Synopsis : India’s Electronics Manufacturing Services (EMS) industry is entering a new phase as global companies diversify supply chains beyond China. While traditional assembly remains important, the biggest opportunities are increasingly emerging in high-value design, defence electronics, aerospace systems, data centres and industrial applications. Against this backdrop, two companies — Aimtron Electronics and Centum Electronics — are taking different approaches to capture the next wave of growth.
India's EMS industry is witnessing a structural transformation as multinational corporations look to reduce their dependence on China and diversify manufacturing operations across alternative geographies.
The opportunity is significant. India's EMS market is projected to grow from US$29 billion in FY24 to nearly US$97 billion by FY29. At the same time, India's share of the global EMS market is expected to increase from 3.8% in 2023 to 7.7% by 2028.
However, the real opportunity may no longer be in low-margin assembly operations. Increasingly, customers are seeking partners capable of designing products, manufacturing complete systems and delivering end-to-end solutions. This shift is creating opportunities in defence, aerospace, telecommunications, medical devices, AI data centres and industrial electronics.
Two companies attracting attention in this space are Aimtron Electronics and Centum Electronics.
Centum Electronics: Betting on defence and high-value systems
Centum Electronics operates across two key segments — Electronics Manufacturing Services (EMS) and Build-To-Specification (BTS).
Its EMS business manufactures high-reliability electronic products for industries such as defence, aerospace, healthcare, industrial automation and electric mobility.
The company's BTS segment focuses on designing and developing mission-critical systems including satellite subsystems, missile guidance systems, electronic warfare payloads and radar solutions.
A key part of Centum's strategy is moving higher up the value chain by delivering complete turnkey systems rather than acting solely as a component supplier.
To support this transition, the company plans to invest Rs 40-45 crore during FY27, with nearly half earmarked for strengthening research and development capabilities within the higher-margin BTS segment.
Strong order visibility
Centum ended FY26 with a standalone order book of Rs 1,644.8 crore, representing approximately 1.5 years of revenue visibility.
The BTS segment continues to grow rapidly. Revenue from this business increased from Rs 146.7 crore in FY23 to Rs 277 crore in FY26, supported by a significant increase in order inflows.
Among the company's notable wins is a multi-year Active Electronically Scanned Array (AESA) radar programme from Hindustan Aeronautics Ltd. valued at over Rs 570 crore over its lifecycle.
The company has also secured a radar system order worth approximately Rs 30 crore for space debris tracking applications.
Why margins could improve
The BTS segment operates at EBITDA margins of around 20%, substantially higher than the 9-11% margins generated by the EMS business.
As the BTS contribution increases, Centum could potentially benefit from stronger profitability and improved operating leverage.
Management is targeting medium-term revenue growth of 25-30% alongside EBITDA margins of 13-15%.
Risks remain
Despite strong operational performance, Centum reported a loss in FY26 due to a one-time impairment charge of Rs 203.3 crore related to underperforming overseas subsidiaries.
Additionally, the company faces execution risks associated with defence contracts, component supply chain challenges and the inherently lumpy nature of project-based revenues.
Aimtron Electronics: Chasing a Rs 1,000 crore revenue ambition
Aimtron Electronics has positioned itself as a design-led electronics manufacturer with a strong focus on Original Design Manufacturing (ODM).
Unlike traditional EMS companies, Aimtron provides support throughout the product lifecycle, including design engineering, prototyping, pilot production and mass manufacturing.
The company serves a broad range of industries including aerospace, defence, railways, telecommunications, healthcare, data centres, power systems and electric vehicles.
Management has outlined an ambitious plan to increase revenue to Rs 1,000 crore over the next three to five years, compared with Rs 301 crore in FY26.
Growth drivers gaining traction
One of the company's biggest recent developments was the acquisition of a US-based business in Illinois, which provides access to large American OEMs operating in heavy engineering and agricultural equipment markets.
Management expects the acquired business to eventually contribute Rs 280-300 crore in annual revenue.
Aimtron has also entered the fast-growing data centre segment after securing a US$12 million order from a Fortune 500 company for UPS battery backup systems.
The company is further expanding into networking products, optical transceivers, Wi-Fi equipment and AI-enabled surveillance systems.
Railways and defence opportunities
Aimtron is awaiting final approvals related to Kavach, India's railway collision avoidance system.
The company is also increasing its presence in the drone ecosystem after supplying electronic assemblies used in drones showcased during Republic Day celebrations.
Management sees significant opportunities in UAV payload systems, surveillance equipment and defence electronics.
Capacity expansion underway
The company currently operates nine Surface Mount Technology (SMT) lines and believes it can support revenues of Rs 800-900 crore without significant additional capital expenditure.
To support future growth, Aimtron is constructing a new manufacturing facility in Vadodara that will bring sheet metal fabrication and injection moulding capabilities in-house.
The company is also pursuing backward integration through cable assembly manufacturing to improve margins and reduce supplier dependence.
Strong growth but cash flow concerns
Aimtron reported revenue growth of 89% year-on-year in FY26, while EBITDA increased nearly 94%.
Net profit rose almost 80% during the year.
However, strong growth has come at the cost of cash generation. The company reported negative operating cash flow of approximately Rs 40 crore in FY26 due to aggressive expansion and acquisition-related investments.
Management has indicated that cash flow stabilisation may take time as it scales toward its Rs 1,000 crore revenue target.
Which looks more interesting?
Both companies offer exposure to India's rapidly expanding electronics manufacturing ecosystem, but their approaches differ significantly.
Centum appears better positioned in defence, aerospace and proprietary high-margin systems. Its expanding BTS business could potentially drive margin improvement and stronger profitability over time.
Aimtron, on the other hand, offers exposure to several high-growth themes including data centres, telecom equipment, railways, AI-enabled products and US manufacturing opportunities. Its growth trajectory is currently stronger, although execution and cash flow management remain important variables.
For investors tracking India's manufacturing and electronics story, both companies are emerging names to watch as the EMS industry evolves beyond simple assembly toward design-led, high-value manufacturing.
Disclaimer : The purpose of this article is solely educational and informational. It should not be construed as investment advice, a recommendation, or a solicitation to buy or sell any security. Financial performance, order books, growth projections and management commentary are subject to execution risks, industry conditions and market uncertainties. Investors should conduct their own research and consult a SEBI-registered investment advisor before making any investment decisions.
