@Viraj Talpade
For more information available on the performance expectations of Azure File Sync you should check this document. Likely the limitation is related to the need to sync smaller files. I expect if you tested with larger files you would see more throughput. You might find it helpful to look at the number files synced in Azure Monitor and compare with the documented expectations.
The object throughput approximately scales in proportion to the number of sync groups on the server. Splitting data into multiple sync groups on a server yields better throughput, which is also limited by the server and network.
The object throughput is inversely proportional to the MiB per second throughput. For smaller files, you will experience higher throughput in terms of the number of objects processed per second, but lower MiB per second throughput. Conversely, for larger files, you will get fewer objects processed per second, but higher MiB per second throughput. The MiB per second throughput is limited by the Azure Files scale targets.
Hope this helps! Let us know if you have further questions or issues and we will be happy to assist.
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