Syrma SGS Technology reported a 68% jump in revenue and an 87% increase in EBITDA for the first quarter of fiscal year 2027. Motilal Oswal has maintained its target price of ₹1,770, citing strong growth across automotive and consumer segments and improved profit margins from higher ODM contributions.
Syrma SGS Technology has reported a robust start to the 2027 fiscal year, with significant growth in both revenue and operating profit. Following the company's first-quarter financial results, brokerage firm Motilal Oswal has maintained its positive outlook, setting a price target of ₹1,770 per share. This target is based on the company's valuation of 50 times its projected earnings for the 2028 fiscal year.
Operational Growth and Segment Performance
The company experienced a 68% year-on-year rise in total revenue. A key factor behind this expansion was the company's move toward higher-value products, specifically through its Original Design Manufacturer (ODM) business. By shifting its strategy to design and manufacture its own products rather than just building parts for others, the company has seen its EBITDA margin widen by 100 basis points compared to the previous year.
The Automotive segment, which currently makes up 25% of the company's total revenue, saw a notable 78% increase in sales. Similarly, the Consumer segment, contributing 34% to the total, grew by 68%. Other segments including IT, Railways, Healthcare, and Industrial also showed growth, with collective revenues across these areas rising significantly. Additionally, export sales saw a jump of 62% year-on-year, indicating a broader market reach for the company's manufacturing services.
Future Outlook and Financial Context
Looking beyond the recent quarterly results, projections suggest a potential compound annual growth rate of 38% for revenue and 46% for adjusted profit between fiscal year 2026 and 2028. These estimates depend on the company's ability to maintain momentum in its high-growth sectors while continuing to improve its margins through operational efficiency.
For investors, it is important to monitor how the company manages the cost of expansion and whether the increased contribution from the ODM segment continues to support margins as the business scales. As a manufacturing company operating in competitive fields like automotive and consumer electronics, the final benefit will depend heavily on sustained demand, raw material price stability, and the successful execution of its order pipeline. The key monitorable will be the company's ability to maintain these growth rates in future quarters and the impact of any potential sector-wide slowdown in electronics demand.