Syrma SGS Technology (SYRMA) Q2 25/26 earnings summary

Executive summary

• Achieved record revenue, EBITDA, and profit margins in Q2 and H1 FY2026, driven by organic growth, strategic acquisitions, and new long-term contracts.

• Expanded into defense, maritime, PCB manufacturing, solar inverters, and European railways/industrial markets through acquisitions and joint ventures.

• Completed merger of SGS Tekniks and SGS Infosystems, consolidating operations and enhancing scale.

• Approved unaudited standalone and consolidated financial results for Q2 and H1 FY2026, with unmodified auditor review reports.

• Onboarded major customers with significant revenue potential and signed long-term contracts, enhancing revenue visibility.

Financial highlights

• Q2 FY2026 consolidated revenue reached ₹11,546 Mn, up 37% YoY; H1 revenue at ₹21,087 Mn, up 4.5% YoY.

• Q2 FY2026 consolidated net profit was ₹663.41 Mn; H1 net profit at ₹1,162.61 Mn.

• Q2 FY2026 EBITDA was ₹1,240 Mn (10.7% margin), up 53% YoY; H1 EBITDA at ₹2,266 Mn (10.7% margin), up 60% YoY.

• Export revenue for Q2 was 23% of operations, up 40% YoY; H1 export revenue at 24% of total, up 34% YoY.

• EPS (consolidated, Q2 FY26): Basic ₹3.44, Diluted ₹3.43.

Outlook and guidance

• Maintains 30% organic revenue growth guidance for FY2026, with EBITDA margin expected to exceed previous 9% guidance.

• Strategic focus on expanding into defense, maritime, renewable energy, and European OEM markets to drive long-term growth.

• PCB project expected to start trial production by December 2026; full ramp-up and export focus post-2028.

• Smart metering business on track for INR 300+ crore revenue in FY2026.

• Backward integration into PCB manufacturing and new JVs expected to enhance margins and supply chain resilience.