India’s semiconductor business is gaining momentum, supported by sturdy progress within the electronics manufacturing companies (EMS) sector. Firms like Kaynes Expertise and Syrma SGS are increasing quickly with new investments and initiatives. On this article, we evaluate their steering, capex plans, order e book power, and monetary highlights to see who’s taking the lead in semiconductor progress.
With a market capitalization of Rs. 45,849.36 crore, the shares of Kaynes Expertise India Restricted had been at present buying and selling at Rs. 6,839.65 per fairness share. Equally, with a market capitalization of Rs. 15,994.73 crore, the shares of Syrma SGS Expertise Restricted had been at present buying and selling at Rs. 831.05 per fairness share.
Administration Steering
Kaynes Expertise has given a robust income outlook for FY26, concentrating on Rs. 4,500 crore. Most of this may come from its core EMS/ESDM enterprise (Rs. 4,250 crore), together with contributions from the OSAT enterprise (Rs. 100 crore) and its Canadian acquisition (Rs. 175 crore). The corporate expects aerospace to contribute round 8 p.c of income and railways to succeed in 10–12 p.c for FY26.
The corporate additionally expects its profitability to enhance, with EBITDA margins above 16 p.c, supported by a greater product combine and value effectivity. Administration is assured of assembly this steering, with a giant income ramp-up anticipated from Q2 FY26, the place EMS income alone is projected to cross Rs. 1,000 crore.
Equally, Syrma SGS Expertise has guided for a 30-35 p.c year-on-year income progress in FY26, reflecting sturdy demand throughout its key enterprise segments. The corporate expects to keep up an working EBITDA margin of 8.5-9 p.c.
Moreover, administration plans to maintain the buyer electronics enterprise capped at round 30 p.c of annual income, guaranteeing balanced progress throughout automotive, industrial, healthcare, IT, and railway segments.
Q1 FY26 End result Walkthrough
Coming into the quarterly outcomes of Kaynes Expertise India Restricted, the corporate’s consolidated income from operations elevated by 33.53 p.c YOY, from Rs. 504 crore in Q1 FY25 to Rs. 673 crore in Q1 FY26, and decreased by 31.61 p.c QoQ from Rs. 984 crore in This autumn FY25.
In Q1 FY26, Kaynes Expertise India Restricted’s consolidated web revenue elevated by 47.06 p.c YOY, reaching Rs. 75 crore in comparison with Rs. 51 crore throughout the identical interval final yr. As in comparison with This autumn FY25, the online revenue has decreased by 35.34 p.c, from Rs. 116 crore.
Correspondingly, Syrma SGS Expertise Restricted’s consolidated income from operations decreased by 18.62 p.c YOY, from Rs. 1,160 crore in Q1 FY25 to Rs. 944 crore in Q1 FY26, and elevated by 2.16 p.c QoQ from Rs. 924 crore in This autumn FY25.
In Q1 FY26, Syrma SGS Expertise Restricted’s consolidated web revenue elevated by 150 p.c YOY, reaching Rs. 50 crore in comparison with Rs. 20 crore throughout the identical interval final yr. As in comparison with This autumn FY25, the online revenue has decreased by 29.58 p.c, from Rs. 71 crore.
Order Ebook
Kaynes Expertise is witnessing sturdy enterprise momentum, with its order e book increasing from Rs. 6,596.90 crore in This autumn FY25 to Rs. 7,401.10 crore in Q1 FY26, highlighting rising demand and a wholesome pipeline of upcoming initiatives.
Correspondingly, Syrma SGS holds an open order e book of Rs. 5,400 crore, supported by sturdy multi-sector demand. Automotive contributes 35-40 p.c, client electronics 25-27 p.c, industrials 25-27 p.c, and healthcare 6-8 p.c, with the steadiness from IT and Railways, guaranteeing a well-diversified income base.
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Capex Plans
Kaynes Expertise is making regular progress on its enlargement initiatives. The corporate has acquired Union Cupboard approval to arrange India’s fifth semiconductor facility in Sanand, Gujarat. With an funding of Rs. 3,400 crore, the ATMP unit will produce 6.3 million chips each day.
As well as, the HDI PCB plant can also be transferring forward, with a capex of Rs. 1,400 crore. These investments replicate Kaynes’ deal with strengthening its manufacturing capabilities and supporting future progress.
Moreover, Kaynes Expertise India Restricted, its wholly owned subsidiary, Kaynes Circuits India Non-public Restricted, has entered right into a Memorandum of Understanding (MoU) with the Authorities of Tamil Nadu. The MoU particulars a proposed funding of round Rs. 4,995 crore over the subsequent six years
Likewise, Syrma SGS has outlined its Section-1 CAPEX plan of about $91 million, which might be deployed steadily over the subsequent three to 4 years. For the EMS enterprise, the corporate expects the full-year CAPEX to stay managed at lower than Rs. 100 crore in FY26, guaranteeing disciplined investments whereas supporting progress.
As well as, the corporate has introduced a capex plan of Rs. 1,800 crore to arrange a PCB manufacturing unit and a copper-clad laminate facility in Andhra Pradesh.
Firm Overview
Kaynes Expertise India Restricted was based in 1988 and is a distinguished electronics producer that delivers end-to-end options spanning automotive, aerospace, healthcare, and different sectors. The corporate presents design, manufacturing, and lifecycle administration companies, backed by a number of certifications and a robust presence by means of its amenities throughout India.
Alternatively, Syrma SGS Expertise Restricted was included in 2004 and is headquartered in Chennai. The corporate is a well-established electronics manufacturing companies (EMS) supplier. It focuses on digital system design and manufacturing, with experience in areas akin to product engineering, RFID-based options, and MedTech units, catering to each home and international markets.
Written By – Nikhil Naik
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