Syrma SGS Q1 profit doubles as revenue surges, but sequential margins soften

Syrma SGS Technology Ltd reported a 111.7 per cent year-on-year rise in consolidated profit after Tax to Rs 105.7 crore for the quarter ended June 30, 2026, as revenue growth accelerated across consumer, automotive, healthcare, IT and Railways businesses.

Consolidated total revenue rose 67.0 per cent from a year earlier to Rs 1,603.7 crore in the first quarter of FY27. Revenue from operations increased 66.7 per cent to Rs 1,588.6 crore, while other income more than doubled to Rs 15.1 crore.

The quarterly performance extends the electronics manufacturing services company's growth momentum after FY26, when consolidated revenue from operations rose 27.3 per cent to Rs 4,819.1 crore and PAT increased 87.5 per cent to Rs 345.8 crore. The latest quarter indicates that demand growth has remained strong at the start of FY27, although profitability was lower than in the immediately preceding quarter.

PAT fell 11.4 per cent sequentially from Rs 119.2 crore in Q4 FY26. The PAT margin stood at 6.6 per cent, up from 5.2 per cent in Q1 FY26 but below 8.1 per cent in the March quarter. EBITDA rose 72.1 per cent year-on-year to Rs 176.6 crore, though it declined 5.0 per cent sequentially, and the EBITDA margin contracted to 11.0 per cent from 12.6 per cent in Q4 FY26.

Operating EBITDA, which excludes other income, rose 68.8 per cent year-on-year to Rs 161.6 crore. Its margin improved by 20 basis points from a year earlier to 10.2 per cent but was lower than 11.9 per cent in the previous quarter.

The margin moderation came alongside a decline in gross margin to 24.5 per cent from 25.4 per cent a year earlier and 25.9 per cent in Q4 FY26. Material consumption rose 68.7 per cent year-on-year to Rs 1,199.2 crore, broadly tracking the sharp increase in revenue. Operating expenses increased 55.3 per cent to Rs 227.8 crore.

Consumer remained Syrma SGS's largest end market during the quarter, contributing Rs 532.8 crore, up 68 per cent year-on-year and 39 per cent sequentially. The segment accounted for 34 per cent of operating revenue.

Automotive revenue grew 78 per cent year-on-year and 14 per cent sequentially to Rs 394.9 crore, representing a quarter of the industry mix. Healthcare revenue doubled from a year earlier to Rs 134.5 crore, though it was marginally lower than the March quarter level.

Industrials revenue increased 31 per cent year-on-year to Rs 376.6 crore but declined 18 per cent sequentially, bringing its contribution to 24 per cent of the mix from 30 per cent a year earlier. IT and railways revenue grew 199 per cent year-on-year to Rs 149.7 crore.

Exports accounted for 24 per cent of operating revenue and rose 67 per cent year-on-year. Return on capital employed improved to 17.3 per cent from 13.5 per cent a year earlier.

A key execution metric to watch is working capital. Net working-capital days increased to 71 from 63 in Q4 FY26, as the company held higher strategic inventory for critical components and new customer ramp-ups. While such inventory can support delivery reliability, it also raises the cash tied up in operations.

As of June 30, total debt stood at Rs 686 crore, including Rs 619.3 crore of working-capital loans. However, cash, cash equivalents and investments totalled Rs 808.4 crore, leaving the company with net cash of Rs 122.4 crore.

As of 10:55 am on October 22, 2026, Syrma SGS shares were trading at Rs 1,511.15, up 2.84 per cent from the previous close. The stock has gained 73.79 per cent over the past year, compared with an 8.25 per cent decline in the BSE 500, and was about 15.2 per cent below its 52-week high of Rs 1,781.90.

Disclaimer: The article is for informational purposes only and not investment advice.