Syrma SGS Technology Limited , a prominent player in the electronics manufacturing services (EMS) industry, has announced a significant move to expand its presence in the defence and maritime sectors. The company's Board of Directors has approved the acquisition of two key players in these industries: Elcome Integrated Systems Private Limited and Navicom Technology International Private Limited.

Acquisition Details

The acquisitions will be executed through a carefully structured deal:

Strategic Rationale

Syrma SGS Tech's decision to acquire these companies aligns with its long-term strategy to capitalize on emerging opportunities in the defence and maritime sectors. By integrating Elcome and Navicom into its portfolio, Syrma SGS aims to:

1. Diversify its product offerings
2. Tap into the growing defence and maritime equipment market
3. Leverage the expertise and established presence of both acquired companies

Transaction Structure

The acquisition of Elcome will be completed in four tranches:

• First Tranche: Syrma SGS will acquire 60% of Elcome's paid-up share capital
• Subsequent Tranches: The remaining stake will be acquired based on Elcome's performance milestones in FY 2025-26, 2026-27, and 2027-28

Concurrently, Elcome will acquire 100% of Navicom's paid-up share capital, making Navicom a wholly-owned subsidiary of Elcome.

Governance and Management

Post-acquisition, Syrma SGS will have significant control over both Elcome and Navicom:

• Board Composition: Syrma SGS can appoint up to 5 directors, while Elcome's promoters can appoint up to 2 directors on each company's board
• Key Decisions: Certain actions will require affirmative consent from both Syrma SGS and Jimmy Grewal (representing Elcome's promoters)

Financial Implications

The acquisitions are expected to bolster Syrma SGS's financial position:

• Elcome's turnover has grown from ₹109.00 crore in FY 2022-23 to ₹155.00 crore in FY 2024-25
• Navicom's turnover has increased from ₹26.00 crore in FY 2022-23 to ₹52.00 crore in FY 2024-25

This growth trajectory suggests potential synergies and expanded market opportunities for Syrma SGS in the coming years.

Conclusion

Syrma SGS Technology's strategic acquisitions of Elcome Integrated Systems and Navicom Technology International mark a significant step in its expansion into the defence and maritime sectors. As the company integrates these new entities, stakeholders will be watching closely to see how this move enhances Syrma SGS's market position and drives future growth in these promising industries.

Syrma SGS has announced its financial results for the second quarter of the fiscal year 2025-26, showcasing impressive growth across key financial metrics.

Financial Highlights

Key Takeaways

• Profit Surge: Syrma SGS reported a consolidated net profit of ₹641.00 million in Q2 FY26, marking a substantial 77.00% increase from ₹362.00 million in the same quarter of the previous year.

• Revenue Growth: The company's revenue saw a robust growth of 38.00%, reaching ₹11,460.00 million compared to ₹8,300.00 million in the corresponding quarter last year.

• EBITDA Performance: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose by 56.00% to ₹1,150.00 million from ₹738.40 million year-over-year.

• Margin Improvement: The EBITDA margin improved significantly, increasing to 10.06% from 8.87% in the previous year, indicating enhanced operational efficiency.

Corporate Developments

• Amalgamation Scheme: Syrma SGS completed a scheme of amalgamation with its wholly-owned subsidiaries SGS Infosystems Private Limited and SGS Tekniks Manufacturing Private Limited. The scheme was approved by the National Company Law Tribunal on October 7, 2025, with an appointed date of April 1, 2023.

• Qualified Institutional Placement: The company successfully raised ₹10,000 million through a Qualified Institutional Placement (QIP), issuing 14,306,151 equity shares at ₹699 per share.

• Joint Ventures: Syrma SGS entered into joint venture agreements for manufacturing multi-layer Printed Circuit Boards and other electronics manufacturing services, expanding its operational capabilities.

• Dividend Declaration: The company approved a final dividend of 15% (₹1.5 per equity share) for FY 2024-25.

Board Meeting Outcome

According to the LODR (Listing Obligations and Disclosure Requirements) data, the company's Board of Directors met on November 10, 2025, to approve the unaudited financial results for Q2 FY26. The meeting, which began at 1:00 p.m. and concluded at 3:37 p.m., resulted in the approval of both standalone and consolidated financial results for the quarter and half-year ended September 30, 2025.

The strong financial performance of Syrma SGS in Q2 FY26 reflects the company's ability to drive growth and improve profitability in the electronics manufacturing services sector. The significant increase in net profit, coupled with robust revenue growth and margin expansion, indicates effective cost management and potentially increased market share.

Investors and stakeholders can access the detailed financial results on the company's website at https://syrmasgs.com/ .