Syrma SGS Raises FY27 Growth Guidance To 40-45%, Targets Rs 7,000-Crore Revenue

Syrma SGS Technology has raised its FY27 revenue growth guidance to 40-45% from the earlier 30%-35%, following a strong first half, with Managing Director Jasbir Singh Gujral expressing confidence in crossing the $1 billion revenue mark in FY28.

The company is also targeting higher contributions from its original-design-manufacturing business and exports as it expands its presence across key global markets.

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Speaking to NDTV Profit, Gujral said the first half performance had strengthened the company's confidence in delivering growth above its earlier guidance. He indicated that if the company could achieve 45% growth, then revenue could reach around Rs 7,000 crore in this entire fiscal year.

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"If I achieve that 45-odd percent, it means I'll be around Rs 7,000 crore this year, and that gives us a great amount of confidence that we should cross the billion-dollar mark in FY28," he said.

Supply Chain Pressure Weighs On Margins

While revenue growth remains strong, rising component costs and supply chain constraints have put pressure on margins. Gujral explained that customers compensate the company for higher material costs, but do not provide an additional value contribution, resulting in some erosion in material margins.

He expects component shortages to ease over the next six-to-eight months, bringing greater stability to supply chains. Operational leverage from higher revenues and the commissioning of the company's PCB project are also expected to support margins.

For FY27, Syrma SGS expects margins of 10-10.5%, with the long-term margin profile stabilising at 10.5-11% or marginally higher.

ODM And Exports To Drive Growth

Syrma SGS is looking to increase ODM revenue to more than Rs 1,000 crore in FY27. The business generated Rs 453 crore in FY25, rising to Rs 825 crore in FY26. In the first half of FY27, ODM revenue stood at Rs 591 crore.

The company also expects exports to exceed its earlier guidance of Rs 1,500 to Rs 1,600 crore. Gujral said export revenue could cross Rs 1,700 crore in FY27, with a potential to reach around Rs 1,800 crore. Going forward, exports are expected to grow 30%-35%, supported by new global customer relationships across medical technology, industrial, and automotive segments.

The Elie Master joint venture, commissioned in September 2026, is expected to contribute Rs 150-200 crore in revenue next year as it progresses through customer and regulatory approvals.

On capital efficiency, Gujral said the company had delivered around 20% return on capital employed, after adjusting for acquisition-related goodwill.

Furthermore, the company's target is to take ROCE to 25% as investments in the PCB facility begin generating returns, supporting an improvement in capital efficiency over the coming years."

Also Read: Syrma SGS Q2 Results: Net Profit Jumps 83% Even As Margin Contracts

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