Syrma SGS PAT surges 112% in Q1FY27 on strong revenue growth
Syrma SGS Technology Ltd posted strong Q1FY27 results with PAT up 112% YoY to ₹1,057 Mn and revenue growing 67% to ₹16,037 Mn. Growth was led by Consumer and Auto segments. The company maintains a net cash position of ₹1,224 Mn.
*this image is generated using AI for illustrative purposes only.
Syrma SGS Technology Limited delivered robust financial results for the quarter ended June 30, 2026 (Q1FY27), with consolidated net profit after tax (PAT) surging 112% year-on-year to ₹1,057 million from ₹499 million in Q1FY26. The strong bottom-line performance was underpinned by a 67% year-on-year increase in total revenue, which reached ₹16,037 million compared to ₹9,600 million in the corresponding previous quarter. This growth trajectory highlights the company’s expanding market share and operational efficiency across its key verticals.
The Board of Directors approved the unaudited financial results on July 29, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A conference call with investors and analysts was scheduled for July 30, 2026, at 10:30 AM IST to discuss the performance and strategic outlook. The results reflect broad-based growth, with significant contributions from both domestic and export markets.
Financial Performance Highlights
Consolidated revenue from operations grew 66.7% year-on-year to ₹15,886 million, while other income rose sharply by 117.3% to ₹151 million, contributing to the total revenue figure of ₹16,037 million. Operating EBITDA stood at ₹1,616 million, representing a 68.8% year-on-year increase, with an operating EBITDA margin of 10.2%. When including other income, total EBITDA reached ₹1,766 million, up 72.1% year-on-year, with an overall EBITDA margin of 11.0%.
Profit before tax (PBT) more than doubled, rising 109.7% year-on-year to ₹1,408 million from ₹671 million in Q1FY26. The PBT margin expanded to 8.8% from 7.0% in the prior year period. Net profit after tax grew 111.7% year-on-year to ₹1,057 million, with PAT margin improving to 6.6% from 5.2%.
| Metric | Q1FY26 (₹ Mn) | Q4FY26 (₹ Mn) | Q1FY27 (₹ Mn) | YoY Change |
|---|---|---|---|---|
| Revenue From Operations | 9,531 | 14,650 | 15,886 | 66.7% |
| Total Revenue | 9,600 | 14,768 | 16,037 | 67.0% |
| Operating EBITDA | 957 | 1,741 | 1,616 | 68.8% |
| Total EBITDA | 1,027 | 1,860 | 1,766 | 72.1% |
| Profit Before Tax | 671 | 1,504 | 1,408 | 109.7% |
| Net Profit After Tax | 499 | 1,192 | 1,057 | 111.7% |
Segment-Wise Performance
Growth was driven primarily by the Consumer and Auto segments. Revenue from the Consumer segment jumped 68% year-on-year to ₹5,328 million, accounting for 34% of the total mix. The Auto segment also performed strongly, with revenue rising 78% to ₹3,949 million, maintaining a 25% share. The Healthcare segment saw a 100% year-on-year surge to ₹1,345 million, while IT and Railways revenue nearly tripled to ₹1,497 million. The Industrials segment contributed ₹3,766 million, reflecting a 31% year-on-year growth.
Export revenue constituted 24% of operating revenue, growing 67% year-on-year in line with overall top-line expansion. This diversification across sectors and geographies underscores the company’s resilient business model.
Balance Sheet and Efficiency Metrics
The company’s balance sheet remains healthy, with net cash position improving significantly. As of June 30, 2026, total debt stood at ₹6,860 million, comprising term loans of ₹667 million and working capital loans of ₹6,193 million. However, this was offset by substantial cash and equivalents totaling ₹8,084 million, resulting in a net cash position of ₹1,224 million, compared to net cash of ₹4,672 million as of March 31, 2026. The debt-to-equity ratio improved to 0.3 from 0.4 in Q1FY26.
Return on capital employed (ROCE) adjusted for goodwill remained stable at 20.1%, while unadjusted ROCE improved to 17.3% from 13.5% in Q1FY26. Net working capital days increased slightly to 71 days from 69 days in Q1FY26, attributed to higher strategic inventory levels maintained to avoid supply chain constraints for critical components and cater to early ramp-up of select new customers.
What the Numbers Show
A key analytical observation is the disproportionate contribution of other income to the top-line growth, which surged 117.3% year-on-year. While operating revenue grew 66.7%, the inclusion of other income boosted total revenue growth to 67.0%, indicating that non-operating factors are playing a minor but positive role. More critically, the expansion in PAT margin from 5.2% to 6.6% despite a slight compression in gross margin (from 25.4% to 24.5%) suggests effective control over operating expenses and finance costs. Finance costs decreased by 10.7% year-on-year to ₹133 million, aiding bottom-line expansion. The shift from a high net cash position to a lower one reflects active deployment of capital, likely towards working capital needs given the rise in working capital loans, supporting the aggressive revenue growth strategy.
Historical Stock Returns for Syrma SGS
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.86% | -2.26% | -1.82% | +85.83% | +80.00% | +332.66% |
How will the strategic increase in inventory levels to mitigate supply chain risks impact working capital efficiency and cash flow in the upcoming quarters?
Given the 78% surge in Auto segment revenue, what specific new vehicle models or OEM partnerships are driving this growth, and is this demand sustainable for FY27?
With finance costs decreasing despite higher working capital loans, how does management plan to sustain this cost advantage as interest rates potentially fluctuate?
19
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
