Syrma SGS Technology Limited has submitted its quarterly monitoring agency report for Q3FY26, demonstrating complete utilization of its Rs.1,000.00 crore Qualified Institutional Placement (QIP) proceeds. The report, filed with stock exchanges on January 30, 2026, was prepared by CARE Ratings Limited as the designated monitoring agency under SEBI regulations.

QIP Proceeds Utilization Overview

The monitoring report confirms that all QIP funds have been fully deployed across the three designated categories outlined in the original placement document. The company successfully completed its fund utilization program during the quarter ended December 31, 2025.

Strategic Acquisition Through QIP Funds

The company utilized the entire Rs.224.262 crore allocated for general corporate purposes toward acquiring a 60% stake in Elcome Integrated Systems Private Limited. This acquisition involved an aggregate consideration of approximately Rs.235.00 crore through a combination of primary and secondary investment structures.

Debt Repayment Activities

During Q3FY26, Syrma SGS deployed Rs.66.538 crore for working capital loan repayment, completing its debt reduction objectives. The quarterly utilization included:

• Rs.50.00 crore toward Commercial Paper (CP) repayment
• Rs.16.538 crore for working capital loan settlement
• Rs.0.048 crore carried forward from the previous quarter for working capital purposes

Regulatory Compliance and Monitoring

CARE Ratings Limited, serving as the monitoring agency under the August 07, 2025 agreement, confirmed no deviations from the objects stated in the offer document. The report indicates full compliance with SEBI regulations regarding fund utilization and disclosure requirements.

Issue Timeline and Structure

The QIP issue was conducted between August 07, 2025, and August 12, 2025, raising Rs.1,000.00 crore through equity shares. The company operates in the Industrial Products sector under the leadership of promoters Sandeep Tandon, Jasbir Singh Gujral, Veena Kumari Tandon, and Tancom Electronics Private Limited.

The monitoring report, certified by Walker Chandiok & Co LLP on January 25, 2026, demonstrates the company's efficient capital deployment strategy and adherence to regulatory frameworks governing QIP proceeds utilization.

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.