-Density Interconnect (HDI) Printed Circuit Boards (PCB) businesses. It received approval last September to establish an OSAT facility in Gujarat, with an investment of ₹34 billion.
The central government will contribute 50% of the investment, while the Gujarat government will contribute 20%, and the company will contribute 30%. The facility is expected to deliver 6.3 million chips per day and provide initial sample collection by August. The first building is expected to be completed by the second quarter of FY25, with billing starting this fiscal year.
The company has secured three major clients (American, Indian, and German) and has Memorandum of Understanding (MoUs) signed with another 4 clients, including those focused on silicon photonics and advanced packaging. Moreover, the PCB plan is expected to be ready by January 2026, with commercialisation starting from FY27.
Geographical and Sectoral (Defence, Railway) Expansion
The company is also expanding its geographical footprint. It acquired August Electronics in Canada, and now plans expansion in the North American geography. Additionally, the company expanded into the Kavach project, launching a pilot phase.
It expects routine orders after a few months of clearance. Kaynes has acquired Sensonic in the railway sector and invested in a company focused on railway ODM. It expects this segment to contribute 10-12% of total sales by the end of the year. Within the defence sector, it has received numerous orders, including a US$10 million contract.
Billing is expected to start in Q2/Q3/Q4, contributing about 8% of total sales for the year. Within electric vehicles, it is seeing good orders in the 2-wheeler segment (working with one of the largest manufacturers) and is working with upcoming model launches in the 4-wheeler segment.
With smart meters, Kaynes aims to capture about 15% of the total market, translating to a minimum of ₹10-12 billion in annual business.
Healthy revenue mix and margin improvement
Regarding its financials, revenue increased 34% year-on-year to ₹6.7 billion in Q1 FY26, while net profit rose 47% to ₹746 million. Its margin expanded 350 basis points (bps) to 16.8%.
It gets 45% of its revenue from Printed Circuit Board Assembly (PCBA), 36% from product engineering and IoT solutions, and 19% from box build. In revenue-mix, Industrial and EV segments contribute 59% to revenue, followed by automotive (27%), IoT (5%), and railways (7%). Medical and aerospace currently contribute a combined minimum of 2%.
As of June 30, 2025, its order book stood at ₹74 billion, providing revenue visibility of over 2 years. It expects revenue to grow by 65% to ₹45 billion in FY26, with margins exceeding 15.6%. Kaynes is trading at a price-to-equity multiple of 154x, higher than its 3-year median of 120x, and the industry median P/E of 35.
#2 Syrma SGS Technology
Syrma provides a comprehensive suite of EMS and solutions. Syrma’s offerings include PCBA, comprehensive Box Build solutions, and tailored End-of-line Tester Development services.
Strong position in niche high-value segments
The company is a key player in the Radio Frequency Identification (RFID) space, offering durable RFID tags and inlays for critical applications, including asset tracking and access control. It also provides Critical Communication Solutions, serving public safety, oil and gas, electro-medical devices, and paramilitary sectors.
Operating metrics strengthen despite topline decline
Syrma revenue in Q1FY26 declined 18.5% year-on-year to ₹9.5 billion. This growth was driven by the Industrial segment, which grew by 34%, the Automotive segment (18%), and the Healthcare segment (14%). However, the growth was offset by the 48% decline in the consumer vertical. Export revenue grew by 29% to ₹2.3 billion, accounting for 25% of total revenue.
Operating performance remained strong. EBITDA surged 69.3% to ₹1 billion, with a margin of 10.7%, while PAT increased by 145.4% to ₹499 million. The order book stood at about ₹55 billion, providing strong visibility of around 1.5 years. The company anticipates revenue growth of 30-35% in FY26, with a margin of 8.5-9%. It expects exports to exceed ₹10 billion.
Strategic shift towards high-margin businesses
Looking ahead, Syrma is consciously executing a strategy to reduce its revenue proportion from the low-margin consumer sector while focusing on high-growth verticals. This move is designed to enhance the EBITDA margin. Over time, management aims to reduce the contribution of the consumer business to about 30% (from 35% in FY25) of total revenue on an annualized basis.
At the same time, the company plans to increase the contribution of high-margin, low-volume ODM consumer business. These segments include: Automotive and EV, Industrials, Healthcare and Medical Devices, and Railways and IT.
This shift has yielded results, as gross margin has improved from 15.5% in Q1 FY25 to 25.4%, and the EBITDA margin has increased to 10%, from 4.7% over the same period. But this shift has also caused some degrowth in financials.
Its major future projects include a multi-layer and single-layer PCB plant. The capital expenditure for the first phase is estimated at US$91 million, with 40% of the cost expected to be subsidized by the respective state governments.
Trial production is projected to commence in Q3FY27, with full production expected by Q1FY28. Asset turns are predicted to vary between 1.2 and 2 times. Syrma is trading at a price-to-equity multiple of 79x, higher than its 3-year median of 71.8x and the industry median P/E of 35x.
#3 PG Electroplast
PG Electroplast is a leading player in the Electronic Manufacturing Services (EMS). It manufactures printed circuit boards (PCBs) and plastic components, including various types of plastic molding. Its products are used across industries, including consumer electronics (coolers, air conditioners), automotive, and home appliances.
A Key PLI beneficiary driving OEM partnerships
It provides end-to-end assembly solutions to original equipment manufacturers (OEMs). Its clientele includes leading OEMs, such as LG Electronics, Jaguar, Kohler, Whirlpool, Godrej, AO Smith, Acer, Voltas, Orient Electric, Blue Star, and Crompton, among others. PG is the first beneficiary of the PLI scheme designed for AC components, which helped it expand rapidly.
Short-Term growth hit by demand weakness
Regarding its financials, operating revenue rose 13.9% to ₹15 billion in Q1FY26, while EBITDA increased by 3.6% to ₹1.4 billion. PAT declined by 21.4% to ₹667 million. This growth slowdown was due to operating deleverage stemming from planned AC volumes that did not materialize, as well as some input cost pressures.
Hence, the company now expects FY2026 to be soft due to a weak summer. As a result, PG expects revenue to grow by 17-21% to about ₹66.5 billion and PAT to grow in the mid-single digits. The company expects to invest ₹7-7.5 billion (down from ₹8-9 billion) as planned. This revision is partly to preserve cash flow and reflect delays in specific equipment orders.
Long-term expansion plans stay intact
Looking ahead, the company believes that the penetration of the products in which PG operates is very low in India, implying huge potential demand for the consumer appliance and durable market. Beyond expansion, it plans to enhance operational efficiencies to boost profitability, cash flow, and strengthen its balance sheet.
The internal target is to achieve a revenue of ₹90 billion in FY28, based on maintaining an asset turnover of around 4.5x-5x on a fully ramped-up basis on net block. FY28 margins are expected to match or be near FY25 margins.
To achieve this, it is expanding its refrigerator plant in South India, washing machines in Greater Noida, AC capacity in West India, and plastic components and coolers in Rajasthan. From a valuation perspective, it is trading at a P/E of 53.9x, in line with the 10-year median of 55.8x, but above the industry median P/E of 35.
Bottomline
India’s electronics manufacturing story is no longer about assembling products for others; it’s about building deep, integrated capabilities across the value chain. The government’s push through PLI and component schemes has triggered an intense wave of investments, while companies like Kaynes, Syrma, and PG Electroplast are positioning themselves at the heart of this transformation.
Valuations have already priced in part of this optimism, but the medium- to long-term growth runway remains wide, driven by rising exports, import substitution, and technology localisation. If execution stays on track, India’s ambition of becoming a global electronics hub may not be too far off.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
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