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    Syrma SGS Technology Q4 FY26 earnings call

    SYRMA
    Capital Goods·12 May 2026
    Management Summary

    Syrma SGS Technology delivered a strong Q4 and full-year FY26, surpassing its own guidance for EBITDA, revenue, and exports. The company achieved a net cash position, significantly improved its working capital cycle, and saw robust growth across key verticals. Despite sequential margin moderation and external cost pressures, management expressed confidence in sustained growth and profitability for FY27, backed by a healthy order book and strategic investments, while maintaining a conservative outlook.

    Highlights

    8

    • FY26 Operating EBITDA of ₹545 crores exceeded guidance of ₹400+ crores.

    • Total revenue for FY26 grew 27% YoY to ₹4,857 crores.

    • Exports reached over ₹1,200 crores, surpassing the ₹1,100 crore target.

    • Working capital cycle improved from 69 days to 63 days (58 days ex-Elcome).

    • Generated positive operating cash flow of ₹290+ crores, representing 53% of operating EBITDA.

    • Achieved a net cash position of ₹467 crores, a significant shift from net debt of ₹264 crores.

    • PAT grew 87% YoY to ₹346 crores, with ROCE improving from 12.4% to 16.9% (20.1% goodwill-adjusted).

    • Long-term rating upgraded from AA- to AA, reflecting strong market confidence.

    Concerns

    3

    • Q4 Operating EBITDA margin moderated slightly to 11.9% from 12.6% in Q3, primarily due to a higher mix of IT business.

    • Geopolitical tensions and supply chain issues are causing cost volatility, leading to a conservative margin guidance for FY27.

    • The planned Ksolare acquisition was abandoned due to the seller's inability to fulfill conditions, requiring a shift to a greenfield approach for renewable energy entry.

    What Changed1

    vs Q1 FY27

    Guidance items12 → 11 (-1)
    Key financials

    Metrics

    13

    Periods

    2

    Q4 FY26

    5
    • Total Revenue
      ₹1,477 Cr
      YoY+56.0%QoQ+16%
    • Operating EBITDA
      ₹174 Cr
      YoY+51%
    • Operating EBITDA Margin
      11.9%
    • PAT
      ₹119 Cr
      YoY+67%
    • PLI Benefit
      ₹10 Cr

    FY26

    8
    • Total Revenue
      ₹4,857 Cr
      YoY+27%
    • Operating EBITDA
      ₹545 Cr
      YoY+68%
    • Operating EBITDA Margin
      11.3%
    • PAT
      ₹346 Cr
      YoY+87%
    • Operating Cash Flow
      ₹290 Cr

    Segment breakdown

    Industrial (FY26 Revenue Mix)
    31% Share of Revenue
    Consumer (FY26 Revenue Mix)
    26% Share of Revenue
    Automotive (FY26 Revenue Mix)
    24% Share of Revenue39% Growth
    IT & Railways (FY26 Revenue Mix)
    74% Growth
    Health Care (FY26 Revenue Mix)
    36% Growth₹395 Cr Revenue
    Exports (FY26 Revenue Mix)
    24% Share of Operating Revenue41% Growth
    List

    Order Book

    high confidence

    Total Value

    ₹ 600 crores

    as of 2026-03-31

    quantified
    3.0% QoQ

    Inflow this qtr

    ₹ 1,670 crores

    Execution

    Orders are for varying periods: 3 months, 6 months, 5 months, 4 months.

    Composition

    Mix6 segments
    • Auto29.0%
    • Consumer30.0%
    • Industrial24.0%
    • Health Care5.0%
    • IT & Railways11.0%
    • Elcome5.0%

    Share of order book by segment · partial disclosure (104.0% of book)

    "Order book is an indication and needs continuous upgrading with new additions; it does not reflect a full year's business due to varying order durations."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    ₹100 crores

    Partly through debt, partly through internal accruals, and 25% by JV partner for PCB capex. Subsidies expected in the next year for PCB capex.

    Debt

    Net ₹467 crores

    M&A

    Ksolare (via JV with Premier Energies)

    acquisition · abandoned · Consideration ₹NaN (undisclosed)

    Liquidity

    Cash ₹820 crores

    Company is in a net cash position of INR467 crores.

    Guidance & targets

    11
    CategoryTargetPriority
    Revenue
    Revenue Growth
    30% to 35%
    		High
    Profitability
    Operating EBITDA Margin
    10% to 10.5%
    		High
    Profitability
    Total EBITDA
    INR700 crores
    		High
    Exports
    Export Revenue
    INR1,500 crores plus
    		High
    Exports
    Export Growth
    20% to 30%
    		Medium
    Capex
    Organic Capex
    INR100 crores to INR150 crores
    		High
    Capex
    PCB-related Capex (FY27 portion)
    INR250 crores
    		High
    Segment Growth
    MedTech Business Revenue
    cross INR500 crores mark
    		High
    Segment Growth
    IT & Railways Growth
    30%, 40%
    		Medium
    Working Capital
    Working Capital Days
    bring it down further
    		Medium
    ROCE
    ROCE (goodwill-adjusted)
    20.1%
    		High

    What to watch in Q1 FY27

    5

    FY27 Revenue Growth

    next quarter (Q1 FY27 earnings call)
    CurrentFY26 growth 27%
    Target30-35% growth

    Why it matters

    To verify if the company is on track to achieve its ambitious FY27 revenue growth guidance amidst market conditions.

    We remain committed to our aspirations of sustained revenue growth of 35% with a sustainable operating EBITDA margin of at least 10% to 10.5%, targeting INR700 crores of total EBITDA for the next year, FY '27.

    Risks & concerns

    4
    RiskSeverity

    Geopolitical tensions and supply chain disruptions

    Global trade volatility, shipping route disruptions, and rising basic metal prices are causing stress on the economy and supply chains, impacting costs. — Management acknowledged

    high

    Raw material price inflation

    Increased costs due to rising basic metal prices, which are passed on to customers with a lag, leading to conservative margin guidance. — Management acknowledged

    high

    Increased competition in EMS market

    Larger players entering the electronics manufacturing services (EMS) space could increase competitive intensity. — Analyst acknowledged

    medium

    Working capital cycle elongation

    Risk of working capital cycle elongation, especially with certain customers or segments; management is selective to mitigate this. — Management acknowledged

    medium

    Q&A highlights

    8

    “So overall, the large project which we are taking over right now is the PCB-related business. So PCB-related, we said that we are planning to spend approximately $90 million, which is INR800 crores of capex over the year for this multilayer line kind of a PCB setup. And this capex we are spreading across 2 phases. Initial phase is INR400 crores, which is going on, and of which, about INR50 crores is already spent till last year. This year, we are expecting we'll be spending around INR250-odd crores against the same project and balance INR100 crores can go in the next year.”

    Analyst sought clarity on long-term capex beyond FY27, especially for the significant PCB project, which is a key future growth driver. Management provided a detailed multi-year breakdown and funding strategy.

    asked by Indrajit Agarwal

    2 min read7 chapters

    Detailed Narrative

    01

    Strong FY26 Performance Exceeding Guidance

    Syrma SGS Technology delivered a landmark FY26, surpassing its own guidance with EBITDA reaching INR545 crores against a target of INR400+ crores. Revenue grew 27% YoY to INR4,857 crores, driven by robust performance across automotive (39% growth), industrial (30%), and healthcare (36%). Exports significantly exceeded the INR1,100 crore target, reaching over INR1,200 crores, reflecting a 41% YoY increase and highlighting increasing global relevance.

    02

    Profitability and Balance Sheet Strengthening

    The company demonstrated strong operating leverage, with operating EBITDA expanding 68% YoY to INR545 crores (11.3% margin) and PAT growing 87% YoY to INR346 crores. This profitability translated into a net cash position of INR467 crores by year-end, a significant improvement from a net debt of INR264 crores in FY25. Debt was sharply reduced from INR611 crores to INR353 crores, and cash and equivalents rose to INR820 crores, underpinning a strengthened balance sheet.

    03

    Improved Working Capital and Operational Efficiency

    Operational efficiency gains were evident in the improved working capital cycle, which reduced from 69 days to 63 days (58 days excluding Elcome). This discipline contributed to a healthy operating cash flow of INR290+ crores, representing 53% of operating EBITDA. Management emphasized a commitment to selective growth to maintain working capital discipline, even if it means sacrificing top-line growth.

    04

    Strategic Investments and Future Growth Drivers

    Syrma SGS is embarking on a multi-year PCB manufacturing project with a total capex of INR800 crores, with INR250 crores planned for FY27. This, along with INR100-150 crores in organic capex, positions the company for future growth. The abandonment of the Ksolare acquisition was noted, but the company remains committed to the renewable energy space through a greenfield project, with proposals currently under evaluation.

    05

    FY27 Outlook and Conservative Margin Guidance

    For FY27, the company targets 30-35% revenue growth and an operating EBITDA margin of 10-10.5%, aiming for INR700 crores in total EBITDA. Exports are projected to reach over INR1,500 crores, with a growth rate of 20-30%. Management adopted a conservative stance on margin guidance due to global volatility🌐, supply chain disruption🌐s, and the lag in passing through increased costs, preferring to 'err on the side of caution.'

    06

    Customer Acquisition and Market Share Gains

    The company added 32 new customers in FY26, including 7 in the industrial segment, which have the potential to contribute significantly to future revenue. Management highlighted gaining market share and expanding its portfolio, with MedTech now contributing approximately 8% of revenue and defense being a new vertical, indicating a mosaic of growth drivers beyond just organic expansion.

    07

    TISAX Certification and Operational Excellence

    Syrma SGS became the first Indian company to receive TISAX certification for automotive electronics information security, driven by an overseas customer requirement. This, coupled with the implementation of real-time monitoring systems on assembly lines, has led to a 5-7% improvement in operational efficiency, underscoring the company's focus on quality and process excellence.

    This is an AI-generated summary of a publicly available earnings call transcript.