Havells, PG Electroplast, KEI, Amber: EMS continues to shine, says Nuvama

The December quarter of financial year 2025 (Q3FY25) results was a mixed bag for the consumer durables and electrical segments, but the electronic manufacturing services (EMS) sector continued to shine, according to analysts at Nuvama. 

 

While many consumer durables companies reported disappointing earnings, missing their profit estimates due to lower margins, the EMS players exceeded expectations with strong revenue and profit growth.

 

Key consumer durables companies saw a more modest 11 per cent revenue growth year-on-year (Y-o-Y) in Q3FY25, compared to 15 per cent and 14 per cent Y-o-Y growth in the same quarter of the previous year (Q2FY25/Q3FY24). 

 

 

On the other hand, EMS players like Amber Enterprises and PG Electroplast delivered a healthy 92 per cent and 97 per cent Y-o-Y revenue and profit growth, respectively. Their robust performances were driven by strong demand, particularly in sectors like mobile and room air conditioners (RAC).

 

Nuvama’s analysts, Achal Lohade and Harshit Sarawagi, noted that despite a slightly challenging demand environment, companies remain optimistic following recent government announcements regarding tax savings and the upcoming summer season. 

 

"Our preference remains KEI, Polycab, Havells, Amber, PG Electroplast, and Crompton Consumer," they added, highlighting the companies set for continued growth.

 

Here’s what analysts said about these segments:

 

EMS: Robust performance continues

 

EMS companies posted strong growth, with total revenue surging 90 per cent. Leading players like Dixon Technologies, PG Electroplast, and Amber led the charge, with Dixon’s mobile segment showing a 117 per cent Y-o-Y growth. PG Electroplast’s revenue from RAC grew by 180 per cent Y-o-Y, and Amber Enterprises’ consumer durables segment grew 68 per cent Y-o-Y. 

 

Other EMS players, like Kaynes Technology and Syrma SGS, also posted solid growth, with Y-o-Y increases of 30 per cent and 23 per cent, respectively.

 

Analysts noted that EMS companies in the RAC segment benefitted from strong demand from OEMs, who were focused on channel filling. 

 

In addition to this growth, there was a heightened focus on government incentives, particularly the Production Linked Incentives (PLI) scheme, with EMS players seeking more clarity on policy details and cash disbursements. The Nuvama analysts expressed a strong preference for Amber, PG Electroplast, Dixon, and Syrma in this space.

 

Cables and Wires: A mixed bag

 

Cables, a key component of the electrical sector, saw a healthy 13 per cent Y-o-Y growth, primarily driven by double-digit volume increases. 

 

However, the wires segment faced a slower pace due to destocking, with volumes remaining flat Y-o-Y. Despite this, companies in the sector remain optimistic about future growth, especially with strong demand expected from power transmission and distribution, real estate, infrastructure, and data centres.

 

Exports have also shown improvement, both year-on-year (Y-o-Y) and quarter-on-quarter (Q-o-Q), with companies like Polycab and KEI continuing to perform strongly.

 

Small Appliances: Modest growth

 

Small appliances, including home and kitchen products, posted a modest 10 per cent Y-o-Y growth in Q3FY25, lower than the 14 per cent growth seen earlier in the fiscal year, analysts noted. 

 

Home appliances, such as coolers, pumps, and fans, showed mid-single-digit growth, while kitchen appliances lagged behind in the slow lane. 

 

Despite the overall market slowdown, Havells continued to outperform its peers, benefiting from consistent performance across multiple quarters. However, most players have faced challenges maintaining margins due to ongoing investments in advertising, promotions, and distribution amid intense competition.

 

Large appliances: Resilient amid a lean season

 

According to analysts at Nuvama, large appliances also showed steady demand, with room air conditioners (RAC) performing particularly well due to strong primary sales, mostly driven by channel filling efforts. 

 

Both Voltas and Whirlpool managed to gain market share in this segment and are optimistic about their ability to expand further. However, concerns over compressor availability, linked to delays in Bureau of Indian Standards (BIS) renewals for vendors, have become a potential risk to monitor.