Syrma SGS Technology Q2 Revenue Jumps 73%; Profit Up 87%

Revenue: INR 2,000 crore; PAT: INR 124 crore

Reader Takeaway: Strong revenue growth and upward guidance revision drive momentum, though supply chain constraints remain a cost-push headwind.

What just happened

Syrma SGS Technology reported robust financial growth for the quarter ending September 2026. Consolidated revenue grew 73% year-on-year to INR 2,000 crore. Net profit soared 87% to INR 124 crore compared to the same period last year. H1 FY27 figures show a consistent trend with revenue hitting INR 3,603 crore and profit reaching INR 230 crore, representing a 98% growth over the previous year.

Why this matters

The company’s performance highlights broad-based demand across its key verticals, including automotive, industrial, and healthcare. Investors will note that management has raised its FY27 revenue growth guidance to 40%-45%, targeting an annual revenue of INR 7,000 crore. The firm is also positioning itself for long-term growth, with an ambitious target of crossing the $1 billion revenue mark in FY28.

Order Book and Capacity

As of September 2026, Syrma SGS holds an order book of INR 7,420 crore. The automotive segment remains the largest contributor at 30%, followed by industrial and consumer segments. The company is investing heavily in its PCB project, with INR 200 crore deployed in Q2 alone. Trial production is set for March 2027, with commercial operations planned for April 2027, which management expects will improve EBITDA margins to the 15%-18% range.

Risks to watch

Management cited persistent global supply chain constraints, which are expected to continue for the next 6-9 months. While these costs are currently managed through customer pass-through mechanisms, they continue to exert pressure on EBITDA margins, which stood at 9.9% for H1 FY27. The company's reliance on the successful ramp-up of new, long-gestation contracts remains a monitorable factor.

Balance Sheet and Cash Flow

Efficiency has improved, with the working capital cycle reducing to 63 days from 71 days in the prior quarter. The company maintains a healthy financial position with a net cash balance of INR 258 crore, backed by a treasury of INR 1,000 crore against gross debt of INR 746 crore.