India’s semiconductor industry is gaining momentum, supported by strong growth in the electronics manufacturing services (EMS) sector. Companies like Kaynes Technology and Syrma SGS are expanding rapidly with new investments and projects. In this article, we compare their guidance, capex plans, order book strength, and financial highlights to see who is taking the lead in semiconductor growth.
With a market capitalization of Rs. 45,849.36 crore, the shares of Kaynes Technology India Limited were currently trading at Rs. 6,839.65 per equity share. Similarly, with a market capitalization of Rs. 15,994.73 crore, the shares of Syrma SGS Technology Limited were currently trading at Rs. 831.05 per equity share.
Management Guidance
Kaynes Technology has given a strong revenue outlook for FY26, targeting Rs. 4,500 crore. Most of this will come from its core EMS/ESDM business (Rs. 4,250 crore), along with contributions from the OSAT business (Rs. 100 crore) and its Canadian acquisition (Rs. 175 crore). The company expects aerospace to contribute around 8 percent of revenue and railways to reach 10–12 percent for FY26.
The company also expects its profitability to improve, with EBITDA margins above 16 percent, supported by a better product mix and cost efficiency. Management is confident of meeting this guidance, with a big revenue ramp-up expected from Q2 FY26, where EMS revenue alone is projected to cross Rs. 1,000 crore.
Similarly, Syrma SGS Technology has guided for a 30-35 percent year-on-year revenue growth in FY26, reflecting strong demand across its key business segments. The company expects to maintain an operating EBITDA margin of 8.5-9 percent.
Additionally, management plans to keep the consumer electronics business capped at around 30 percent of annual revenue, ensuring balanced growth across automotive, industrial, healthcare, IT, and railway segments.
Q1 FY26 Result Walkthrough
Coming into the quarterly results of Kaynes Technology India Limited, the company’s consolidated revenue from operations increased by 33.53 percent YOY, from Rs. 504 crore in Q1 FY25 to Rs. 673 crore in Q1 FY26, and decreased by 31.61 percent QoQ from Rs. 984 crore in Q4 FY25.
In Q1 FY26, Kaynes Technology India Limited’s consolidated net profit increased by 47.06 percent YOY, reaching Rs. 75 crore compared to Rs. 51 crore during the same period last year. As compared to Q4 FY25, the net profit has decreased by 35.34 percent, from Rs. 116 crore.
Correspondingly, Syrma SGS Technology Limited’s consolidated revenue from operations decreased by 18.62 percent YOY, from Rs. 1,160 crore in Q1 FY25 to Rs. 944 crore in Q1 FY26, and increased by 2.16 percent QoQ from Rs. 924 crore in Q4 FY25.
In Q1 FY26, Syrma SGS Technology Limited’s consolidated net profit increased by 150 percent YOY, reaching Rs. 50 crore compared to Rs. 20 crore during the same period last year. As compared to Q4 FY25, the net profit has decreased by 29.58 percent, from Rs. 71 crore.
Order Book
Kaynes Technology is witnessing robust business momentum, with its order book expanding from Rs. 6,596.90 crore in Q4 FY25 to Rs. 7,401.10 crore in Q1 FY26, highlighting rising demand and a healthy pipeline of upcoming projects.
Correspondingly, Syrma SGS holds an open order book of Rs. 5,400 crore, supported by strong multi-sector demand. Automotive contributes 35-40 percent, consumer electronics 25-27 percent, industrials 25-27 percent, and healthcare 6-8 percent, with the balance from IT and Railways, ensuring a well-diversified revenue base.
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Capex Plans
Kaynes Technology is making steady progress on its expansion projects. The company has received Union Cabinet approval to set up India’s fifth semiconductor facility in Sanand, Gujarat. With an investment of Rs. 3,400 crore, the ATMP unit will produce 6.3 million chips daily.
In addition, the HDI PCB plant is also moving ahead, with a capex of Rs. 1,400 crore. These investments reflect Kaynes’ focus on strengthening its manufacturing capabilities and supporting future growth.
Furthermore, Kaynes Technology India Limited, its wholly owned subsidiary, Kaynes Circuits India Private Limited, has entered into a Memorandum of Understanding (MoU) with the Government of Tamil Nadu. The MoU details a proposed investment of around Rs. 4,995 crore over the next six years
Likewise, Syrma SGS has outlined its Phase-1 CAPEX plan of about $91 million, which will be deployed gradually over the next three to four years. For the EMS business, the company expects the full-year CAPEX to remain controlled at less than Rs. 100 crore in FY26, ensuring disciplined investments while supporting growth.
In addition, the company has announced a capex plan of Rs. 1,800 crore to set up a PCB manufacturing unit and a copper-clad laminate facility in Andhra Pradesh.
Company Overview
Kaynes Technology India Limited was founded in 1988 and is a prominent electronics manufacturer that delivers end-to-end solutions spanning automotive, aerospace, healthcare, and other sectors. The company offers design, production, and lifecycle management services, backed by multiple certifications and a strong presence through its facilities across India.
On the other hand, Syrma SGS Technology Limited was incorporated in 2004 and is headquartered in Chennai. The company is a well-established electronics manufacturing services (EMS) provider. It focuses on electronic system design and manufacturing, with expertise in areas such as product engineering, RFID-based solutions, and MedTech devices, catering to both domestic and global markets.
Written By – Nikhil Naik
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