Syrma SGS Technology (SYRMA) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 sales increased 45% year-over-year, with PAT up 108% and significant margin improvements.

• Nine-month revenue reached INR 33,800 million, with PAT of INR 2,266 million, both up over 100% year-over-year.

• Exports grew 66% in Q3 and 45% over nine months, now comprising 25-26% of total revenue.

• All business verticals (auto, MedTech/Healthcare, industrial, IT/railways) reported robust growth, with IT/railways up 70-71% due to a low base.

• Completed acquisition of 60% stake in Elcome and its subsidiary Navicom during the quarter.

Financial highlights

• Q3 consolidated revenue was INR 12,745 million, up 45% year-over-year; nine-month total revenue was INR 33,800 million.

• Gross margin improved to 27.4% from 26% last year, driven by higher export and ODM mix.

• Q3 PAT was INR 1,103 million, up 108% year-over-year; PBT for Q3 was INR 1,383 million.

• Net working capital days reduced to 68 (excluding Elcome), with positive operating cash flow for nine months.

• Net cash position of INR 4,038 million as of December 31, 2025.

Outlook and guidance

• Confident of exceeding initial EBITDA margin guidance, now targeting INR 500 crore+ EBITDA for FY26 (55%-57% growth vs. 30% guided).

• Expecting 30% top-line and EBITDA growth in FY27, with all verticals contributing.

• Q4 revenue expected to reach INR 1,600+ crore, with Elcome contributing INR 100-120 crore.

• Blended EBITDA margin guided at 10% for next year.

• Monitoring regulatory changes, including new labour codes, and adjusting accounting as needed.