Syrma SGS , a leading electronics manufacturing services (EMS) company, has outlined ambitious growth targets for FY26, focusing on higher-margin businesses in automotive and industrial manufacturing sectors. The company aims to achieve EBITDA margins of 8.5-9% and revenue growth exceeding 30% in the fiscal year 2026.

Q1 Performance and Future Outlook

In the first quarter, Syrma SGS reported a revenue decline of 18% to Rs 960.00 crore, compared to Rs 1,175.20 crore in the same quarter of the previous fiscal year. Despite this setback, Managing Director JS Gujral remains optimistic about the company's prospects. He expects a robust growth of 35-40% in the subsequent three quarters to meet the annual target, noting that Q1 typically accounts for only 20% of the company's annual revenue.

Strategic Revenue Mix Shift

Syrma SGS has implemented a strategic shift in its revenue mix to drive growth and improve profitability:

This realignment demonstrates the company's focus on higher-margin sectors, particularly automotive and industrial manufacturing.

Historical Performance

Over the past two years, Syrma SGS has shown strong financial performance:

• Revenue growth: 25%
• EBITDA increase: 50%
• Profit before tax rise: 27%
• Profit after tax climb: 32%

Technology Partnerships and R&D Focus

Gujral emphasized the importance of partnerships with Chinese companies for technology transfer. He also stressed the need for Indian firms to invest in research and development (R&D) to ensure long-term sustainability in the competitive electronics manufacturing landscape.

Investor Confidence

The market has responded positively to Syrma SGS's growth strategy and future outlook. The company's shares closed 1.07% higher at Rs 706.70 on the National Stock Exchange (NSE), reflecting investor confidence in its business model and growth prospects.

Upcoming Investor Meetings

Syrma SGS Technology has announced its participation in upcoming non-deal roadshows:

• July 28-29: One-on-one meetings in Singapore
• July 30-August 1: One-on-one meetings in Mumbai, India

These roadshows, organized in collaboration with DAM Capital, Kotak Securities, and JM Financial, provide an opportunity for investors to engage with the company's management and gain insights into its growth strategy.

As Syrma SGS continues to navigate the dynamic electronics manufacturing sector, its focus on high-margin segments and strategic partnerships positions the company for potential growth in the coming fiscal year. Investors and industry observers will be closely watching the company's performance in the upcoming quarters to gauge its progress towards its ambitious FY26 targets.

Syrma SGS Technology Limited , a leading electronics manufacturing services (EMS) company, has reported significant progress in utilizing its Initial Public Offering (IPO) proceeds. According to the company's monitoring agency report for the quarter ended June 30, 2025, Syrma SGS has utilized 88% of the net proceeds raised from its August 2022 IPO.

IPO Proceeds Utilization

The company raised Rs 7,257.22 million in net proceeds from its IPO in August 2022. As of June 30, 2025, Syrma SGS has utilized Rs 6,387.25 million, leaving Rs 869.97 million unutilized. The funds were allocated across three main objectives:

Recent Utilization

During the quarter ended June 30, 2025, the company spent Rs 134.62 million on capital expenditure projects. This demonstrates Syrma SGS's continued commitment to expanding its manufacturing capabilities and research and development facilities.

Monitoring Agency Report

CRISIL Ratings Limited, the appointed monitoring agency, has reported no deviations from the stated objectives. The agency confirmed that all utilization was in line with the disclosures made in the offer document.

Unutilized Funds

The remaining unutilized amount of Rs 869.97 million has been deployed in fixed deposits and monitoring agency accounts. This prudent approach ensures that the funds are safely invested while awaiting deployment for their intended purposes.

Conclusion

Syrma SGS Technology's efficient utilization of IPO proceeds demonstrates the company's commitment to its growth strategy and transparency with investors. As the company continues to deploy the remaining funds, stakeholders will be keen to observe the impact on Syrma SGS's operational capabilities and financial performance in the coming quarters.