Electronic Manufacturing Services – Apr-Jun’26 Earnings Preview – Revenue Momentum to Remain Intact, Margins Soft
Published on 06 Jul 2026
Electronics manufacturing services (EMS) companies under our coverage are expected to post healthy YoY revenue growth of 24.2% in Q1FY27, driven by strong revenue momentum in CYIENTDL, SYRMA and AVAL, with YoY revenue growth of 26.4%, 52.1% and 27.0%, respectively. We expect margins to contract by 20bps to 8.8% for the EMS universe. Overall, profit is expected to grow 26.5% YoY. We expect SYRMA to outperform in terms of both revenue and earnings growth. Looking ahead, we expect pickup in order book across companies, supported by their strategic focus on higher margin sectors and orders, which should further support margin expansion in the coming quarters.
We expect our EMS universe to register sales/EBITDA/PAT growth of 24.2%/21.3%/26.5% YoY in Q1FY27, on the back of robust order execution, while margins are likely to contract due to RM cost inflation. We continue our positive view on EMS companies that will see healthy growth and continuous expansion in opportunity market.
