The global shift in electronics manufacturing (EMS) is creating one of the biggest opportunities for India’s Electronics System Design and Manufacturing (ESDM) industry.
As global companies diversify their supply chains beyond China, India is emerging as a preferred manufacturing hub, backed by policy incentives and an expanding engineering ecosystem.
The numbers reflect this structural shift. India’s EMS market is projected to more than triple from US$29 billion in FY24 to US$97 billion by FY29. At the same time, India’s share of the global EMS market is expected to expand from 3.8% in 2023 to 7.7% by 2028. This highlights the country’s growing role in the global electronics supply chain.
Market Transitions: Evaluating the Pivot From Assembly to High-Value Design
But the opportunity is no longer limited to low-margin, high-volume manufacturing. Now, some companies like Syrma SGS and Avalon Technologies are moving beyond assembly work. This is because customers today are looking for partners that can design products, build complete systems, and handle complex manufacturing under one roof.
These are high-margin and relatively low-volume businesses. This shift is opening the door to opportunities in sectors like defence, aerospace, medical devices, telecommunications, AI data centres, and industrial electronics.
As a result, companies with specialized capabilities are standing out from traditional low-margin EMS players. Against this backdrop, we compare two companies that are taking different approaches to capture India’s next phase of electronics manufacturing growth.
What Sets Them Apart?
First, is Aimtron Electronics, which is looking to more than triple its revenue to ₹1,000 crore. The other company is Centum Electronics, which currently clocks ₹973 crore in revenue.
Here is a quick snapshot of their key metrics:-
| Particulars | Centum Electronics | Aimtron Electronics |
| What is changing | Higher BTS Mix | Shift to Higher-Value ODM |
| Growth Driver | Defence Orders | Data Centers, Railways, Telecom |
| Key Catalyst | AESA Radar Program | US Acquisition + 3x Revenue Target to ₹1,000 Crore |
| Biggest Risk | Lumpy Defence Execution | Cash Flow and Integration |
| What to Watch | BTS Share of Revenue | Margin Sustainability and Order Conversion |
| Source: Company Earnings Call, Investor Presentation | ||
#1 Centum Electronics: From Space Satellites to Electronic Warfare
Centum Electronics is a comprehensive solutions provider in the electronics sector, handling projects from initial conceptualization through mass production and commissioning. Its operations are divided into two primary business segments: Electronics Manufacturing Services (EMS) and Build-To-Specification (BTS).
Core Segment Dynamics: Unpacking the EMS and BTS Split
The EMS segment manufactures high-reliability and highly complex electronic products. The product portfolio ranges from printed circuit board assemblies to complex box builds and full system integrations. It caters to industries such as defence, aerospace, industrial control, healthcare, and electric mobility.
The industry and energy sector accounted for 50% of the revenue in FY26, while defence, space, and aerospace contributed 32%, transportation and automotive 11%, and healthcare 7%. Europe & UK is the dominant market, accounting for 47% of standalone revenue, followed by India (32%) and North America and the Rest of the World (21%).
BTS is a specialized, project-driven segment where Centum designs and builds mission-critical solutions. Its product portfolio spans Earth observation satellite subsystems, electronic warfare payloads, multi-function radar subsystems, and missile control and guidance systems for the space and defence sectors.
Strategic Capital Allocation: Divestments and R&D Scaling
Centum’s key expansion strategy involves exiting its underperforming subsidiaries in Canada and France. By divesting its stakes, management is realigning its capital allocation and focusing on scaling up its profitable core Indian ESDM platform.
Further, it is expanding its footprint by moving up the value chain to deliver complete, turnkey systems rather than just supplying subsystems. This includes deep strategic collaborations with academic institutions, defence OEMs, and startups to build end-to-end proprietary technology.
To support its expansion, Centum continues to invest in capacity. It plans to invest ₹40-45 crore in FY27. Approximately 50% of this will be specifically allocated to strengthening the Research and Development capabilities of the high-margin BTS segment.
Backlog Analysis: Assessing Turnkey Order Book Visibility
Future revenue visibility and margin expansions are anchored by several key business triggers. The company closed FY26 with a standalone order book of ₹1,644.8 crores, up 23% YoY, which provides strong revenue visibility of around 1.5 years.
Another trigger is scaling up the BTS business. Currently, EMS accounts for 72% of its standalone revenue, with the remaining 28% coming from BTS. Centum is rapidly growing its BTS revenue and is actively working to further expand it as a key component of its future growth strategy. In FY26, the BTS segment delivered robust year-over-year revenue growth of 37%.
The standalone revenue of the BTS segment has been rising in recent years, growing from ₹146.7 crore in FY23 to ₹201.8 crore in FY25 and reaching ₹277.0 crore in FY26. This was driven by an expanding order book (₹864.2 crore in FY26), which grew 2.3x during this period. Thus, continued expansion could enhance margin.
High-Value Order Wins: Tracking the Turnkey Radar Portfolio
Within BTS, Centum recently secured an end-to-end Active Electronically Scanned Array radar program from Hindustan Aeronautics Limited for the Utility Helicopter platform. This is a multi-year turnkey order of over ₹570 crore over the project’s life cycle. Its second order win was a complete radar system order worth around ₹30 crore for space debris tracking.
That said, BTS business operates at a higher margin (Earnings Before Interest, Tax, Depreciation and Amortisation, EBITDA), at around 20% compared to the EMS segment (9-11%). As the BTS segment’s revenue share increases, margins and profitability could expand.
Financial Statements: Exceptional Impairments Mute Operational Surge
Overall, the management targets a medium-term standalone revenue growth rate of 25-30% and an EBITDA margin of 13-15%. This is in line with its recent performance. Its revenue in FY26 grew by 25% year-on-year to ₹973.1 crore. EBITDA rose by 28% to ₹120.9 crore with margins at 12.4%.
However, due to a one-time exceptional loss of ₹203.3 crore, it reported a loss of ₹117.1 crore in FY26. An impairment of ₹203.3 crore due to underperforming overseas subsidiaries reduced the company’s standalone profit.
Additionally, the core EMS segment battle margin pressures and supply chain bottlenecks for critical components. Finally, the BTS business struggles with delayed, lumpy orders and potential conflicts with legacy clients.
#2 Aimtron Electronics: Eyes 3X Revenue Jump
Aimtron Electronics is an ESDM firm specializing in Original Design Manufacturer (ODM)-led services. Aimtron’s strength is its focus on high-mix, high-value electronics.
End-to-End Vertical Integration in High-Mix ESDM
Aimtron acts as a vertically integrated one-stop shop. The company supports clients through the entire product lifecycle, starting from initial conceptualization and design engineering to rapid prototyping, pilot production, and full-scale mass manufacturing.
They have an in-house design team that provides comprehensive solutions across hardware, software, firmware, and mechanical engineering. This enables them to either develop products from scratch or assist clients by leveraging existing intellectual property.
Segment Performance: Box Builds Drive Core Revenue Share
Its core manufacturing capabilities range from complex Printed Circuit Board Assemblies (PCBA) to full Box Build system integrations. A Box Build involves taking the manufactured electronics and fully integrating them with cables, parts, and outer enclosures into a finished, ready-to-use product. Box Build constitutes 68.8% of the company’s revenue in FY26, while PCBA (28.6%).
Aimtron serves a diverse set of industries, including Aerospace and defence, Railways, Medical and Healthcare, Telecommunications, Automotive, power, data centers, and Electric Vehicle mobility. Given its exposure to fast-growing sectors, the management aims to increase total revenue to ₹1,000 crore over the next 3-5 years at a 40-50% CAGR, up from ₹301 crore in FY25.
In-House Acquisitive Triggers: Unlocking North American Agrotech Markets
This growth will be fueled by several sector-specific drivers. It acquired a Decatur, Illinois-based company (now AIC). Its expertise lies in product ruggedization and electronics designed to survive harsh conditions.
This unlocks immediate access to major American OEMs in heavy engineering and Agrotech (like Caterpillar and John Deere). AIC is projected to contribute ₹280-300 crore in long-term annual revenue.
Scaling Core Infrastructure: Entering the 5G and Data Center Markets
Aimtron also entered the data center market with a breakthrough $12 million order from an Ohio-based Fortune 500 company to design and manufacture UPS battery backup systems. It is currently manufacturing 1kilovolt (kV) to 3kV variants, with plans to scale up to 20kV systems.
Aimtron has also applied for the Government of India’s Electronics Component Manufacturing Scheme to manufacture Small Form-Factor Pluggable optical transceivers with capacities ranging from 1G to 40G.
Expanding the Technological Moat: From UAVs to Smart Dashboard Vision
The company aims to capitalize on the rapidly growing demand driven by 5G network expansion and data center networking. It is also manufacturing Wi-Fi 6 and Wi-Fi 7 networking equipment.
Further, the company is aggressively pushing into the drone and UAV space. Its Printed Circuit Board Assembly was utilized in drones showcased at the 2026 Republic Day parade. It is now exploring expansions into complex payload systems and camera module box builds.
Regulatory Horizons: Kavach Integration and Safety Integrity Levels
On the Indian Railways side, Aimtron is awaiting the final approvals from the Research Designs and Standards Organisation for Kavach. It will manufacture systems that meet Safety Integrity Level-4 standards, mainly for collision prevention (Kavach) and fail-safe signaling electronics.
To capitalise on the rapidly growing surveillance equipment market, Aimtron is also scaling production of an AI-enabled dashboard smart vision camera. It initially plans to deploy 50,000 units for the Gujarat State Road Transport Corporation, with potential for pan-India rollouts.
Asset Optimization: Handling Scaling Demand Without Immediate Capital Outlay
Aimtron is expanding its infrastructure to handle these demands and expanding its product portfolio. The company currently operates 9 SMT (Surface-Mount Technology) lines across its facilities. Management states it can comfortably handle ₹800- ₹900 crore in revenue without requiring additional capital expenditure.
However, to support complete system integration, the company is building a new plant in Vadodara, Gujarat. This facility will move sheet-metal and injection-molding manufacturing capacity in-house. The setup is expected to be operational by Q4FY27. Thereafter, two new SMT lines (expandable to four) will be launched.
Backward Integration: Insourcing Sheet-Metal and Cable Assemblies
Through backward integration, it also plans to integrate cable assembly lines to reduce supplier dependence and improve margins. Looking ahead, Aimtron has strong revenue visibility.
As of March 2026, the company’s standalone open order book stood at ₹521.2 crore, about 1.7x its FY26 revenue. If the recent US acquisition is factored in, the combined group order book is around ₹600 crore. Furthermore, it has an active Request for Quotation pipeline of roughly US $70 million (around ₹665 crore).
Forensic Financial Audit: Unpacking Triple-Digit Growth Against Working Capital Drags
The company’s financial performance was also strong. Revenue from operations rose by 89.2% year-on-year to ₹301.2 crore. EBITDA rose by 93.6% to ₹65.8 crore, with the margin improving to 21.8%. Net profit grew by 79.4% to ₹46 crore. However, higher profitability has not translated into cash flow.
The company generated a negative cash flow of ₹40 crore in FY26 due to aggressive growth and the acquisition of AIC. Management noted that cash flows are unlikely to stabilize fully until the company reaches its ₹1,000 crore revenue milestone. AIC’s lower margin (approximately 11%) could reduce the overall margin, given that Aimtron’s current margin is around 20-22%.
Valuation Realities: Do Premium Multiples Justify Long-Term Opportunity?
Aimtron generates a higher Return on Capital Employed (ROCE) than Centum, reflecting superior capital efficiency. In contrast, Centum’s Return on Equity (ROE) is higher, indicating better returns for equity shareholders.
Valuation-wise, both companies are trading at a premium to the industry average. However, Centum is currently trading below its three-year historical valuation multiple, whereas Aimtron is trading broadly in line with its three-year historical average.
| Valuation Comparison (X) | ||||
| Company | P/E | 3Y Median P/E | ROCE (%) | ROE (%) |
| Aimtron | 56.9 | 53.3 (2Y) | 27.6 | 23.6 |
| Centum | 53.2 | 94.8 | 25.6 | 26.9 |
| Industry Median | 31.9 | NA | 14.4 | 11.5 |
| Source: Screener.in (Data as of 17 June 2026) | ||||
With India’s EMS market expected to expand more than triple by FY29, and the country’s global market share set to double to 7.7% by 2028, the long-term opportunity is evident. However, not every EMS company will benefit equally.
As the industry shifts toward design-led and high-value manufacturing, execution, technological capabilities, and the ability to move up the value chain will determine the long-term winners. However, with valuations already reflecting high expectations, these names could be kept in your watchlist.
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 were not available have we used an alternative, 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.
Madhvendra has over seven years of experience in the equity markets, combining his expertise in financial writing with a deep interest in investing. 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.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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