Syrma SGS Technology Limited , a leading electronic manufacturing services (EMS) company, has reported robust financial results for the first quarter of fiscal year 2026, demonstrating significant improvements across key metrics and announcing a strategic joint venture for PCB manufacturing.

Strong Financial Performance

The company delivered impressive year-on-year growth in Q1 FY26:

• EBITDA surged by 75% to ₹96.00 crores
• PAT (Profit After Tax) grew by 145% to ₹50.00 crores
• EBITDA margins improved from 5.20% to over 10.00%
• Gross material margins increased from 15.00% to 24.00%

Export Growth and Revenue Mix

Syrma SGS continued to strengthen its export business:

• Export revenue grew by 29% to ₹232.00 crores, representing 25% of total revenue
• The company is on track to achieve its target of crossing ₹1,000.00 crores in exports for the full year

The business mix showed strategic improvement:

This shift aligns with the company's strategy to focus on higher-margin segments.

PCB Manufacturing Joint Venture

Syrma SGS announced a significant expansion into PCB (Printed Circuit Board) manufacturing:

• Planned Phase-1 CAPEX of $91 million over 3-4 years
• Targeting 12-15% EBITDA margins for the PCB business
• Initial capacity expected to be about one-third of the total, with an investment of $30-35 million in the next 12-18 months
• Production trials anticipated to begin by Q3 FY27 (October-December 2026)

Future Outlook

Management provided guidance for the full year FY26:

• Expected revenue growth of 30-35%
• Projected EBITDA margins of 8.50-9.00%

The company's order book stands strong at approximately ₹5,400.00-5,500.00 crores, with the automotive segment comprising 35-40% of the pipeline.

Strategic Focus

J.S. Gujral, Managing Director of Syrma SGS, commented on the company's performance and strategy: "The recalibration of strategies which the management consciously started executing from Q2 of last year has panned out as we had planned. We now believe that we are on that cusp of growth and encashing on this platform which we have built over the last four quarters."

The company continues to focus on high-margin verticals, operational efficiency, and overall cash flow improvement.

Conclusion

Syrma SGS Technology's Q1 FY26 results demonstrate the company's successful execution of its strategic initiatives, with significant improvements in profitability and a shift towards higher-margin business segments. The announcement of the PCB manufacturing joint venture further underscores the company's commitment to expanding its capabilities and capturing new growth opportunities in the evolving electronics manufacturing landscape.

Syrma SGS Technology Limited , a leading player in India's electronics manufacturing services (EMS) sector, has released a comprehensive corporate presentation highlighting its impressive financial performance and strategic growth initiatives. The company's latest financial figures and future outlook paint a picture of strong expansion and diversification across multiple industry verticals.

Financial Highlights

Syrma SGS reported a robust revenue of INR 37,867.00 million for FY25, representing a significant 10.00% Compound Annual Growth Rate (CAGR) over the FY22-25 period. The company's EBITDA reached INR 3,238.00 million, with an improved EBITDA margin of 8.60%, up from 6.90% in the previous fiscal year.

Diversified Business Portfolio

The company's operations span across several key verticals:

This diversified approach has allowed Syrma SGS to maintain a balanced growth strategy and mitigate risks associated with sector-specific fluctuations.

Global Presence and Manufacturing Capabilities

Syrma SGS boasts a strong global footprint with 18 facilities worldwide, including 14 manufacturing units and 4 R&D centers. The company serves over 300 customers across more than 20 countries, with export revenue accounting for 23.20% of total revenue.

Strategic Initiatives

The presentation outlined several key strategic focus areas for Syrma SGS:

1. Strengthening Non-Consumer Verticals: The company aims to increase its presence in high-growth, high-margin sectors such as industrials, automotive, and healthcare.

2. Expanding into High-Growth Segments: Syrma SGS is targeting new opportunities in emerging technologies and markets.

3. Enhancing Export Profile: The company plans to further expand its international presence through value chain expansion and capability enhancement.

4. Backward Integration: Syrma SGS has entered the Printed Circuit Board (PCB) manufacturing space through a 75:25 joint venture with Shinhyup Electronics, marking a significant step in vertical integration.

Product Portfolio

Syrma SGS offers a wide range of products across its verticals, including:

• Industrials: Smart energy meters, solar trackers, and power supplies
• Automotive & Electric Mobility: EV chargers, battery management systems, and lighting solutions
• Consumer: Electric toothbrushes, water purifiers, and GPON devices
• Healthcare & Medical Devices: Diagnostic equipment and aesthetic devices
• Railways & IT: Interlocking systems and signaling equipment

Future Outlook

The company's presentation emphasized its commitment to leveraging its end-to-end capabilities, from product conceptualization to post-sale lifecycle support. With a strong focus on research and development, evidenced by its 537 engineers across various functions, Syrma SGS is well-positioned to capitalize on the growing demand for electronic manufacturing services in India and globally.

As the electronics manufacturing landscape continues to evolve, Syrma SGS Technology Limited appears to be strategically positioned to benefit from industry tailwinds and its own diversification efforts. The company's focus on high-growth sectors and commitment to innovation suggest a promising trajectory for future growth and market leadership in the Indian EMS sector.