Syrma SGS Technology (SYRMA) Q1 25/26 earnings summary

Executive summary

• Achieved strong Q1 FY26 performance with significant improvements in EBITDA margin and gross material margin year-over-year, despite a total revenue of ₹9,600 million, which was up 1.4% sequentially but down 18.3% year-over-year.

• PAT rose 145% year-over-year to ₹499 million, with a PAT margin of 5.2%.

• Export revenue contributed 25% of total revenue.

• Strategic recalibration and a joint venture for PCB manufacturing targeting the large Indian market are underway.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26, prepared in compliance with Ind AS 34 and SEBI regulations.

Financial highlights

• Q1 FY26 consolidated revenue: ₹9,439.80 million, down from ₹11,599.73 million YoY; standalone revenue: ₹5,617.47 million, up from ₹4,654.92 million YoY.

• Operating EBITDA: ₹957 million, up 75% YoY; EBITDA margin at 10%.

• PBT: ₹671 million, up 128% YoY; PAT: ₹499.20 million, up 145% YoY.

• Net working capital at 69 days, with ongoing focus to reduce below 65 days.

• Net debt as of June 30, 2025: ₹2,639 million; total debt decreased to ₹6,112 million sequentially.

Outlook and guidance

• Full-year revenue growth expected at 30%-35% over previous year.

• Operating EBITDA margin guidance raised to 8.5%-9% for FY26.

• Final dividend of 15% (₹1.5 per equity share) for FY25 recommended, subject to shareholder approval.

• Export revenue expected to cross ₹1,000 crore, with primary growth from Western Europe and North America.

• Working capital days targeted to reduce to around 60-65 by year-end.