Syrma SGS Technology (SYRMA) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 delivered robust growth across all key metrics, with revenue, EBITDA, PBT, and PAT all increasing by over 100% year-over-year, despite supply chain challenges from geopolitical tensions in the Middle East.

• Total revenue for Q1 FY27 reached INR 16,037 million, a 67% increase year-over-year.

• Export revenue contributed 24% of operating revenue, growing 61%-67% year-over-year, and ODM sales nearly doubled.

• The company remains focused on long-term, sustainable, and profitable growth, emphasizing integration with global clients and expansion in high-value verticals such as MedTech and defense.

• The company operates solely in the Electronics Manufacturing Services (EMS) segment.

Financial highlights

• Revenue from operations for Q1 FY27 was INR 15,886 million, up 66.7% year-over-year and 8.4% sequentially.

• Operating EBITDA rose 69% year-over-year to INR 1,620 million; total EBITDA (including other income) grew 72% to INR 1,766 million, with an 11.0% margin.

• EBT increased 110% to INR 1,408 million; PAT grew 112% to INR 1,057 million, with a 6.6% margin.

• Exports contributed 24% of operating revenue (INR 3,870 million); ODM sales were INR 2,700 million (17% of revenue).

• Top five customers accounted for 38% of revenue; order book at quarter-end was INR 6,770 million.

Outlook and guidance

• Management reiterated confidence in exceeding prior guidance of 35%+ revenue and EBITDA growth for FY27, citing strong Q1 performance and robust order intake.

• Full-year EBITDA margin guidance remains at 10.5%-11%, factoring in business mix and supply chain cost pressures.

• Export and ODM segments expected to maintain strong momentum, with export growth targeted at 30%-40% for the year.

• Growth trajectory of 30%-35% is expected to continue for the next 2-3 years, supported by new global client onboarding and sectoral tailwinds.

• The company is investing in a new joint venture with Kaga Electronics India, targeting a 60% stake, to expand EMS capabilities.