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Syrma SGS continues to deliver strong business performance as Q1FY27

ICICIdirect Research 30 Jul 2026 DISCLAIMER

News: Syrma SGS continues to deliver strong business performance as Q1FY27 witnessed revenue rising 66.7% YoY/+8.4% QoQ to ₹1,589 crore. The growth was broad based but mainly led by auto: up 78% YoY to ₹395 crore, consumer: up 68% YoY to ₹533 cr, IT & railways: up 199% YoY to ₹150 cr. EBITDA increased 69.0% YoY /+2.9% QoQ to ₹162 crore, while the EBITDA margin stood at 10.2% (+13 bps YoY / -180 bps QoQ). PAT grew 111.8% YoY, though declined 11.3% QoQ, to ₹106 crore. Export revenue increased 67% YoY and contributed 24% of operating revenue. During the quarter, the company also approved a ₹1,000 crore QIP to fund future growth initiatives and entered into a strategic JV with KAGA Electronics (Japan) to strengthen relationships with Japanese OEMs.

View: The strong Q1FY27 performance keeps Syrma much ahead of its guidance of 30-35% growth across parameters. During Q1, margins were bit modest, likely owing to i) relatively low margin consumer segment had superior growth, ii) global geo-political uncertainty causing spike in RM and logistic cost, and iii) rise in employee expense. All these factors are temporary or investment linked wherein we believe margins shall be recouped going ahead. The ₹1,600 crore Naidupeta PCB project (~₹800 crore in 1st phase), in partnership with Shinyup electronics, planned over 3-5 years, backed by a ₹765 crore government incentive, along with strategic partnerships including KAGA Electronics, Elemaster and Elcome, is expected to strengthen backward integration, expand exports and support long-term revenue growth and margin expansion.

Impact: Positive

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