India’s manufacturing sector is showing visible momentum. According to Press Information Bureau, the Index of Industrial Production (IIP) grew 3.5% year-on-year in July 2025. Manufacturing growth was even stronger at 5.4% year-on-year (YoY), up from 3.7% in June. Merchandise exports also rose 2.52% YoY to US $184.1 billion during April to August 2025. Flagship schemes such as PLI are playing a key role in this push.
Electronics Manufacturing: The PLI Growth Engine
Electronics manufacturing is one of the biggest beneficiaries of this policy support. The government has been encouraging local production of smartphones, laptops, servers and components. With supply chains shifting globally, India is emerging as an alternative manufacturing hub. Clusters are expanding across cities, and capacity additions are becoming more frequent.
For investors, this trend matters. Rising industrial output and export growth show that manufacturing activity is strengthening. If companies scale up production under PLI incentives, operating leverage can improve. Higher volumes can support better margins over time. This makes electronics manufacturing a space worth tracking from a long-term perspective.
For this article, we applied clear filters before selecting the stocks. We looked at companies included in official MeitY PLI approval lists. We also considered strong ecosystem players that are closely aligned with the electronics manufacturing push and are expanding capacity in India. We checked for meaningful revenue exposure to electronics, visible growth plans and reasonable financial strength. Only companies meeting these criteria were shortlisted.
The MeitY PLI Framework: Shortlisting the Electronics Winners
#1 Dixon Technologies (India): The Scale Specialist Dominating the Smartphone Supply Chain
Dixon Technologies (India), incorporated in 1993, is an electronic manufacturing services (EMS) company with operations in the electronic products vertical such as consumer electronics, lighting, home appliance, closed-circuit television cameras (CCTVs), and mobile phones.
Dixon Technologies reported consolidated revenue of Rs 10,678 crore in Q3 FY26, compared with Rs 10,461 crore in the same quarter last year. Net profit came in at Rs 214 crore, slightly lower than Rs 217 crore a year ago.
The mobile and EMS division continued to drive performance, clocking revenue of Rs 9,750 crore in the quarter. Smartphone volumes stood at 6.9 million units in Q3, taking the nine-month figure to nearly 27 million units. The company expects mobile exports to close the year in the range of Rs 5,500–6,000 crore.
Dixon is stepping up investments in components. Camera module capacity is being expanded from 40 million units to about 190–200 million units annually. A new display module facility is nearing completion, with trials likely around June–July and commercial production thereafter.
Capital expenditure for FY26 is expected to be Rs 1,100–1,200 crore. Management cautioned that rising global memory prices remain a near-term headwind but reiterated confidence in long-term expansion plans.
In the past year, share price of Dixon Technologies tumbled 18%.
Dixon Technologies 1 Year Share Price Chart
#2 Syrma SGS: Precision Engineering Meets an Expanding Global Export Footprint
Incorporated in 2004, Syrma SGS Technology is a Chennai-based engineering and design company engaged in 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 through concept co-creation and product realization.
Syrma SGS Technology had a good third quarter. Exports increased and costs were managed better, which supported the performance. Revenue for Q3 FY26 rose 43% YoY to Rs 1,274 crore. Net profit increased 108% to Rs 110 crore.
In the first nine months, revenue reached about Rs 3,380 crore, reflecting 17% growth. Export revenue rose 45% to Rs 837 crore, with industrial and healthcare segments contributing meaningfully.
The company is expanding capacity, including a new facility in Bengaluru. Construction on its PCB project is underway, with trial production expected by early 2027. The recently acquired defence business is expected to generate Rs 280–300 crore in revenue this year, with margins above 20%.
With an order book of around Rs 6,400 crore, management expects growth momentum to continue.
In the past year, share price of Syrma SGS Technology rallied 103.1%.
Syrma SGS Technology 1 Year Share Price Chart
#3 Kaynes Technology: Riding the IoT Wave with a High-Value Order Backlog
Incorporated in 2008, Kaynes Technology is a leading end-to-end and Internet of Things (IoT) solutions-enabled integrated electronics manufacturing company. The company provides conceptual design, process engineering, integrated manufacturing, and life-cycle support for major players in the automotive, industrial, aerospace and defence, outer-space, nuclear, medical, railways, IoT, Information Technology (IT) and other segments.
Kaynes Technology reported revenue of Rs 804 crore for the quarter ended December 2025, reflecting 21.6% growth over the same period last year. Profit after tax stood at Rs 77 crore, up 16.7% compared to last year.
The company’s order book was about Rs 9,000 crore at the end of the period. The pipeline spans railways, aerospace, automotive and industrial segments. Management said some railway orders were deferred but remain part of the backlog.
Expansion remains a key focus. The OSAT facility at Sanand has started operations and received FSA approval under the government framework. Work on the HDI PCB plant in Chennai is underway. Phase 1 investment for OSAT is estimated at Rs 1,700–1,800 crore, while PCB Phase 1 capex is about Rs 1,400 crore.
The company has set a long-term revenue target of $1 billion by FY28. Management indicated that execution and steady ramp-up will determine the pace of growth.
In the past year, share price of Kaynes Technology is down 8.4%.
Kaynes Technology 1 Year Share Price Chart
#4 Netweb Technologies India: The AI Infrastructure Play in India’s High-End Computing Race
Incorporated in 1999, Netweb Technologies India (NTI) is one of India‘s leading high-end computing solutions (HCS) providers, with fully integrated design and manufacturing capabilities.
Netweb Technologies India had a busy December quarter. Demand for AI and high-performance computing systems helped lift revenue, which rose 141% year-on-year to ₹804.9 crore in Q3 FY26. Net profit climbed 146.7% to Rs 73.3 crore.
For the nine-month period, revenue reached Rs 1,409.9 crore, marking 92% growth over last year. Profit after tax rose 90.1% to Rs 135.2 crore. AI systems contributed 64% of quarterly revenue after execution of a large Rs 450.4 crore strategic order.
The company’s organic order book stood at Rs 525.8 crore, while strategic orders were Rs 1,733.6 crore. Management indicated that about one-third of the strategic order is expected to be executed this fiscal.
Netweb remains debt-free and reported net free cash of Rs 190 crore. Management said supply chain planning has helped manage global shortages in memory and storage components.
In the past year, share price of Netweb Technologies India surged 151.7%.
Netweb Technologies India 1 Year Share Price Chart
Analyzing the Fundamentals: EV/EBITDA and Capital Efficiency
Let’s now turn to the valuations of the companies in focus, using the Enterprise Value to EBITDA multiple as a yardstick.
Valuations of Companies in focus
| Sr No | Company | EV/EBITDA Ratio | 5-Year Average EV/EBITDA | ROCE |
| 1 | Dixon Technologies | 27.7 | 62.2 | 40.0% |
| 2 | Syrma SGS Technology | 31.2 | 35.0 | 11.7% |
| 3 | Kaynes Technology | 39.5 | 67.2 | 14.3% |
| 4 | Netweb Technologies | 73.3 | 90.1 | 32.4% |
Dixon Technologies is trading at 27.7 times EV/EBITDA. Syrma SGS Technology is at 31.2 times. Kaynes Technology is at 39.5 times. Netweb Technologies stands out at 73.3 times.
These numbers suggest the stocks are not inexpensive. However, each company is currently trading below its own 5-year average multiple. Dixon’s average is 62.2 times. Kaynes has averaged 67.2 times. Netweb’s long-term average is 90.1 times. Syrma’s is 35 times. This shows valuations have come off earlier peaks.
Return ratios differ across companies. Dixon delivers a ROCE of 40%. Netweb stands at 32.4%. Kaynes and Syrma report 14.3% and 11.7%. Companies with stronger capital efficiency often trade at higher multiples.
The sector has attracted attention due to policy support and rising electronics demand. That optimism is visible in current valuations. Investors should weigh growth potential against the price being paid.
Conclusion
India’s electronics manufacturing story is moving forward in a visible way. Production is rising. Export numbers are improving. Companies are putting money into new plants and expanding into components. The direction of the sector looks encouraging.
At the same time, the stock market has taken note. Many of these companies are no longer trading at modest valuations. Expectations are built in. Growth needs to continue, and execution has to remain steady.
This is where investors need to slow down. Order books, return ratios and balance sheets matter. Not every company will deliver the same outcome.
The opportunity is there. The theme is strong. But returns will depend on how much one pays today and how consistently these businesses deliver in the years ahead.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. 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 educative purposes only.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to deep dive into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
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