1. At a Glance
Syrma SGS just dropped a Q1 that’s basically “revenues down, profits up, investors confused.” Revenue fell 18% YoY, but PAT jumped 145%. Sounds like a software startup until you realize they’re in electronics manufacturing. EMS is hard — but apparently not for Syrma’s accountants.
2. Introduction with Hook
Imagine if Foxconn and Infosys had a Chennai-born baby — that’s Syrma SGS.
Born in 2004, it’s now an EMS (Electronics Manufacturing Services) darling that makes everything from IoT modules to washing machine PCBs. And just like your techie cousin, it’s got a shiny LinkedIn profile, 60+ P/E, and a habit of borrowing a lot.
But Q1 FY26? Profit ₹499 Cr (+145%). Margin up, despite revenue tanking. Magic? No. Efficiency. Or Excel wizardry.
3. Business Model (WTF Do They Even Do?)
- Turnkey EMS: End-to-end electronics manufacturing from idea to product.
- Product Co-Creation: They co-design with OEMs — basically, hardware Tinder with engineers.
- High-Mix, High-Volume: Makes 1,000 different things in 1,000 quantities — which sounds insane but pays bills.
Industries served:
- Automotive
- Consumer electronics
- Healthcare devices
- IoT
- Railways
- Aerospace
They’re the unsung heroes behind the “Made in India” tag on things you didn’t know India made.
4. Financials Overview
Q1 FY26 Highlights:
| Metric | Q1 FY26 | YoY Growth |
|---|---|---|
| Revenue | ₹944 Cr | -18% |
| EBITDA | ₹1,027 Mn | +69% |
| PAT | ₹499 Mn | +145% |
| OPM | 9% | vs 4% YoY |
TTM:
- Revenue: ₹3,571 Cr
- PAT: ₹214 Cr
- EPS: ₹11.27
Margins jumped like they saw the GST inspector walk in.
5. Valuation
Method 1: P/E
- TTM PAT: ₹214 Cr
- Shares: ~18.9 Cr
- EPS: ₹11.27
- CMP: ₹699 → P/E = ~62
Fair P/E Range: 35x–45x
Fair Value: ₹395 – ₹510
Method 2: EV/EBITDA
- TTM EBITDA: ₹345 Cr
- Net Debt: ~₹600 Cr
- EV Range (18x–20x): ₹6,210 – ₹6,900 Cr
- Implied Market Cap: ₹5,610 – ₹6,300 Cr
- Fair Value per Share: ₹295 – ₹330
Conclusion: At ₹699, you’re buying champagne at room temperature — fizzy but overpriced.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 PAT up 145% — no, that’s not a typo.
- Revenue dropped 18% — supply chain hiccup or conscious defocus?
- Operating margin doubled to 9% — unexpected but welcome.
- FIIs trimmed stake, DIIs added — passive funds doing the cha-cha?
- Promoters slowly reducing stake — from 47.4% in Sep ’22 to 46.4% now.
Also, new capacity expansion planned. And if you squint, you can see IPO money still working.
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity | ₹178 Cr |
| Reserves | ₹1,572 Cr |
| Borrowings | ₹665 Cr |
| Other Liabilities | ₹1,790 Cr |
| Total Assets | ₹4,205 Cr |
Not exactly “lean” — but heavy enough to pass as industrial muscle. D/E isn’t scary… yet.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹-70 Cr | ₹-885 Cr | ₹968 Cr | ₹13 Cr |
| FY24 | ₹-114 Cr | ₹-9 Cr | ₹155 Cr | ₹32 Cr |
| FY25 | ₹176 Cr | ₹-105 Cr | ₹-71 Cr | ₹1 Cr |
Capex gulped cash faster than a startup at a hiring binge. Finally positive CFO in FY25. Respect.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 12.4% |
| ROE | 10.2% |
| OPM | 9% |
| D/E | ~0.42x |
| P/E | 61.6x |
ROE is decent, P/E is not. Cash conversion? Improving. But debtor days = 142 — like waiting for your Zomato order during monsoon.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹3,154 Cr | ₹203 Cr | ₹124 Cr |
| FY24 | ₹3,787 Cr | ₹323 Cr | ₹184 Cr |
| FY25 | ₹3,571 Cr | ₹345 Cr | ₹214 Cr |
FY25: Revenue dropped, profit didn’t. Call it cost cutting or margin mojo — it’s working.
11. Peer Comparison
| Company | Rev (TTM) | PAT (TTM) | P/E | ROE |
|---|---|---|---|---|
| Kaynes Tech | ₹2,722 Cr | ₹293 Cr | 131 | 11.0% |
| Jyoti CNC | ₹1,818 Cr | ₹323 Cr | 72.7 | 21.2% |
| Honeywell Auto | ₹4,190 Cr | ₹524 Cr | 68.5 | 13.7% |
| Syrma SGS | ₹3,571 Cr | ₹214 Cr | 61.6 | 10.2% |
Syrma’s the cheapest on revenue-to-valuation basis, but still ain’t cheap. Kaynes is the Tesla, Syrma is more like a reliable Hyundai.
12. Miscellaneous – Shareholding, Promoters
| Category | Sep ’22 | Jun ’25 |
|---|---|---|
| Promoters | 47.4% | 46.4% |
| FIIs | 4.1% | 6.3% |
| DIIs | 7.5% | 9.1% |
| Public | 41.0% | 38.0% |
Notable:
- Promoter stake dipped slightly.
- FII stake doubled — but now stabilizing.
- Retail holding falling — maybe too hot to hold?
Also: 1.6 lakh+ shareholders. You’re not alone if you’re confused.
13. EduInvesting Verdict™
Syrma SGS is the EMS kid on Red Bull. High mix, high risk, high PE. If margins keep improving, this could scale hard. If not — well, the P/E will correct your enthusiasm.
Final Word:
Definitely a watchlist candidate. But enter only if you can handle assembly-line volatility and a chart more jittery than your espresso habit.
Metadata:
Written by EduInvesting Team | July 23, 2025
Tags: Syrma SGS, EMS, Electronics Manufacturing, Q1FY26, EduInvesting Premium
