Financial Performance
Syrma SGS reported consolidated revenue of ₹4,857 crore for FY26, marking a 27% increase over the previous year. Profitability saw an even sharper rise, with profit after tax reaching ₹346 crore, an 87% jump that highlights significant operating leverage as the company scales. The operating EBITDA margin improved by 270 basis points year-on-year to 11.3%, while the fourth quarter specifically touched 11.9%.
This expansion was supported by a strategic shift toward high-margin segments like MedTech and Automotive, alongside a net PLI benefit of ₹38 crore received during the fiscal year. The company's balance sheet was further strengthened, moving to a net cash position of ₹467 crore.
Management Outlook
Management has set an ambitious target for FY27, aiming for ₹700 crore in total EBITDA while maintaining a sustained revenue growth momentum of 35%. Despite the strong margin performance in FY26, the company provided a conservative margin guidance of 10.5% to 11% for the upcoming year. This cautious outlook factors in global geopolitical tensions and supply chain volatility that could lead to lags in passing through raw material cost increases.
The company plans an organic capex of ₹100-150 crore for FY27, which is separate from the long-term ₹800 crore multilayer PCB manufacturing project intended to be executed in phases through FY29.
Business Overview
Syrma SGS operates as an integrated electronics manufacturing partner with a diverse portfolio across Industrial, Consumer, and Automotive sectors. The Industrial vertical remains the largest contributor at 31% of revenue, followed by Consumer at 26% and Automotive at 24%. Emerging verticals such as IT and Railways showed explosive growth of 182% in the final quarter.
A key strategic focus is the growth of the Original Design Manufacturing business, which expanded to 17% of the total revenue mix. The company is also deepening its footprint in MedTech and Defense, aiming for these higher-value segments to contribute more significantly to the top line in coming years.
Sector Dynamics
The global electronics manufacturing services landscape is currently facing headwinds from logistics disruptions and rising basic metal prices. Syrma SGS management noted that while these issues are industry-wide, their established pass-through mechanisms with clients help mitigate direct impacts over time. Domestically, the company is benefiting from the Make in India initiative and strong demand visibility in the MedTech and Industrial sectors.
Competition is increasing as large global players enter the Indian market, but Syrma SGS aims to maintain its edge through a superior cost structure and deep-rooted engineering capabilities developed over four decades in the industry.
What to Watch
- Progression and commissioning of the ₹800 crore multilayer PCB project starting FY28
- Ability to maintain EBITDA margins within the guided range of 10.5-11% amid global volatility
- The impact of the newly added Defence and Maritime vertical on the high-margin revenue mix
- Utilization of the ₹820 crore cash and equivalents for future organic and inorganic growth opportunities
Management Commentary
We had started off the year with the guidance of about 400 plus crores of EBITDA figures... when we look at the figures for the year gone by it gives a great sense of satisfaction that we have achieved EBITDA of 545 crores.
