Kaynes Tech, PG Electroplast, Syrma SGS, Cyient DLM: What YES Sec says on EMS players
Kaynes Tech is currently focused on tightening execution and improving cash flows rather than pushing near-term growth. PG Electroplast Ltd (PGEL) is prioritising scale and client stickiness over near-term profitability.
- Feb 17, 2026,
- Updated Feb 17, 2026 10:42 AM IST
YES Securities in a Q3 review note on Tuesday said the Indian Electronics Manufacturing Services (EMS) opportunity remains structurally strong, but the quality of growth is diverging across players. The sector, it said, is increasingly bifurcating between integrated, export-led industrial EMS platforms and consumer-durable ODM players exposed to seasonality, inventory cycles, and input volatility.
The domestic brokerage said Kaynes Technology India Ltd is currently focused on tightening execution and improving cash flows rather than pushing near-term growth. PG Electroplast Ltd (PGEL) is prioritising scale and client stickiness over near-term profitability, using the current phase to consolidate its position across RACs, washing machines, TVs and upcoming refrigerator manufacturing. Syrma is moving into a phase where growth and margins are improving together, rather than trading off against each other, YES Securities said.
On Cyient DLM, it said Q3 was affected by tariff-related uncertainty and deferred shipments, though order momentum remains healthy with a rising backlog, in line with management commentary over the last two quarters.
Kaynes Technology YES Securities said the Q3 softness for Kaynes Technology was largely due to project timing, with demand visibility remaining strong, supported by a Rs 9,000 crore order book.
"The business mix is steadily moving toward higher-value areas such as OSAT, advanced PCBs and ODM, which now accounts for about 20 per cent of orders. While working capital is elevated at around 139 days, management has outlined a clear path to reduce this and turn operating cash flows positive," it said.
YES Securities said the management still holds its $1 billion revenue target for FY28, and an implied PAT of roughly Rs 800 crore.
PG Electroplast YES Securities said strong volume growth despite a weak industry backdrop suggests outsourcing is working in its favor, even as margins remain under pressure due to inventory build-up and competitive pricing. Importantly, the inventory skew toward raw materials points more to seasonality preparedness than demand stress.
"With management guiding only single-digit profit growth in FY26, the near-term earnings trajectory looks muted," it said.
Syrma SGS Technology Over the past few quarters, the management has steadily pushed for a better mix, higher exports and more disciplined growth, which is clearly visible in Q3 with industrial, healthcare and ODM-led expansion. The company has also shown restraint in segments like smart metering to protect working capital, while adding a high-margin defense leg through Elcome, YES Securities said.
"The management has been off-late under-promising and over-delivering, thus making the overall setup favorable," it said.
Cyient DLM YES Securities said adjusted margins for Cyient DLM were broadly stable, and low capacity utilisation offered operating leverage as volumes recover, even as the next two quarters could remain soft due to the timing of conversions.
"With B2S ramp-up and a more balanced business mix, the outlook into FY27 improves, but at execution remains key," it said.
YES Securities in a Q3 review note on Tuesday said the Indian Electronics Manufacturing Services (EMS) opportunity remains structurally strong, but the quality of growth is diverging across players. The sector, it said, is increasingly bifurcating between integrated, export-led industrial EMS platforms and consumer-durable ODM players exposed to seasonality, inventory cycles, and input volatility.
The domestic brokerage said Kaynes Technology India Ltd is currently focused on tightening execution and improving cash flows rather than pushing near-term growth. PG Electroplast Ltd (PGEL) is prioritising scale and client stickiness over near-term profitability, using the current phase to consolidate its position across RACs, washing machines, TVs and upcoming refrigerator manufacturing. Syrma is moving into a phase where growth and margins are improving together, rather than trading off against each other, YES Securities said.
On Cyient DLM, it said Q3 was affected by tariff-related uncertainty and deferred shipments, though order momentum remains healthy with a rising backlog, in line with management commentary over the last two quarters.
Kaynes Technology YES Securities said the Q3 softness for Kaynes Technology was largely due to project timing, with demand visibility remaining strong, supported by a Rs 9,000 crore order book.
"The business mix is steadily moving toward higher-value areas such as OSAT, advanced PCBs and ODM, which now accounts for about 20 per cent of orders. While working capital is elevated at around 139 days, management has outlined a clear path to reduce this and turn operating cash flows positive," it said.
YES Securities said the management still holds its $1 billion revenue target for FY28, and an implied PAT of roughly Rs 800 crore.
PG Electroplast YES Securities said strong volume growth despite a weak industry backdrop suggests outsourcing is working in its favor, even as margins remain under pressure due to inventory build-up and competitive pricing. Importantly, the inventory skew toward raw materials points more to seasonality preparedness than demand stress.
"With management guiding only single-digit profit growth in FY26, the near-term earnings trajectory looks muted," it said.
Syrma SGS Technology Over the past few quarters, the management has steadily pushed for a better mix, higher exports and more disciplined growth, which is clearly visible in Q3 with industrial, healthcare and ODM-led expansion. The company has also shown restraint in segments like smart metering to protect working capital, while adding a high-margin defense leg through Elcome, YES Securities said.
"The management has been off-late under-promising and over-delivering, thus making the overall setup favorable," it said.
Cyient DLM YES Securities said adjusted margins for Cyient DLM were broadly stable, and low capacity utilisation offered operating leverage as volumes recover, even as the next two quarters could remain soft due to the timing of conversions.
"With B2S ramp-up and a more balanced business mix, the outlook into FY27 improves, but at execution remains key," it said.