India’s electronics manufacturing services industry is entering a new phase. Earlier, attention centred on government incentives and the China plus one strategy. Now investors are focusing on profitability, order quality and sustainable value creation. Two firms, Syrma SGS Technology and Avalon Technologies, have emerged as strong performers. Syrma has staged a sharp recovery after weakness, reporting four consecutive quarters of rising revenue. In Q1 FY27, its growth touched 68% year on year. Avalon has also delivered nearly 50% growth, with revenue climbing from ₹323 crore to ₹484 crore within a year.
Margins highlight their difference. Avalon steadily improved its operating margin from 9.2% to 12%, showing efficiency and stability. Syrma’s margins have been more volatile, peaking at 12.6% before easing to 10.2%. Both companies are expanding into high‑value industries such as automotive, defence, aerospace, clean energy and healthcare. These sectors demand reliability and create long‑term customer relationships. Syrma holds an order book of ₹6,770 crore, while Avalon has ₹2,208 crore plus long‑term contracts worth ₹1,256 crore.
Cash flow remains crucial. Syrma has stronger conversion while Avalon is improving gradually. With valuations high, investors are watching margins, cash generation and order execution closely. India’s EMS story is now about complexity, customer stickiness and sustainable value.
