Syrma SGS Technology (SYRMA) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw consolidated revenue rise to ₹12,641.80 million, up 45% year-over-year, with PAT doubling to ₹1,103.14 million and significant margin improvements.

• Nine-month revenue reached ₹33,800.20 million, with PAT at ₹2,266 million, both showing strong year-over-year growth.

• Export revenue surged, contributing 25%-26% of operating revenue in Q3 and nine months, driven by industrial and MedTech demand.

• All business verticals contributed to growth, with auto, MedTech/Healthcare, industrial, and IT/railways showing 30%-71% growth rates.

• The group completed the acquisition of a 60% stake in Elcome, strengthening its defense vertical and margin profile.

Financial highlights

• Q3 consolidated revenue was ₹12,641.80 million, up 45% year-over-year; nine-month revenue was ₹33,800.20 million.

• Q3 operating EBITDA reached ₹1,590 million (12.6%-13.3% margin), with nine-month EBITDA at ₹3,700 million (11% margin).

• Q3 PAT was ₹1,103.14 million, up 108% year-over-year; nine-month PAT was ₹2,266 million, up 101% year-over-year.

• Export revenue for Q3 was ₹3,350 million (25%-26% of total), highest ever, and nine-month export revenue was ₹8,370 million.

• Net profit margin for the quarter was approximately 8.7%.

Outlook and guidance

• Confident of exceeding initial EBITDA margin guidance, now targeting over ₹5,000 million EBITDA for FY26, a 55%-57% increase.

• Expecting 30% top-line and EBITDA growth in FY27, with continued strong export and vertical performance.

• Order book visibility stands at ₹64,000 million, supporting future growth.

• PCB project and capacity expansions are on track, with trial production expected by early 2027.

• The company continues to monitor regulatory changes, including new labour codes, and will adjust accounting as needed.