Archive · 15 Jan 2026
EMS Sector Faces Growth Moderation
The Indian electronic manufacturing services (EMS) sector is going through a phase of slower growth.
Companies like Dixon Technologies, Kaynes Technologies, and PG Electroplast have seen their stock prices fall because of this.
Dixon Technologies reported strong revenue and profit growth, but some of its business areas, like TVs and refrigerators, did not do well.
Kaynes Technologies is growing but faces issues with how it reports its finances.
PG Electroplast is struggling because fewer air conditioners are being sold.
Despite these problems, all three companies are planning to grow in the future by making more products and entering new markets.
Investors are worried, but the companies are hopeful that things will improve.
Dixon Technologies reported 56% revenue growth and 86% net profit growth in H1FY26, but faced slowdowns in consumer electronics and appliances.
Kaynes Technologies saw 47% revenue growth and 77% net profit growth in H1FY26, but faces transparency concerns and working capital stress.
PG Electroplast experienced a 2.4% revenue decline and 85.7% net profit decline in Q2FY26 due to a slowdown in the air conditioner market.
All three companies are planning significant investments and expansions to drive future growth.
Valuations have corrected but remain above historical medians, with investors concerned about short-term pressures and execution risks.
- Who
- Leading Indian electronic manufacturing services (EMS) companies: Dixon Technologies, Kaynes Technologies, and PG Electroplast
- What
- Moderation in growth and valuation correction in the EMS sector
- When
- Current fiscal year (FY26) and future projections
- Where
- India
- Why
- High base effects, temporary demand softness, working capital pressures, and valuation fatigue
- Dixon Technologies Revenue Growth (FY26 H1)
- 56% year-on-year to ₹28,188 crore
- Dixon Technologies EBITDA Growth (FY26 H1)
- 128% to ₹1,541 crore
- Dixon Technologies Net Profit Growth (FY26 H1)
- 86% to ₹1,026 crore
- Kaynes Technologies Revenue Growth (H1FY26)
- 47% year-over-year to ₹1,580 crore
- Kaynes Technologies EBITDA Growth (H1FY26)
- 75% to ₹261 crore
- Kaynes Technologies Net Profit Growth (H1FY26)
- 77% to ₹196 crore
- PG Electroplast Revenue Decline (Q2FY26)
- 2.4% year-on-year to ₹655.4 crore
- PG Electroplast Net Profit Decline (Q2FY26)
- 85.7% to ₹2.8 crore