The stock climbed to an intraday high of ₹1,468 apiece during the session. Shares of the company were trading 6.8% up at ₹1,435 as of 12.05 pm on Thursday.
The company reported a 68% year-on-year increase in revenue from operations to ₹1,589 crore, ahead of market expectations of ₹1,400 crore. Net profit doubled to ₹100 crore from ₹50 crore a year ago, exceeding the estimated ₹82 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 85% year-on-year to ₹161 crore, while EBITDA margin expanded to 10.1% from 9.2% a year earlier, above the estimated 9.6%.
What’s driving the growth
The company said growth during the quarter was led by continued strength in its automotive, consumer and export businesses.
Exports, which accounted for 24% of revenue, grew 67% year-on-year. Among business segments, automotive revenue increased 78%, consumer 68%, healthcare 100%, industrial 31%, and IT and railways 199%.
The company also reported a change in its product mix, with the share of industrials declining to 24% from 30% a year ago, while IT and railways increased to 9% from 5%, and automotive rose to 25% from 23%, contributing to margin expansion.
Managing Director J.S. Gujral told CNBC-TV18 that the company had started FY27 on a “very strong note” and was confident of exceeding its FY27 revenue growth guidance of over 30%.
He also reiterated the company’s ₹1,500 crore export revenue guidance and EBITDA margin guidance of 10.5% for FY27.”We don’t see any signs of demand slowdown. Demand continues to remain strong,” Gujral said, while adding that supply chain disruptions were extending delivery lead times for imported components.
₹1,000 Crore Fund Raise
The board approved raising up to ₹1,000 crore through a QIP or other permissible modes.
The company said it remains committed to its FY27 growth aspirations and is progressing its printed circuit board (PCB) project to strengthen its manufacturing ecosystem.
Total debt increased to ₹686 crore at the end of the June quarter from ₹353 crore in the previous quarter.
Brokerages Bullish on Syrma SGS Tech
HSBC maintained its ‘Buy’ rating on the stock with a target price of ₹1,750, saying the company’s 68% revenue growth was well ahead of its estimate of 46%. The brokerage noted that net working capital days increased to 71 from 63 at the end of FY26 as the company built higher strategic inventories to support new customer ramp-ups and mitigate supply chain risks.
Jefferies also retained its ‘Buy’ rating but with a target price of ₹1,185. The brokerage said the June quarter beat its estimates, aided partly by a weak base in the year-ago period when the company was recalibrating its product mix. It also highlighted strong growth in the automotive, consumer and export businesses during the quarter.
