Syrma, Kaynes surge up to 7%; what's driving EMS stocks on Tuesday?

Share price of Syrma, Kaynes today

 

Shares of electronic manufacturing services (EMS) companies, Syrma SGS Technology (up 7 per cent to ₹809.80) and Kaynes Technology India (up 4 per cent at ₹6,995) rallied up to 7 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes in an otherwise weak market.

 

At 11:24 AM; these stocks were trading higher by up to 6 per cent, as compared to 0.44 per cent decline in the BSE Sensex at 84,406. The average trading volumes at these counters jumped over two-fold, as compared to their average trading volumes in the past two weeks. However, these stocks were trading lower up to 11 per cent from their respective 52-week highs.  Meanwhile,  Amber Enterprises, which was down 0.5 per cent at ₹8,429, had hit a 52-week high of ₹8,520.10 on Monday, October 27, 2025.  CATCH STOCK MARKET UPDATES TODAY LIVE

 

What’s driving EMS companies today?

 

The Indian government has approved the first batch of seven projects totaling over ₹5,500 crore under ECMS i.e. electronics components manufacturing scheme. The approvals include four projects by i) Kaynes Circuits India focusing on multi-layer and high-density printed circuit boards (PCBs), camera modules and laminates with total investment of ₹3,280 crore and cumulative production of ₹28,315 crore over 6 years. ii) Syrma: ₹765 crore investment for multilayer PCBs that shall have cumulative production of ₹6,933 crore iii) Amber Enterprises: Under subsidiary Ascent Circuits, investing ₹991 crore that shall have cumulative production of ₹7,847 crore.

 

Under this scheme, companies will get financial incentives i.e. i) turnover linked incentive of 4-8 per cent of incremental sales, depending on component, ii) capex incentive i.e. 25 per cent on capital investment, iii) hybrid incentive of turnover and capex combination. Timely approval by government shall enable the above projects to be executed as planned / guided by the management. 

 

All these investments in the component ecosystem shall improve backward integration, increase value addition as well as enhance margin profile of these companies. These projects have potential to earn EBITDA margin around mid to high teen levels, ICICI Securities said in a note. The brokerage firm has a BUY rating on all 3 companies i.e. Kaynes, Syrma and Amber.

 

From a capital standpoint, FY 2025–26 will be a significant investment year, particularly for Kaynes Semicon, where capex will be deployed across functions, including Outsourced Semiconductor Assembly and Test (OSAT), Automated Test Equipment (ATE), and R&D. While revenue contribution will remain limited in the current year, Kaynes expect profitability from these investments to begin materialising from FY 2026–27.

 

The Indian EMS industry is valued at approximately $55.67 billion in 2025, with the projection to reach $100 billion by 2035, driven by the broader expansion of the EMS. The sectors like automotive electronics on the back of electric vehicles (EVs) and charging infrastructure, Industrials, digitalization, Telecom on the back of 5G infra, are fueling growth in the EMS market and remain core industry drivers.

 

The electronics industry in India is on a promising trajectory, with the country aiming to become a $1 trillion digital economy by CY2026. This anticipated growth is being driven by rapid technological advancements such as the rollout of 5G networks, the expansion of the Internet of Things (IoT) and evolving businesses and consumer preferences with rising incomes, Syrma said in its FY25 annual report.