Syrma SGS Technology delivered a stellar financial performance for FY 2026, achieving a consolidated revenue of INR 4,857 crore, a 27% year-on-year growth. The company reported an operating EBITDA of INR 545 crore, reflecting a 68% expansion, and significantly strengthened its balance sheet by moving to a net cash position of INR 467 crore. Management emphasized strong execution, meaningful margin expansion, and a robust outlook for the upcoming fiscal year.
Financial Performance Highlights
For the quarter ended March 31, 2026, Syrma SGS reported a consolidated revenue of INR 1,477 crore, marking a 56% year-on-year increase and 16% sequential growth. Annual operating EBITDA margin improved by 270 basis points to 11.3%, while Profit After Tax (PAT) surged 87% year-on-year to INR 346 crore. This growth highlights the company’s structural improvements and successful operating leverage.
Segmental Growth and Business Mix
The company witnessed solid double-digit growth across all verticals. IT and Railways emerged as a standout segment with 182% year-on-year growth in Q4. Other key drivers included Automotive (up 39%), Industrial (up 30%), and Healthcare (up 36%). The ODM (Original Design Manufacturing) business saw significant traction, rising to 17% of total revenue, up from 12% in the previous year.
Strategic Capex and Future Outlook
Syrma SGS is heavily investing in the PCB (Printed Circuit Board) business, with a total planned outlay of INR 800 crore, spread across multiple phases. Management remains committed to a sustained revenue growth target of 35% and an operating EBITDA margin of 10.5% to 11% for FY 2027. The company enters the new year with a strong order book, improved ROCE of 16.9%, and a focus on expanding its global footprint.
Operational Efficiency
Operational discipline remains a core focus, with the company successfully reducing its working capital cycle from 69 days to 63 days. Recent certifications, including TISAX for the automotive sector, and the implementation of real-time monitoring on assembly lines have already yielded a 5% to 7% improvement in operational efficiency. The company continues to prioritize high-margin ODM projects and disciplined customer selection to ensure long-term value creation.
Source: BSE
