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India exports $2.5 billion worth of Apple components to China under ECMS push
Component push and policy boost turn India into unlikely supplier hub
MUMBAI: India’s electronics trade story is getting a plot twist. What was once a one-way flow from China is now starting to reverse, with exports of electronic components from India to China hitting a record $2.5 billion in FY26 so far, and projected to reach $3.5 billion by the end of the fiscal year.
At the heart of this shift is the growing manufacturing ecosystem built around Apple and its suppliers. Companies such as Tata Electronics, Pegatron, Foxconn, Salcomp, Motherson and Yuzhan Technology are driving the surge, transforming India into a key node in global supply chains.
Just a few years ago, exports of such components were negligible. Today, they are part of a rapidly expanding multi-billion dollar ecosystem, fuelled by scale, quality improvements and tighter integration with global production networks.
A major catalyst behind this growth is the government’s Electronics Component Manufacturing Scheme, launched in 2025. Unlike earlier incentives focused on assembling finished devices, the scheme targets high-value components such as circuit boards, camera modules and enclosures, offering both turnover-linked and capital expenditure incentives.
The logic of exporting components to China, long seen as the “factory of the world”, may seem counterintuitive. But the shift reflects a deeper realignment. As Apple scales production in India, now accounting for roughly 25 per cent of global iPhone output, local suppliers have become competitive enough to feed into global assembly lines, including those in China.
This is also part of a broader “China+1” strategy, where companies diversify manufacturing bases to reduce geopolitical risk. India-made components are increasingly being routed back into Chinese factories to maintain global supply continuity.
At the same time, India’s domestic value addition in smartphones has climbed to around 20 per cent, signalling a move beyond basic assembly towards more sophisticated manufacturing.
While India continues to import heavily from China, the emergence of a $3.5 billion export pipeline marks a meaningful shift in direction. Electronics are now joining engineering goods and agriculture as key drivers of India’s exports to China, which are expected to cross $18 billion this fiscal year.
In short, India is no longer just assembling the world’s gadgets. It is beginning to help build them, and in some cases, even supplying the very factories it once depended on.
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Lotus Chocolate FY26 profit drops sharply, Q4 slips into loss
Revenue steady at Rs 579.55 crore, Q4 loss at Rs 4.47 crore
MUMBAI: Sweet on the top line, slightly bitter on the bottom Lotus Chocolate’s FY26 numbers tell a story that’s more dark cocoa than milk. The company managed to hold its revenue steady for the year, but profitability took a visible hit, capped by a loss-making fourth quarter. Lotus Chocolate Company Limited reported revenue from operations of Rs 579.55 crore for the year ended March 31, 2026, marginally up from Rs 573.75 crore in FY25. Total income rose to Rs 615.61 crore, compared with Rs 574.56 crore in the previous year, supported by a sharp jump in other income to Rs 36.06 crore from just Rs 0.81 crore.
However, the gains at the top did little to cushion profitability. Net profit for FY26 fell dramatically to Rs 0.10 crore, down from Rs 17.23 crore in FY25, reflecting significant cost pressures across the business.
The March quarter proved particularly challenging. The company reported a net loss of Rs 4.47 crore in Q4 FY26, compared with a profit of Rs 0.14 crore in the previous quarter and Rs 1.42 crore in the same quarter last year. Total income for the quarter stood at Rs 138.01 crore, down from Rs 150.21 crore in Q3 FY26 and Rs 157.52 crore in Q4 FY25.
Expenses remained elevated throughout the year. Total expenses rose to Rs 614.44 crore in FY26 from Rs 551.50 crore in FY25, eating into margins. A key swing factor was the cost of materials consumed, which stood at Rs 304.44 crore, while changes in inventories also reflected volatility, with a negative impact of Rs 62.44 crore in the previous year reversing to a positive Rs 52.93 crore this year.
Employee benefit expenses nearly doubled to Rs 34.00 crore from Rs 17.98 crore, while finance costs surged to Rs 16.31 crore from Rs 7.11 crore, indicating higher borrowing and funding costs. Depreciation and amortisation expenses also increased to Rs 3.92 crore from Rs 1.81 crore, reflecting ongoing investments.
On the balance sheet front, total assets stood at Rs 275.96 crore as of March 31, 2026, slightly higher than Rs 270.34 crore a year earlier. Borrowings remained significant, with current borrowings at Rs 89.00 crore, highlighting continued reliance on external funding.
Cash flow dynamics showed improvement in operations, with net cash generated from operating activities at Rs 93.23 crore, compared with a negative Rs 129.60 crore in FY25. However, financing outflows remained high at Rs 74.90 crore, driven largely by repayment of borrowings and interest costs.
Despite stable revenue, the sharp drop in profitability underscores the pressure of rising input costs, higher finance expenses and operational adjustments. The contrast between steady sales and squeezed margins leaves Lotus Chocolate at a crossroads proving that in business, as in confectionery, the real test isn’t just in the sweetness of sales, but in the richness of returns.
