EMS Q1 Results Preview: Moderate Growth, But Margins To Expand Projects PL Capital

Looking ahead, PL Capital expects pickup in order book across electronic manufacturing services companies, supported by their strategic focus on higher margin sectors and orders, which should further support margin expansion in the coming quarters..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..PL Capital Report.Electronics manufacturing services companies under our coverage are expected to post moderate YoY revenue growth in Q1 FY26, due to single-digit growth in Cyient Ltd. and revenue decline in Syrma. In contrast, Kaynes and Avalon are likely to continue their strong momentum, with YoY revenue growth of 50% and 30%, respectively. Profitability is set to improve sharply, with margin expansion across the board driven by increasing exposure to highmargin segments. We estimate ~390 bps YoY expansion in Ebitda margin and 59.1% YoY growth in PAT for our EMS coverage universe in Q1 FY26. Looking ahead, we expect pickup in order book across EMS companies, supported by their strategic focus on higher margin sectors and orders, which should further support margin expansion in the coming quarters. We expect our EMS universe to register sales/Ebitda/PAT growth of 7.5%/73.5%/59.1% YoY in Q1 FY26, on the back of robust order execution and margin improvement led by cost rationalization and increased contribution from high-margin segments. We continue our positive view on EMS companies that will see healthy growth and continuously expanding opportunity market..Click on the attachment to read the full report:.Buy Sun Pharma, Add Metropolis Lists HDFC Securities Among Others In Pharma, Healthcare; Q1 Results Preview.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

EMS Q1 Results Preview: Moderate Growth, But Margins To Expand Projects PL Capital

Avalon, Cyient DLM, Kaynes, Syrma are expected to see margin improvements of ~740/20/120/420bps YoY.

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