Syrma SGS Technology Limited has delivered robust financial performance for Q3FY26, with the company reporting significant growth across all key metrics during its earnings call held on January 30, 2026. The electronics manufacturing services provider announced a 45% year-on-year revenue growth to ₹1,274 crores, driven by strong performance across all business verticals.

Strong Financial Performance Across Metrics

The company's financial results for Q3FY26 demonstrate exceptional growth momentum across all parameters. Operating EBITDA surged 101% to ₹159 crores compared to ₹79 crores in Q3FY25, while PBT and PAT both registered approximately 108% growth during the quarter.

Nine-Month Performance Exceeds Guidance

For the nine months ended December 31, 2025, Syrma SGS achieved revenue of ₹3,380 crores with operating EBITDA of ₹370 crores, representing a 78% year-on-year growth. The company's export business reached ₹837 crores during the nine-month period, marking a 45% increase from ₹576 crores in the corresponding period last year.

Broad-Based Growth Across All Verticals

Managing Director J.S. Gujral highlighted the secular growth across all business verticals during the earnings call. The automotive segment grew 30%, med-tech expanded 31%, industrial increased 29%, and IT/railways showed robust 70% growth from a lower base. Export business mix improved to approximately 25% for the nine-month period compared to 22.5% in the previous financial year.

Strategic Developments and Future Outlook

The company completed the acquisition of Elcome during the quarter, which contributed ₹12 crores to consolidated EBITDA for approximately 15-16 days of operations. Syrma SGS expects Elcome to generate ₹280-300 crores revenue annually, with margins upwards of 20-25% in the defence vertical.

The PCB manufacturing project remains on track with construction expected to complete by June-July 2026. The company plans to invest ₹360-400 crores in the first phase, creating capacity for 720,000 square meters of multilayer lines and 480,000 square meters of single layer PCBs, with trial production scheduled for December 2026.

Guidance and Market Position

For FY26, the company maintains confidence in achieving ₹500+ crores EBITDA, representing 55-57% growth against the targeted 30%. The management projects 30% growth in both revenue and EBITDA for FY27, with export revenue expected to cross ₹1,100 crores. The company's order book visibility stands at ₹6,400 crores, with automotive contributing 31%, consumer 25%, and industrial 27%.

Syrma SGS also achieved gold rating from EcoVadis for ESG compliance, positioning among the top 5% companies globally, upgraded from bronze rating in the previous year. The recent India-EU FTA agreement is expected to provide long-term tailwinds for the company's European operations, where it has maintained presence for over two decades through its Stuttgart facility.

Syrma SGS Technology Limited has announced a major strategic acquisition, securing a 60% stake in Elcome Integrated Systems for approximately ₹235 crore in the first tranche of the investment.

Acquisition Details

The transaction represents a significant expansion initiative for Syrma SGS Technology Limited, with the company investing substantially to gain majority control of Elcome Integrated Systems. The deal structure indicates a phased approach to the acquisition.

Strategic Investment Structure

The acquisition follows a tranche-based investment model, with the initial phase securing majority ownership of Elcome Integrated Systems. This approach allows Syrma SGS Technology Limited to establish control while potentially planning additional investment phases.

Market Impact

The substantial investment of ₹235.00 crore demonstrates Syrma SGS Technology Limited's commitment to expanding its business operations through strategic acquisitions. The majority stake acquisition positions the company to leverage Elcome Integrated Systems' capabilities and market presence.

This acquisition marks a notable development in the electronics sector, with Syrma SGS Technology Limited taking decisive steps to strengthen its market position through targeted investments in complementary businesses.