Syrma SGS Technology Ltd. expects to achieve a top-line growth of 30% to 35% in the current financial year, according to Managing Director JS Gujral.
The electronic system design and manufacturing company aims to achieve an Ebitda margin of 8% by lowering the contribution of the low-margin consumer business. The company plans to lower the contribution of the consumer business vertical to about 30% of revenue by the end of the fiscal.
"We would grow at about 30% or 35% in FY26. We are recalibrating our strategy to focus on high-margin verticals — industrial, healthcare and automotive segments," he told NDTV Profit on Thursday. "We have been able to bring down the low-margin consumer business to about 35% of revenue."
The automotive, industrial and healthcare verticals involve longer gestation periods but offer sustainable growth and better margins. Healthcare and industrial segments yield 10% to 15% margins compared to the consumer segment's 4% to 6%. The consumer business has a "very thin Ebitda margin", according to Gujral.
The top executive dismissed concerns about margin erosion in the industrial segment, citing the low-to-medium volume, high-complexity nature of its products and improved sourcing capabilities.
The company has started assembling high-end laptops for the Taiwanese firm MSI. It will target domestic demand. Gujral indicated that backwards integration, such as manufacturing motherboards and other components, could commence in FY26.
"I think we'll have clarity about being eligible for the Production Linked Incentive scheme in a quarter or maybe four or five months from now," he said. Gujaral added that the demand for such laptops was not high enough in the country to economically justify the manufacturing of motherboards in India.
The company remains cautious about entering the Outsourced Semiconductor Assembly and Test market. Gujral said it would only pursue OSAT with a credible global technology partner capable of integrating the company into its supply chain.
"It's a thin-margin business requiring deep pockets," he said, adding that no concrete partnerships materialised despite ongoing negotiations.
With only a few players like Micron establishing OSAT operations in India, the Syrma managing director said any revenue from this segment remained at least one to two years away.
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