Jefferies expects strong growth from Indian electronics manufacturers through FY28

Syrma SGS Technology

06/01/2026 09:29

** Jefferies expects Indian electronics manufacturing services (EMS) firms to deliver strong earnings per share with CAGR of 44% between FY25 and FY28, based on execution

** Indian government's component manufacturing production-linked incentive (PLI) scheme has benefited companies in the segment, according to analysts at Jefferies

** Brokerage prefers Indian component makers over original equipment manufacturers in 2026

** It estimates total capex of Amber Enterprises AMBE.NS, Syrma SGS Technology SYRM.NS, Kaynes Technology India KAYN.NS and Dixon Technologies DIXO.NS to be ~100 bln rupees between FY26 and FY28; RoCE at 15-17%

** AMBE down 0.6%, KAYN and DIXO slip 5.8% and 2.5%, respectively while SYRM adds 0.2%

** Brokerage's top picks:

Company name
Jefferies's rationale
Amber Enterprises AMBE.NS
Strong electronics growth
Syrma SGS Technology SYRM.NS
Product mix improving operating profit margin in recent quarters

 (Reporting by Abhirami G in Bengaluru)

 ((abhirami.g@thomsonreuters.com))