Budget 2026: Dixon, Kaynes, Amber, Syrma among EMS shares to watch on Feb 1; here's why

As the Union Budget 2026 draws near, all eyes are on battered stocks from Electronics Manufacturing Services (EMS) sector such as Dixon Technologies Ltd, Kaynes Technology India Ltd, Amber Enterprises India Ltd and Syrma SGS Technology Ltd.

There are expectations of customs duty rationalisation and tariff reforms in the Budget, which may reduce input costs for electronics production. The market, Nuvama Institutional Equities said, is seeking extension or expansion of PLI incentive schemes for electronics and related manufacturing.

Besides, the sector is expecting increased budgetary allocation for Electronic Component Manufacturing Scheme (ECMS) in a bid to strengthen local component production. Policy support to deepen India’s electronics supply chain and exports are also eyed.

Data showed Kaynes Technology shares are down 48.74 per cent in the past three months. Dixon Tech has plunged 33.16 per cent during the same period. Amber Enterprises has tumbled 29.31 per cent while Syrma SGS Technology Ltd has declined 7.47 per cent for the period mentioned.

Nuvama noted that EMS and electronics manufacturing remain priority sectors for the government. It expects policy continuity, incremental tariff rationalisation, and supportive capex signalling, leading to positive structural tailwinds. It said new schemes or any favourable changes in PLIs will be positive for EMS sector. Improved duty structure and ecosystem support could enhance margin visibility and scale-up, it said.

Antique Stock Broking said any extension of PLI scheme benefits this Budget may benefit companies such as Kaynes Technologies Ltd, Syrma, Avalon and Cyient DLM. 
 
Emkay Global also sees high probability of extension on PLI scheme. Any such move will boost manufacturing scale, crowds in private capex, and strengthen medium-term growth, it said.

It said exports-linked PLI for mobiles and positive reinforcement in IT hardware PLI will be positive for Dixon Tech. Any upward revision in in the PLI allocation for white goods will be positive for Amber Enterprises and LG Electronics.