Syrma SGS Technology is witnessing robust demand from the automotive sector, particularly electric vehicles, even as the electronics manufacturing services (EMS) firm navigates a supply-side crunch stemming from the ongoing crisis in West Asia.
Asked about segment-wise performance following a strong first quarter, in which revenue surged 68% and net profit more than doubled year-on-year, Managing Director Jasbir Singh Gujral told NDTV Profit that the company's traditional IT, railways and medtech verticals remained a small part of the overall business.
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"IT, railways, medtech form a very small portion of my total revenue. They form less than 15% of my total revenue. So even if they grow by 50, 60, 80%, the impact on the top line is not very significant," he said.
In contrast, he pointed to automotive, and the EV segment within it, as the standout growth driver.
"What is very heartening for us is a very robust growth in the automotive sector, especially the EV sector. We have seen strong traction in that," Gujral said, describing the combination of strong demand and a supply crunch as "a good problem to have," since it required the company to double down on execution to meet orders.
Gujral also linked this momentum to client onboarding done over the past two years, saying the benefits were still to be fully realised.
"The major global clients that we onboarded in 2025-26 and 2024-25 have started yielding results. And from those clients, the revenues are yet to reach the potential. And I think they will reach the potential towards the end of this year and will actually sort of materialise in 2027-28," he said.
On the supply side, Gujral reiterated that while demand across the business remained strong, the Middle East crisis posed the key external risk, potentially disrupting component and raw material availability for the industry as a whole.
He said Syrma was building up inventory as a precautionary measure to guard against any production disruption, even as it works through the current quarter with only a marginal increase in inventory days.
The comments come as Syrma has indicated it is on track to exceed its FY27 revenue growth guidance of 30-35%, potentially by 10-15 percentage points, on the back of stronger exports and a doubling of its own-design product business.
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