Syrma SGS Eyes 8.5–9% Ebitda Margin In FY26 With Focus On More Profitable Segments

Syrma SGS Technology, a leading electronics manufacturing services company, is targeting Ebitda margins of 8.5-9% and revenue growth of over 30% in FY26. This will be achieved by increasing the contribution of high-margin businesses like automotive and industrial manufacturing to the company’s revenue, according to Managing Director JS Gujral.

“We are very confident we will be able to sustain and maintain the guidance of the revenue growth, which is 30% plus in FY26. We are on track for that with a higher Ebitda margin, which we now believe should be about 8.5 to 9% for the year,” he said in a conversation with NDTV Profit. 

The company’s revenue dropped 18% year-on-year (YoY) to Rs 960 crore in Q1FY26 compared to Rs 1,175.2 crore in Q1FY25. On being asked about its impact on the company’s aim to achieve over 30% revenue growth in FY26, Gujral said, “Typically, Q1 accounts for about 20% of my revenue. If it is going to be 30% in FY26, my growth in the coming quarters will be a tad higher, maybe 35-40% as we go along, for the next three quarters.”

Gujral revealed that after Q1FY25, the company had recalibrated its strategy to focus on verticals that offered higher margins. 

This strategic shift is reflected in the company's revenue mix. The contribution from the consumer segment has been consciously reduced from approximately 54% of revenue last year to 34% in the first quarter of the current fiscal. In contrast, the automotive sector's share has surged from 16% to 24%, while the industrial segment has grown from 19% to 30%.

“Over the last two years, our revenues have grown by 25%, our Ebitda has grown by 50%, PBT (profit before tax) by 27%, and PAT (profit after tax) by 32%. So, on all the key vitals of the company, I think the re-strategising of the marketing has paid off.”

On partnerships with Chinese companies, Gujral acknowledged their importance for technology transfer, but outlined the need for Indian firms to invest heavily in R&D.

“Just as the Chinese companies did in the 1990s and early 2000s when they grabbed the technology from the Western world and built upon it, I think that building on the technology provided by the Chinese companies would be very critical for long-term sustainability and growth," the top executive said, adding this was vital to making India a hub for electronics manufacturing.

Shares of Syrma SGS Technology closed 1.07% higher at Rs 706.7 apiece on the NSE on Thursday, compared to the benchmark Nifty50 settling 0.63% lower at 25,062.1.