Bigger bills, the same rupees

Revenue rose at all five in the June quarter — from 13% at Amber to 67% at Syrma. The operating margin fell at three: PG Electroplast from 9.3% to 7.7%, Kaynes from 16.8% to 15.6%, Dixon from 3.8% to 3.0%.

Most of that is how these contracts are written. A contract manufacturer earns a set number of rupees on each unit. When copper, chips or circuit boards cost more, the price to the customer goes up and the rupees of profit stay where they were — the same profit on a bigger bill, so a smaller percentage.

“Product pricing in the industry is typically structured on a per unit margin, not a percentage. So when commodity price rise and we pass through via ASP increases, the same per unit margin show up as a lower percentage of larger revenue base.” Pramod Gupta, Chief Financial Officer · PG Electroplast · 7 August 2026

Dixon gave two reasons: higher input costs, and the end of the first phone incentive scheme in March 2026. Kaynes said price rises reach customers a quarter late. Amber said circuit-board laminate costs take about two quarters to pass on. The two whose margins rose sold more of what pays better — Syrma its own designs and exports, Amber its electronics, where operating profit more than doubled.