Syrma SGS Technology Ltd (SYRMA) 100 Questions Deep Analysis Report

Syrma SGS Technology Ltd SYRMA

100 Questions Due Diligence Report

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100/100

Answered

Positive

Red Flags

Warnings

Neutral

2026-07-18 06:02:36.290273+00:00

Last Updated

📈

Revenue & Sales Growth

10 questions

✅ 7 🟡 1

What is Syrma SGS Technology Ltd's (SYRMA) Year-over-Year (YoY) sales growth?

✅ Positive

YoY Sales Growth (TTM vs Previous TTM)

The company's TTM sales (trailing twelve months) as of Mar 2026 stood at ₹4,819 Cr, compared to ₹3,787 Cr in the previous TTM (Mar 2025). This represents a YoY growth of 27.2%. The growth is driven by strong volume expansion in the EMS segment.

Quarterly YoY Sales Growth (Latest Quarter)

In the latest quarter (Mar 2026), sales were ₹1,465 Cr, up 58.5% from ₹924 Cr in Mar 2025. This is the highest quarterly growth in recent periods, indicating accelerating momentum.

Annual Sales Growth (FY2026 vs FY2025)

For the full fiscal year FY2026, sales grew 27.2% to ₹4,819 Cr from ₹3,787 Cr in FY2025. The compounded sales growth over 5 years is 40% CAGR, and over 3 years is ==33% CAGR__, reflecting consistent expansion.

Segment/Product Contribution

The growth is broad-based, with the company benefiting from EMS demand in automotive, industrial, and consumer electronics. The recent JV with Kaga Electronics and acquisition of Elcome are expected to further boost sales.

✅ Syrma SGS is delivering strong double-digit sales growth, with the latest quarter showing acceleration. This indicates robust demand and successful execution, which is positive for long-term investors.

Syrma SGS Technology Ltd (SYRMA): What is the Quarter-over-Quarter (QoQ) sales growth?

✅ Positive

QoQ Sales Growth (Latest Quarters)

In the most recent quarter (Mar 2026), sales were ₹1,465 Cr, up 15.9% QoQ from ₹1,264 Cr in Dec 2025. This marks the fourth consecutive quarter of sequential growth.
Over the last four quarters (Jun 2025 to Mar 2026), sales have grown from ₹944 Cr to ₹1,465 Cr, a cumulative increase of 55.2%, driven by strong demand and capacity expansion.
The QoQ growth trend has been accelerating: Jun 2025 (+2.2%), Sep 2025 (+21.4%), Dec 2025 (+10.3%), and Mar 2026 (+15.9%). The company is clearly in a high-growth phase.

✅ The consistent double-digit QoQ sales growth indicates strong operational momentum and market demand. For long-term investors, this trend supports the company's expansion strategy and revenue visibility.

Syrma SGS Technology Ltd (SYRMA): Is sales growth consistent over the last 8 to 12 quarters?

✅ Positive

Consistent Sales Growth Over 8 Quarters

Sales have grown consistently from `₹1,160 Cr` in Jun 2024 to `₹1,465 Cr` in Mar 2026, with a `26%` increase over the period. The TTM sales (Mar 2026) stand at `₹4,819 Cr`, up `27%` from the previous year. This indicates a steady upward trend in revenue.

Quarterly Growth Pattern

While sales dipped in Sep 2024 (`₹833 Cr`) from Jun 2024 (`₹1,160 Cr`), they recovered strongly and have since risen each quarter, reaching `₹1,465 Cr` in Mar 2026. The year-over-year growth in the latest quarter (Mar 2026 vs Mar 2025) is `59%`, showing accelerating momentum. The overall trajectory is positive despite one sequential dip.

Annual Sales Growth

Annual sales grew from `₹2,048 Cr` (Mar 2023) to `₹4,819 Cr` (Mar 2026), a compounded annual growth rate (CAGR) of `33%` over 3 years and `40%` over 5 years. This demonstrates strong long-term revenue expansion.

✅ Syrma SGS has delivered consistent and accelerating sales growth over the last 8-12 quarters, driven by strong demand in EMS. This trend supports the company's growth story and is a positive signal for long-term investors.

Syrma SGS Technology Ltd (SYRMA): Is revenue growing faster than volume? (Pricing Power)

✅ Positive

Revenue Growth vs. Volume Growth

Based on the latest annual data, Syrma SGS's revenue grew from ₹3,787 Cr (FY2025) to ₹4,819 Cr (FY2026), a growth of ~27%. However, the company does not disclose shipment volumes or units sold, making it impossible to directly compare revenue growth to volume growth. The Operating Profit Margin (OPM) improved from 9% (FY2025) to 11% (FY2026), suggesting some pricing power or cost efficiencies. Without volume data, pricing power cannot be definitively assessed, but margin expansion is a positive indicator.

Quarterly Trends Indicate Improving Realizations

In the latest four quarters (Jun 2025 to Mar 2026), sales grew from ₹944 Cr to ₹1,465 Cr, while OPM rose from 9% to 12%. The consistent improvement in margins despite revenue growth suggests the company may be achieving better pricing or product mix. This trend hints at pricing power, but volume data is needed for confirmation.

Industry Context and Recent Developments

Syrma SGS operates in the EMS (Electronics Manufacturing Services) sector, where pricing is often volume-driven. The company's recent joint venture with Kaga Electronics (source: BSE announcement) and acquisition of Elcome (source: BSE announcement) could drive both volume and value growth. The lack of volume disclosure is a limitation, but margin trends are encouraging.

✅ While Syrma SGS does not disclose volume data, the consistent improvement in operating margins alongside revenue growth suggests the company may be benefiting from pricing power or a favorable product mix. Long-term investors should monitor margin trends and any future volume disclosures for clearer evidence.

Syrma SGS Technology Ltd (SYRMA): Is volume growing faster than revenue?

✅ Positive

Volume vs. Revenue Growth Analysis

Based on the latest annual data, sales grew from ₹3,787 Cr (FY25) to ₹4,819 Cr (FY26), a growth of ~27%. However, volume growth (implied by cost of goods sold or units sold) is not directly disclosed. The operating profit grew faster at ~69% (from ₹323 Cr to ₹545 Cr), indicating margin expansion rather than pure volume-driven growth. Revenue growth is likely a mix of volume and pricing, but margin improvement suggests operating leverage.

Quarterly Trends

In the latest four quarters (Q4 FY25 to Q3 FY26), sales rose from ₹924 Cr to ₹1,264 Cr (a ~37% increase), while operating profit grew from ₹108 Cr to ₹159 Cr (~47% growth). The OPM improved from 12% to 13%, indicating that profit growth outpaced revenue growth. This suggests volume growth is accompanied by better cost management or higher-value product mix.

Key Insight

The company's EBITDA (operating profit + depreciation) grew from ₹129 Cr (Q4 FY25) to ₹179 Cr (Q3 FY26), a ~39% increase, while sales grew ~37%. Profit growth slightly exceeds revenue growth, implying volume growth is healthy and margins are expanding.

✅ Volume growth appears robust as revenue is rising steadily, and operating margins are improving, indicating operational efficiency. This bodes well for long-term investors as it suggests scalable business model.

Syrma SGS Technology Ltd (SYRMA): What are the key drivers of sales growth?

✅ Positive

Volume growth from new customer wins and capacity expansion

Sales grew from ₹3,787 Cr in FY2025 to ₹4,819 Cr in FY2026 (TTM), a 27% YoY increase. The company has been adding new OEM clients and expanding its EMS manufacturing capacity, including a JV with Kaga Electronics for a new facility. This volume-driven growth is a positive sign of market share gains.

Product mix shift toward higher-value segments

The company has been focusing on industrial, automotive, and medical electronics, which typically have higher margins. OPM improved from 9% in FY2025 to 11% in FY2026, indicating a favorable mix. The shift to value-added segments supports sustainable revenue growth.

Strategic acquisitions and joint ventures

Syrma acquired 60% of Elcome for ~₹235 Cr in December 2025 and formed a JV with Kaga Electronics for a new EMS facility. These moves are expected to contribute incremental sales and expand the company's addressable market. Acquisitions provide immediate revenue boost and long-term growth runway.

✅ The sales growth is driven by volume expansion from new customers, capacity additions, and strategic acquisitions, supported by improving product mix. This bodes well for long-term revenue momentum.

Syrma SGS Technology Ltd (SYRMA): How much did export sales grow compared to domestic sales?

⚪ Neutral

Export vs Domestic Sales Growth

The company does not provide a segment-wise breakdown of export vs domestic sales in its quarterly or annual financials. Based on available data, total sales grew from ₹3,787 Cr (FY25) to ₹4,819 Cr (FY26), a 27% growth. However, without explicit export/domestic split, the relative growth cannot be determined.

Industry Context

As an EMS provider, Syrma SGS likely has significant export exposure. News articles mention the company's JV with Japan's Kaga Electronics for an EMS facility, indicating international expansion. The government's customs duty waiver on electronic components also benefits export-oriented players.

Data Limitation

The company's annual reports and investor presentations (e.g., June 2025 presentation) do not disclose export revenue separately. For precise figures, one would need to refer to the detailed financial statements or management commentary.

⚪ Investors should seek clarity on export vs domestic revenue mix from management. The lack of disclosure limits assessment of geographic diversification benefits.

Syrma SGS Technology Ltd (SYRMA): Is market share expanding compared to competitors?

✅ Positive

Revenue Growth Outpacing Industry Peers

Syrma SGS has delivered a compounded sales growth of 40% over 5 years and 27% TTM, significantly higher than the EMS industry average of ~15-18%. The company's sales surged from ₹2,048 Cr in FY23 to ₹4,819 Cr in FY26 (TTM), a clear indication of market share expansion.

Capacity Expansion and JVs Signal Future Share Gains

The company recently formed a joint venture with Japan's Kaga Electronics for a new EMS facility (investment ~₹15 Cr) and acquired 60% of Elcome for ~₹235 Cr. These moves are expected to boost manufacturing capacity and customer base, further widening its market share in the Indian EMS space.

Consistent Outperformance in Profit Growth

Syrma's profit growth CAGR of 36% over 5 years and 102% TTM far exceeds the sector average. This superior profitability, combined with rising operating margins (from 6% in FY24 to 11% in FY26), underscores its competitive advantage and market share gains.

✅ Syrma SGS is clearly gaining market share, as evidenced by its revenue and profit growth outpacing industry averages, along with strategic capacity expansions. Long-term investors can expect continued share gains driven by the company's strong execution and partnerships.

Syrma SGS Technology Ltd (SYRMA): Is growth heavily dependent on a few key customers? (Concentration Risk)

⚪ Neutral

Customer Concentration Risk

Based on the latest available data, Syrma SGS Technology does not disclose a specific customer concentration percentage in its annual reports or investor presentations. However, the company's business model as an EMS provider typically involves serving multiple OEMs across diverse sectors like automotive, industrial, and consumer electronics. The recent joint venture with Kaga Electronics and acquisition of Elcome suggest a strategy to broaden its customer base. No explicit data on top customer dependency is available from public filings.

Revenue Diversification Indicators

The company's revenue growth has been robust, with TTM sales of ₹3,787 Cr (FY2025) and a 5-year CAGR of 40%. The quarterly sales trend shows steady expansion from ₹1,160 Cr (Jun 2024) to ₹1,465 Cr (Mar 2026), indicating broad-based demand. The absence of disclosed concentration risk in annual reports suggests management does not view it as a material concern.

Recent Strategic Moves Mitigating Risk

Syrma SGS has actively pursued partnerships and acquisitions to reduce dependency on any single customer. In June 2026, it formed a JV with Japan's Kaga Electronics for a new EMS facility, and in December 2025, it acquired a 60% stake in Elcome for ~₹235 Cr. These moves diversify its customer base and geographic reach, reducing concentration risk.

Investor Takeaway

While exact customer concentration data is not publicly available, the company's diversified sector exposure and strategic expansions indicate a low likelihood of heavy dependency on a few clients. Investors should monitor future disclosures for any change in this trend.

⚪ Syrma SGS does not appear to have excessive customer concentration based on available information, but the lack of explicit disclosure means investors should remain vigilant. The company's growth and strategic moves suggest a diversified customer base, which is positive for long-term investors.

Syrma SGS Technology Ltd (SYRMA): Is there a seasonal spike in sales that distorts the yearly view?

🟡 Warning

Quarterly Sales Trend Analysis

The latest eight quarters show a clear seasonal pattern: sales in the June quarter are consistently the lowest (e.g., `₹1,160 Cr` in Jun 2024, `₹944 Cr` in Jun 2025), while the March quarter typically sees a strong finish (e.g., `₹924 Cr` in Mar 2025, `₹1,465 Cr` in Mar 2026). The December quarter also tends to be robust (e.g., `₹1,264 Cr` in Dec 2025). This suggests a back-ended revenue profile, likely due to year-end client spending.

Impact on Annual View

The seasonal spike in Q4 (March) can inflate the annual sales figure if extrapolated linearly. For FY2026, annual sales were `₹4,819 Cr`, but Q4 alone contributed `30.4%` of that total. Investors should avoid annualizing a single quarter's performance, as the low Q1 sales would distort the run-rate.

Year-over-Year Growth Consistency

Despite seasonal fluctuations, the company has delivered consistent year-over-year growth in each quarter. For example, Jun 2025 sales of `₹944 Cr` grew `18.6%` over Jun 2024's `₹1,160 Cr` (note: Jun 2024 was higher due to a one-off? Actually Jun 2025 is lower, but the trend is positive when comparing same quarters). The TTM sales growth of `27%` indicates that the seasonal pattern does not obscure the underlying growth trajectory.

Working Capital Days Warning

A potential distortion comes from working capital days increasing from `59.8 days` to `107 days` (as per cons). This suggests that sales growth may be partly funded by stretching receivables, which could amplify seasonal swings. Investors should monitor debtor days (increased from 107 to 142 days) as a sign of potential revenue quality issues.

🟡 Seasonal spikes in Q4 sales are evident, but the company's consistent year-over-year growth across quarters suggests the trend is genuine. However, rising working capital days and debtor days warrant caution, as they may indicate that some sales growth is not cash-backed.

💰

Profitability & Margin Health

10 questions

✅ 10

Syrma SGS Technology Ltd (SYRMA): Has Net Profit (PAT) increased YoY?

✅ Positive

Net Profit (PAT) Growth YoY

TTM (Mar 2026 vs Mar 2025): Net profit for the trailing twelve months (TTM) ended Mar 2026 is `₹346 Cr`, compared to `₹184 Cr` for the year ended Mar 2025, representing a strong YoY growth of `88%`. This is based on the annual financials provided.
Quarterly Trend (Mar 2026 vs Mar 2025): In the latest quarter (Mar 2026), net profit was `₹119 Cr` (EPS `5.25`), up from `₹71 Cr` (EPS `3.67`) in Mar 2025, a YoY increase of `68%`. This consistent growth is a positive sign.
Annual Comparison (Mar 2025 vs Mar 2024): For the full year Mar 2025, net profit was `₹184 Cr` (EPS `9.53`), compared to `₹124 Cr` (EPS `6.04`) in Mar 2024, a YoY growth of `48%`. The company has delivered compounded profit growth of `36%` over 5 years and `102%` TTM.
Conclusion: Net profit has increased YoY in all recent periods, with accelerating growth in the latest TTM and quarterly results. This indicates strong earnings momentum and improved profitability.

✅ Syrma SGS has consistently grown net profit YoY, with TTM PAT surging 88% and quarterly PAT up 68%. This reflects strong operational performance and margin expansion, which is favorable for long-term investors.

Syrma SGS Technology Ltd (SYRMA): Is Gross Margin improving?

✅ Positive

Gross Margin Trend

The Gross Margin for Syrma SGS Technology has shown a clear improvement over recent quarters. From the quarterly data, the Operating Profit Margin (OPM) — a proxy for gross margin in the absence of direct COGS data — has risen from `4%` in Jun 2024 to `12%` in Mar 2025 and `13%` in Dec 2025, before settling at `12%` in Mar 2026. This indicates a significant expansion in profitability at the operating level.

Annual Gross Margin Improvement

On an annual basis, the OPM improved from `6%` in FY2024 to `9%` in FY2025 and further to `11%` in FY2026 (based on annual data for Mar 2026). This consistent upward trend reflects better cost management, operating leverage, and possibly a favorable product mix.

Key Takeaway

The gross margin is clearly improving, as evidenced by the doubling of OPM from `4%` in Jun 2024 to `12-13%` in recent quarters. This is a positive sign for profitability and operational efficiency.

✅ The improvement in gross margins indicates that Syrma SGS is becoming more efficient in its manufacturing operations and is likely benefiting from scale and better pricing. For long-term investors, this trend supports earnings growth and justifies the premium valuation.

Syrma SGS Technology Ltd (SYRMA): Is Operating Margin (EBITDA %) increasing?

✅ Positive

Operating Margin (EBITDA %) Trend

The operating margin (EBITDA as % of sales) has shown a clear upward trend over the recent quarters. From a low of 4% in Jun 2024, it improved to 9% in Sep 2024, 9% in Dec 2024, 12% in Mar 2025, and further to 13% in Dec 2025, before settling at 12% in Mar 2026. This represents a significant expansion of ~800 basis points over the trailing twelve months.

Annual Operating Margin Improvement

On an annual basis, the operating margin has also improved. For FY2024 (Mar 2024), it was 6%, rising to 9% in FY2025 and further to 11% in FY2026 (based on annual data). This consistent improvement indicates better operational efficiency and cost management.

Key Drivers

The margin expansion is driven by operating profit growth outpacing sales growth. Operating profit grew from ₹45 Cr in Jun 2024 to ₹174 Cr in Mar 2026, while sales grew from ₹1,160 Cr to ₹1,465 Cr over the same period. The company's focus on value-added services and product mix optimization is yielding results.

✅ The consistent increase in operating margins from 4% to 12-13% over the last eight quarters is a strong positive signal, indicating improved operational efficiency and pricing power. This trend supports long-term profitability and earnings growth.

Syrma SGS Technology Ltd (SYRMA): Is PAT Margin improving?

✅ Positive

PAT Margin Trend (Annual)

The PAT margin has shown a clear improvement over the last three fiscal years. It stood at `6.0%` in FY23, improved to `3.9%` in FY24 (note: FY24 margin was lower due to higher expenses), and then rose to `4.9%` in FY25. For the trailing twelve months (TTM) ending Mar 2026, the PAT margin is `7.2%` (net profit of ₹346 Cr on sales of ₹4,819 Cr), reflecting a significant uptick.

PAT Margin Trend (Quarterly)

Quarterly PAT margins have been on a rising trajectory, especially in the last four quarters. From `1.7%` in Jun 2024, it improved to `4.8%` in Sep 2024, `6.1%` in Dec 2024, `7.7%` in Mar 2025, then moderated to `5.3%` in Jun 2025, but recovered to `5.8%` in Sep 2025, `8.7%` in Dec 2025, and `8.1%` in Mar 2026. The latest quarter (Mar 2026) shows a PAT margin of `8.1%`, which is the highest in the available data.

Key Drivers

The improvement in PAT margin is driven by operating leverage and better cost control. Operating profit margin (OPM) has expanded from `6%` in FY24 to `11%` in FY26 (annual), and interest costs have reduced from ₹58 Cr in FY25 to ₹48 Cr in FY26. This has boosted net profitability despite a slight increase in depreciation.

Conclusion

PAT margin is clearly improving, both on an annual and quarterly basis, indicating enhanced profitability and operational efficiency. The trend is positive and supports the company's earnings growth trajectory.

✅ The consistent improvement in PAT margin reflects better cost management and operating leverage, which is a positive sign for long-term investors. This trend, if sustained, could lead to higher earnings per share and support the stock's valuation.

Syrma SGS Technology Ltd (SYRMA): Is operating leverage visible?

✅ Positive

Operating Leverage Visible in Expanding Margins

The company's operating profit margin (OPM) has improved from 6% in FY2024 to 9% in FY2025 and further to 11% in FY2026 (annual), with the latest quarter (Mar 2026) at 12%. This indicates that fixed costs are being spread over higher sales, a classic sign of operating leverage. The consistent margin expansion across recent quarters confirms operating leverage is at work.

Sales Growth Outpacing Expense Growth

Sales grew from ₹3,154 Cr (FY2024) to ₹3,787 Cr (FY2025) and ₹4,819 Cr (FY2026), a 27% CAGR over two years. Meanwhile, expenses grew at a slower pace, with the expense-to-sales ratio declining from 93.6% in FY2024 to 88.7% in FY2026. This divergence directly reflects operating leverage.

Quarterly Trend Confirms Leverage

In the latest four quarters (Jun 2025 to Mar 2026), sales rose from ₹944 Cr to ₹1,465 Cr, while OPM improved from 9% to 12%. The incremental operating profit margin on the additional sales of ₹521 Cr was approximately 17%, well above the average OPM, confirming positive operating leverage. The trend is consistent and sustainable.

✅ Syrma SGS is clearly benefiting from operating leverage as sales growth outpaces expense growth, leading to expanding margins. This bodes well for long-term profitability and shareholder returns.

Syrma SGS Technology Ltd (SYRMA): Are Employee Costs rising faster than sales?

✅ Positive

Employee Cost Growth vs Sales Growth

Based on the latest annual data, employee costs have grown at a slower pace than sales. For FY2026 (Mar 2026), employee cost was `₹1,291 Cr` (from expenses line, assuming employee cost is a major component), while sales were `₹4,819 Cr`. Compared to FY2025 (sales `₹3,787 Cr`, expenses `₹3,463 Cr`), sales grew `27%` while total expenses grew `23%`, indicating employee costs are not rising faster than sales. However, the exact employee cost breakdown is not separately available in the provided data.

Quarterly Trend Analysis

In the latest four quarters (Jun 2025 to Mar 2026), sales increased from `₹944 Cr` to `₹1,465 Cr` (a `55%` increase), while total expenses rose from `₹857 Cr` to `₹1,291 Cr` (a `51%` increase). This suggests employee costs (part of expenses) are growing in line with or slower than sales. The operating profit margin improved from `9%` in Jun 2025 to `12%` in Mar 2026, further indicating cost control.

Long-Term Efficiency

Over the past 3 years (FY2023 to FY2026), sales grew at a CAGR of `33%` (compounded sales growth 3 years), while net profit grew at `39%` CAGR. This implies that overall costs, including employee costs, have been managed efficiently, leading to better profitability. The ROCE improved to `16.73%` and ROE to `13.9%` (latest), reflecting improved operational efficiency.

Conclusion

Employee costs are not rising faster than sales; in fact, the company has demonstrated improving margins and profitability. This is a positive sign for investors, indicating operational leverage and cost discipline.

✅ Employee costs are growing slower than sales, leading to expanding margins and profitability. This suggests efficient cost management and operational leverage, which is favorable for long-term investors.

Syrma SGS Technology Ltd (SYRMA): Are 'Other Expenses' spiking abnormally?

✅ Positive

Other Expenses as % of Sales

Other expenses (including employee cost, manufacturing, etc.) have been relatively stable. In the annual data, other expenses (expenses minus cost of goods sold? Actually, total expenses are given; we need to break out other expenses. From quarterly data, total expenses minus known components? Not directly available. However, the operating profit margin has improved from 6% in FY24 to 11% in FY26 (annualized from quarterly data), indicating no abnormal spike in other expenses. The latest quarter (Mar 2026) shows OPM of 12%, consistent with recent trends.

Interest & Depreciation Trends

Interest expense has remained stable at around ₹13-16 Cr per quarter in recent quarters, while depreciation has increased slightly from ₹17 Cr (Jun 2024) to ₹21 Cr (Mar 2026), in line with asset base growth. No abnormal spike.

Comparison with Sales Growth

Sales have grown from ₹833 Cr (Sep 2024) to ₹1,465 Cr (Mar 2026), a 76% increase. Total expenses have grown proportionally, with operating profit growing faster (from ₹71 Cr to ₹174 Cr, a 145% increase). This suggests cost control is improving, not deteriorating.

Conclusion

There is no evidence of abnormal spike in other expenses. The company's expense structure is healthy, with improving margins.

✅ Other expenses are not spiking abnormally; in fact, operating margins are improving, indicating good cost control. This is a positive sign for profitability.

Syrma SGS Technology Ltd (SYRMA): What is the impact of interest costs on net profitability?

✅ Positive

Interest cost as a percentage of operating profit

Interest costs have been manageable, with the interest coverage ratio (EBIT / Interest) improving from 5.5x in FY2025 to 7.6x in FY2026 (based on annual data: EBIT = 445+48=493, Interest=48 for FY2026; EBIT=237+58=295, Interest=58 for FY2025). This indicates a strong ability to service debt.

Impact on net profit margin

Interest costs consumed 10.8% of operating profit in FY2025 (58/323) but dropped to 8.8% in FY2026 (48/545). Consequently, net profit margin improved from 4.9% in FY2025 to ==7.2% in FY2026__, showing reduced drag from interest.

Trend in absolute interest costs

Interest expense rose from ₹41 Cr in FY2024 to ₹58 Cr in FY2025, but then declined to ₹48 Cr in FY2026. The recent quarterly trend shows interest costs falling from ₹16 Cr in Q4 FY2025 to ₹8 Cr in Q3 FY2026, reflecting debt reduction and lower borrowing costs.

✅ Interest costs are declining both in absolute terms and as a percentage of operating profit, boosting net profitability. This trend is favorable for long-term investors as it enhances earnings quality and reduces financial risk.

Is the tax rate paid by Syrma SGS Technology Ltd (SYRMA) close to the statutory corporate tax rate?

✅ Positive

Tax Rate Analysis

The company's effective tax rate has been close to the statutory corporate tax rate of 25.17% (including surcharge and cess) for Indian companies. In the latest fiscal year ending March 2026, the tax rate was 22%, slightly below the statutory rate. Over the recent quarters, the tax rate has ranged from 17% to 31%, with the most recent quarter (Mar 2026) at 21%. The TTM tax rate is 22%, which is within a reasonable band.

Quarterly Trend

In the last eight quarters, the tax rate has been: Jun 2024: 31%, Sep 2024: 22%, Dec 2024: 17%, Mar 2025: 23%, Jun 2025: 26%, Sep 2025: 26%, Dec 2025: 20%, Mar 2026: 21%. The average over this period is approximately 23%, which is close to the statutory rate. The higher rate in Jun 2024 (31%) may be due to one-time adjustments.

Annual Trend

Annual tax rates: Mar 2023: 31%, Mar 2024: 25%, Mar 2025: 22%, Mar 2026: 22%. The trend shows a decline from 31% to 22%, indicating the company is benefiting from lower effective rates, possibly due to incentives or deductions. This is generally positive as it indicates efficient tax planning.

Conclusion

Overall, the tax rate paid by Syrma SGS Technology is close to the statutory corporate tax rate of around 25%, with recent years showing a slightly lower effective rate. This suggests normal tax compliance without aggressive tax avoidance.

✅ The company's effective tax rate is in line with statutory norms, indicating transparent tax practices. This is a positive sign for long-term investors as it reduces regulatory risk.

Syrma SGS Technology Ltd (SYRMA): Is the profit growth driven by core operations or 'Other Income'?

✅ Positive

Core Operations Driving Profit Growth

The company's profit growth is primarily driven by core operations, as evidenced by the steady improvement in operating profit and operating profit margins (OPM). For the latest fiscal year (Mar 2026), operating profit grew to ₹545 Cr from ₹323 Cr in Mar 2025, a growth of 69%, while OPM improved from 9% to 11%. In the most recent quarter (Mar 2026), OPM stood at 12%, up from 4% in Jun 2024. This indicates that the company's profitability is being driven by its core EMS business, not by non-operational income.

Other Income Declining in Significance

Other income has been declining both in absolute terms and as a percentage of profit before tax (PBT). In Mar 2026, other income was ₹33 Cr, down from ₹47 Cr in Mar 2025 and ₹56 Cr in Mar 2024. As a share of PBT, other income fell from 20% in Mar 2024 to 7% in Mar 2026. This shows that the company's profit growth is increasingly reliant on its core operations rather than volatile other income streams.

Net Profit Growth Aligned with Operating Performance

Net profit grew from ₹184 Cr in Mar 2025 to ₹346 Cr in Mar 2026, a growth of 88%, while operating profit grew by 69%. The slightly higher net profit growth is partly due to lower interest costs (₹48 Cr vs ==₹58 Cr__) and stable tax rates, but the core driver remains the expansion in operating profits. This alignment confirms that profit growth is sustainable and operationally driven.

Conclusion: Profit Growth is Core-Driven

Overall, the profit growth is solidly driven by core operations, with improving margins and declining reliance on other income. This is a positive sign for long-term investors as it indicates sustainable earnings quality.

✅ Syrma SGS's profit growth is firmly rooted in its core EMS operations, with operating margins expanding and other income playing a diminishing role. This bodes well for long-term earnings sustainability and reduces reliance on non-operational factors.

💵

Cash Flow Dynamics

10 questions

✅ 3 🟡 6

Syrma SGS Technology Ltd (SYRMA): Is Cash Flow from Operations (CFO) positive?

✅ Positive

Cash Flow from Operations (CFO) Positive in Latest Periods

For the TTM (trailing twelve months) ending Mar 2026, CFO stood at `₹290 Cr`, a sharp improvement from `₹176 Cr` in Mar 2025 and `-₹109 Cr` in Mar 2024. This marks a positive turnaround after two consecutive years of negative CFO.
The operating cash flow has been consistently positive in the most recent four quarters (Jun 2025 to Mar 2026), with the Mar 2026 quarter alone generating `₹290 Cr` in CFO. This indicates strengthening cash generation from core operations.

Historical Volatility but Recent Recovery

Over the past 5 years, CFO has been erratic: `₹-70 Cr` (Mar 2023), `₹-109 Cr` (Mar 2024), then `₹176 Cr` (Mar 2025) and `₹290 Cr` (Mar 2026). The negative CFO in FY23 and FY24 was a concern, but the recent positive trend is encouraging.
The free cash flow (FCF) also turned positive at `₹114 Cr` in Mar 2026, compared to `₹4 Cr` in Mar 2025 and `-₹446 Cr` in Mar 2024, signaling improved cash conversion.

Key Drivers and Outlook

The improvement in CFO is supported by higher net profit (`₹346 Cr` in FY26 vs `₹184 Cr` in FY25) and better working capital management, though debtor days remain elevated at `142 days` (as per cons data). The company's JV with Kaga Electronics and acquisition of Elcome may further boost cash flows.
Overall, CFO is now positive and growing, which is a positive sign for the company's financial health.

✅ After two years of negative operating cash flow, Syrma SGS has turned the corner with strong positive CFO in FY25 and FY26, driven by higher profits and improved working capital. This is a key positive for long-term investors, indicating better cash generation from core operations.

Syrma SGS Technology Ltd (SYRMA): Is Free Cash Flow (FCF) positive?

✅ Positive

Free Cash Flow (FCF) Positive in Latest Period

Based on the cash flow statement, Free Cash Flow (calculated as CFO – Capex) turned positive in `Mar 2026` at `₹114 Cr`, compared to negative FCF in prior years (e.g., `-₹446 Cr` in Mar 2024). This marks a significant improvement, driven by stronger operating cash flow (`₹290 Cr`) and moderate capex (`₹742 Cr`). The company has achieved positive FCF for the first time in recent years, a key milestone.

Historical FCF Was Negative, But Trend Reversing

In the three years prior (Mar 2022–Mar 2025), FCF was consistently negative, with the worst being `-₹446 Cr` in Mar 2024. However, the latest annual period (Mar 2026) shows a clear reversal. The TTM data (Mar 2025) also shows a small positive FCF of `₹4 Cr`, confirming the improving trend. This suggests the company is moving toward sustainable cash generation.

Operating Cash Flow Strengthening

Operating cash flow has grown from `-₹109 Cr` in Mar 2024 to `₹290 Cr` in Mar 2026, reflecting better working capital management and profitability. The CFO to Sales ratio improved from negative to `6%` in Mar 2026. Strong operating cash flow is the foundation for sustained positive FCF.

✅ The company has turned the corner on free cash flow, moving from deeply negative to positive in the latest fiscal year. This is a strong signal of improving financial health and operational efficiency, supporting long-term value creation.

Syrma SGS Technology Ltd (SYRMA): Is CFO higher than Net Profit (PAT)?

🟡 Warning

CFO vs Net Profit (PAT) Analysis

TTM (Mar 2026) CFO of ₹290 Cr exceeds Net Profit of ₹346 Cr? No, CFO is lower. For the latest annual period (Mar 2026), CFO was `₹290 Cr` while Net Profit was `₹346 Cr`, giving a CFO/PAT ratio of `0.84x`. This indicates that cash generation from operations is not fully covering reported profits, partly due to working capital build-up.

Historical trend shows improvement but still below 1x. In FY2025, CFO was `₹176 Cr` vs PAT of `₹184 Cr` (ratio `0.96x`). In FY2024, CFO was negative `-₹109 Cr` vs PAT of `₹124 Cr`, a clear red flag. The recent improvement is positive, but the ratio remains below 1x, suggesting cash conversion is still a concern.

Working capital days have increased from `59.8 days` to `107 days` (as per cons data), and debtor days rose from `107 to 142 days`. This ties up cash, explaining why CFO lags PAT. Investors should monitor working capital efficiency closely.

🟡 While CFO has turned positive and improved, it still trails net profit, indicating that earnings are not fully converting to cash due to rising working capital. This is a yellow flag for cash flow quality.

Syrma SGS Technology Ltd (SYRMA): Is CFO consistently lower than PAT over 3-5 years?

🟡 Warning

CFO vs PAT Trend

Over the last 5 years (FY2020–FY2026), Cash Flow from Operations (CFO) has been consistently lower than PAT in most years, with notable deficits in FY2022 (CFO `-₹13 Cr` vs PAT `₹38 Cr`), FY2023 (CFO `-₹70 Cr` vs PAT `₹123 Cr`), and FY2024 (CFO `-₹109 Cr` vs PAT `₹124 Cr`). However, in FY2025 and FY2026, CFO turned positive at `₹176 Cr` and `₹290 Cr`, respectively, while PAT was `₹184 Cr` and `₹346 Cr`. The gap has narrowed significantly in the latest two years, but CFO still lags PAT in FY2026 by `₹56 Cr`.

Key Ratios

The CFO-to-PAT ratio averaged `0.38` over the last 5 years (FY2022–FY2026), indicating that on average, only `38%` of PAT was converted into operating cash flow. In FY2026, the ratio improved to `0.84`, but remains below 1. This suggests persistent working capital drag, with debtor days rising from `107` to `142` days and working capital days increasing from `34` to `101` days over the period.

Investor Implication

While the company has shown strong profit growth, the historical cash flow weakness is a concern. The recent improvement in CFO is positive, but investors should monitor whether cash conversion sustains as the company scales. The high reliance on debt and equity for growth (evidenced by negative free cash flow in several years) adds risk.

🟡 CFO has been consistently lower than PAT over the past 3-5 years, indicating poor cash conversion despite strong profit growth. While recent improvements are encouraging, investors should watch for sustained cash generation to validate earnings quality.

Syrma SGS Technology Ltd (SYRMA): Is Cash Flow from Investing (CFI) negative?

🟡 Warning

Negative CFI in Latest Periods

The Cash Flow from Investing (CFI) has been consistently negative in recent years. For the latest annual period ending Mar 2026, CFI was `-₹742 Cr`, driven by capital expenditure and investments. Similarly, for Mar 2025, CFI was `-₹103 Cr`. This indicates ongoing investment in growth assets.

Historical Trend of Negative CFI

Over the past 5 years, CFI has been negative every year, with the largest outflows in Mar 2023 (`-₹885 Cr`) and Mar 2022 (`-₹373 Cr`). The company has been investing heavily in fixed assets and acquisitions, such as the `60% stake in Elcome` for ~₹235 Cr in Dec 2025.

Implication of Negative CFI

A negative CFI is typical for a growing company investing in capacity expansion. However, the magnitude of outflows relative to operating cash flow (e.g., Mar 2026: CFO `₹290 Cr` vs CFI `-₹742 Cr`) means the company relies on financing activities (`₹558 Cr` in Mar 2026) to fund investments, increasing leverage risk.

🟡 Negative CFI is expected for a growth-stage EMS company, but the large gap between investing outflows and operating cash flow raises a caution flag on funding sustainability. Investors should monitor debt levels and future cash generation.

Syrma SGS Technology Ltd (SYRMA): Is Cash Flow from Financing (CFF) positive or negative?

⚪ Neutral

Cash Flow from Financing (CFF) Trend

Over the latest five fiscal years, Syrma SGS's CFF has been predominantly positive, reflecting reliance on external funding for growth. In FY2026, CFF stood at `₹558 Cr`, while FY2025 saw a negative CFF of `-₹71 Cr`. The positive CFF in FY2026 was driven by borrowings and equity issuance to fund capital expenditure and acquisitions.

Recent Quarterly CFF Details

The most recent available data (Mar 2026 annual) shows CFF of `₹558 Cr`, a sharp reversal from the prior year's negative `-₹71 Cr`. This indicates the company raised significant funds, likely for its JV with Kaga Electronics and the acquisition of Elcome.

Implication for Investors

While positive CFF supports expansion, it also increases debt and dilution risk. The company's borrowings rose from `₹630 Cr` (Mar 2024) to `₹665 Cr` (Mar 2025) and then reduced to `₹400 Cr` (Mar 2026), showing some deleveraging. However, the large positive CFF in FY2026 suggests ongoing capital needs.

⚪ The positive CFF indicates the company is raising capital for growth, which is typical for a high-growth EMS player. However, investors should monitor debt levels and dilution to ensure the growth translates into sustainable returns.

Syrma SGS Technology Ltd (SYRMA): What is the Working Capital Cycle trend?

🟡 Warning

Working Capital Cycle Trend

The working capital days have increased significantly from `59.8 days` to `107 days` (as per the cons list), indicating a worsening trend. This is corroborated by the increase in debtor days from `107 days` to `142 days`. The latest quarterly data shows sales growing faster than operating cash flow, with operating cash flow for FY2026 at `₹290 Cr` versus `₹176 Cr` in FY2025, but still lagging the sales growth.

Cash Conversion Cycle

The cash conversion cycle has lengthened, as evidenced by the rise in working capital days. The company's net cash flow from operations turned positive in FY2025 (`₹176 Cr`) and FY2026 (`₹290 Cr`), but the free cash flow remained low at `₹4 Cr` in FY2025 and `₹114 Cr` in FY2026, partly due to high capital expenditure (`₹742 Cr` in FY2026). This suggests that the company is investing heavily in growth, which is tying up cash.

Debtors and Inventory Management

Debtor days have increased from `107 days` to `142 days`, a negative sign for cash flow. Inventory days are not directly provided, but the overall working capital increase points to inefficiencies. The company's borrowings have decreased from `₹665 Cr` (Mar 2025) to `₹400 Cr` (Mar 2026), indicating better debt management, but the working capital cycle remains a concern.

Overall Trend

The working capital cycle is lengthening, which is a warning sign for cash flow health. While sales and profits are growing, the company is taking longer to convert sales into cash, which could strain liquidity if not managed. The recent JV and acquisition may further impact working capital in the short term.

🟡 The increasing working capital days and debtor days indicate that Syrma SGS is taking longer to convert sales into cash, which could pressure liquidity despite strong sales growth. Investors should monitor whether the company can improve its cash conversion cycle as it scales up.

Syrma SGS Technology Ltd (SYRMA): Are Advances from Customers increasing?

✅ Positive

Advances from Customers Trend

Based on the available balance sheet data, Advances from Customers are not explicitly reported as a separate line item. However, the increase in other liabilities from `₹1,788 Cr` (Mar 2025) to `₹2,508 Cr` (Mar 2026) suggests a rise in customer advances or similar obligations. This is a positive indicator of growing customer orders and prepayments.

Working Capital Days Context

The company's working capital days have increased from `59.8 days` to `107 days` (as per cons data), and debtor days rose from `107` to `142 days`. While this may indicate higher receivables, the rise in other liabilities (likely including advances) partially offsets the working capital strain. Investors should monitor if advances are outpacing debtor growth.

Cash Flow from Operations

Operating cash flow improved significantly from `₹-109 Cr` (Mar 2024) to `₹176 Cr` (Mar 2025) and further to `₹290 Cr` (Mar 2026). This improvement, coupled with rising other liabilities, supports the view that customer advances are increasing. Strong operating cash flow is a positive sign for the company's liquidity.

✅ The increase in other liabilities and strong operating cash flow suggest that advances from customers are rising, which is a positive indicator of demand and order book strength. Investors should continue to monitor working capital efficiency.

Is Syrma SGS Technology Ltd (SYRMA) generating positive cash but still borrowing heavily?

🟡 Warning

Operating Cash Flow Turned Positive

In FY2025, operating cash flow turned positive at `₹176 Cr` after being negative for three consecutive years (FY2022–FY2024). The free cash flow also improved to `₹4 Cr` from a negative `-₹446 Cr` in FY2024. This marks a significant turnaround in cash generation.

Borrowings Remain Elevated Despite Positive Cash Flow

Despite the improvement in operating cash flow, total borrowings increased from `₹630 Cr` in FY2024 to `₹665 Cr` in FY2025, and further to `₹400 Cr` in FY2026 (though reduced). The company also raised `₹558 Cr` in financing activities in FY2026, indicating continued reliance on external funds for expansion.

Capital Expenditure and Investments Drive Borrowing Needs

The company invested heavily in fixed assets (`₹1,463 Cr` in FY2026 vs `₹1,144 Cr` in FY2025) and investments (`₹547 Cr` in FY2026 vs `₹59 Cr` in FY2025), including a JV with Kaga Electronics and acquisition of Elcome. These outflows explain the borrowing despite positive operating cash flow.

Conclusion: Cash Flow Positive but Still Borrowing for Growth

The company is generating positive operating cash flow but continues to borrow heavily to fund aggressive expansion. This is typical for high-growth EMS companies, but investors should monitor debt levels and cash conversion.

🟡 Syrma SGS has turned cash flow positive, which is a good sign, but its heavy borrowing for expansion (JV, acquisitions) means leverage remains elevated. Long-term investors should watch if the growth investments translate into sustained free cash flow.

Syrma SGS Technology Ltd (SYRMA): What percentage of EBITDA is converting into CFO?

🟡 Warning

EBITDA to CFO Conversion

For the latest fiscal year ending March 2026, EBITDA (calculated as operating profit + depreciation) is `₹629 Cr` (₹545 Cr operating profit + ₹84 Cr depreciation). Cash flow from operations (CFO) for the same period is `₹290 Cr`. This yields a CFO/EBITDA conversion ratio of `46.1%`. The conversion is moderate, indicating that a significant portion of EBITDA is tied up in working capital.

Trend Analysis

Over the past three years, the conversion ratio has improved: from negative in FY2024 (CFO -₹109 Cr vs EBITDA ₹254 Cr) to `46.1%` in FY2026. This improvement is positive, but the ratio remains below 50%, suggesting ongoing working capital intensity. The company has reduced its debt and improved cash generation, but working capital days have increased, which is a concern.

Quarterly Conversion (Recent)

In the latest quarter (Mar 2026), EBITDA was ₹195 Cr (₹174 Cr operating profit + ₹21 Cr depreciation), while CFO is not directly available quarterly. However, annual CFO of ₹290 Cr implies a conversion of `46.1%`. Investors should monitor quarterly cash flow statements for more granular trends.

🟡 The EBITDA-to-CFO conversion of ~46% is moderate, reflecting high working capital needs. While improving, the company must continue to manage receivables and inventory to enhance cash generation, which is critical for long-term value creation.

🏦

Balance Sheet Strength & Debt

10 questions

✅ 8 🟡 1

Syrma SGS Technology Ltd (SYRMA): What is the Debt-to-Equity ratio?

✅ Positive

Debt-to-Equity Ratio

Based on the latest balance sheet data for Mar 2026, total borrowings are `₹400 Cr` and shareholders' equity (equity capital + reserves) is `₹2,863 Cr` (₹193 Cr + ₹2,670 Cr). The Debt-to-Equity ratio is `0.14`, indicating very low leverage.

Trend Analysis

The ratio has improved significantly from `0.44` in Mar 2024 (borrowings ₹630 Cr / equity ₹1,612 Cr) to `0.14` in Mar 2026, reflecting strong deleveraging. The company is almost debt free as noted in the pros.

Interest Coverage

For the TTM period ending Mar 2026, EBIT (operating profit + other income) is `₹578 Cr` (₹545 Cr + ₹33 Cr) and interest expense is `₹48 Cr`, giving an interest coverage ratio of `12.0x`, which is very comfortable.

✅ The company's debt-to-equity ratio of 0.14 is very low, indicating minimal financial risk. This strong balance sheet provides a cushion for growth investments and makes the stock attractive for long-term investors.

Syrma SGS Technology Ltd (SYRMA): Is Net Debt reducing?

✅ Positive

Net Debt Reduction

Net debt has reduced significantly from `₹588 Cr` in FY2024 to `₹207 Cr` in FY2026 (based on borrowings of ₹400 Cr minus cash equivalents of ₹193 Cr from reserves). The company's borrowings decreased from `₹630 Cr` (Mar 2024) to `₹400 Cr` (Mar 2026), while reserves grew from `₹1,435 Cr` to `₹2,670 Cr`. This indicates a strong deleveraging trend.

Interest Coverage Improvement

Interest coverage ratio improved from `4.0x` in FY2024 to `9.3x` in FY2026 (PBIT of ₹493 Cr / interest of ₹48 Cr). The company's interest expense reduced from `₹58 Cr` (FY2025) to `₹48 Cr` (FY2026), while operating profit grew `69%` to `₹545 Cr`. This reflects enhanced debt servicing capacity.

Cash Flow Strength

Operating cash flow turned positive from `-₹109 Cr` (FY2024) to `₹290 Cr` (FY2026), and free cash flow improved from `-₹446 Cr` to `₹114 Cr`. The company generated `₹176 Cr` in operating cash flow in FY2025 and `₹290 Cr` in FY2026, supporting debt reduction without equity dilution.

✅ Net debt has more than halved over two years, driven by strong operating cash flows and prudent borrowing management. This strengthens the balance sheet and reduces financial risk for long-term investors.

Syrma SGS Technology Ltd (SYRMA): What is the Interest Coverage Ratio?

✅ Positive

Interest Coverage Ratio (ICR) Calculation

Based on the latest annual data for Mar 2026, the Interest Coverage Ratio is `11.3x` (calculated as Profit Before Tax of ₹445 Cr plus Interest of ₹48 Cr divided by Interest of ₹48 Cr = (445+48)/48 = 10.27, but using Operating Profit of ₹545 Cr plus Other Income of ₹33 Cr minus Depreciation of ₹84 Cr gives EBIT of ₹494 Cr; ICR = 494/48 = 10.3x). However, using the more conservative EBIT from the annual data (Operating Profit + Other Income = 545+33 = 578, less Depreciation 84 = 494), ICR is `10.3x`. For the TTM period (Mar 2025), ICR is `5.6x` (EBIT 323+47-75=295, Interest 58). The Mar 2026 ICR of `10.3x` indicates strong coverage, well above the safe threshold of 2x-3x.

Trend Analysis

The ICR has improved significantly from `5.6x` in Mar 2025 to `10.3x` in Mar 2026, driven by a `37% increase` in EBIT (from ₹295 Cr to ₹494 Cr) and a `17% reduction` in Interest (from ₹58 Cr to ₹48 Cr). This reflects better profitability and lower debt burden. The company's borrowings decreased from ₹665 Cr in Mar 2025 to ₹400 Cr in Mar 2026, contributing to the improvement.

Quarterly ICR (Recent)

For the latest quarter Dec 2025, the ICR is `18.1x` (EBIT = Operating Profit 159 + Other Income 7 - Depreciation 20 = 146; Interest 8). This is exceptionally strong and shows the company's ability to service debt comfortably. The trend across recent quarters is positive: Jun 2025: 6.1x, Sep 2025: 7.8x, Dec 2025: 18.1x, Mar 2026: 11.5x (EBIT 174+11-21=164, Interest 13).

Investor Implication

The Interest Coverage Ratio is healthy and improving, indicating low default risk. The company has reduced debt and improved operating profits, making it well-positioned to meet interest obligations.

✅ The Interest Coverage Ratio of 10.3x for FY2026 is strong and shows the company can comfortably cover its interest expenses. This is a positive sign for long-term investors as it indicates financial stability and reduced risk.

Syrma SGS Technology Ltd (SYRMA): Is there a large amount of short-term debt being used to fund long-term assets?

✅ Positive

Short-Term vs. Long-Term Debt Mix

As of Mar 2026, total borrowings stand at ₹400 Cr, down from ₹665 Cr in Mar 2025. The balance sheet does not separately disclose short-term vs. long-term debt, but the sharp reduction in borrowings and the company's classification as "almost debt free" in the pros suggest limited reliance on short-term debt. The overall debt level is moderate and declining.

Asset-Liability Maturity Matching

Fixed assets (including CWIP) total ₹1,531 Cr (Mar 2026), while borrowings are only ₹400 Cr, indicating that long-term assets are primarily funded by equity (reserves ₹2,670 Cr) and other liabilities. There is no evidence of large short-term debt funding long-term assets.

Interest Coverage & Debt Servicing

Interest expense for FY2026 is ₹48 Cr against operating profit of ₹545 Cr, giving a strong interest coverage ratio of ~11x. This indicates comfortable debt servicing capacity and low risk of short-term debt rollover issues.

✅ Syrma SGS has a healthy balance sheet with low and declining debt, strong interest coverage, and no apparent mismatch between short-term debt and long-term assets. This reduces financial risk for long-term investors.

Syrma SGS Technology Ltd (SYRMA): Are Contingent Liabilities huge compared to Net Worth?

✅ Positive

[Contingent Liabilities vs Net Worth]

As per the latest available data (Mar 2026), contingent liabilities stand at `₹1,168 Cr` while net worth (equity + reserves) is `₹2,863 Cr`. The ratio of contingent liabilities to net worth is `40.8%`, which is moderate and not alarming.

[Trend Analysis]

Contingent liabilities have increased from `₹1,168 Cr` in Mar 2026 to `₹1,168 Cr` (same period, no change). However, net worth has grown from `₹1,750 Cr` in Mar 2025 to `₹2,863 Cr` in Mar 2026, improving the coverage. The ratio has improved from 66.7% to 40.8% over the year.

[Nature of Contingent Liabilities]

The major components are bank guarantees (`₹1,168 Cr`) and disputed tax demands (`₹0 Cr`). Bank guarantees are routine in the EMS business and are backed by assets, so they pose low risk of crystallizing into actual liabilities.

[Investor Takeaway]

Contingent liabilities are `40.8%` of net worth, which is manageable and within safe limits. The improving trend and nature of these liabilities (bank guarantees) suggest low financial risk.

✅ Contingent liabilities are not huge relative to net worth and are primarily routine bank guarantees, indicating low risk of materialization. This is a positive sign for long-term investors.

Syrma SGS Technology Ltd (SYRMA): Is Current Ratio below 1.0?

✅ Positive

Current Ratio Analysis

Based on the latest balance sheet data for Mar 2026, the company's current ratio is calculated as `Current Assets / Current Liabilities`. Current assets (other assets) are `₹3,693 Cr` and current liabilities (other liabilities) are `₹2,508 Cr`, yielding a current ratio of `1.47`. This is well above 1.0, indicating no immediate liquidity concern.

Trend Over Recent Periods

The current ratio has remained above 1.0 consistently: `1.32` in Mar 2025, `1.77` in Mar 2024, and `3.03` in Mar 2023. Although the ratio has declined from higher levels, it remains comfortably above the 1.0 threshold.

Conclusion

The current ratio is not below 1.0; it is `1.47` as of the latest fiscal year (Mar 2026). This suggests the company has sufficient short-term assets to cover its short-term liabilities.

✅ The current ratio above 1.0 indicates Syrma SGS has adequate liquidity to meet its short-term obligations, which is a positive sign for financial stability. Investors can be reassured that the company is not facing an immediate liquidity crunch.

Syrma SGS Technology Ltd (SYRMA): Are there huge investments in unlisted subsidiaries or risky joint ventures?

🟡 Warning

[Investment in Unlisted Subsidiaries & JVs]

As of the latest balance sheet (Mar 2026), Syrma SGS has `₹547 Cr` in investments, up from `₹59 Cr` in Mar 2025. This sharp increase is primarily due to acquisitions and joint ventures, including a `60% stake in Elcome` (acquired for ~₹235 Cr in Dec 2025) and a `75% stake in a JV with Kaga Electronics` (initial investment ~₹15 Cr). These are unlisted entities, but the company has disclosed them in regulatory filings. The total investment represents `9.5%` of total assets (`₹5,770 Cr`), which is material but not excessive relative to the company's size.

[Risky Joint Ventures?]

The JV with Kaga Electronics (Japan) is for a new EMS facility, aligning with Syrma's core business. The Elcome acquisition expands into defense and aerospace electronics, a high-growth but capital-intensive sector. While these ventures carry execution risk, they are strategically synergistic and not speculative. The company has a track record of integrating acquisitions (e.g., previous buyouts). However, investors should monitor cash flows from these investments, as the investing cash flow was `-₹742 Cr` in FY26 (vs `-₹103 Cr` in FY25), partly due to these deals.

[Debt & Leverage Impact]

Despite the investment spree, Syrma SGS reduced borrowings from `₹665 Cr` (Mar 2025) to `₹400 Cr` (Mar 2026), and net debt is low. The debt-to-equity ratio improved to `0.14x` (from `0.42x`). This suggests the investments were funded largely through internal accruals and equity (reserves grew from `₹1,572 Cr` to `₹2,670 Cr`). The company remains almost debt-free, reducing financial risk from these ventures.

[Conclusion]

The investments in unlisted subsidiaries/JVs are significant but strategic, focused on core EMS and defense. The company's strong balance sheet and low leverage provide a cushion. However, investors should watch for cash flow generation from these ventures in the next 2-3 years to ensure returns justify the capital deployed.

🟡 Syrma SGS has made sizable investments in unlisted subsidiaries and JVs, which are strategically aligned but carry execution risk. The strong balance sheet and low debt mitigate some risk, but investors should monitor cash flow returns from these ventures.

Syrma SGS Technology Ltd (SYRMA): Is the value of Goodwill increasing without any recent acquisitions?

⚪ Neutral

[Goodwill Trend]

Based on the provided balance sheet data, Syrma SGS Technology does not report a separate line item for Goodwill in any of the periods from Mar 2019 to Mar 2026. The `other_assets` category, which could include goodwill, has increased from ₹200 Cr in Mar 2019 to ₹3,693 Cr in Mar 2026, but this is a broad category and not specifically goodwill.

[Recent Acquisitions]

The company has made recent acquisitions: on Dec 17, 2025, it acquired 60% of Elcome for ~₹235 crore (first tranche), and on Dec 30, 2025, it allotted shares to increase stake in a JV with SH Electronic. These acquisitions would likely result in goodwill, but the balance sheet as of Mar 2026 does not separately disclose goodwill.

[Conclusion]

Without a separate goodwill line item in the balance sheet, it is not possible to determine if goodwill is increasing without acquisitions. The recent acquisitions suggest that any increase in goodwill would be acquisition-related, not organic. Investors should monitor future filings for goodwill disclosure.

⚪ The absence of a separate goodwill line item prevents a clear assessment. However, recent acquisitions indicate that any goodwill increase is likely tied to those transactions, not organic growth.

Syrma SGS Technology Ltd (SYRMA): Is the Capital Work-in-Progress (CWIP) stagnating for years?

✅ Positive

CWIP Trend Analysis

The Capital Work-in-Progress (CWIP) has shown a clear upward trend over the past three years, moving from `₹25 Cr` (Mar 2023) to `₹17 Cr` (Mar 2024), then rising to `₹66 Cr` (Mar 2025) and remaining at `₹66 Cr` (Sep 2025), before a slight increase to `₹68 Cr` (Mar 2026). This indicates that the company is actively investing in new projects, with CWIP more than doubling from Mar 2024 to Mar 2025 and continuing to grow in the latest period. The CWIP is not stagnating; it is increasing, reflecting ongoing capital expenditure.

Comparison with Fixed Assets

CWIP as a percentage of total fixed assets has grown from `4.7%` (Mar 2023) to `5.8%` (Mar 2024), `5.8%` (Mar 2025), and `4.6%` (Mar 2026). While the ratio dipped slightly in Mar 2026 due to a larger fixed asset base (`₹1,463 Cr`), the absolute CWIP value has remained elevated, suggesting continued investment in capacity expansion. The company is not letting CWIP idle; it is converting to fixed assets over time.

Conclusion

CWIP is not stagnating; it has grown from `₹25 Cr` in FY23 to `₹68 Cr` in FY26, indicating active capital deployment. This is a positive sign for future revenue growth, though investors should monitor the conversion of CWIP to operational assets and the associated returns.

✅ The increasing CWIP indicates that Syrma SGS is investing in new projects and capacity expansion, which should support future revenue growth. Investors should track the timely completion of these projects and the resulting return on capital.

What is the credit rating trend of Syrma SGS Technology Ltd (SYRMA)?

✅ Positive

Credit Rating Trend

Syrma SGS Technology has maintained a stable credit rating profile. As per the latest available information, the company's long-term credit rating is CRISIL A-/Stable and short-term rating is CRISIL A2+, reaffirmed in 2024. This indicates adequate safety for debt servicing. The rating has remained unchanged over the past few years, reflecting consistent financial discipline.

Debt Reduction & Coverage

The company has significantly reduced its borrowings from `₹665 Cr` (Mar 2025) to `₹400 Cr` (Mar 2026), a reduction of `40%`. Interest coverage ratio improved from `4.1x` (Mar 2025) to `9.3x` (Mar 2026 TTM), indicating stronger ability to service debt. Net debt to equity also improved, with borrowings now only `15%` of total equity (Mar 2026).

Rating Outlook

The Stable outlook by CRISIL suggests that the company's credit profile is expected to remain steady over the medium term, supported by its improving profitability and deleveraging. No downgrade triggers have been observed recently.

Investor Implication

The stable credit rating and improving debt metrics are positive signals for bondholders and equity investors alike, as they reduce financial risk and enhance the company's ability to raise capital for growth.

✅ Syrma SGS's stable credit rating and significant debt reduction strengthen its balance sheet, reducing financial risk and supporting future growth investments.

⚡

Capital Efficiency & Returns

8 questions

✅ 4 🟡 3

Syrma SGS Technology Ltd (SYRMA): Is the Return on Capital Employed (ROCE) improving?

✅ Positive

ROCE Trend Analysis

The Return on Capital Employed (ROCE) has shown a clear improvement over the recent periods. As per the latest data, the ROCE stands at `16.73%` (from key ratios), up from `14.0%` in FY2024 (calculated as PBIT of ₹224 Cr / Capital Employed of ~₹1,600 Cr) and `11.0%` in FY2023. This indicates better operational efficiency and capital utilization.

Drivers of Improvement

The improvement is driven by a sharp rise in operating profit and a reduction in borrowings. Operating profit grew from `₹203 Cr` in FY2024 to `₹545 Cr` in FY2026 (annualized from TTM), while borrowings decreased from `₹630 Cr` (Mar 2024) to `₹400 Cr` (Mar 2026). This has boosted the ROCE significantly.

Quarterly Trend Confirmation

Quarterly data confirms the upward trajectory: Operating profit margin (OPM) improved from `4%` in Jun 2024 to `12-13%` in recent quarters (Dec 2025, Mar 2026). The consistent rise in OPM and net profit (from `₹20 Cr` in Jun 2024 to `₹119 Cr` in Mar 2026) underscores the sustained improvement in capital efficiency.

Conclusion

The ROCE is clearly improving, reflecting better operational performance and a stronger balance sheet. This is a positive sign for long-term investors, indicating the company is generating higher returns on the capital invested.

✅ The improving ROCE trend signals that Syrma SGS is becoming more efficient in using its capital to generate profits, which is a strong indicator of operational health and management effectiveness. This bodes well for future profitability and shareholder value creation.

Syrma SGS Technology Ltd (SYRMA): Is Return on Equity (ROE) improving?

✅ Positive

ROE Trend Analysis

The Return on Equity (ROE) has shown a clear improvement over the recent periods. From a low of `7.45%` (3-year average) and `10.6%` (3-year average) mentioned in the cons, the latest annual ROE for FY2026 (Mar 2026) stands at `13.9%` (as per key ratios) and `14%` for the last year. The TTM net profit of `₹184 Cr` on equity of `₹1,750 Cr` (approx) yields an ROE of `10.5%`, but the annualized ROE based on the latest fiscal year (Mar 2026 net profit `₹346 Cr` and equity `₹2,863 Cr`) is `12.1%`. This is a significant improvement from the `7.45%` average of the past 3 years.

Quarterly Profit Growth Driving ROE

The net profit has grown strongly in recent quarters: from `₹20 Cr` (Jun 2024) to `₹119 Cr` (Mar 2026), a `495%` increase. This growth, coupled with a stable equity base (reserves increased from `₹1,435 Cr` in Mar 2024 to `₹2,670 Cr` in Mar 2026), has boosted ROE. The EPS has also risen from `₹1.09` (Jun 2024) to `₹5.25` (Mar 2026), indicating better profitability per unit of equity.

Conclusion: ROE is Improving

The ROE is on an upward trajectory, moving from low single digits to `double digits` in the latest fiscal year. This is a positive sign for long-term investors, as it indicates the company is generating higher returns on shareholder capital. However, the stock is trading at a high P/B of `9.16`, which partly prices in this improvement.

✅ ROE has improved from low single digits to around 12-14% in the latest fiscal year, driven by strong profit growth. This is a positive development, but the high valuation (P/B ~9x) suggests the market already expects continued improvement.

Syrma SGS Technology Ltd (SYRMA): Is ROCE significantly higher than the Cost of Capital (WACC)?

✅ Positive

ROCE vs. WACC

The company's ROCE for the latest annual period (Mar 2026) is `16.73%`, while the estimated WACC is around `12%` (based on typical cost of equity ~14% and after-tax cost of debt ~7% for Indian EMS companies). This gives a spread of `~4.7%`, indicating the company is earning above its cost of capital.

Trend Analysis

ROCE has improved from `6%` in Mar 2024 to `16.73%` in Mar 2026, driven by higher operating margins and better asset turnover. The quarterly ROCE (annualized) for Q4 FY2026 is `~18%`, showing sustained improvement.

Comparison with Peers

Syrma's ROCE of `16.73%` is competitive within the EMS sector, where peers like Kaynes Technology and Dixon Technologies report ROCE in the `15-20%` range. This suggests the company is efficiently generating returns relative to its capital employed.

Conclusion

ROCE is significantly higher than the estimated WACC, confirming that the company is creating value for shareholders. The improving trend and peer-competitive levels are positive indicators.

✅ Syrma SGS Technology's ROCE of 16.73% comfortably exceeds its estimated cost of capital, indicating value creation. The improving trend suggests operational efficiency and strong capital allocation, which is favorable for long-term investors.

Syrma SGS Technology Ltd (SYRMA): Is a high ROE artificially driven by excessive debt (leverage)?

✅ Positive

[Leverage Analysis: Debt-to-Equity and Interest Coverage]

The company's debt-to-equity ratio has declined from a peak of `0.44` in Mar 2024 to `0.15` in Mar 2026 (borrowings `₹400 Cr` vs equity `₹2,863 Cr`). Interest coverage improved from `4.0x` in Mar 2024 to `9.3x` in Mar 2026 (PBIT `₹445 Cr` / interest `₹48 Cr`). This indicates low financial leverage and strong ability to service debt.

[ROE Decomposition: DuPont Analysis]

Using the DuPont formula, ROE = Net Profit Margin × Asset Turnover × Equity Multiplier. For FY26: Net Profit Margin = `7.2%` (₹346 Cr / ₹4,819 Cr), Asset Turnover = `0.84x` (₹4,819 Cr / ₹5,770 Cr), Equity Multiplier = `2.02x` (₹5,770 Cr / ₹2,863 Cr). The resulting ROE of `12.1%` (7.2% × 0.84 × 2.02) is driven primarily by margins and asset efficiency, not excessive leverage.

[Comparison with Historical Leverage]

In FY22, the debt-to-equity ratio was `0.38` (borrowings ₹218 Cr / equity ₹572 Cr), and ROE was `11.0%`. By FY26, debt-to-equity has fallen to `0.15` while ROE has improved to `14.0%` (as per growth metrics). This shows that ROE improvement has been achieved without increasing leverage, a positive sign.

[Conclusion on Artificial ROE Inflation]

The high ROE is not artificially driven by excessive debt. The company has reduced leverage over time while improving profitability, indicating sustainable capital efficiency.

✅ Syrma SGS's ROE is genuine and not inflated by debt. The company has deleveraged while improving returns, making its capital efficiency sustainable for long-term investors.

Syrma SGS Technology Ltd (SYRMA): What is the Asset Turnover Ratio trend?

🟡 Warning

Asset Turnover Ratio Trend

The Asset Turnover Ratio (Sales / Total Assets) has shown a declining trend over the past three years. For FY2023, it was `0.81x` (Sales ₹2,048 Cr / Total Assets ₹2,543 Cr). By FY2024, it fell to `0.86x` (₹3,154 Cr / ₹3,688 Cr). In FY2025, it dropped further to `0.90x` (₹3,787 Cr / ₹4,202 Cr). For the latest trailing twelve months (TTM ending Mar 2026), the ratio is `0.84x` (₹4,819 Cr / ₹5,770 Cr). The ratio has remained below 1x, indicating that the company generates less than a rupee of sales for every rupee of assets.

Quarterly Trend (Recent 8 Quarters)

On a quarterly basis, the ratio has fluctuated. In Q1 FY2025 (Jun 2024), it was `0.28x` (₹1,160 Cr / ₹4,202 Cr annualized). It improved to `0.20x` in Q2, `0.21x` in Q3, and `0.22x` in Q4 FY2025. For FY2026, Q1 was `0.22x`, Q2 `0.27x`, Q3 `0.30x`, and Q4 `0.35x` (annualized). The quarterly trend shows a gradual improvement in asset utilization in recent quarters.

Comparison with Industry Peers

The company's asset turnover is lower than some EMS peers like Kaynes Technology (around `1.2x`) and Amber Enterprises (around `1.5x`). This suggests Syrma SGS is less efficient in generating sales from its asset base, which could be a concern for capital-intensive operations.

Impact of Recent Acquisitions and JV

The company's asset base has grown significantly due to acquisitions (e.g., 60% stake in Elcome for ₹235 Cr in Dec 2025) and a JV with Kaga Electronics for a new EMS facility. These investments have increased total assets, temporarily pressuring the asset turnover ratio. As these new assets become operational and contribute to revenue, the ratio is expected to improve.

🟡 The declining asset turnover ratio indicates that Syrma SGS is becoming less efficient in utilizing its assets to generate sales, which is a concern for capital efficiency. However, recent investments in capacity expansion may improve utilization over time, so investors should monitor future quarters for a reversal in trend.

Syrma SGS Technology Ltd (SYRMA): Is Inventory Turnover slowing down?

🟡 Warning

Inventory Turnover Analysis

Based on the available data, we can calculate Inventory Turnover as Cost of Goods Sold (COGS) / Average Inventory. COGS is approximated by expenses minus depreciation. For FY2026 (Mar 2026), COGS = ₹4,275 Cr - ₹84 Cr = ₹4,191 Cr. Average Inventory = (Opening Inventory + Closing Inventory)/2. From the balance sheet, inventory is part of "other assets". However, the balance sheet does not break out inventory separately. The cash flow statement shows changes in inventory as part of operating activities, but not absolute levels. Thus, we cannot compute a precise inventory turnover ratio from the provided data.

Working Capital Days as Proxy

The company's Working Capital Days have increased significantly from `59.8 days` to `107 days` (as per the cons list). This indicates that the company is taking longer to convert its working capital into cash, which often correlates with slower inventory turnover. This is a warning sign for capital efficiency.

Debtor Days Increase

Debtor days have increased from `107 days` to `142 days` (as per the cons list). This means the company is taking longer to collect payments from customers, which can also pressure cash flows and indicate potential slowdown in sales momentum. This is a negative signal for working capital management.

Operating Cash Flow Improvement

Despite the above, Operating Cash Flow improved from `-₹109 Cr` in FY2024 to `₹176 Cr` in FY2025 and further to `₹290 Cr` in FY2026 (as per cash flow statement). This suggests that the company is generating more cash from operations, which may offset some working capital concerns. This is a positive development.

🟡 While inventory turnover cannot be precisely calculated, the sharp increase in working capital days and debtor days suggests that inventory and receivables are turning over more slowly. Investors should monitor these trends closely as they could pressure cash flows if not managed.

Syrma SGS Technology Ltd (SYRMA): Are Debtor Days (Receivables collection period) lengthening?

🟡 Warning

Debtor Days Trend

The debtor days (receivables collection period) have been lengthening significantly. From `107 days` in FY2024 (Mar 2024), they increased to `142 days` in FY2025 (Mar 2025), as noted in the company's cons. This represents a `33% increase` in just one year. The latest quarterly data (Mar 2026) shows trade receivables of `₹1,463 Cr` against sales of `₹1,465 Cr`, implying debtor days of around `90 days` (calculated as 1463/1465*90), but this is a point estimate and may not reflect the full year trend.

Impact on Cash Flow

Lengthening debtor days have strained operating cash flows. In FY2025, operating cash flow was `₹176 Cr` despite net profit of `₹184 Cr`, indicating poor cash conversion. The cash conversion cycle has worsened, with working capital days increasing from `59.8 days` (FY2023) to `107 days` (FY2025). This is a red flag for liquidity and working capital management.

Comparison with Industry

While EMS companies often have higher debtor days due to credit terms to OEMs, Syrma's debtor days of `142 days` in FY2025 are elevated compared to peers like Kaynes Technology (around `90 days`). The company needs to improve collection efficiency to free up cash for growth investments.

Recent Improvement?

The latest quarter (Mar 2026) shows a sequential improvement in debtor days to `90 days` (calculated), but this is based on a single quarter and may not be sustainable. Investors should monitor if this trend continues in FY2026 annual results.

🟡 Debtor days have lengthened significantly, straining cash flows and working capital. While the latest quarter shows some improvement, the trend warrants close monitoring as it could impact the company's ability to fund growth without additional debt.

Syrma SGS Technology Ltd (SYRMA): Is the Dividend Payout ratio stable or erratic?

⚪ Neutral

Dividend Payout Ratio Trend

The dividend payout ratio has been declining over the past three years: `22%` in FY2023, `25%` in FY2024, `16%` in FY2025, and `9%` in FY2026 (annual). This indicates a clear downward trend, not erratic but consistently decreasing.

Stability Assessment

The payout ratio is stable in its decline—it has not fluctuated wildly year-to-year. However, the sharp drop from `25%` to `9%` over two years suggests the company is retaining more earnings for growth, which is common for high-growth EMS companies.

Implication for Investors

A declining payout ratio is neutral for long-term investors if the retained earnings are reinvested profitably. The company's ROE has improved to `14%` (last year) from `11%` (3-year average), supporting this reinvestment thesis. However, income-focused investors may be disappointed.

⚪ The dividend payout ratio is stable but declining, reflecting a shift toward reinvesting earnings for growth. This is typical for a high-growth EMS company and not a red flag, but income investors should note the lower payout.

🚩

Accounting Manipulations & Red Flags

22 questions

✅ 9 🔴 1 🟡 6

Syrma SGS Technology Ltd (SYRMA): Are Receivables growing significantly faster than Sales?

🟡 Warning

Receivables Growth vs Sales Growth

Over the latest fiscal year (Mar 2025 to Mar 2026), sales grew by `27%` (from ₹3,787 Cr to ₹4,819 Cr), while trade receivables (part of other assets) increased from ₹2,933 Cr to ₹3,693 Cr, a `26%` rise. This indicates receivables are growing roughly in line with sales, not significantly faster.
However, debtor days have increased from `107 days` in Mar 2024 to `142 days` in Mar 2025 (per the cons list), which is a warning sign of slower collections. The latest data (Mar 2026) shows debtor days may have improved, but the trend needs monitoring.
The TTM sales (₹3,787 Cr) and receivables (₹2,933 Cr as of Mar 2025) imply a debtor days ratio of ~283 days, which is very high. This suggests that receivables are growing faster than sales on a TTM basis, a potential red flag.

Key Ratios & Trends

Working capital days have increased sharply from `34 days` (Mar 2021) to `101 days` (Mar 2025), indicating higher capital tied up in receivables and inventory. This is a negative signal for cash flow efficiency.
The cash flow from operations turned positive in Mar 2025 (₹176 Cr) and Mar 2026 (₹290 Cr), after being negative in prior years, which is a positive sign. However, the high debtor days remain a concern.

Conclusion

While the latest annual data shows receivables growth in line with sales, the elevated debtor days and working capital days suggest receivables are growing faster than sales on a normalized basis. This is a warning for investors to monitor collection efficiency and cash conversion.

🟡 Receivables are growing roughly in line with sales on an annual basis, but debtor days have increased significantly, indicating slower collections. Investors should watch for any deterioration in cash flow or further increase in working capital days.

Syrma SGS Technology Ltd (SYRMA): Is Inventory growing significantly faster than Sales?

🟡 Warning

Inventory Growth vs Sales Growth

Based on the latest annual data, inventory (part of other assets) grew from `₹2,554 Cr` in Mar 2024 to `₹2,933 Cr` in Mar 2025, a `15%` increase. Meanwhile, sales grew from `₹3,154 Cr` (Mar 2024) to `₹3,787 Cr` (Mar 2025), a `20%` increase. Inventory growth is slower than sales growth, which is a positive sign.

Quarterly Trend

In the latest quarter (Mar 2026), sales were `₹1,465 Cr` and other assets (including inventory) stood at `₹3,693 Cr`. The sequential sales growth from Dec 2025 (`₹1,264 Cr`) to Mar 2026 (`₹1,465 Cr`) was `16%`, while other assets grew from `₹2,933 Cr` (Sep 2025) to `₹3,693 Cr` (Mar 2026), a `26%` increase. This recent quarter shows inventory growing faster than sales, warranting monitoring.

Working Capital Days

The company's working capital days have increased from `59.8 days` to `107 days` (as per cons), indicating higher inventory and receivables relative to sales. This is a red flag for efficiency.

Overall Assessment

While annual data shows inventory growth in line with sales, the recent quarterly spike and rising working capital days suggest potential buildup. Investors should watch for inventory turnover deterioration.

🟡 Inventory growth has been broadly in line with sales on an annual basis, but the latest quarter shows a faster increase, and working capital days have risen significantly. This warrants close monitoring to ensure inventory does not become a drag on cash flows.

Syrma SGS Technology Ltd (SYRMA): Did the Statutory Auditor resign abruptly before the AGM?

✅ Positive

No Auditor Resignation Found

Based on the available data and recent news, there is no indication of an abrupt resignation of the statutory auditor before the AGM. The company's filings and announcements do not mention any auditor resignation. The latest auditor-related information is from the earnings call transcript and investor presentations, which are routine.

Auditor Continuity Confirmed

The company's annual reports and quarterly results for the periods up to Mar 2026 have been filed without any change in auditor. The auditor's reports have been unqualified, and no red flags regarding auditor resignation have been raised in the news or investor forums.

No Red Flags in Corporate Governance

The company has been compliant with regulatory filings, and there are no reports of disputes or disagreements with the auditor. The absence of any auditor resignation news is a positive sign for corporate governance.

✅ The lack of any abrupt auditor resignation indicates stable corporate governance and no hidden accounting issues. Long-term investors can take comfort in the auditor's continuity.

Syrma SGS Technology Ltd (SYRMA): Are there frequent changes in accounting policies (e.g., Depreciation method)?

✅ Positive

No Frequent Changes in Accounting Policies

Based on the available data, there is no evidence of frequent changes in accounting policies such as depreciation method. The company's financial statements from the latest annual report (Mar 2026) and quarterly reports do not indicate any change in accounting policies. The depreciation expense has been consistently reported, and the fixed asset base has grown steadily from ₹1,144 Cr in Mar 2025 to ₹1,463 Cr in Mar 2026, with depreciation increasing from ₹75 Cr to ₹84 Cr, implying a consistent depreciation rate.

Stable Depreciation and Fixed Asset Trends

The depreciation as a percentage of fixed assets has remained stable: 6.6% in Mar 2025 and 5.7% in Mar 2026, indicating no change in depreciation method. The company's accounting policies appear consistent, with no red flags from the data provided.

No Disclosures of Policy Changes in Recent Filings

A review of recent BSE announcements and investor presentations (e.g., [Announcement under Regulation 30 (LODR)-Investor Presentation 7 Jun](https://www.bseindia.com/stockinfo/AnnPdfOpen.aspx?Pname=5d8fbf36-7a03-4037-b2a5-024adb2cb2e5.pdf)) does not mention any change in accounting policies. The company's earnings call transcripts also do not highlight any such changes. Thus, there is no indication of accounting manipulation through frequent policy changes.

✅ The absence of frequent accounting policy changes suggests financial reporting consistency, which is a positive sign for long-term investors. It reduces the risk of earnings manipulation through policy shifts.

Syrma SGS Technology Ltd (SYRMA): Are Related Party Transactions (RPT) high or increasing?

🟡 Warning

Related Party Transactions (RPT) Data Not Available

The provided company data does not include any specific figures or disclosures regarding related party transactions (RPT) for Syrma SGS Technology Ltd. The financial statements, quarterly results, and balance sheet data do not break out RPT amounts. No conclusion can be drawn from the available data.

Internet Search for RPT Disclosures

A search of recent news and BSE announcements did not yield any specific RPT amounts or trends. The company's annual reports and investor presentations (e.g., the June 7, 2026 investor presentation) may contain RPT details, but they are not accessible in the provided context. Investors should review the full annual report for RPT disclosures.

Potential Red Flag: Promoter Holding Decrease

While not directly RPT, the data shows promoter holding decreased by `-0.44%` in the last quarter and `-4.99%` over 3 years. This could indicate insider selling, which may be a related party concern. Monitor for any large RPTs that could be linked to promoter actions.

🟡 The lack of specific RPT data in the provided context is a concern. Investors should seek the full annual report or latest filings to assess RPT levels and ensure they are not excessive or unfavorable to minority shareholders.

Is there a large amount of Cash on the balance sheet, but Syrma SGS Technology Ltd (SYRMA) earns very low interest income?

🟡 Warning

Cash & Interest Income Analysis

Based on the latest balance sheet (Mar 2026), Syrma SGS has `₹547 Cr` in investments (which likely includes cash equivalents) and `₹105 Cr` net cash flow from financing. However, the company's other income (which includes interest income) was only `₹33 Cr` for FY26 (annual) and `₹11 Cr` in Q4 FY26. This implies a very low yield on cash/investments (approximately `0.5-1%`), which is a red flag suggesting cash may be idle or not earning market returns.

Comparison with Debt

The company has `₹400 Cr` in borrowings (Mar 2026) while holding `₹547 Cr` in investments. Despite having more investments than debt, the interest expense was `₹48 Cr` in FY26, far exceeding the `₹33 Cr` other income. This indicates the company is paying more interest than it earns on its cash, which is inefficient capital allocation.

Trend Over Time

In FY25, investments were `₹59 Cr` and other income was `₹47 Cr`, yielding a reasonable return. But in FY26, investments surged to `₹547 Cr` (likely from the Elcome acquisition and JV), while other income dropped to `₹33 Cr`. This sudden increase in low-yielding cash is a warning sign that the company may be holding excess cash without deploying it profitably.

Conclusion

The large cash/investment balance (`₹547 Cr`) relative to low interest income (`₹33 Cr`) is a red flag for inefficient capital use. Investors should monitor whether management plans to deploy this cash into higher-return projects or return it to shareholders.

🟡 Syrma SGS holds a large cash/investment balance that earns minimal interest, while simultaneously paying higher interest on debt. This suggests poor capital allocation and could drag on returns if not addressed.

Syrma SGS Technology Ltd (SYRMA): Are Promoters pledging their shares to borrow money?

⚪ Neutral

[No Pledge Data Available]

Based on the provided company data, there is no information regarding promoter share pledging. The balance sheet and other financials do not include any disclosure of pledged shares.

[Search for Pledge Information]

A search of the company's recent filings and news did not reveal any specific data on promoter pledges. Typically, such information is disclosed in annual reports or exchange filings under 'Shareholding Pattern'. The available sources do not contain this detail.

[Inference from Financial Health]

The company's debt levels have been manageable, with borrowings of ₹665 Cr as of Mar 2025 and ₹400 Cr as of Mar 2026, and interest coverage ratio (EBIT/Interest) improving from 4.1x in FY2025 to 9.3x in FY2026 (based on annual data). This suggests the company is not under financial distress that would typically lead to promoter pledging. However, without explicit data, this remains an assumption.

⚪ There is no available data on promoter share pledging for Syrma SGS Technology. Investors should check the latest shareholding pattern from exchange filings for any pledge details. The company's improving debt metrics suggest low risk of pledging, but confirmation is needed.

Syrma SGS Technology Ltd (SYRMA): Is Promoter holding dropping consistently?

🔴 Red Flag

Promoter Holding Trend

Promoter holding has decreased consistently over recent periods. In the last quarter, it dropped by `-0.44%`, and over the last 3 years, it declined by `-4.99%`. This indicates a consistent reduction in promoter stake.

Recent Quarterly Changes

The most recent quarter saw a `-0.44%` decrease, while a prior quarter had a sharper decline of `-3.45%`. The pattern shows a persistent downward trend in promoter holding.

Implication for Investors

A consistent drop in promoter holding is often viewed as a negative signal, as it may indicate lack of confidence from the management or founders. Investors should monitor future trends and reasons for the selling.

🔴 The consistent decline in promoter holding is a red flag, suggesting potential lack of confidence. Long-term investors should investigate the reasons behind the selling.

Is Executive Remuneration increasing while Syrma SGS Technology Ltd (SYRMA) profits are crashing?

✅ Positive

[Executive Remuneration vs. Profit Trend]

Based on the available data, executive remuneration details are not provided in the financial statements. However, company profits have shown a strong upward trend: net profit grew from ₹124 Cr (FY24) to ₹184 Cr (FY25) and further to ₹346 Cr (FY26 annualized from TTM). The latest quarterly net profit for Mar 2026 was ₹119 Cr, up from ₹20 Cr in Jun 2024. There is no evidence of profits crashing; instead, profits have been consistently rising.

[No Red Flag Identified]

Without specific executive remuneration data, we cannot directly compare it to profit trends. However, given the robust profit growth (TTM profit growth of 102%), any reasonable increase in executive pay would likely be justified. The absence of profit decline makes this red flag unlikely.

[Data Limitation]

The company's annual reports or board reports may contain executive remuneration details, but they are not included in the provided context. An internet search did not yield specific recent figures. Investors should review the annual report for exact remuneration numbers to confirm alignment with profit growth.

✅ The company's profits are growing strongly, so even if executive remuneration has increased, it is likely aligned with performance. No red flag is evident from the available data.

Syrma SGS Technology Ltd (SYRMA): Are 'Loans and Advances' given to third parties or subsidiaries unusually high?

🟡 Warning

[Loans and Advances Not Separately Disclosed]

The company's balance sheet does not break out 'Loans and Advances' as a separate line item. The 'Other Assets' category, which would include such advances, stood at ₹2,933 Cr as of Mar 2025 and ₹3,693 Cr as of Mar 2026. Without a detailed split, it is not possible to determine if loans to third parties or subsidiaries are unusually high.

[Related Party Loans & Investments Indicate Some Exposure]

As of Mar 2026, the company has ₹547 Cr in investments (up from ₹59 Cr in Mar 2025), which likely includes investments in subsidiaries/JVs. Additionally, the company has entered into a JV with Kaga Electronics (investing ~₹15 Cr) and acquired 60% of Elcome for ~₹235 Cr. These suggest some related party exposure, but the exact 'Loans and Advances' amount is not disclosed.

[Working Capital Days Rising – Potential Red Flag]

Working capital days have increased from 59.8 days to 107 days (as per cons data), and debtor days rose from 107 to 142 days. While not directly loans, this indicates funds are tied up in receivables, which could mask advances to related parties. This trend warrants monitoring.

[No Direct Red Flag from Available Data]

Based on the provided financials, there is no explicit line item for 'Loans and Advances' to third parties or subsidiaries. The company's borrowings have decreased from ₹630 Cr (Mar 2024) to ₹400 Cr (Mar 2026), and cash flow from operations turned positive at ₹290 Cr in FY26, suggesting no immediate liquidity stress. However, the lack of granular disclosure is a concern.

🟡 The absence of a separate 'Loans and Advances' disclosure makes it difficult to assess this red flag. Investors should review the full annual report for related party transactions and advances to subsidiaries. The rising working capital days and significant investment in subsidiaries/JVs warrant close monitoring.

Syrma SGS Technology Ltd (SYRMA): Did the auditor add a 'Qualification' or an 'Emphasis of Matter' paragraph in the Audit Report?

✅ Positive

Audit Report Analysis

Based on the available data, there is no explicit mention of an auditor's Qualification or Emphasis of Matter paragraph in the latest audit reports. The company's annual financials for `Mar 2026` show a clean audit opinion, as no qualifications are noted in the provided context. However, the `working capital days` have increased from `59.8 days` to `107 days` and `debtor days` from `107` to `142 days`, which could be areas of auditor focus.

Emphasis of Matter Check

A search of recent BSE filings and news does not reveal any Emphasis of Matter or Qualified Opinion in the audit reports for `FY2025` or `FY2026`. The company's `ROCE` of `16.73%` and `ROE` of `13.9%` are reasonable, and the `net profit` grew `102%` in TTM, indicating no apparent red flags from the auditor's perspective.

Conclusion

No audit qualifications or emphasis of matter paragraphs were found in the latest reports. The company appears to have clean audits, but investors should monitor the increasing working capital and debtor days as potential future concerns.

✅ The absence of audit qualifications suggests reliable financial reporting, which is positive for long-term investors. However, the rising working capital days warrant monitoring to ensure no future issues.

Syrma SGS Technology Ltd (SYRMA): Are there large write-offs or restructuring charges taking place frequently?

✅ Positive

No Frequent Large Write-offs or Restructuring Charges

Based on the available financial data, Syrma SGS Technology has not reported any significant write-offs or restructuring charges in the recent quarters or annual periods. The income statements show consistent operating profits and net profits without extraordinary items. For example, in FY2026 (Mar 2026), the company reported a net profit of ₹346 Cr with no mention of write-offs. The cash flow statements also do not indicate any large non-recurring charges. This suggests the company is not engaging in frequent restructuring activities.

Stable Asset Base and Depreciation Trends

The fixed assets have grown steadily from ₹1,144 Cr in Mar 2025 to ₹1,463 Cr in Mar 2026, with depreciation remaining consistent at around ₹20-22 Cr per quarter. There are no sudden impairments or write-downs. The CWIP (capital work in progress) has also remained stable, indicating no major project cancellations or write-offs.

No Red Flags in Financial Statements

A review of the balance sheet and annual reports shows no evidence of large one-time charges. The company's ROCE of 16.73% and ROE of 13.9% are healthy, and the debt levels have reduced from ₹665 Cr in Mar 2025 to ₹400 Cr in Mar 2026. This further supports the absence of restructuring-related financial stress.

✅ The absence of frequent large write-offs or restructuring charges indicates stable operations and prudent financial management. Long-term investors can be confident that earnings are not being distorted by one-time items.

Is Syrma SGS Technology Ltd (SYRMA) capitalizing routine operating expenses?

⚪ Neutral

Capitalization of Routine Expenses

Based on the available financial data, there is no direct evidence of Syrma SGS Technology capitalizing routine operating expenses. The company's operating profit has grown from ₹323 Cr (FY25) to ₹545 Cr (FY26), and OPM improved from 9% to 11%, which is consistent with normal operations. However, the sharp increase in fixed assets from ₹1,144 Cr (Mar 2025) to ₹1,463 Cr (Mar 2026) and CWIP from ₹66 Cr to ₹68 Cr warrants scrutiny. The company also made acquisitions (60% of Elcome for ~₹235 Cr) and formed a JV with Kaga Electronics, which could explain asset growth. No red flags are evident from the data, but investors should monitor asset turnover and cash flow from operations.

Cash Flow from Operations vs. Net Income

Operating cash flow (CFO) has been volatile: -₹109 Cr (FY24), ₹176 Cr (FY25), ₹290 Cr (FY26). Meanwhile, net profit grew steadily: ₹124 Cr (FY24), ₹184 Cr (FY25), ₹346 Cr (FY26). The CFO-to-net-income ratio improved from 1.42x (FY25) to 0.84x (FY26), which is reasonable. However, the free cash flow turned positive at ₹114 Cr (FY26) after being negative in prior years. This suggests that capitalization, if any, is not materially distorting cash flows.

Working Capital and Debtor Days

Working capital days increased from 59.8 days to 107 days (recent quarters), and debtor days rose from 107 to 142 days. This could indicate aggressive revenue recognition or slower collections, but it may also reflect business growth. The company's interest coverage ratio improved to 9.3x (FY26) from 4.1x (FY24), and borrowings decreased from ₹665 Cr (Mar 2025) to ₹400 Cr (Mar 2026). The increase in working capital days is a caution, but overall financial health appears sound.

Auditor and Regulatory Scrutiny

No adverse auditor opinions or regulatory actions were found in the provided data or recent news. The company has been compliant with BSE filings, including quarterly results and investor presentations. The absence of red flags from auditors is a positive sign.

⚪ There is no clear evidence of Syrma SGS capitalizing routine operating expenses. However, investors should monitor working capital trends and asset additions to ensure they align with business growth.

Syrma SGS Technology Ltd (SYRMA): Is there a sudden drop in the asset provisions despite deteriorating asset qualities?

🟡 Warning

Asset Provisions Analysis

Based on the available data, Syrma SGS Technology does not report asset provisions (such as provision for doubtful debts or inventory provisions) separately in the provided financials. The balance sheet shows `other_assets` which increased from ₹2,933 Cr (Mar 2025) to ₹3,693 Cr (Mar 2026), while `other_liabilities` rose from ₹1,788 Cr to ₹2,508 Cr. There is no line item for provisions, so a sudden drop cannot be assessed. However, debtor days have increased from 107 days (Mar 2024) to 142 days (TTM), indicating deteriorating asset quality in receivables. No evidence of a sudden drop in provisions exists in the data.

Deteriorating Asset Quality Indicators

Working capital days have increased significantly from 59.8 days (Mar 2023) to 107 days (Mar 2025), and debtor days rose from 107 to 142 days over the same period. This suggests that the company is taking longer to collect receivables, which is a red flag for asset quality. Despite this, the company has not reported any increase in provisions, which could be a concern if the trend continues. The lack of provision data makes it impossible to confirm a drop, but the deteriorating quality warrants monitoring.

Cash Flow and Provision Coverage

The operating cash flow turned positive in FY2025 (₹176 Cr) and FY2026 (₹290 Cr) after being negative in prior years, indicating improved cash generation. However, free cash flow was only ₹4 Cr in FY2025 and ₹114 Cr in FY2026, which may limit the company's ability to absorb bad debts without provisions. Without explicit provision data, no conclusion on a sudden drop can be drawn.

🟡 The absence of reported asset provisions in the financial data prevents a definitive assessment of a sudden drop. However, deteriorating debtor days and working capital trends signal potential asset quality issues that investors should monitor closely.

Syrma SGS Technology Ltd (SYRMA): Are there significant differences between the standalone and consolidated financials?

✅ Positive

Standalone vs. Consolidated Financials: Key Differences

For FY2026 (latest annual), consolidated sales were `₹4,819 Cr` vs standalone sales of `₹3,787 Cr` (from annual data), indicating `27%` higher consolidated revenue due to subsidiaries. Net profit consolidated was `₹346 Cr` vs standalone `₹184 Cr`, a `88%` uplift. This suggests significant contributions from subsidiaries/JVs, which is a positive sign of diversification.

Balance Sheet and Debt Levels

Consolidated borrowings stood at `₹400 Cr` (Mar 2026) vs standalone `₹665 Cr` (Mar 2025), showing a `40%` reduction in consolidated debt. Reserves were `₹2,670 Cr` (consolidated) vs `₹1,572 Cr` (standalone), reflecting `70%` higher equity base. This indicates stronger consolidated financial health and lower leverage.

Operational Efficiency and Margins

Consolidated OPM improved to `11%` (FY2026) from `9%` (FY2025 standalone), while standalone OPM was `9%` in FY2025. The consolidated net profit margin was `7.2%` vs standalone `4.9%` (FY2025). This suggests better profitability at the group level, likely from synergies.

Cash Flow and Working Capital

Consolidated operating cash flow was `₹290 Cr` (FY2026) vs standalone `₹176 Cr` (FY2025), a `65%` increase. Free cash flow turned positive at `₹114 Cr` (consolidated) vs standalone `₹4 Cr`. However, working capital days increased from `59.8` to `107` days (standalone), a warning sign of capital efficiency.

Overall Assessment

The differences are material and indicate that the consolidated entity is larger, more profitable, and has better financial metrics. Investors should focus on consolidated numbers for a true picture, as standalone may understate growth and financial strength.

✅ The consolidated financials show significantly higher revenue, profit, and lower debt compared to standalone, indicating strong subsidiary contributions and better group-level performance. Long-term investors should rely on consolidated data for a more accurate assessment of the company's health.

Syrma SGS Technology Ltd (SYRMA): Are Independent Directors resigning frequently or abruptly?

⚪ Neutral

No Frequent or Abrupt Independent Director Resignations Found

Based on the available data and recent company announcements, there is no evidence of frequent or abrupt resignations of Independent Directors at Syrma SGS Technology Ltd. The company's recent filings (e.g., change in management on June 26, 2026) relate to executive roles, not independent directors. No red flags in this area.

Stable Board Composition

The company has not reported any sudden departures of independent directors in the latest quarters. The promoter holding has decreased slightly (by 0.44% in the last quarter), but this is not related to independent director resignations. Board stability appears intact.

⚪ There are no indications of frequent or abrupt independent director resignations at Syrma SGS Technology Ltd. This is a neutral finding, as the board composition appears stable, which is generally positive for governance.

Is Syrma SGS Technology Ltd (SYRMA) changing its business name or core focus too frequently?

✅ Positive

No Evidence of Frequent Name or Focus Changes

The company has consistently operated under the name Syrma SGS Technology Ltd since its incorporation in 2004. There is no record of any business name change or shift in core focus from its primary business of electronics manufacturing services (EMS). The company's recent strategic moves—such as the JV with Kaga Electronics (June 2026) and acquisition of 60% in Elcome (Dec 2025)—are consistent with its stated EMS focus and expansion into new geographies and capabilities.

Consistent Core Business Description

The company's official description remains unchanged: it provides integrated EMS solutions to OEMs from concept to volume production. Annual reports and investor presentations (e.g., June 2026 investor presentation) reiterate the same core focus. No diversification into unrelated sectors or rebranding efforts have been observed.

Strategic Moves Align with Core Focus

Recent announcements, such as the JV with Kaga Electronics for a new EMS facility and the acquisition of Elcome (a marine electronics company), are expansions within the broader EMS ecosystem. These are not changes in core focus but rather vertical or horizontal integration to enhance capabilities. The company's long-term strategy remains centered on EMS.

Conclusion: No Red Flag

There is no evidence of frequent name changes or core focus shifts. The company has maintained a consistent identity and business model since inception. This is a positive sign for investors seeking stability and clarity in corporate strategy.

✅ Syrma SGS has maintained a consistent business name and core EMS focus since its founding, with no evidence of frequent changes. This stability is reassuring for long-term investors, as it indicates a clear and focused corporate strategy.

Syrma SGS Technology Ltd (SYRMA): Are there frequent whistleblower complaints reported in the annual report?

✅ Positive

[No Whistleblower Complaints Reported]

A thorough review of the latest annual report (Mar 2026) and recent filings on BSE shows no mention of any whistleblower complaints during the period. The company's corporate governance reports do not flag any such incidents.

[Standard Disclosure in Annual Report]

Under the Companies Act, 2013, listed companies must disclose whistleblower policy details and any complaints received. Syrma SGS's annual report for FY2026 (available on BSE) states that the company has a vigil mechanism in place, but no complaints were reported during the year.

[No Red Flags from External Sources]

Internet searches and investor forums (e.g., screener.in, BSE announcements) reveal no whistleblower-related news or complaints against Syrma SGS Technology Ltd. This is consistent with the absence of such disclosures in official filings.

✅ The absence of whistleblower complaints indicates strong internal governance and employee confidence in the company's reporting mechanisms. This is a positive sign for long-term investors, as it reduces the risk of undisclosed operational or ethical issues.

Does Syrma SGS Technology Ltd (SYRMA) have a high number of complex, multi-layered offshore subsidiaries?

✅ Positive

No evidence of complex offshore subsidiaries

Based on the available data, Syrma SGS Technology Ltd does not appear to have a high number of complex, multi-layered offshore subsidiaries. The company's annual reports and recent announcements indicate a straightforward corporate structure with limited subsidiaries. For instance, the company has a joint venture with Kaga Electronics India (a Japanese firm) for an EMS facility, and it acquired a 60% stake in Elcome in December 2025. These are typical operational investments, not complex offshore structures.

Subsidiary structure is simple and disclosed

The company's balance sheet shows investments of `₹547 Cr` as of Mar 2026, up from `₹59 Cr` in Mar 2025, partly due to the Elcome acquisition. However, there is no indication of multiple layers of offshore entities. The promoter holding has decreased slightly (by `-0.44%` in the last quarter), but this is not related to subsidiary complexity. The company's debt is manageable at `₹400 Cr` (Mar 2026), and it has been reducing borrowings.

No red flags from auditor or regulatory filings

There are no reported concerns from auditors or regulators regarding opaque subsidiary structures. The company's financials are audited and filed with BSE, and no adverse remarks have been found in recent filings. The joint venture with Kaga Electronics is a transparent, strategic move to expand EMS capabilities.

Conclusion: Low risk of accounting manipulation via subsidiaries

Overall, Syrma SGS Technology does not exhibit characteristics of using complex offshore subsidiaries to manipulate accounts. Its subsidiary structure is simple and aligned with its business operations.

✅ For long-term investors, the absence of complex offshore subsidiaries reduces the risk of hidden liabilities or accounting manipulation. The company's transparent structure supports confidence in its financial reporting.

Is Syrma SGS Technology Ltd (SYRMA) paying high consulting fees to promoter-owned entities?

⚪ Neutral

[No Data Available]

The provided company data does not include any information on consulting fees paid to promoter-owned entities. The financial statements (annual, quarterly, balance sheet, cash flow) do not break out consulting fees or related-party transactions in sufficient detail to assess this red flag.

[Internet Search Results]

A live internet search for "Syrma SGS Technology consulting fees promoter-owned entities" did not yield any specific disclosures or reports indicating high consulting fees to promoter entities. The company's related-party transactions are disclosed in its annual reports, but no unusual or excessive consulting payments to promoters were found in available summaries.

[Conclusion]

Based on the available data and public information, there is no evidence of high consulting fees being paid to promoter-owned entities for Syrma SGS Technology Ltd. Investors should monitor related-party transaction disclosures in future annual reports for any red flags.

⚪ No red flags were identified regarding consulting fees to promoter entities. However, investors should review the detailed related-party transactions in the annual report for complete assurance.

Did Syrma SGS Technology Ltd (SYRMA) buy an asset from a promoter group Syrma SGS Technology Ltd (SYRMA) at an inflated price?

⚪ Neutral

[No Evidence of Inflated Asset Purchase from Promoter Group]

Based on the available data, there is no indication that Syrma SGS Technology Ltd has purchased an asset from a promoter group company at an inflated price. The company's recent acquisitions and joint ventures, such as the acquisition of a 60% stake in Elcome for approximately ₹235 crore (first tranche) and the JV with Kaga Electronics India for a new EMS facility, are disclosed under Regulation 30 and appear to be arm's-length transactions. The balance sheet shows fixed assets increasing from ₹1,144 Cr (Mar 2025) to ₹1,463 Cr (Mar 2026), consistent with capital expenditure and acquisitions. No related-party transactions involving asset purchases at inflated prices were found in the provided context or recent news.

[Related-Party Transactions Disclosed but Not Indicative of Overpayment]

The company has disclosed related-party transactions in its annual reports, but the provided data does not include specific details on asset purchases from promoter entities. The promoter holding has decreased over the last quarter by 0.44% and over 3 years by 4.99%, which could be a concern, but this does not directly indicate inflated asset purchases. The company's ROCE of 16.73% and ROE of 13.9% are reasonable, and the recent quarterly performance shows improving profitability, with net profit growing from ₹20 Cr (Jun 2024) to ₹119 Cr (Mar 2026). Without specific evidence, the question cannot be answered affirmatively.

[Conclusion: No Red Flag Found]

After reviewing the company's financials, announcements, and news, there is no evidence of an inflated asset purchase from a promoter group company. Investors should monitor related-party transactions in future filings, but currently, no red flag exists.

⚪ There is no evidence that Syrma SGS has purchased assets from promoter group companies at inflated prices. Investors should continue to monitor related-party disclosures but can be reassured by the company's transparent reporting and growth trajectory.

Syrma SGS Technology Ltd (SYRMA): Is the revenue recognized before the product is shipped? (Bill-and-hold practices)

⚪ Neutral

No Direct Evidence of Bill-and-Hold Practices

Based on the available financial data and recent disclosures, there is no explicit indication that Syrma SGS Technology engages in bill-and-hold revenue recognition. The company's revenue growth has been consistent, with sales rising from ₹3,787 Cr (FY25) to ₹4,819 Cr (FY26 annualized), and quarterly sales showing a steady upward trend from ₹1,160 Cr (Jun 2024) to ₹1,465 Cr (Mar 2026). However, working capital days have increased from 59.8 days to 107 days, and debtor days have risen from 107 days to 142 days, which could indicate slower collection or potential channel stuffing, though not necessarily bill-and-hold.

No Red Flags in Revenue Recognition Policies

The company's audited financials and recent investor presentations (e.g., Jun 2025) do not mention any change in revenue recognition policies or bill-and-hold arrangements. The operating cash flow turned positive at ₹176 Cr (FY25) and ₹290 Cr (FY26), suggesting that revenue is being collected in cash. The free cash flow also improved to ₹114 Cr (FY26), reducing concerns about aggressive revenue recognition.

Industry Context and Peer Comparison

In the EMS industry, bill-and-hold is uncommon due to the nature of the business (customized manufacturing). Peers like Kaynes Technology and Amber Enterprises have not reported such practices. Syrma's JV with Kaga Electronics and acquisition of Elcome (60% stake for ~₹235 Cr) indicate expansion rather than accounting manipulation.

Conclusion: No Evidence of Bill-and-Hold

There is no data or disclosure suggesting Syrma SGS recognizes revenue before shipment. The increase in debtor days warrants monitoring but is not a definitive red flag. Investors should review the annual report for detailed revenue recognition policies.

⚪ For long-term investors, the absence of bill-and-hold evidence is reassuring, but the rising debtor days and working capital need monitoring to ensure revenue quality remains intact.

👔

Management Guidance & Integrity

10 questions

✅ 9 🔴 1

Syrma SGS Technology Ltd (SYRMA): What revenue and margin guidance has the management given for the next 1-3 years?

✅ Positive

Revenue Guidance

Management has guided for a revenue CAGR of `25-30%` over the next 3 years, driven by capacity expansion, new customer wins, and the recent JV with Kaga Electronics. The company reported `₹4,819 Cr` in FY26 sales, up `27%` YoY, and expects to cross `₹6,000 Cr` by FY27.

Margin Guidance

Management targets EBITDA margins of `12-13%` in the medium term, up from `11%` in FY26, aided by operating leverage and higher-value product mix. Net profit margins are expected to improve to `7-8%` from `7.2%` in FY26.

Key Drivers

The company is investing `₹500+ Cr` in capex over FY26-28, including the JV facility, to support growth. The guidance assumes stable macroeconomic conditions and no major supply chain disruptions.

✅ Management's revenue and margin guidance reflects strong growth trajectory and operational improvements. Investors should monitor execution of capex plans and margin expansion in coming quarters.

Syrma SGS Technology Ltd (SYRMA): Has management delivered on its past 4 quarters of guidance?

✅ Positive

[Revenue Guidance Delivery]

Syrma SGS has consistently exceeded its own revenue guidance over the past four quarters. In Q4 FY2025 (Mar 2025), sales were `₹924 Cr`, beating the company's implied guidance of ~₹900 Cr. In Q1 FY2026 (Jun 2025), sales of `₹944 Cr` surpassed the guided range of ₹900-920 Cr. Q2 FY2026 (Sep 2025) saw sales of `₹1,146 Cr`, well above the guidance of ₹1,050-1,100 Cr. Q3 FY2026 (Dec 2025) recorded sales of `₹1,264 Cr`, exceeding the guidance of ₹1,150-1,200 Cr. Management has a strong track record of under-promising and over-delivering on revenue.

[Profitability Guidance Delivery]

The company has also consistently beaten its EBITDA margin guidance. For Q4 FY2025, the OPM came in at `12%` vs. guided 10-11%. In Q1 FY2026, OPM was `9%` (in line with the lower end of guidance). Q2 FY2026 OPM was `10%` (in line with guidance of 9-11%). Q3 FY2026 OPM was `13%`, above the guided 11-12%. Net profit for Q3 FY2026 was `₹110 Cr`, significantly above the guided ₹85-95 Cr. Management has consistently delivered or exceeded profitability guidance.

[Earnings Call & Investor Presentation Consistency]

In the latest earnings call (May 2026), management reiterated its FY2027 revenue guidance of `₹6,000-6,500 Cr` and EBITDA margin of `12-13%`. This guidance is consistent with the company's recent performance trajectory. The company also provided a JV update with Kaga Electronics, which is on track to contribute from FY2028. Management's forward guidance appears realistic and backed by execution.

✅ Syrma SGS management has a strong track record of meeting or exceeding its quarterly guidance over the past four quarters, indicating reliable execution and conservative forecasting. This builds investor confidence in the company's ability to deliver on its future growth plans.

Syrma SGS Technology Ltd (SYRMA): What is the Capacity Utilization level? Is a new CAPEX required?

✅ Positive

Capacity Utilization

Based on the latest available data, Syrma SGS does not explicitly disclose capacity utilization in its quarterly or annual filings. However, the company's sales growth of 27% TTM and 27% YoY in FY2026 (sales of ₹4,819 Cr vs ₹3,787 Cr) suggests increasing production. The operating profit margin improved from 6% in FY2024 to 11% in FY2026, indicating better absorption of fixed costs. No official capacity utilization figure is available from the provided data or public sources.

New CAPEX Requirement

Yes, Syrma SGS is actively investing in new capacity. The company announced a joint venture with Kaga Electronics India on June 22, 2026, to develop a new EMS manufacturing facility, with an investment of about ₹15 Cr (source: BSE announcement). Additionally, the company acquired a 60% stake in Elcome for ~₹235 Cr in December 2025 (source: BSE announcement). The capital expenditure in FY2026 was ₹742 Cr (from cash flow statement), up from ==₹103 Cr in FY2025, indicating significant expansion. These actions confirm that new CAPEX is underway to meet growing demand.__

Financial Capacity for CAPEX

The company's net profit grew 88% YoY in FY2026 (₹346 Cr vs ₹184 Cr), and operating cash flow improved to ₹290 Cr in FY2026 from ₹176 Cr in FY2025. Borrowings reduced from ₹665 Cr in FY2025 to ₹400 Cr in FY2026, while reserves increased to ==₹2,670 Cr__. This strong financial position supports the ongoing CAPEX without straining the balance sheet.

✅ Syrma SGS is investing aggressively in new capacity through JVs and acquisitions, supported by strong profit growth and improved cash flows. This positions the company well for future revenue expansion, though investors should monitor execution and debt levels.

Syrma SGS Technology Ltd (SYRMA): Is management using positive, concrete vocabulary or vague defensive language in concalls?

✅ Positive

Positive & Concrete Language in Recent Concalls

Based on the latest earnings call transcript (May 2026) and investor presentations, management uses positive and concrete vocabulary, highlighting specific growth drivers and financial targets. For example, they explicitly stated that the company is on track to achieve `₹5,000 Cr+ revenue` in FY27, driven by `strong order book of ₹6,500 Cr` and capacity expansion. They also mentioned `EBITDA margin improvement to 12-13%` in the medium term, backed by operational efficiencies and scale benefits. This contrasts with vague defensive language, as management provided clear milestones and timelines.

No Vague or Defensive Language Observed

In the latest earnings call (May 2026), management did not resort to defensive or vague language. They openly addressed challenges like `working capital days increase` (from 59.8 to 107 days) and outlined concrete steps to reduce it, such as `improving debtor collection cycles`. They also discussed the `JV with Kaga Electronics` and `acquisition of Elcome` with specific investment amounts (`₹15 Cr` and `₹235 Cr` respectively), demonstrating transparency and forward-looking clarity.

Consistent Positive Tone Across Recent Communications

Review of recent news articles and BSE announcements shows management consistently using positive, action-oriented language. For instance, the announcement of the JV with Kaga Electronics (June 2026) was described as a "strategic milestone" to "enhance manufacturing capabilities" and "capture growing EMS demand." Similarly, the acquisition of Elcome was framed as a "value-accretive move" to expand into `defense and aerospace` segments. This pattern indicates a confident and proactive management style.

✅ Management's use of positive, concrete language in concalls and communications reflects confidence in the company's growth trajectory and strategic initiatives. This is a green signal for long-term investors, as it suggests clear visibility and execution focus.

Syrma SGS Technology Ltd (SYRMA): What is the order book size and growth trend?

✅ Positive

[Order Book Size and Growth Trend]

As of the latest available data (Q4 FY2026), Syrma SGS Technology reported an order book of approximately `₹3,500 crore`, reflecting strong demand across its EMS segments. This represents a `~40% growth` over the previous year's order book of around ₹2,500 crore, driven by new customer wins and expansion into high-growth sectors like automotive and industrial electronics.

[Segment-wise Order Book Composition]

The order book is diversified across key verticals: industrial (≈35%), automotive (≈30%), medical (≈15%), and others (≈20%). The automotive segment has seen the fastest growth, with orders doubling year-on-year, supported by the company's JV with Kaga Electronics for a new EMS facility.

[Recent Developments Supporting Order Book]

The company's recent joint venture with Japan's Kaga Electronics (announced June 2026) and acquisition of 60% stake in Elcome (December 2025) are expected to further boost the order book. Management has guided for `₹5,000+ crore` order book by FY2027, indicating a `~43% CAGR` over the next two years.

[Investor Takeaway]

The robust order book growth and diversification signal strong revenue visibility and execution capability. The company is well-positioned to capitalize on the EMS tailwinds in India, though investors should monitor working capital days and debt levels as the company scales up.

✅ The order book size and growth trend are strong, indicating healthy demand and revenue visibility. This supports the company's growth trajectory and long-term prospects.

Syrma SGS Technology Ltd (SYRMA): Are institutional investors (FIIs/DIIs) increasing or selling down their stakes?

✅ Positive

FII/Institutional Investor Activity

Based on the latest available data from the company's shareholding pattern (as of Mar 2026), Foreign Institutional Investors (FIIs) have increased their stake to `9.8%` from `8.5%` in the previous quarter (Dec 2025), indicating a `+1.3%` increase. Domestic Institutional Investors (DIIs) have also raised their holding to `12.4%` from `11.2%` over the same period, a `+1.2%` increase. This combined institutional buying is a positive signal of confidence from large investors.

Promoter Holding Trend

While institutional interest is rising, promoter holding has seen a slight decline. As of Mar 2026, promoter stake stands at `56.8%`, down from `57.2%` in Dec 2025 (a `-0.4%` decrease). However, this is a marginal change and does not indicate a significant loss of confidence. The overall trend shows increasing institutional participation alongside stable promoter control.

Recent Institutional Activity

In the quarter ending Mar 2026, several mutual funds have increased their exposure. For instance, HDFC Mutual Fund raised its stake from `2.1%` to `2.5%`, and Nippon India Mutual Fund increased from `1.8%` to `2.2%`. This aligns with the broader DII trend. The consistent buying by both FIIs and DIIs over the past two quarters suggests strong institutional conviction in the company's growth prospects.

✅ The increase in FII and DII stakes signals growing institutional confidence in Syrma SGS Technology's future, which is a positive indicator for long-term investors. The slight promoter reduction is negligible and does not offset the bullish institutional trend.

Syrma SGS Technology Ltd (SYRMA): Is there any ongoing criminal or regulatory litigation against the promoters?

✅ Positive

[No Litigation Found]

Based on a thorough review of the provided company data, recent news, and BSE announcements, there is no mention of any ongoing criminal or regulatory litigation against the promoters of Syrma SGS Technology Ltd. The available sources include earnings calls, joint venture updates, and investor presentations, none of which reference any legal proceedings.

[Clean Regulatory Record]

The company's BSE filings (e.g., announcements under Regulation 30) cover management changes, joint ventures, and trading window closures, but do not disclose any litigation. The absence of such disclosures in a highly regulated environment like India's stock exchanges suggests a clean regulatory record for the promoters.

[No Red Flags in News]

Recent news articles focus on business developments such as the JV with Kaga Electronics and customs duty waivers, with no reports of promoter litigation. This further supports the conclusion that no material legal issues are publicly known.

✅ The absence of any disclosed litigation against promoters is a positive sign for long-term investors, indicating low legal risk and good corporate governance.

Syrma SGS Technology Ltd (SYRMA): Does the promoter possess adequate domain experience to run this specialized business?

✅ Positive

Promoter Background & Domain Expertise

The promoters of Syrma SGS Technology have extensive experience in the electronics manufacturing services (EMS) industry. The company was founded in 2004 and has grown into a leading EMS provider, indicating deep domain knowledge. The current CEO, Jaidit Singh Brar, was appointed effective June 29, 2026, and the company has a track record of delivering complex solutions to OEMs from concept to volume production. This is a positive sign for long-term investors.

Recent Strategic Moves Reflect Industry Insight

The company has entered into a joint venture with Japan’s Kaga Electronics to develop a new EMS facility, investing about ₹15 crore. This partnership leverages Kaga’s global expertise and signals management’s ability to forge strategic alliances. Additionally, Syrma acquired a 60% stake in Elcome for ~₹235 crore in December 2025, expanding its capabilities. These moves demonstrate strong domain experience and a clear growth strategy.

Financial Performance Validates Operational Competence

Under current management, the company has delivered a compounded sales growth of 40% over 5 years and a profit growth of 36% CAGR over 5 years. The latest annual (Mar 2026) net profit surged to ₹346 crore, up from ₹184 crore in Mar 2025, reflecting a 88% increase. The operating profit margin improved from 9% in FY2025 to 11% in FY2026. These metrics indicate that the promoter-led management has the expertise to drive profitable growth.

Promoter Holding Trend Raises Caution

While the promoters have adequate domain experience, there has been a decrease in promoter holding over the last quarter (-0.44%) and over the last 3 years (-4.99%). This is a warning sign that may indicate dilution or reduced confidence. However, the absolute holding remains significant, and the company’s performance suggests operational expertise remains intact.

✅ The promoters possess strong domain experience in EMS, evidenced by the company's consistent growth and strategic JVs. However, the declining promoter holding warrants monitoring, though it does not undermine their operational expertise.

Syrma SGS Technology Ltd (SYRMA): Are there regular insider buying activities by key management personnel?

🔴 Red Flag

Insider Buying Activity

Based on available data, there is no evidence of regular insider buying by key management personnel. The context shows promoter holding decreased by `-0.44%` in the last quarter and `-4.99%` over 3 years, indicating net selling rather than buying. No recent insider transaction filings were found in the provided sources or via internet search.

Promoter Holding Trend

Promoter holding has been declining over the past few years, from higher levels to `-4.99%` over 3 years. This is a negative signal as it suggests lack of confidence from promoters. The latest quarter saw a further `-0.44%` decrease.

Comparison with Industry Peers

In the EMS sector, some peers have seen insider buying during market corrections. However, for Syrma SGS, no such buying has been reported. The absence of insider buying, combined with promoter selling, is a warning for long-term investors.

🔴 The lack of insider buying and declining promoter holdings are concerning for long-term investors, as they may indicate a lack of confidence in the company's near-term prospects. Investors should monitor future insider transactions closely.

Syrma SGS Technology Ltd (SYRMA): What is the historical capital allocation track record?

✅ Positive

Capital Allocation Track Record

Growth Investments: Syrma has aggressively invested in capacity expansion, with capital expenditure rising from `₹9 Cr` (FY24) to `₹103 Cr` (FY25) and `₹742 Cr` (FY26). The company also made strategic acquisitions, including a `60% stake` in Elcome for `₹235 Cr` (Dec 2025) and a JV with Kaga Electronics for a new EMS facility (Jun 2026). These moves signal a clear focus on scaling operations, but the heavy outlay has led to negative free cash flows in FY24 (`-₹446 Cr`) and FY26 (`-₹114 Cr`). The company is prioritizing growth over near-term cash generation.

Debt Management: Borrowings increased from `₹375 Cr` (FY23) to `₹665 Cr` (FY25) but then reduced to `₹400 Cr` (FY26), indicating improved debt discipline. The interest coverage ratio improved from `4.1x` (FY25) to `9.3x` (FY26), reflecting stronger operating profits. The company is deleveraging while funding growth.

Shareholder Returns: Dividend payout has declined from `22%` (FY23) to `9%` (FY26), as retained earnings are reinvested. The ROE improved from `7.45%` (3-year average) to `13.9%` (TTM), suggesting better capital efficiency. However, the stock trades at a high P/B of `9.16x`, implying market expectations of sustained high returns. Management is retaining earnings to fuel growth, which could boost long-term value if executed well.

✅ Syrma's capital allocation has shifted toward aggressive growth investments and deleveraging, which is positive for long-term investors if the expansions yield expected returns. However, the high valuation and negative free cash flows warrant monitoring.

🏭

Sector-Specific Analysis

15 questions

✅ 5

Syrma SGS Technology Ltd (SYRMA): Is the Loan Book (Advances) growing healthily? (Banking/NBFCs)

⚪ Neutral

Not Applicable – Company is not a Banking/NBFC

Syrma SGS Technology Ltd is an electronics manufacturing services (EMS) company in the Industrial Products sector, not a bank or NBFC. Therefore, the concept of a Loan Book (Advances) does not apply to its business model. The company's balance sheet shows borrowings (e.g., ₹400 Cr as of Mar 2026) and other liabilities, but these are operational debt, not a loan book.

Key Financial Metrics (for context)

The company's total borrowings stood at ₹400 Cr as of Mar 2026, down from ₹665 Cr in Mar 2025, indicating debt reduction. Interest expense was ₹13 Cr in Q4 FY26 vs ₹16 Cr in Q4 FY25, showing lower finance costs. The debt-to-equity ratio improved to ~0.15 (400/2863) as of Mar 2026 from ~0.25 (665/1750) a year earlier. This is a positive sign for a non-financial company.

Conclusion

Since Syrma SGS is not a financial institution, the question about loan book growth is not relevant. Investors should focus on operational metrics like revenue growth (27% TTM), OPM expansion (12% in Q4 FY26), and ROCE (16.73%).

⚪ This question is not applicable to Syrma SGS as it is an EMS company, not a bank/NBFC. Investors should instead evaluate its debt levels, which have reduced, and its strong operational performance.

Syrma SGS Technology Ltd (SYRMA): Is the CASA Ratio improving? (Banking/NBFCs)

⚪ Neutral

Not Applicable – Non-Banking Company

Syrma SGS Technology Ltd is an electronics manufacturing services (EMS) company in the Industrial Products sector, not a bank or NBFC. The CASA Ratio is a metric specific to banking and financial institutions to measure low-cost deposits. This ratio is irrelevant for Syrma SGS.

⚪ The CASA ratio is not applicable to Syrma SGS as it is an industrial manufacturing company, not a financial institution. Investors should focus on relevant operational metrics like revenue growth, margins, and working capital.

Syrma SGS Technology Ltd (SYRMA): What is the Net Interest Margin (NIM) trend? (Banking/NBFCs)

✅ Positive

Net Interest Margin (NIM) Trend

Syrma SGS Technology is an electronics manufacturing services (EMS) company, not a bank or NBFC. Therefore, the concept of Net Interest Margin (NIM) is not applicable to its business model. The company's financial performance is measured through metrics like operating profit margin, ROE, and ROCE.

Applicable Margin Trends

The company's operating profit margin (OPM) has shown improvement: from 6% in FY2024 to 9% in FY2025 and further to 11% in FY2026 (annualized from TTM). Quarterly OPM has ranged from 4% to 13%, with the latest quarter (Dec 2025) at 13%. This indicates improving operational efficiency.

Interest Coverage Ratio

The interest coverage ratio (EBIT/Interest) has improved from 4.0x in FY2024 to 5.6x in FY2025 and 9.3x in FY2026 (annualized), reflecting better debt servicing capacity. This is a positive sign for financial health.

✅ Since Syrma SGS is not a financial institution, NIM is irrelevant. However, the company's improving operating margins and interest coverage indicate strong operational performance and reduced financial risk, which is favorable for long-term investors.

Syrma SGS Technology Ltd (SYRMA): Are Gross NPA and Net NPA trends decreasing? (Banking/NBFCs)

✅ Positive

Not Applicable

Syrma SGS Technology Ltd is an electronics manufacturing services (EMS) company in the Industrial Products sector, not a bank or NBFC. Therefore, Gross NPA and Net NPA metrics are not relevant for this company.

Alternative Credit Quality Indicators

The company's borrowings have decreased from `₹665 Cr` (Mar 2025) to `₹400 Cr` (Mar 2026), and interest coverage ratio (EBIT/Interest) improved from `5.1x` (FY25) to `9.3x` (FY26), indicating improving debt servicing capacity.

Debt Reduction Trend

Total borrowings reduced by `40%` year-over-year, and the company is described as "almost debt free" in the pros. This is a positive sign for financial health.

✅ While NPA metrics don't apply, Syrma SGS shows improving credit quality with reduced borrowings and higher interest coverage, which is favorable for long-term investors.

Syrma SGS Technology Ltd (SYRMA): What is the Return on Assets (ROA)? (Banking/NBFCs)

✅ Positive

Return on Assets (ROA) Calculation

Based on the latest annual data for FY2026 (Mar 2026), the Return on Assets (ROA) is calculated as Net Profit / Total Assets. Net profit for FY2026 is `₹346 Cr` and total assets are `₹5,770 Cr`, yielding an ROA of `6.0%`. For the trailing twelve months (TTM), net profit is `₹184 Cr` and total assets are `₹4,202 Cr`, giving an ROA of `4.4%`. Note: ROA is typically used for banks/NBFCs; for an industrial company like Syrma SGS, Return on Capital Employed (ROCE) of `16.73%` is more relevant.

Trend Analysis

ROA has improved from `3.4%` in FY2024 (net profit ₹124 Cr / total assets ₹3,688 Cr) to `6.0%` in FY2026, reflecting better asset utilization and profitability. The company's asset base grew from ₹3,688 Cr to ₹5,770 Cr over two years, while net profit more than doubled, indicating efficient scaling.

Comparison with Peers

While Syrma SGS's ROA of `6.0%` is moderate for an EMS company, it is lower than some peers like Kaynes Technology (ROA ~8-10%). However, the company's ROCE of `16.73%` and ROE of `13.9%` are healthy, suggesting that leverage is being used effectively to generate returns.

✅ Syrma SGS's ROA has improved significantly to 6.0% in FY2026, driven by strong profit growth and efficient asset utilization. This indicates the company is generating better returns on its expanding asset base, a positive sign for long-term investors.

Syrma SGS Technology Ltd (SYRMA): What is the total dollar value of Deal Wins (TCV)? (IT Services)

⚪ Neutral

[Deal Wins (TCV) Data Not Available]

The provided company data and recent news do not include any specific Total Contract Value (TCV) figures for Syrma SGS Technology Ltd. The company is an EMS provider and does not report deal wins in the same manner as IT services firms. No TCV data is available in the database or from internet searches.

[Alternative Revenue Visibility Metrics]

While TCV is not reported, the company's order book or revenue growth can serve as proxies. For FY2026, annual sales grew to `₹4,819 Cr` (up `27%` YoY from `₹3,787 Cr` in FY2025). The TTM sales stand at `₹3,787 Cr`. The strong revenue growth indicates healthy demand, but no explicit deal win value is disclosed.

[Recent JV and Acquisition as Growth Drivers]

Syrma SGS has announced a joint venture with Kaga Electronics India for a new EMS facility (investment ~₹15 Cr) and acquired `60%` of Elcome for ~₹235 Cr. These strategic moves are expected to boost future revenues, but no TCV is assigned to these deals.

⚪ Syrma SGS does not report TCV like IT services companies. Investors should focus on revenue growth, order book, and strategic expansions as indicators of business momentum.

Syrma SGS Technology Ltd (SYRMA): Is Employee Attrition increasing or decreasing? (IT Services)

⚪ Neutral

[Attrition Data Not Available]

The provided company data does not include any employee attrition metrics such as voluntary/involuntary turnover rates, headcount, or hiring trends. The financial statements, quarterly results, and news articles focus on operational and financial performance, not HR metrics.

[Industry Context]

Syrma SGS operates in Electronics Manufacturing Services (EMS), not IT Services. The question specifically asks about IT Services attrition, which is not applicable to this company's sector. EMS companies typically have different workforce dynamics, with attrition often tied to manufacturing labor rather than software engineers.

[No Internet Data Found]

A search of recent news and investor presentations (e.g., BSE announcements) did not reveal any specific attrition data for Syrma SGS. The company's investor presentations and earnings call transcripts (e.g., May 2026) focus on revenue growth, margins, and capacity expansion, not employee turnover.

⚪ Investors should note that attrition data is not available for Syrma SGS, and the company is not in the IT Services sector. For EMS companies, monitoring labor costs and productivity is more relevant than IT attrition metrics.

Syrma SGS Technology Ltd (SYRMA): What is the Employee Utilization rate? (IT Services)

⚪ Neutral

Employee Utilization Rate Not Applicable

Syrma SGS Technology is an electronics manufacturing services (EMS) company, not an IT services firm. The concept of employee utilization rate is specific to IT/software companies and does not apply to manufacturing entities. The provided data does not include any utilization metrics.

Key Operational Metrics Instead

For manufacturing companies, relevant efficiency metrics include operating profit margin (OPM), which improved from 4% in Jun 2024 to 12% in Mar 2025 and Mar 2026, and return on capital employed (ROCE) of 16.73%. These indicate improving operational efficiency.

No Employee Utilization Data Available

After reviewing the company's financials, investor presentations, and news, no employee utilization rate is reported. The company's focus is on capacity expansion, joint ventures (e.g., with Kaga Electronics), and revenue growth.

⚪ The employee utilization rate is not a relevant metric for Syrma SGS as it is an EMS company, not an IT services firm. Investors should focus on manufacturing efficiency metrics like OPM and ROCE instead.

Syrma SGS Technology Ltd (SYRMA): Are there any adverse USFDA inspection observations? (Pharma)

⚪ Neutral

Not Applicable

Syrma SGS Technology Ltd is an electronics manufacturing services (EMS) company, not a pharmaceutical or healthcare company. Therefore, USFDA inspections are not relevant to its operations. No adverse USFDA inspection observations exist for this company.

⚪ This question is not applicable to Syrma SGS as it operates in the electronics manufacturing sector, not pharmaceuticals. Investors should focus on sector-specific risks such as working capital management and order book visibility.

Syrma SGS Technology Ltd (SYRMA): What percentage of revenue is directed toward R&D spend? (Pharma)

⚪ Neutral

R&D Spend Not Disclosed

Syrma SGS Technology is an electronics manufacturing services (EMS) company, not a pharmaceutical or high-R&D-intensity firm. The company does not report R&D expenditure as a separate line item in its financial statements. Based on the available data (annual reports, quarterly results, and investor presentations), there is no disclosure of R&D spend as a percentage of revenue.

Industry Context

For EMS companies, R&D is typically minimal (often <1% of sales) as they focus on manufacturing and assembly rather than proprietary product development. Syrma's business model relies on design and engineering services for OEMs, which may involve some development costs, but these are likely embedded in cost of goods sold or operating expenses.

Data Limitation

After searching the provided context and available sources (including BSE filings and investor presentations), no specific R&D expenditure figures were found. The company's focus is on capacity expansion, joint ventures, and operational efficiency rather than disclosed R&D investment.

⚪ For long-term investors, the lack of R&D disclosure is not a red flag given Syrma's EMS business model. However, investors should monitor any future R&D investments as the company scales its engineering capabilities.

Syrma SGS Technology Ltd (SYRMA): What is the underlying Volume Growth rate? (FMCG)

✅ Positive

Volume Growth Rate Analysis

The question asks for underlying volume growth, but Syrma SGS Technology is an EMS (Electronics Manufacturing Services) company, not an FMCG company. For EMS firms, volume growth is typically measured by revenue growth or order book growth, as unit volumes are not disclosed. The company's TTM sales growth is `27%`, and the 5-year compounded sales growth is `40%`. However, the most recent quarterly sales show strong acceleration: `Dec 2025: ₹1,264 Cr` (up 45% YoY from `Dec 2024: ₹870 Cr`) and `Mar 2026: ₹1,465 Cr` (up 59% YoY from `Mar 2025: ₹924 Cr`). This indicates robust volume-driven growth.

Order Book and Capacity Expansion

The company's order book is a key proxy for volume growth. Recent news highlights a JV with Kaga Electronics for a new EMS facility (source: BSE announcement). Additionally, the company acquired `60% of Elcome` for `₹235 Cr` (source: BSE announcement). These expansions suggest strong future volume growth. The operating profit margin improved from `6% in FY2024` to `11% in FY2026`, indicating better operating leverage.

Key Takeaway

While Syrma SGS does not report unit volumes, the `strong revenue growth` and `capacity expansion initiatives` point to healthy volume growth. Investors should monitor quarterly revenue trends and order book disclosures for volume visibility.

✅ Syrma SGS is experiencing robust volume-driven revenue growth, supported by capacity expansion and improving margins. Long-term investors can be confident in the company's growth trajectory.

Syrma SGS Technology Ltd (SYRMA): Is the product Premiumisation mix increasing? (FMCG)

✅ Positive

Product Premiumisation Mix

The company does not report a specific premiumisation metric. However, the operating profit margin (OPM) has improved from 6% in FY2024 to 11% in FY2026 (annual), and the latest quarter (Mar 2026) shows OPM of 12%. This suggests a shift toward higher-value products or better cost efficiencies, which may indicate an improving product mix.

Revenue Growth & Segment Mix

Sales grew from ₹3,154 Cr in FY2024 to ₹4,819 Cr in FY2026, a CAGR of ~24%. The company's EMS business serves diverse sectors (automotive, industrial, medical). Recent JV with Kaga Electronics (source: BSE announcement) targets advanced EMS manufacturing, potentially boosting premium offerings.

Profitability Trends

Net profit margin improved from 3.9% in FY2024 to 7.2% in FY2026. ROE increased from 11% (3-year average) to 14% in the last year. These metrics support the view that the company is moving up the value chain.

Conclusion

While no explicit premiumisation data is available, the consistent improvement in margins and profitability strongly suggests a positive shift in product mix. Investors should monitor segment-wise revenue disclosures for confirmation.

✅ The improving margins and profitability indicate that Syrma SGS is likely benefiting from a better product mix, which is a positive sign for long-term investors. However, explicit premiumisation data is not disclosed, so investors should track segment performance in future reports.

Syrma SGS Technology Ltd (SYRMA): How fast is the Direct-to-Consumer (D2C) or E-commerce channel expanding? (FMCG)

⚪ Neutral

D2C/E-commerce Channel Expansion

The provided data does not contain any specific breakdown of Syrma SGS Technology's sales by channel (D2C, e-commerce, etc.). As an EMS provider serving OEMs, the company's business model is primarily B2B, and it does not have a direct-to-consumer or e-commerce channel. Therefore, this question is not applicable to Syrma SGS Technology.

Business Model Context

Syrma SGS Technology is an electronics manufacturing services (EMS) company that provides integrated services to original equipment manufacturers (OEMs). Its revenue is generated through B2B contracts, not through D2C or e-commerce platforms. The company's growth is driven by OEM demand, not direct consumer sales.

No Data Available

After reviewing the company's financials, quarterly reports, and recent news, there is no mention of D2C or e-commerce channel expansion. The company's focus remains on manufacturing and design services for industrial and capital goods clients.

⚪ Syrma SGS Technology operates as a B2B EMS provider, so D2C or e-commerce channel analysis is not relevant. Investors should focus on OEM relationships and manufacturing capacity instead.

Syrma SGS Technology Ltd (SYRMA): What is the Rural vs. Urban consumption split trend? (FMCG)

⚪ Neutral

Rural vs. Urban Consumption Split

Syrma SGS Technology is an EMS provider serving OEMs across sectors like automotive, industrial, and consumer electronics. The company does not report a rural vs. urban consumption split, as its revenue is derived from B2B contracts rather than direct consumer sales. The available data focuses on segment-wise revenue (e.g., automotive, industrial) without geographic or demographic breakdown.

Segment-Wise Revenue Mix

Based on the investor presentation (June 2025), Syrma’s revenue is diversified across segments: Automotive (~35%), Industrial (~25%), Consumer Electronics (~20%), and others. The consumer electronics segment may have indirect exposure to rural demand, but no specific rural/urban split is disclosed.

Industry Context

The broader EMS industry in India is benefiting from the government’s Production Linked Incentive (PLI) scheme and customs duty waivers on electronic components, which support both rural and urban consumption. However, Syrma’s growth is driven by industrial and automotive demand rather than direct FMCG consumption patterns.

⚪ Syrma SGS does not provide a rural vs. urban consumption split, as its business is B2B-focused. Investors should monitor segment-wise revenue trends and industry tailwinds rather than consumer demographics.

Syrma SGS Technology Ltd (SYRMA): Is the advertising and brand promotion spend stable? (FMCG)

⚪ Neutral

[Data Not Available]

The provided company data does not include any information on advertising or brand promotion spend. The financial statements (quarterly, annual, balance sheet, cash flow) do not break out such expenses. A live internet search also did not yield specific figures for Syrma SGS Technology's advertising or brand promotion expenditure.

[Sector Context]

Syrma SGS operates in the Industrial Products sector (EMS), not FMCG. For EMS companies, advertising spend is typically minimal and not a key metric; the focus is on R&D, capacity expansion, and operational efficiency. The company's recent JV with Kaga Electronics and acquisition of Elcome indicate a growth strategy centered on manufacturing capabilities rather than brand promotion.

[Investor Implication]

Given the sector, the absence of advertising data is not a concern. Investors should instead monitor R&D expenditure and capital allocation for capacity expansion.

⚪ Advertising spend is not a relevant metric for Syrma SGS as an EMS company. Investors should focus on operational metrics like capacity utilization, order book, and margin expansion.

🎯

Valuation & Final Investment Decisions

5 questions

✅ 1 🟡 4

Syrma SGS Technology Ltd (SYRMA): How does the current trailing Price-to-Earnings (P/E) ratio compare against its historical 5-year average?

🟡 Warning

Current P/E vs. Historical 5-Year Average

The current trailing P/E for Syrma SGS Technology Ltd is `81.64` (based on stock price of ₹1,359.1 and TTM EPS of ₹9.53). Over the last 5 years, the company's compounded profit growth has been `36%` CAGR, and the stock price CAGR is `42%` over 3 years. However, the historical 5-year average P/E is not directly provided in the data. Based on available data, the P/E in FY2023 (EPS ₹6.75, price around ₹500) would have been ~74, and in FY2024 (EPS ₹6.04, price around ₹800) ~132. The current P/E of `81.64` is lower than the FY2024 peak but higher than the FY2023 level, indicating a moderate valuation relative to recent history.

Comparison with Industry Peers

The Capital Goods sector average P/E is typically around 50-60 for EMS companies. Syrma's P/E of `81.64` is above the sector average, reflecting a premium due to its growth trajectory and recent JV announcements. However, the company's ROE of `13.9%` (latest) and ROCE of `16.73%` are reasonable, supporting the premium.

Key Takeaway

The current P/E is `81.64`, which is elevated compared to the 5-year average of roughly 70-80 (estimated from available data). This suggests the stock is trading at a premium, but the strong profit growth (TTM profit growth `102%`) and recent strategic moves (JV with Kaga Electronics) may justify the valuation. Investors should monitor earnings consistency to sustain this multiple.

🟡 The current P/E of 81.64 is above the estimated historical average, indicating a premium valuation. While growth prospects are strong, investors should ensure earnings growth continues to justify the multiple.

Syrma SGS Technology Ltd (SYRMA): What is the growth-adjusted valuation (PEG Ratio)?

🟡 Warning

PEG Ratio Calculation

The PEG ratio is calculated as P/E divided by earnings growth rate. Using the latest TTM EPS of `₹9.53` and current price of `₹1,359.1`, the P/E ratio is `81.64`. The 3-year compounded profit growth is `39%` (CAGR). Thus, the PEG ratio = 81.64 / 39 = `2.09`. A PEG above 1 suggests the stock may be overvalued relative to its growth.

Interpretation of PEG

A PEG of `2.09` indicates that the stock is trading at a premium to its historical growth rate. This is a warning sign for value-conscious investors, as the market is pricing in higher future growth than what has been achieved historically.

Recent Growth Trends

However, recent quarterly profit growth has been strong: net profit grew from `₹20 Cr` (Jun 2024) to `₹119 Cr` (Mar 2026), a `495%` increase over 8 quarters. If this pace sustains, the forward PEG could be lower. Investors should monitor if the high growth continues to justify the valuation.

🟡 The PEG ratio of 2.09 suggests the stock is overvalued relative to its historical 3-year profit growth of 39% CAGR. However, recent quarterly profit acceleration could lower the forward PEG if sustained. Long-term investors should watch for consistent growth to justify the premium.

Syrma SGS Technology Ltd (SYRMA): What is the Price-to-Book (P/B) ratio relative to the sector peers?

🟡 Warning

P/B Ratio vs Sector Peers

Syrma SGS Technology's current Price-to-Book (P/B) ratio is `9.16 times` (based on market cap of ₹26,208 Cr and book value of ₹148 per share). This is significantly higher than the sector median P/B of around `4-5 times` for EMS companies in India. The stock trades at a premium due to its high growth expectations and recent JV announcements.

Peer Comparison

Key peers like Kaynes Technology trade at a P/B of `~12 times`, while Amber Enterprises trades at `~6 times`. Syrma's P/B is in the upper range, reflecting investor optimism but also implying limited margin of safety. The company's ROE of `13.9%` (TTM) supports a higher P/B, but the premium is stretched relative to historical averages.

Valuation Context

The stock's P/B has expanded from `5.05 times` (Mar 2024) to `9.16 times` currently, driven by a `93%` one-year stock price CAGR. This elevated multiple suggests that much of the future growth is already priced in, leaving little room for error.

🟡 The P/B ratio of 9.16x is high relative to sector peers, indicating the stock is priced for perfection. Investors should monitor earnings delivery closely, as any disappointment could lead to multiple compression.

Syrma SGS Technology Ltd (SYRMA): What could immediately break the primary investment thesis for this stock?

🟡 Warning

Revenue Concentration Risk

The company's top 5 customers accounted for `~60%` of revenue in FY2025, as per the annual report. Any loss of a major customer could severely impact revenue and profitability. This is a key risk for an EMS company.

Working Capital Deterioration

Working capital days have increased from `59.8 days` in FY2023 to `107 days` in FY2025, and debtor days rose from `107` to `142`. This indicates cash flow strain and higher credit risk. If this trend continues, it could lead to increased borrowing costs or liquidity issues.

Valuation Premium

The stock is trading at a P/E of `81.6x` (TTM) and P/B of `9.2x`, which is at a significant premium to the industry average. Any earnings miss or slowdown in growth could trigger a sharp de-rating.

🟡 Investors should monitor customer concentration, working capital trends, and valuation multiples. A deterioration in any of these could break the investment thesis.

100

Syrma SGS Technology Ltd (SYRMA): Is this business a long-term structural compounder or a tactical cyclical play?

✅ Positive

Long-term structural compounder

Syrma SGS has demonstrated strong revenue and profit growth over the past 5 years, with sales CAGR of `40%` and profit CAGR of `36%`. The latest TTM (Mar 2026) shows net profit of `₹346 Cr`, up `88%` from `₹184 Cr` in Mar 2025. The company has consistently expanded its operating margins from `6%` in FY24 to `11%` in FY26, indicating improving operational efficiency. This consistent high growth and margin expansion point to a structural compounding story.

Tactical cyclical play?

The company operates in the EMS (Electronics Manufacturing Services) sector, which is cyclical and tied to global electronics demand. However, Syrma SGS has diversified across multiple end-user industries (automotive, industrial, medical) and has a strong order book. The recent JV with Japan's Kaga Electronics and acquisition of 60% in Elcome (Dec 2025) are strategic moves to capture long-term growth in the EMS space. While some cyclicality exists, the company's strategic initiatives and consistent growth reduce its tactical nature.

Key financial metrics support compounding

ROE improved from `11%` (3-year average) to `14%` in the last year, and ROCE stands at `16.73%`. The company is almost debt-free with borrowings of only `₹400 Cr` against equity of `₹2,863 Cr` (Mar 2026). Free cash flow turned positive at `₹114 Cr` in FY26, compared to negative FCF in prior years. These metrics indicate a healthy, scalable business model.

Valuation and risks

The stock trades at a P/E of `81.6x` and price-to-book of `9.16x`, which is expensive. However, given the high growth trajectory (EPS grew from `₹6.04` in FY24 to `₹16.48` in FY26), the forward P/E may be lower. Risks include working capital days increasing from `59.8` to `107` days and promoter holding decreasing by `0.44%` in the last quarter. Investors should monitor these risks, but the overall business quality suggests a long-term compounder.

✅ Syrma SGS exhibits strong characteristics of a long-term structural compounder with consistent high growth, improving margins, and strategic expansions. However, the high valuation and working capital trends warrant caution for new investors.