Syrma SGS Q2 FY27 Earnings Call Transcript Released
Syrma SGS Technology Limited released its Q2 FY27 earnings call transcript. The company expects 40-45% revenue growth for FY27, reaching ~₹7,000 crore, and aims for $1 billion in FY28. Q2 consolidated revenue grew 73% YoY to ~₹2,000 crore. Key projects like PCB and camera modules are progressing, with PCB production starting by mid-2027. Management is confident in overcoming supply chain challenges and driving margin accretion.
The announcement includes upward revision of revenue guidance, positive outlook on future growth, progress on strategic projects like PCB manufacturing, and strong financial performance, all of which are material to investors.
The company provided an optimistic outlook, revised guidance upwards, and highlighted strong growth across key financial metrics and business segments. Progress on diversification projects and improved working capital also contributed to a positive sentiment.
Syrma SGS Technology Limited has released the transcript of its investor conference call held on November 2, 2026, to discuss the unaudited financial results for the quarter and half-year ended September 30, 2026. The call featured the company's senior management, including J.S. Gujral (Managing Director) and Bijay Agrawal (Chief Financial Officer), alongside representatives from JM Financial Institutional Securities.
During the call, management highlighted a satisfying performance for Q2 FY27, with a 71% growth achieved while maintaining fiscal discipline. The company generated ₹120 crore in positive operating cash flow in the quarter, representing approximately 30% of EBITDA. For the first half of FY27, Syrma SGS surpassed the full FY25 figures in revenue, EBITDA, PAT, and exports. The company revised its guidance upwards, expecting 40% to 45% growth for the year, translating to around ₹7,000 crore in revenue, and aims to cross the $1 billion revenue mark in FY28.
Management discussed the impact of supply chain constraints, which have led to a slight dilution in margin profile despite maintaining absolute figures. Construction has begun on diversification and backward integration projects, including PCB, camera module, and magnet projects. The PCB project is expected to commence trial production by March 2027 and volume production by September 2027, significantly impacting margin profile from FY28-29 onwards. Exports are projected to cross ₹1,700 crore this year and ₹2,000 crore next year, with a beefed-up marketing presence in the USA.
ODM revenue showed strong growth, with H1 FY27 at ₹591 crore compared to ₹273 crore in the previous year, a 117% increase. The company anticipates crossing ₹1,000-1,100 crore in ODM revenue. EBITDA margins for H1 FY27 were slightly lower than 10%, but the company expects the year to close at 10%-10.5%, with further accretion to 10.5%-11% in FY27-28 due to margin-accretive projects. Supply chain constraints are expected to ease by April-June 2027.
Financial performance for Q2 FY27 showed consolidated total revenue of approximately ₹2,000 crore (73% YoY growth) and H1 FY27 revenue of ₹3,603 crore (71% YoY growth). Operating EBITDA for Q2 increased by 68% to ₹193 crore, and for H1, it was ₹355 crore (68% YoY growth). PBT for H1 grew by 95% to ₹306 crore, and PAT grew by 98% to ₹230 crore. Revenue growth was broad-based across verticals including automotive (26% of revenue, 91% growth), consumer (29%), healthcare (61% growth), industrial (86% growth), and IT/railways (14% of revenue, 82% sequential growth).
Export revenue for Q2 was approximately ₹514 crore (91% YoY growth) and ₹901 crore for H1 (80% YoY growth). ODM revenue for H1 was ₹591 crore (117% YoY growth). The open order book visibility stood at ₹7,420 crore as of September end. The net working capital cycle improved to 63 days from 71 days in the previous quarter. The company maintained a net cash position of ₹258 crore with a treasury balance of approximately ₹1,000 crore and gross debt of ₹746 crore. Capex incurred during the quarter was approximately ₹200 crore, with ₹140 crore allocated to the PCB project.
Regarding future projects under the ECMS scheme, the PCB project is on track for commercial production by April 2027, with full year impact in FY28-29. The CCL project is targeted for commissioning in FY28-29. Camera module facility construction has started, with production expected by the end of the current fiscal, targeting automotive applications with initial revenues of ₹50-100 crore. Magnetic projects are smaller investments but are high margin accretive. Discussions are ongoing for potential partnerships under the ISM scheme, with expectations for concrete developments in the next six months.
Management indicated that annualized revenue from a framework agreement could range from ₹500 crore to ₹1,500 crore starting next year, with full impact in FY28 and beyond, and this is not a one-off contract. The company is focused on building processes and strengthening capabilities to meet global customer expectations.
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