Four called it “strategic inventory”. The fifth called stock “a strategic asset”.
All five used the same words on their calls this quarter: strategic inventory — or, at Syrma, “a strategic asset”. Parts are being bought ahead of need because they are scarce, getting dearer, or about to stop coming in.
“See, this component industry is gone back to COVID times. Having said that, our company has done the deep diving, and we have decided to increase our inventory so that our customers' lines don't stop.” Ramesh Kunhikannan, Executive Vice Chairman · Kaynes Technology · 8 August 2026
Dixon put ₹812 crore into working capital in the quarter and its operations used ₹341 crore of cash, as memory-chip prices kept rising. Kaynes took inventory from 96 days to 105 as some lead times passed six to eight months. Syrma’s working capital went from 63 days to 71, and it said it will not treat inventory as working capital “for the next quarter or two”. Amber pointed to a shortage of copper-clad laminate. PG Electroplast pointed to a ban on importing copper tubing from November.
It is a bet on scarcity lasting. Stock bought at the top has to be sold at whatever prices follow — and Amber’s chairman said that when commodity prices fall, “you have to pass on that also at a quarterly lag.”
A sector, read end to end, and the companies as they are published. Roughly monthly. Nothing else, and one click to stop.
Not advice. Quotes are from the companies’ own earnings calls; figures from their filings.