EMS Ltd. Share Price

Dixon Technologies: Shift from devices to infrastructure

Dixon Technologies (NSE: DIXON) is India’s largest EMS company, making smartphones, TVs, washing machines, lighting, CCTVs, and wearables for Samsung, Motorola, and Xiaomi. In FY26, consolidated operating revenue was Rs 48,872.8 crore, up 25.8% YoY. What happened: FY26 reported net profit was Rs 1,438.6 crore (+31.3% YoY), but adjusted profit -- net of minority interest and non-recurring items -- was Rs 845 crore (+20% YoY). Smartphones remain the largest revenue contributor; telecom revenue is not separately disclosed. Two Q2 FY27 deals changed the picture: on September 30, Dixon signed an IP licensing agreement with Aviat Networks to locally manufacture microwave backhaul radios; on October 7, a 60:40 JV with Taiwan’s Gemtek to make optical transceivers for telecom networks and data centres. Why it matters: Dixon has been a consumer-side EMS player. Backhaul radios and optical transceivers are network infrastructure, not customer-premise equipment. India’s telecom equipment market is projected to grow from $25 Bn in FY25 to $50 Bn by FY32 (KPMG). Even a small share at the network layer would be far higher-margin than assembling phones. What I am watching: Q2 FY27 results for any telecom revenue disclosures, order ramp from the Gemtek JV, and whether adjusted profit growth holds above 20%. My stance: The headline profit flatters; Rs 845 crore adjusted is the number to track. The Aviat and Gemtek deals are early-stage but signal a deliberate move up the value chain into network hardware. At current valuations, the market prices in EMS growth; the upside requires these bets to generate meaningful revenue by FY28. I do not hold a position in Dixon Technologies at the time of writing. This is not investment advice.

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buy on dips strategy to be followed in correction

Latest reported closing price: ₹6,445 on 9 October 2026. The stock declined 1.68% during the session and remained well below its 52-week high of approximately ₹8,974. 1. Company Overview Amber Enterprises India Limited is a major Indian manufacturer serving the room air conditioner and consumer durables industry. Its operations also include electronics manufacturing and components used in various industries. The company may benefit from rising air-conditioning penetration, increasing demand for consumer durables, domestic manufacturing and the expansion of electronics manufacturing services (EMS). However, the business is exposed to seasonal demand, competition, raw-material costs, working-capital requirements and execution risks. 2. Latest Financial Performance Amber Enterprises reported consolidated revenue of approximately ₹3,887.72 crore in Q1 FY2026–27, an increase of 12.72% year-on-year. However, operating profit declined 24.39% to ₹188.87 crore, while net profit fell 97.08% to ₹3.09 crore. BSE 6,585.20 3. Fundamental Analysis and Valuation For FY2025–26, Amber Enterprises reported revenue of approximately ₹12,186 crore and net profit of ₹226.45 crore. Revenue increased around 22.19% year-on-year, while net profit declined approximately 9.83%. BSE 6,585.20 The company therefore faces an important challenge: converting its expanding revenue base into stronger earnings. 4. Technical Analysis: Important Price Zones Based on the available market data, the following are observation zones, not confirmed chart-derived support and resistance levels. Price zone Technical significance ₹6,600–₹6,850 Potential resistance area to monitor ₹6,300–₹6,400 Near-term price stability zone to watch ₹5,800–₹6,000 Lower support area for monitoring ₹5,400–₹5,450 Major reference zone near the 52-week low

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Centum Electronics: Rs 1,797 cr order book and a Buy call

Centum Electronics (NSE: CENTUM) designs and manufactures electronics for aerospace, defence and space. Its products span embedded computers, actuator controllers, AC/DC converters and line-replaceable units. It has a 10-year-plus Thales relationship and supplies electronics for the Rafale, A380, A350, B787 and AW189. What happened: Q1 FY27 standalone revenue was Rs 204.8 crore (+10.7% YoY, -40.5% QoQ); continuing-operations PAT fell 12.9% to Rs 13.5 crore. Build-to-Specification (BTS) was Rs 56.6 crore, EMS Rs 148.2 crore (EMS +20% YoY). The consolidated headline PAT of Rs 105.5 crore includes a Rs 94.3 crore one-off gain from the court-approved deconsolidation of Centum T&S Group and French subsidiaries on 4 June 2026; recurring PAT from continuing operations was Rs 11.2 crore. Why it matters: The standalone order book was Rs 1,797.2 crore at Q1 FY27-end, up 31% YoY; BTS orders rose over 40%. A key win: Rs 66 crore Phase-I HAL order for AESA radar for the Utility Helicopter-Maritime platform, with Phase-II serial production potential of around Rs 500 crore. Revenue spanned India 46%, North America 31% and Europe & UK 23%. BTS margins of 18-20%+ versus EMS margins of 9-10% make the BTS mix the key earnings lever. What I am watching: BTS revenue share rising within the Rs 1,797 crore order book, the Rs 66 crore AESA radar execution and Phase-II conversion, and debt reduction from the current Rs 122 crore standalone borrowings. My stance: ICICI Securities initiated with a Buy and a Rs 5,900 target, implying 42% upside from Rs 4,157.50. The story makes sense if BTS scales. But the historical net-profit record has been uneven. I do not hold a position in Centum Electronics at the time of writing. This is not investment advice.

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aerospace, defence, healthcare, industrial and automotive

Strengths - Strong Q1 FY27 growth: consolidated revenue reached ₹373.8 Cr, up 34.25% YoY. Moneycontrol - Q1 FY27 consolidated PAT increased 118.2% YoY to ₹16.29 Cr. Moneycontrol - Strong exposure to aerospace & defence, where qualification barriers and long-term programmes can create customer stickiness. - Integrated electronics + mechanical manufacturing capability. - Historically strong order intake and book-to-bill; management reported a 1.5x book-to-bill for FY26 and the highest order book in the company's history entering FY27. NSE India Archives - Strategic relationships with global aerospace companies; the company has announced manufacturing awards involving Thales and Boeing. Cyient DLM Weaknesses - Aerospace and defence programmes generally have long qualification and execution cycles. - Working capital can be significant because of inventory and customer programme requirements. - Revenue can be affected by programme schedules and customer ramp-ups. - Integration and scaling of acquired businesses can create execution challenges. - Margins need to remain strong as the company invests in capacity and capabilities. Opportunities - India's aerospace and defence localisation can drive long-term EMS demand. - Increasing outsourcing by global aerospace OEMs. - Growth in defence electronics, avionics and mission-critical systems. - Expansion into higher-value box-build and integrated manufacturing. - Acquisition-led expansion can broaden capabilities and customer relationships. - Rising electronics content in industrial and automotive applications. Threats - Customer/programme concentration and dependence on large OEMs. - Delays or cancellations in aerospace and defence programmes. - Global supply-chain disruptions affecting semiconductors and electronic components. - Intense competition in the EMS industry. - Technology changes can require continuous capex and R&D. - Geopolitical developments can affect aerospace/defence supply chains and exports.

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Electronics Manufacturing Services (EMS)

Strengths - Strong Q1 FY27 growth: consolidated revenue reached about ₹2,034 Cr, up 35.2% YoY. Alpha Inflection - Product business grew 40.7% YoY and contributed around 80% of sales. - Room AC revenue ₹1,401 Cr, up 38.1% YoY; washing-machine revenue grew 67.2%. Alpha Inflection - Integrated manufacturing capabilities provide opportunities for higher value addition and economies of scale. Weaknesses - Margin pressure: Q1 FY27 EBITDA was ₹156.2 Cr, up 12.1%, slower than revenue growth; EBITDA margin was around 7.7%. Alpha Inflection - High exposure to the room-AC cycle, making performance sensitive to weather, seasonality and consumer demand. - Commodity inflation can pressure margins when costs cannot be fully passed through. - Large-scale capacity expansion creates execution and working-capital requirements. - Profit growth has historically been more volatile than revenue growth; FY26 PAT declined despite revenue growth. PG Electroplast Opportunities - India's electronics and consumer-durable localisation trend. - Increasing outsourcing by major brands can support EMS/ODM growth. - Expansion in air conditioners, washing machines, refrigerators and other consumer electronics. - Backward integration can improve margins and reduce dependence on external suppliers. - New manufacturing facilities can provide additional capacity and operating leverage. - Potential to increase exports and serve global brands. Threats - Competition from large EMS/ODM players and established consumer-durable manufacturers. - Commodity-price inflation, particularly plastics, metals and electronic components. - Weak summer/AC demand or inventory corrections can affect utilisation. - Customer concentration and pricing pressure from large brands. - Rapid technological changes and product transitions. - Execution risk from simultaneous capacity expansion and new product programmes.

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