Electronic Manufacturing Services – Jan-Mar’26 Earnings Preview – Revenue Momentum Intact, Margins Soft
Published on 07 Apr 2026
Electronics manufacturing services (EMS) companies under our coverage are expected to post healthy YoY revenue growth of 26.6% in Q4FY26, driven by strong revenue momentum in KAYNES, SYRMA, and AVAL, with YoY revenue growth of ~60.0%, 37.8%, and 21.3%, respectively. We expect margins to contract by 50bps to 9.9% for the EMS universe, while AMBER is likely to witness a correction in margins due to sharp surge in commodity costs and currency depreciation. Overall, EMS companies under our coverage are expected to deliver 26.0% YoY profit growth. Looking ahead, we expect pickup in order book across EMS companies, supported by their strategic focus on higher margin sectors and orders, which should further support margin expansion in the coming quarters. Key changes in ratings/TP: We downward revise our FY27E/FY28E earnings estimates across coverage, except for AMBER and AVALON, while maintaining our existing ratings on all covered companies.
