SYRMA SGS Q2 revenue climbs 73% as EBITDA margin narrows

SYRMA SGS reported record quarterly total revenue, earnings before interest, tax, depreciation and amortisation (EBITDA), profit before tax (PBT) and profit after tax (PAT) in Q2 FY27. Total revenue rose 73.2% year on year to Rs 1,999.5 crore and PAT increased 87.2% to Rs 124.2 crore, while reported EBITDA margin declined to 10.2% from 10.7%.

What did SYRMA SGS report in Q2 FY27?

SYRMA SGS reported total revenue of Rs 1,999.5 crore in Q2 FY27, up 73.2% year on year and 24.7% quarter on quarter (QoQ). Revenue from operations, excluding other income, reached Rs 1,989.7 crore, compared with Rs 1,145.9 crore in Q2 FY26 and Rs 1,588.6 crore in Q1 FY27. The company described quarterly revenue, EBITDA, PBT and PAT as its highest to date.

PAT rose to Rs 124.2 crore, up 87.2% from Rs 66.3 crore a year earlier and 17.5% from Rs 105.7 crore in Q1 FY27. PBT increased 84.6% year on year to Rs 165.2 crore, while reported EBITDA grew 63.9% to Rs 203.1 crore. Export revenue was Rs 513.8 crore, up 91% year on year, and represented 26% of operating revenue.

Why did SYRMA SGS margins narrow despite higher profit?

SYRMA SGS’s gross margin narrowed to 21.1% in Q2 FY27 from 23.8% in Q2 FY26 and 24.5% in Q1 FY27. Cost of materials consumed increased 79.9% year on year to Rs 1,570.3 crore, faster than the 73.2% rise in total revenue. Gross profit still rose 53.7% to Rs 419.3 crore, but its growth trailed revenue growth, producing the lower gross margin.

EBITDA excluding other income rose 67.7% year on year to Rs 193.3 crore, while its margin fell to 9.7% from 10.1%. Operating expenses increased 43.4% year on year to Rs 226.1 crore, but declined 0.8% from Rs 227.8 crore in Q1 FY27. The gross-margin movement coincided with the decline in EBITDA margin excluding other income from 10.2% in the preceding quarter.

Reported EBITDA margin was 10.2%, down 0.6 percentage points year on year and 0.9 percentage points QoQ. Other income was Rs 9.9 crore in Q2 FY27, compared with Rs 8.7 crore a year earlier and Rs 15.1 crore in Q1 FY27. PBT margin increased to 8.3% from 7.8% a year earlier but fell from 8.8% QoQ, while PAT margin rose to 6.2% from 5.7% but fell from 6.6%.

Which SYRMA SGS segments drove Q2 FY27 revenue growth?

SYRMA SGS’s automotive segment recorded the fastest year-on-year growth among its reported industries, rising 91% to Rs 516.9 crore. Automotive represented 26% of operating revenue, up from 24% in Q2 FY26, and grew 31% QoQ from Rs 394.9 crore. Industrials increased 86% year on year to Rs 493.5 crore and accounted for 25% of the quarter’s operating revenue.

Consumer remained the largest reported segment at Rs 572.7 crore, up 57% year on year, although its mix declined to 29% from 32% a year earlier and 34% in Q1 FY27. Healthcare generated Rs 134.0 crore, an increase of 61% year on year but broadly unchanged QoQ from Rs 134.5 crore. IT and Railways revenue reached Rs 272.7 crore, up 69% year on year and 82% QoQ, returning its mix to 14% after 9% in Q1 FY27.

The segment data show growth across all five reported industries, with total operating revenue increasing 74% year on year to Rs 1,989.7 crore. They do not provide segment-level gross margins, material costs or profitability. The release therefore supports a shift in revenue mix, including higher automotive and industrial shares, but does not attribute the 2.7-percentage-point year-on-year gross-margin decline to any one industry.

How did SYRMA SGS perform in H1 FY27 and manage working capital?

SYRMA SGS reported H1 FY27 total revenue of Rs 3,603.2 crore, up 70.9% year on year, and PAT of Rs 229.9 crore, up 97.7%. Gross profit grew 58.8% to Rs 808.7 crore, less quickly than revenue, and gross margin declined to 22.6% from 24.3% in H1 FY26. EBITDA margin excluding other income declined 0.2 percentage points to 9.9%, while reported EBITDA margin also declined 0.2 percentage points to 10.5%.

The half-year result showed expansion below EBITDA despite the gross-margin change. PBT increased 95.4% to Rs 306.0 crore and its margin rose to 8.5% from 7.4%; PAT margin increased to 6.4% from 5.5%. Depreciation and amortisation was Rs 45.2 crore, up 6.5%, while finance cost was Rs 28.6 crore, up 3.7%, in H1 FY27.

Net working capital (NWC) days improved to 63 in Q2 FY27 from 73 in Q2 FY26 and 71 in Q1 FY27. Net debt to EBITDA on a last-twelve-month (LTM) basis was negative 0.4, compared with negative 1.2 a year earlier and negative 0.2 in Q1 FY27; the presentation labels this measure as net debt or net cash. Debt-to-equity stood at 0.2, versus 0.1 a year earlier and 0.3 in the prior quarter, while return on capital employed rose to 17.9% from 13.6%.

Conclusion

SYRMA SGS expanded Q2 FY27 revenue and profit at a faster pace than its prior-year base, supported by growth in all five reported industries and a 91% increase in export revenue. The increase in material consumption outpaced total revenue growth, however, reducing gross margin, while both reported EBITDA margin and EBITDA margin excluding other income declined from the prior-year and prior-quarter levels.

The presentation does not disclose a revenue target, margin target, operating plan or scheduled milestone for subsequent periods. The next results will show whether gross margin, EBITDA margin excluding other income and reported EBITDA margin move from Q2 FY27 levels as automotive and industrials accounted for 51% of operating revenue and exports represented 26%.