Syrma SGS Technology delivered exceptional financial performance in Q2 FY27, with consolidated net profit surging 87.2% to ₹124.2 crore compared to ₹66.3 crore in the corresponding quarter last year. According to The Economic Times, this represents the company's best-ever quarterly performance with consolidated revenue reaching a record high of ₹1,999.5 crore, up 73.2% from ₹1,154.6 crore year-on-year. The company achieved sequential growth of 24.7% from ₹1,603.7 crore in the June quarter, while EBITDA increased 63.9% to ₹203.1 crore, though operating margins moderated to 10.2% from 10.7% year-on-year. As per The Economic Times, exports, which accounted for 26% of operating revenue, grew 91% year-on-year during the quarter, showcasing strong international demand.
The company's diversified portfolio showed strong performance across all key segments during Q2 FY27. According to The Economic Times, the automotive business reported revenue of ₹516.9 crore, up 91% year-on-year from ₹271 crore, while the consumer segment recorded revenue of ₹572.7 crore, registering a 57% increase from ₹365.6 crore in the year-ago quarter. The healthcare segment revenue rose 61% to ₹134 crore, compared with ₹83.4 crore in the corresponding period last year. As reported by The Economic Times, growth was driven by the automotive and industrial segments, along with an 80% rise in exports, demonstrating the company's successful diversification strategy and global expansion efforts.
Despite industry-wide component constraints, Syrma SGS Technology demonstrated exceptional operational efficiency during the quarter. According to The Economic Times, Managing Director Jasbir Singh Gujral confirmed that the company maintained customer commitments despite industry-wide component constraints, reduced working capital to 63 days and generated strong positive operating cash flow during the first half. The company successfully streamlined working capital and generated positive operating cash flow for the first half of FY27, with the EBITDA margin contracting to 10.2% from 10.7% year-on-year, indicating some pressure on operational efficiency despite the strong top-line growth.
Syrma SGS Technology is positioning for significant growth through strategic partnerships and major infrastructure investments. According to The Economic Times, the company plans to invest ₹25 crore jointly with Japanese partner Kaga Electronics this fiscal year to strengthen its domestic supply ecosystem. In September last year, Syrma announced plans to invest ₹1,595 crore in Andhra Pradesh to build "India's largest multi-layer printed circuit board (PCB) manufacturing facility". The state government allotted 26.7 acres to the company with a 75% subsidy on land costs under its Electronics Components Manufacturing Policy. The company is also developing its PCB business through a joint venture with South Korea's Shinhyup Electronics, positioning for enhanced manufacturing capabilities across multiple technology segments.
The strong quarterly performance reflects Syrma SGS Technology's successful execution of its growth strategy, with the company demonstrating significant operational leverage. As reported by The Economic Times, shares of Syrma closed 2.85% lower at ₹1,620.90 on the BSE ahead of the earnings announcement. Looking ahead, the company plans to build on its growth momentum by expanding its global presence, scaling niche and technology-intensive segments, and advancing its printed circuit board (PCB) project as a new growth pillar. The company's ₹200 crore revenue target from its joint venture with European electronics manufacturing firm Elemaster Group in the first full year of operations in FY 2027-28, combined with its major PCB facility investment, positions it for substantial long-term growth in India's electronics manufacturing sector.
