Syrma SGS Profit Doubles to ₹102.7 Cr in Q3 FY26 on Strong Revenue

Introduction

Syrma SGS Technology Limited has reported an exceptional performance for the quarter ended December 31, 2025, with its consolidated net profit more than doubling year-on-year. The electronics manufacturing services company announced a net profit of ₹102.7 crore, a substantial increase from the ₹48.7 crore recorded in the corresponding period of the previous fiscal year. This robust growth was primarily fueled by a significant rise in revenue and a notable expansion in operating margins, underscoring the company's strong execution and operational efficiency.

Detailed Financial Performance

The company's revenue from operations for the third quarter of fiscal year 2026 (Q3 FY26) surged by 45.5% to reach ₹1,264 crore, compared to ₹869 crore in Q3 FY25. This top-line growth was driven by strong performance across its various business segments. The impressive revenue increase translated directly into enhanced profitability at the operating level. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew to ₹160 crore, a sharp rise from ₹78.5 crore in the same quarter last year. Consequently, the EBITDA margin saw a significant expansion of 370 basis points, climbing to 12.7% from 9.0% year-on-year.

Key Financial Highlights (Q3 FY26 vs Q3 FY25)

Drivers of Profitability

The substantial improvement in profitability was attributed to a combination of factors. Management highlighted that the gains were supported by higher operational scale, which allowed for better absorption of fixed costs. Additionally, improved cost efficiencies and a more favorable revenue mix contributed significantly to the margin expansion. The company has been strategically focusing on higher-margin verticals, such as industrial and automotive electronics, while moderating its exposure to the consumer segment. This strategic shift is yielding positive results, as evidenced by the disproportionate growth in operating and net profit levels compared to revenue.

Corporate Developments and Strategic Initiatives

Alongside the financial results, Syrma SGS Technology provided updates on its ongoing strategic initiatives. The company informed the stock exchanges that the Board of Directors has approved an extension for the completion of two key transactions. The long-stop date for the proposed acquisition of a 49% equity stake in Ksolare Energy Private Limited, a joint venture with Premier Energies Limited, has been extended by 30 days to February 20, 2026. Similarly, the timeline for closing the joint venture agreement with Elemaster S.P.A Tecnologie Elettroniche has been extended to February 28, 2026. These ventures are crucial for Syrma's diversification into high-growth sectors like renewable energy and railways.

Order Book and Future Visibility

While the latest order book figures were not detailed in the Q3 announcement, data from the previous quarter (Q2 FY26) provides strong visibility into future revenue. As of September 2025, the company's order book stood at a robust ₹5,800 crore. This healthy pipeline is well-diversified, with the automotive, consumer, and industrial segments each contributing approximately 35%. This strong order backlog, combined with new customer acquisitions, supports the management's confidence in sustaining its growth momentum.

Market Reaction and Outlook

The market responded positively to the strong quarterly performance. Shares of Syrma SGS Technology Limited closed higher on the National Stock Exchange (NSE) at ₹723 following the announcement. The company's consistent performance and strategic expansions have been well-received by investors. Management has maintained its guidance for organic revenue growth of around 30% for the full fiscal year 2026 and expects EBITDA margins to exceed the previously guided range of 8.5-9.0%. Given the 12.7% margin achieved in Q3, the company is well-positioned to outperform its own forecasts.

Conclusion

Syrma SGS Technology's Q3 FY26 results demonstrate strong operational execution and financial discipline. The doubling of net profit, driven by robust revenue growth and significant margin expansion, highlights the company's ability to capitalize on the favorable tailwinds in India's electronics manufacturing sector. With strategic joint ventures and acquisitions poised to contribute to future growth, and a solid order book providing revenue visibility, the company's outlook remains positive. Investors will be watching closely as it continues to execute its diversification strategy and scale its operations in the coming quarters.