Syrma SGS Technology Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Syrma SGS Technology Ltd trades at ₹1,589, in a confirmed uptrend and 68 weeks into that stage. That is +40.9% against its own 200-day average. It sits at 100% of a 52-week range of ₹665 to ₹1,589. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 36 straight weeks.

Today the stock is in a confirmed uptrend — week 68 of stage 2, confirmed. At ₹1,589 it trades +40.9% versus its 200-day average and sits at 100% of its 52-week range (₹665–₹1,589).

Against the market, two honest reads. Cumulative: over the last 4.0 years the stock moved +412% while the NIFTY 500 moved +49% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 36 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Syrma SGS Technology Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: MID_CYCLE_EXPANSION. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. Syrma is transforming from a build-to-print electronics assembler into an export-focused, ODM-led technology manufacturer, with expanding operating margins and backward integration into multilayer PCBs supporting multi-year earnings compounding.

From the numbers. Syrma trades at a trailing PE of 76.4 (71st percentile). The deterministic cycle engine flags a PEAK_MARGIN_VALUE_TRAP verdict (normalized PE 93.1 at 97th percentile assuming mid-cycle 9.2% OPM vs current 10.2%).…

From the price. Price stage 2, week 68 — above its 200-day line, relative strength rising.

From the research. Syrma is transforming from a build-to-print electronics assembler into an export-focused, ODM-led technology manufacturer, with expanding operating margins and backward integration into multilayer PCBs supporting…

🚨 Where they disagree. Syrma trades at a trailing PE of 76.4 (71st percentile). The deterministic cycle engine flags a PEAK_MARGIN_VALUE_TRAP verdict (normalized PE 93.1 at 97th percentile assuming mid-cycle 9.2% OPM vs current 10.2%). However, this risk is rebutted by structural product mix transformation: ODM surged to 17% of revenue and exports reached 24%, establishing a higher sustainable margin baseline rather than a cyclical peak. With trailing quarterly EPS at ₹3.33, ₹5.33, ₹5.25, and ₹5.19, forward FY27 EPS of ~₹24.6 compresses the multiple to ~58x in a mid-cycle expansion phase supported by FII buying.

What is proven. Syrma is transforming from a build-to-print electronics assembler into an export-focused, ODM-led technology manufacturer, with expanding operating margins and backward integration into multilayer PCBs supporting multi-year earnings compounding.

What is not proven yet. A sustained deceleration in quarterly export revenue below 20% of sales combined with consolidated EBITDA margins slipping below 9.0% over two consecutive quarters, indicating loss of design-led pricing power and complete pass-through failure.

🚨 What would change our mind. A sustained deceleration in quarterly export revenue below 20% of sales combined with consolidated EBITDA margins slipping below 9.0% over two consecutive quarters, indicating loss of design-led pricing power and complete pass-through failure.

Layer 1 read, 22 August 2026 — KEEP. Sales up 26% over three quarters, profit per share dead flat — growth is arriving without profit. Syrma is a genuinely good business getting bigger fast: a Rs 6,770 Cr order book with Rs 5,400 Cr due for delivery inside a year, own-design work nearly doubled to Rs 270 Cr and exports up 61%, and 18 new customers in a single quarter. But look at what the growth is worth to a shareholder: over the last three quarters revenue went from Rs 1,264 Cr to Rs 1,589 Cr while earnings per share went Rs 5.33, Rs 5.25, Rs 5.19 — flat, then down — as the operating margin slid from 13% to 10%. Management explains it plainly: when component prices rise it passes the cost through, which keeps the rupees of profit but shrinks the percentage. That is the whole problem with paying nearly 75 times earnings…

What would change Layer 1’s mind. A single quarter where revenue growth actually reaches the bottom line — operating margin back at or above 12% with earnings per share breaking clearly above Rs 5.33 — would tell me the three-quarter flatline was consumer-mix seasonality as management claims, and this moves to P1 quickly given the order book. Sharpening the timeline's own falsification line in the other direction: exports falling below 20% of sales while operating margin drops under 9% for two consecutive quarters would mean…

🚨 Layer 2 read, 22 August 2026 — DROP. The PCB growth plan is entering a supply race before Syrma has proved the margin it needs. Sales are growing, but EPS moved from 5.33 to 5.25 to 5.19 as operating margin fell from 13% to 12% to 10% over the latest three quarters. Externally, three companies are building PCB capacity together and an incumbent's realized margin is already below Syrma's target, while the capital-cycle block labels the sector SUPPLY_FLOOD and CAPACITY_RISK.

What would change Layer 2’s mind. Two consecutive post-commissioning quarters with Syrma's PCB EBITDA margin at or above 15% without working-capital days rising would disprove the supply-and-margin contradiction and justify re-admission.

The test written in advance. A sustained deceleration in quarterly export revenue below 20% of sales combined with consolidated EBITDA margins slipping below 9.0% over two consecutive quarters, indicating loss of design-led pricing power and complete pass-through failure. — the thesis as written as stated by the next result.

The test written in advance. US Tariff Escalation and Geopolitical Trade Friction — US Tariff Escalation and Geopolitical Trade Friction Quarterly export revenue run rate slipping below ₹300 Cr or US policy announcements regarding electronics tariffs. by the next result.

The test written in advance. Working Capital Elongation and Strategic Inventory Cash Drag — Working Capital Elongation and Strategic Inventory Cash Drag Net working capital days exceeding 75 days in Q2 FY27 or operating cash flow turning deeply negative for the half-year. by the next result.

What the company does. Revenue expanded 68.3% YoY in Q1 FY27 to ₹1,589 Cr with operating profit up 86.2% to ₹162 Cr, led by a doubling of ODM mix to 17% and exports reaching ₹387 Cr. A committed ₹6,770 Cr order book and 18 new customer programs provide visibility on management's guided 35% annual revenue growth and 10.5-11.0% EBITDA margins. While the valuation engine flags a PEAK_MARGIN_VALUE_TRAP risk at 74.7x trailing PE and PCB commissioning slipped 4 months, structural ODM expansion and net cash of ₹122 Cr provide earnings resilience against margin mean-reversion.

🚨 What the surface reading misses. The surface reading is: 112% PAT growth indicates massive earnings acceleration. The research reads it further: Operating leverage from 68% revenue scale expansion combined with export and ODM mix shift (17% of sales) expanded operating profits from ₹87 Cr to ₹162 Cr, while base quarter Q1 FY26 had depressed PAT (₹50 Cr) due to high interest and tax (26%). Underlying operational improvement is real, but growth rate reflects low base effect.

Lever 2 · Value-added mix — BUILDING. Exports expanded 61.0% YoY to ₹387 Cr and ODM sales doubled to ₹270 Cr (17% of revenue) in Q1 FY27, shifting the mix toward high-margin design-led solutions. What proves it keeps working: Export and ODM Mix Expansion. It stops working if Export revenue drops below 20% of sales or US tariff restrictions disrupt medical device shipments.

Lever 1 · Operating leverage — BUILDING. Q1 FY27 revenue expansion of 68.3% YoY drove an 86.2% increase in operating profit to ₹162 Cr and a 112.0% increase in PAT to ₹106 Cr. What proves it keeps working: Operating Leverage from Scale Expansion. It stops working if Capacity utilization falls below 60% due to sudden order deferrals or raw material supply halts.

Lever 6 · Order-book wins — BUILDING. Total order book expanded to ₹6,770 Cr with ₹1,970 Cr of quarterly intake, supported by 18 new client on-boardings across automotive, industrial, and medical segments. What proves it keeps working: Committed Order Book and Client Program Ramp. It stops working if Top-5 customer concentration (38% of revenue) leads to major volume cancellation or automotive client qualification periods exceed 24 months.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Syrma SGS Technology Ltd reported ₹1,589 Cr of revenue in the Jun 26 quarter, +68.3% year on year. That is the 4th straight quarter of year-on-year growth. Over 7 years it has compounded at 45.2% a year. The last full year, FY26, came in at ₹4,819 Cr. The last four reported quarters add to ₹5,464 Cr.

Why this happened. Order intake of ₹1,970 Cr outpaced Q1 execution of ₹1,600 Cr, expanding the order backlog to ₹6,770 Cr. The backlog provides 10-10.5 months of revenue visibility across automotive (29%), consumer (30%), industrial (24%), and healthcare (7%). Eighteen new client additions in Q1 FY27 provide pipeline diversification and long-term ramp potential.

FY26 revenue came in at ₹4,819 Cr (+27.3% on the year), capping 7 years at 45.2% compound. The latest quarter (Jun 26) printed ₹1,589 Cr, +68.3% year on year — the 4th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +52.4% growth against the decade's 45.2% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +53.0% over the last 4 quarters against +21.2%/yr over the last 8 — accelerating; TTM profit +87.4% vs +85.9%/yr — stabilising.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Syrma SGS Technology Ltd's operating margin is 10.0% in the Jun 26 quarter, +1.0 percentage points against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 6.0% to 16.0%. The current quarter sits inside that band.

Why this happened. Syrma is pivoting away from low-margin consumer electronics assembly toward higher-margin exports (24% of Q1 FY27 sales) and original design manufacturing (17% of sales). ODM programs carry proprietary engineering IP and command 15-18% EBITDA margins compared to 8-10% for pure contract manufacturing. The company's 30-year European manufacturing presence in Stuttgart positions it to benefit from the India-EU FTA duty exemptions.

The latest quarter's operating margin is 10.0%, +1.0 pp against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 6.0%–16.0%.

Why the margin moved: operating margin went +1.0 pp year on year while gross margin went −0.2 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Syrma SGS Technology Ltd earned ₹106 Cr of net profit in the Jun 26 quarter, +112.0% year on year. It is the 8th consecutive quarter of growth. Full-year FY26 profit was ₹346 Cr. The 7-year compound rate is 49.2%. That is 6.7% of the quarter's revenue. The same quarter a year earlier earned ₹50.0 Cr.

Jun 26 profit was ₹106 Cr, +112.0% year on year — the 8th consecutive quarter of growth. On the full year, FY26 printed ₹346 Cr (+88.0%), and the 7-year compound rate is 49.2%.

Why profit moved: revenue contributed +68.3% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +88.0% vs revenue +52.4%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 55% of Syrma SGS Technology Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹290 Cr of operating cash against ₹346 Cr of profit. After ₹404 Cr of capital spending, ₹−114 Cr was left as free cash.

FY26: operating cash of ₹290 Cr against reported profit of ₹346 Cr, leaving free cash of ₹−114 Cr after ₹404 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 55% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 55%: the cash cycle tightened 35 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: the bigger cash user is investment — capital spending ran 5.6× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Syrma SGS Technology Ltd's cash conversion cycle runs 48 days in FY26, down from 83 days in FY21. Capital spending ran ₹1,183 Cr over the last 3 years. At FY26 sales of ₹4,819 Cr each day of that cycle holds about ₹13.2 Cr, so roughly ₹634 Cr sits inside the business at any moment.

Why this happened. Syrma is constructing an integrated multilayer PCB manufacturing facility to localize high-layer-count PCB sourcing. Phase 1 targets 1.0-1.5x asset turnover and mature EBITDA margins of 15.0-18.0%, supported by a 50% state capex subsidy and central PLI benefits. The facility addresses import substitution demand across automotive, industrial, and defense sectors.

FY26: debtors at 139 days, inventory at 108 days — roughly 3.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 48 days, tighter than FY21's 83.

The full loop: cash goes out to suppliers and production on day 0; stock waits 108 days to sell; customers pay about 139 days after that; and suppliers themselves are paid at 199 days — netting out to the 48-day cycle.

In money terms: at FY26 sales of ₹4,819 Cr, each day of the cycle holds about ₹13.2 Cr — so the 48-day loop keeps roughly ₹634 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,183 Cr over the last 3 fiscal years against ₹210 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹72.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Syrma SGS Technology Ltd earns a ROCE of 17% in FY26. That is up from a trough of 10% in FY24. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 7.2% net margin on 0.84× asset turns.

FY26 ROCE is 17%, recovered from a FY24 trough of 10% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 7.2% net margin × 0.84× asset turns × 2.01× balance-sheet leverage ≈ 12.2% on equity. Margin does its share; leverage is a meaningful part of the equation.

The quarterly return curves and the return-on-invested-capital overlay, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 21% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Syrma SGS Technology Ltd carries ₹400 Cr of borrowings against ₹2,863 Cr of equity in FY26, a debt-to-equity of 0.14. Operating profit covers the interest bill 11×. Over 5 years borrowings went from ₹103 Cr to ₹400 Cr. Capital spending ran ₹1,183 Cr across the last 3 of those years.

Why this happened. Scale expansion across manufacturing facilities in Chennai, Bangalore, Pune, and Jodhpur is absorbing fixed overheads and automation investments. Fixed cost leverage expanded operating profit from ₹87 Cr in Q1 FY26 to ₹162 Cr in Q1 FY27, demonstrating operational gearing even while management absorbs strategic inventory carrying costs.

FY26: borrowings of ₹400 Cr against equity of ₹2,863 Cr — a debt-to-equity of 0.14. Operating profit covers the interest bill 11×. Over 5 years borrowings went from ₹103 Cr to ₹400 Cr while capital spending ran ₹1,183 Cr in just the last 3 — part of the build-out is riding on borrowed money.

The total-debt and debt-to-equity series, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 21% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 9.4 points of Syrma SGS Technology Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 15.9% of the company. Promoters moved −4.6 points over the same window, to 42.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +9.4 points over 8 quarters to 15.9%; Promoters: −4.6 points over 8 quarters to 42.3%; Foreign institutions: −2.9 points over 8 quarters to 7.5%.

Why the register moved: rotation — foreign institutions −2.9 points against domestic institutions +9.4 points over 8 quarters, with promoters −4.6 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Syrma SGS Technology Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Syrma SGS Technology Ltd trades at 82.5× P/E, at the pricey end of its own range (89th percentile). Its long-run median P/E is 67.3×, measured across 4.0 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 82.5× is at the pricey end of its own range (89th percentile), against a long-run median of 67.3× measured over 4.0 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +72.9% against a +92.6% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 3y, of the +41.2%/yr price move, ~+37.1%/yr came from earnings growth and ~+4.1 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

The PEG ratio and its quarterly curve, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 21% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 26 August 2026 price, Syrma SGS Technology Ltd was paying for profit growth of about 32.6% a year. Profit itself has compounded 49.2% a year over the past 7 years. Today the market pays 82.5× P/E, the 89th percentile of its own 4-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 26 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Syrma SGS Technology Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 7 quarters ago at −8.1% and has held its recovery at +87.4%, ROCE holding at 17.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

69.3/100 — rank 1 of 9 in Consumer Electronics - EMS · 82% evidence confidence

Syrma SGS Technology Ltd scores 69.3 out of 100 against the 9 companies it is compared with in Consumer Electronics - EMS, ranking 1. Confirmed research leader: earnings, capital efficiency and relative strength agree. Move to management, catalyst and risk diligence.

The four contributions add to the total exactly: 31.2 + 16.4 + 9.2 + 12.5 = 69.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Syrma SGS Technology Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

🚨 PCB Construction Milestone Slippage · 30 July 2026. In the January 2026 call, management expected the PCB construction to be completed by June or July 2026. In the July 2026 call, management said the building was only 65-70% complete, indicating a material delay in the stated construction milestone that was not explained, even though the power-on target remained in the January to March quarter.

Defense Growth Outlook Raised · 30 July 2026. In January 2026, management guided to 10%-15% growth for Elcome in the following year, citing long gestation periods and lumpy orders. In July 2026, management raised the expected defense portfolio growth to 25%-35%, a material change that was not reconciled with the prior outlook or the previously cited execution constraints.

🚨 K-Solar JV Strategic Reversal · 12 May 2026. In Nov 2025, management described the KSolare acquisition as one of four pivotal strategic initiatives forming the foundation for a very strong growth trajectory, expressing high confidence with no mention of conditions precedent risk or deal execution uncertainty. The May 2026 call reveals the entire transaction was dropped after the seller failed to fulfill agreed conditions precedent, a complete strategic reversal with zero prior warning that would require analysts to fully remove the renewable energy and solar inverter vertical from their FY27 and beyond growth models.

🚨 PCB Trial Production Timeline Slippage · 12 May 2026. Management gave a firm December 2026 commitment for PCB trial production start in Nov 2025, softened it to a December 2026 to March 2027 range in Jan 2026, and in the May 2026 call has now introduced a new outer bound of start of FY28 (April 2027 onwards) without explicitly explaining the reason for the delay. This cumulative 4-plus-month slip from the original public commitment is material because the PCB commissioning date directly gates when the new vertical begins contributing to revenue and triggering state government incentive inflows that underpin the project economics.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions