Electronic Manufacturing Services – Jul-Sep’25 Earnings Preview – EMS continues to see strong growth, CM subdued
Published on 07 Oct 2025
Electronics manufacturing services (EMS) companies under our coverage are expected to post strong YoY revenue growth in Q2FY26, due to decline in AMBER revenue. KAYNES, SYRMA and AVAL are likely to continue their strong momentum, with YoY revenue growth of 57%, 30% and 27%, respectively. Profitability is set to improve sharply, with margin expansion across the board driven by increasing exposure to high-margin segments. We estimate ~60bps YoY expansion in EBITDA margin and ~30% YoY growth in PAT for our EMS coverage universe in Q2FY26. Looking ahead, we expect pickup in order book across EMS companies, supported by their strategic focus on high-margin sectors and orders, which should further support margin expansion in the coming quarters.
