1. At a Glance – Blink and You’ll Miss the Scale
Syrma SGS is no longer that “nice EMS company with potential.” As of Q3 FY26, it’s a ₹13,963 Cr market cap beast trading around ₹724, delivering ₹12,745 mn quarterly revenue and ₹1,103 mn PAT, up 108% YoY. Stock P/E sits at ~49, EV/EBITDA at ~26, ROCE 11.7%, ROE 9.45%, and debt remains polite at ₹332 Cr. The last 3 months? The stock sulked (-11%), while the business sprinted. That disconnect is where curiosity begins. Is the market sleepy, or is Syrma quietly compounding behind the factory gates?
2. Introduction – From “Make in India” Slogan to Spreadsheet Reality
EMS companies love buzzwords—localisation, backward integration, PLI, China+1. Syrma SGS has been chanting these for years. The difference now? Numbers finally agree. Q3 FY26 shows operating leverage in action: margins expanding, profits exploding, and order books refusing to shrink. Yet, ROE remains underwhelming, working capital is chunky, and valuation already assumes future greatness. So this isn’t a fairy tale—it’s a test of execution vs expectations. Ready to see if Syrma is an operator or a storyteller?
3. Business Model – WTF Do They Even Do?
In simple terms: Syrma designs, engineers, assembles, tests, and ships electronics so OEMs can sleep peacefully.
They handle:
- PCBA
- RFID
- Electromechanical parts
- Motherboards
- Memory products (DRAM, SSDs, USBs)
The real flex is high-mix, low-to-medium volume manufacturing—harder to do, harder to automate, harder to scale, but stickier customers. Syrma isn’t chasing commodity EMS margins; it’s chasing complexity. That’s great—until execution slips.
4. Financials Overview – Q3 FY26
Quarterly Comparison Table (₹ million)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 12,745 | 8,915 | 11,460 | 43% | 11% |
| EBITDA | 1,697 | 1,016 | 1,150 | 67% | 48% |
| PAT | 1,103 | 529 | 666 | 108% | 66% |
| EPS (₹) | 5.33 | 2.74 | 3.33 | 94% | 60% |
Witty takeaway: Revenue jogged. EBITDA sprinted. PAT took an auto-rickshaw downhill.
5. Valuation Discussion – Fair Value Range (Educational Only)
Method 1: P/E
- TTM EPS: ₹15.12
- EMS peer band: 30x – 45x
- Value range: ₹454 – ₹680
Method 2: EV/EBITDA
- TTM EBITDA: ₹4,690 mn
- Peer EV/EBITDA: 18x – 24x
- Implied equity value band supports ₹620 – ₹760
Method 3: DCF (High-level sanity check)
- Assumes revenue CAGR supported by order book
- Margin expansion but no miracles
- Output: overlaps ₹600–₹750
Fair Value
