Syrma SGS Technology Share Price Jumps Over 10% After Posting Blockbuster Q3 FY26 Results

Syrma SGS Technology Limited, a leading player in India’s electronics manufacturing services (EMS) space, delivered an exceptional performance in the third quarter of FY26, driven by strong demand across domestic and global markets, rising exports, and sharp operating leverage. The company’s strong execution translated into record revenues, expanding margins, and a more-than-doubling of profits, triggering a sharp rally in its share price.

Syrma SGS Technology Q3 FY26: Revenue Jumps Over 40%, Profits More Than Double

For the quarter ended December 31, 2025, Syrma SGS reported consolidated revenue from operations of ₹1,264.2 crore, marking a strong 45.4% year-on-year growth and about 10.3% sequential growth.

Profitability outpaced revenue growth. EBITDA surged 67.5% YoY to ₹169.7 crore, supported by improved product mix, operating leverage, and scale efficiencies. EBITDA margins expanded significantly, improving by 190 basis points year-on-year to 13.3%. On a reported basis, EBITDA margins(Excluding Other Income) also expanded 350 basis points annually and 250 basis points sequentially to around 12.6%.

The bottom line delivered the biggest surprise. Profit After Tax (PAT jumped 108.1% YoY to ₹110.3 crore, aided by strong margin expansion and a lower effective tax rate. PAT margin improved sharply to 8.7%, compared with 5.9% in the same quarter last year. The quarter included an exceptional expense of ₹3.4 crore, related to labour code adjustments.

Syrma SGS Technology Nine-Month Performance 

The company’s performance over the first nine months of FY26 remained equally impressive. Revenue from operation for 9M FY26 stood at ₹3,354 crore, registering a 17.2% year-on-year increase over the corresponding period last year.

Profitability more than doubled during this period. Profit Before Tax (PBT rose 105.3% YoY to ₹295 crore, while PAT increased 100.5% YoY to ₹226.6 crore.

Exports continued to emerge as a key growth driver, contributing 25% of operating revenue during the period and growing at a robust 45% YoY, backed by increased international customer engagements.

Broad-Based Segment Growth Led by IT and Railways

Growth during Q3 FY26 and the nine-month period was broad-based, with no major changes in segment mix. The IT and Railways segment emerged as the fastest-growing vertical, delivering 65% YoY growth, driven by rising order inflows and higher-value programs.

Other major segments also posted strong double-digit growth:

• Healthcare: up 48% YoY
• Industrials: up 45% YoY
• Automotive: up 44% YoY
• Consumer electronics: up 43% YoY

Strategic Acquisitions and Joint Ventures Fuel Long-Term Expansion

Syrma SGS continued to strengthen its strategic position through targeted acquisitions and joint ventures focused on vertical integration and capability expansion. During the quarter, the company acquired a 60% stake in Elcome for ₹235 crore on December 17, 2025, with Elcome’s financials now consolidated into group results.

Key strategic initiatives underway include a ₹45 crore capital infusion into a PCB manufacturing joint venture with South Korea’s Shinhyup, which has received PLI and State incentive approvals, with site development and civil works in progress. The company is also advancing the acquisition of Ksolare through a solar inverter JV with Premier Energies, while documentation and closure conditions for the Elemaster joint venture continue to move forward.

Collectively, these initiatives are expected to enhance backward integration, support margin expansion, and strengthen Syrma SGS’s long-term growth trajectory.

Balance Sheet Turns Net Cash, Capital Efficiency Improves

Syrma SGS exited the December quarter with a significantly strengthened balance sheet. As of December 31, 2025, the company moved from a net debt position of ₹264 crore in March 2025 to a net cash position of ₹404 crore.

Cash and cash equivalents increased to ₹933 crore, while total debt was reduced to ₹529 crore. The company also reported an adjusted Return on Capital Employed (ROCE) of 16%.

Outlook

Management remains optimistic about the outlook, stating that the EMS industry continues to witness strong traction across both domestic and export markets. Syrma SGS aims to grow broadly in line with industry growth rates while leveraging its strong cash position to integrate acquisitions and scale operations.

That said, the company cautioned that future performance may be influenced by factors such as client concentration, wage inflation in India, execution risks related to acquisitions and joint ventures, and broader macroeconomic conditions.