Shares of Syrma SGS Technology surged as much as 9% on Thursday, July 30, reaching an intraday high of ₹1,468 after the company reported exceptional June quarter earnings. As per CNBC TV18, the stock was trading 6.8% higher at ₹1,435 as of 12:05 pm on Thursday. The company delivered strong financial results with net profit doubling to ₹100 crore from ₹50 crore in the corresponding quarter last year, exceeding estimated ₹82 crore. Revenue from operations grew 68% year-on-year to ₹1,589 crore, ahead of market expectations of ₹1,400 crore. EBITDA rose 85% year-on-year to ₹161 crore, with EBITDA margin expanding to 10.1% from 9.2% a year earlier, above the estimated 9.6%. The robust performance was driven by broad-based growth across all business segments, with PAT increasing ~112% YoY supported by a 100bps YoY expansion in EBITDA margin.
Syrma SGS Technology delivered exceptional financial results for the June quarter, with consolidated net profit surging 101.19% to ₹1,000.07 crore from ₹49.74 crore in the corresponding quarter last year. According to the latest results, revenue from operations grew 68.29% to ₹1,588.62 crore compared to ₹943.98 crore in the year-ago period. Operating EBITDA climbed 68.8% to ₹1,633.1 million from ₹877.3 million, with operating EBITDA margin improving to 10.17% from the previous period. Total EBITDA reached ₹1,766 million, representing a 72.1% year-on-year increase with overall EBITDA margin of 11.0%. Profit before tax more than doubled to ₹1,408 million from ₹671 million, with PAT margin expanding to 6.6% from 5.2%. Earnings per share improved significantly to ₹5.19 from ₹2.79 in the year-ago quarter, while other income rose 117.3% to ₹151 million, indicating non-operating factors contributed to top-line expansion. The strong performance was primarily led by higher contribution from the high-margin ODM and Export businesses, though partly offset by the increased share of the lower-margin Consumer segment.
The company's financial strength was further validated by India Ratings upgrading its credit rating to IND AA/Stable from IND AA-/Stable, citing improved business risk profile and strong liquidity. As of June 30, 2026, total debt stood at ₹6,860 million, offset by cash and equivalents of ₹8,084 million, resulting in a net cash position of ₹1,224 million. The debt-to-equity ratio improved to 0.3 from 0.4 in Q1FY26, while return on capital employed (ROCE) adjusted for goodwill remained stable at 20.1%. Net working capital days increased slightly to 71 days from 69 days in Q1FY26, attributed to higher strategic inventory levels. Finance costs decreased by 10.7% year-on-year to ₹133 million, aiding bottom-line growth and supporting the company's improved financial position.
The company demonstrated robust business momentum with an order book of ₹68 billion in Q1FY27, primarily driven from Auto, Consumer and Industrial segments. In Q1FY27, Syrma SGS added 18 new customers, including 5 in Automotive, 3 in Industrial, 2 in healthcare, and the remaining across Telecom, IT, and Railways, strengthening its long-term growth pipeline. The Consumer segment revenue jumped 68% year-on-year to ₹5,328 million, accounting for 34% of the mix, while Healthcare revenue surged 100% to ₹1,345 million and IT and Railways revenue nearly tripled to ₹1,497 million. The strong customer acquisition reflects the company's successful client onboarding strategy and positions it well for sustained growth.
Gujral reiterated that while demand across the business remained strong, the Middle East crisis posed the key external risk, potentially disrupting component and raw material availability for the industry as a whole. As per NDTV Profit, the company faced significant supply chain disruptions, with cost of materials consumed surging 93% over the year-ago period to ₹1,400.9 crore. Gujral noted that some key components are in short supply because factories producing them in Saudi Arabia were hit during the Iran war, creating an industry-wide crunch. The company has taken a strategic decision to invest heavily in working capital to ensure supply continuity. To mitigate risks, Syrma is building up inventory as a precautionary measure to guard against any production disruption, even as it works through the current quarter with only a marginal increase in inventory days.
Managing Director Jasbir Singh Gujral reaffirmed the company's optimistic outlook, stating that Syrma remains on track to surpass the revenue growth guidance of 30-35% set in May following FY26 annual results. Speaking to CNBC TV18, Gujral said the company had started FY27 on a "very strong note" and was confident of exceeding its FY27 revenue growth guidance of over 30%. He reiterated the company's ₹1,500 crore export revenue guidance and EBITDA margin guidance of 10.5% for FY27. The company expects export revenue to reach ~₹15-16 billion during the year and has maintained its guidance for 30-35% revenue growth in FY27 with EBITDA margins of 10.5–11%. Gujral also linked the current momentum to client onboarding done over the past two years, saying the major global clients onboarded in 2025-26 and 2024-25 have started yielding results, with revenues yet to reach potential and expected to materialise in 2027-28. The two new PCB and camera module manufacturing facilities under the Ministry of Electronics and Information Technology's ECMS are expected to start contributing to revenue from FY28 once clients validate production quality. The strong quarterly results drove positive market sentiment, with shares closing 3.6% higher at ₹1,353 following the results announcement, reflecting strong investor confidence in the company's growth trajectory and operational execution despite global supply chain challenges.
