According to a latest sector update by JM Financial, the Q4FY26 earnings season is shaping up to be a mixed bag for the Electronic Manufacturing Services (EMS) sector, with most players missing their initial guidance. 

The brokerage noted that negatives outweigh positives in the near term. However, select players have target prices suggesting up to 37% upside.

Target prices, ratings

Leading the pack in potential returns is PG Electroplast Ltd. JM Financial maintains a 'Buy' rating on the stock with a target price of Rs 670, implying a 37% upside from its current market price of Rs 486.85.

The brokerage pointed out that macro tensions mar 4Q hopes for PG Electroplast. “We expect PGEL to be impacted by channel filling in end-3Q, LPG and other input shortage impacting production (~25% of Mar’26 production hit) and unseasonal rain dampening demand,” it said.

Kaynes Technology Ltd also has a ‘Buy’ rating on the stock, pegging its target price at Rs 5,100. JM Financial said Kaynes is facing headwinds and is likely to fall short of FY26E revenue and OCF guidance. 

JM Financial's preferred picks in the sector are Syrma SGS Technology Ltd and Amber Enterprises India Ltd. Syrma SGS has a target price of Rs 1,100. “While Syrma SGS runs the risk of missing FY26E revenue growth (FY26E revenue growth likely at 26% vs. expectation of ~30%), it is highly likely to exceed its FY26E EBITDA guidance of >INR 5bn,” the brokerage said.

Amber Enterprises—with a target price of Rs 7,600. “We expect Amber’s 4Q revenue to register 13% YoY growth, driven by electronics, while durables could be impacted by industry headwinds,” JM Financial said.

Dixon Technologies Ltd, carrying an 'Add' rating and a target price of Rs 11,000 is expected to post a weak set of earnings. “We expect Dixon’s smartphone volume to come in at ~6.5mn units, impacted by macro challenges around RAM availability and pricing, likely falling short of initial estimates of 7.5mn units,” it said.