India's aerospace push is driving significant growth in the Electronics Manufacturing Services (EMS) sector, with the domestic industry projected to triple from ₹65 billion in 2025 to ₹197.8 billion by 2032. According to reports from The Financial Express, the global aerospace and defence EMS market was valued at $81.8 billion in 2025 and is expected to grow at about 5% annually through 2033. The broader global EMS market is estimated at $648 billion in 2025 and could cross $1.1 trillion by 2034. India is growing faster than the global EMS market, supported by defence indigenisation, higher domestic procurement, and the government's push to build electronics manufacturing capabilities.
Cyient DLM achieved its highest-ever order book of ₹2,598.9 crore in Q1FY27, providing approximately two years of revenue visibility based on FY26 revenue of ₹1,261 crore. As reported by The Financial Express, the company's revenue grew by 34.3% year-on-year to ₹373.8 crore, driven by strong growth across Industrial (+90%), Aerospace (+40%), and Defence (+35%) businesses. EBITDA surged 56.2% to ₹39.3 crore, while margins expanded 147 bps to 10.5%. The aerospace business contributes 42% of revenue, with the company manufacturing cockpit avionics, flight control electronics, and sub-assemblies for global aerospace firms like Honeywell, Thales, and Safran.
Centum Electronics reported Q1FY27 standalone revenue growth of 11% year-on-year to ₹204.8 crore, with Defence, Space & Aerospace accounting for 54% of revenue. According to The Financial Express, the company secured a significant ₹67 crore initial order for Hindustan Aeronautics AESA Radar contract, which could exceed ₹500 crore in the production phase. The order book stood at ₹1,800 crore, offering strong visibility of around 2 years of revenue. Management has guided for 25% revenue growth in FY27 with 13% EBITDA margins, with exports expected to maintain a steady share of 50% to 54% of overall sales.
Both companies demonstrate strong aerospace and defence exposure, with Cyient DLM at 51% and Centum Electronics at 54% of revenue from these segments. As reported by The Financial Express, Cyient DLM's order book of ₹2,599 crore provides 2.1x coverage compared to Centum's ₹1,800 crore order book at 1.9x coverage of FY26 revenue. Cyient DLM achieved 34.3% revenue growth versus Centum's 11% growth in Q1FY27. However, Centum maintains higher margins at 11.3% compared to Cyient DLM's 10.5% EBITDA margin, with Centum targeting 13% margins and Cyient aiming for 13-18% margins by FY30+.
Both companies are positioned to benefit from India's expanding aerospace and defence manufacturing base, with Cyient DLM focusing on scaling existing orders and improving capital efficiency while Centum focuses on converting aerospace and defence pipeline into profitable full-system programs. According to The Financial Express, the valuation gap between the two is limited, with both trading at broadly similar multiples. The market opportunity extends beyond conventional EMS to include build-to-specification manufacturing, avionics, radar, electronic warfare systems, and other mission-critical defence applications as India's electronics content in aerospace platforms continues to rise.
