Syrma SGS Technology Reports 37% Revenue Growth, Expands into Defense Sector
Syrma SGS Technology achieved record quarterly revenue of INR 1,146.00 crores, a 37% year-on-year increase. Operating EBITDA grew 56% to INR 116.00 crores with a 10.1% margin. The company expanded into defense by acquiring a 60% stake in Elcome, formed a joint venture with Elemaster, received approval for a PCB manufacturing project, and partnered to manufacture solar inverters. Syrma onboarded 8 major customers with $100 million potential revenue and entered a $250 million long-term contract. The company expects continued growth in automotive, industrial, and defense segments.
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Syrma SGS Technology , a leading electronic manufacturing services (EMS) company, has reported a robust performance for the second quarter, with significant revenue growth and strategic expansions into new sectors.
Strong Financial Performance
The company achieved a record quarterly revenue of INR 1,146.00 crores, marking a 37% year-on-year growth. The operating EBITDA stood at INR 116.00 crores, representing a 56% increase compared to the same quarter last year, with an EBITDA margin of 10.1%.
Key Financial Highlights for Q2:
| Metric | Q2 | YoY Growth |
|---|---|---|
| Revenue | INR 1,146.00 crores | 37% |
| Operating EBITDA | INR 116.00 crores | 56% |
| EBITDA Margin | 10.1% | - |
| PAT | INR 66.30 crores | - |
| PAT Margin | 5.7% | - |
Strategic Acquisitions and Partnerships
Syrma SGS Technology has made significant strides in expanding its business portfolio:
Defense Sector Entry: Acquired a 60% stake in Elcome, a company with a 50-year legacy in providing navigation, surveillance, and communication solutions to armed forces and paramilitary.
Joint Venture with Elemaster: Established a partnership to cater to the Indian market initially, with potential for integration into Elemaster's global supply chain.
PCB Manufacturing: Received ECMS approval for a PCB manufacturing project, with construction set to begin in December and trial production expected by December 2026.
Solar Inverter Manufacturing: Partnered with KSolare and Premier to manufacture solar inverters at the Pune facility.
Business Outlook
- The company has onboarded 8 major customers with potential revenues of $100 million.
- Entered a long-term framework contract worth $250 million over 2-3 years.
- Expects sustained growth across automotive, industrial, and defense segments.
- Aims to increase export contribution, which currently stands at about 25% of total revenue.
Management Commentary
J.S. Gujral, Managing Director of Syrma SGS Technology, stated, "Q2 has been a quarter full of activities and a lot of positivity. While we achieved record EBITDA, profit margins, turnovers, what was more significant in this quarter is the slew of tie-ups and joint ventures, which we have executed. And I think these joint ventures and tie-ups lay the foundation for the sustained future growth in the years to come."
Syrma SGS Technology remains optimistic about its growth trajectory, focusing on high-margin business verticals, expanding its portfolio, and improving operational efficiencies. The company's strategic moves into defense, PCB manufacturing, and renewable energy sectors are expected to drive future growth and profitability.
As the electronic manufacturing industry in India enters its next phase of growth, Syrma SGS Technology is well-positioned to capitalize on the increasing demand and government support for the sector.
Historical Stock Returns for Syrma SGS
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.83% | +11.86% | +11.53% | +70.03% | +63.31% | +188.04% |
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