Syrma SGS Technology Limited Investor Presentation - Q1 FY26 Financial Results Analysis
Syrma SGS Technology Limited (SYRMA) has released its Investor Presentation on July 23, 2025, providing insights into its unaudited Consolidated Financial Results for the first quarter of the financial year 2026 (Q1 FY26). The company also announced a conference call for July 24, 2025, to discuss these results further with investors.
Key Financial Highlights for Q1 FY26 (Consolidated)
The company reported the following key figures for Q1 FY26:
- Total Revenue: ₹ 9,600 Million
- Operating EBITDA: ₹ 957 Million, representing a 75% increase Year-on-Year (YoY) with an Operating EBITDA margin of 10.0%.
- EBITDA: ₹ 1,027 Million, a 69% increase YoY, with an EBITDA margin of 10.7%.
- Profit Before Tax (PBT): ₹ 671 Million, significantly up by 128% YoY, with a PBT margin of 7.0%.
- Profit After Tax (PAT): ₹ 499 Million, marking a 145% increase YoY, with a PAT margin of 5.2%.
- Export Revenue: Contributed 25% of the total Revenue from Operations.
Consolidated Financial Performance (₹ in Million)
The detailed consolidated financial performance for Q1 FY26 compared to previous periods is presented below:
| Particulars | Q1 FY25 | Q4 FY25 | Q1 FY26 | QoQ | YoY |
|---|---|---|---|---|---|
| Revenue From Operations | 11,692 | 9,324 | 9,531 | 2.2% | (18.5)% |
| Other Income | 60 | 142 | 69 | (51.3)% | 15.6% |
| Total Revenue | 11,752 | 9,466 | 9,600 | 1.4% | (18.3)% |
| Cost of Materials Consumed | 9,874 | 6,731 | 7,107 | 5.6% | (28.0)% |
| Gross Profit | 1,818 | 2,593 | 2,424 | (6.5)% | 33.4% |
| Margin% | 15.5% | 27.8% | 25.4% | (2.4)% | 9.9% |
| Operating Expenses | 1,271 | 1,437 | 1,467 | 2.1% | 15.4% |
| EBITDA (Ex Other Income) | 547 | 1,155 | 957 | (17.1)% | 75.1% |
| Margin% | 4.7% | 12.4% | 10.0% | (2.3)% | 5.4% |
| EBITDA | 607 | 1,298 | 1,027 | (20.9)% | 69.3% |
| Margin% | 5.2% | 13.7% | 10.7% | (3.0)% | 5.5% |
| Depreciation and amortization | 174 | 208 | 206 | (0.8)% | 18.5% |
| Finance Cost | 138 | 156 | 149 | (4.6)% | 8.3% |
| PBT | 295 | 934 | 671 | (28.1)% | 127.7% |
| Margin% | 2.5% | 9.9% | 7.0% | (2.9)% | 4.5% |
| Tax | 91 | 219 | 172 | (21.4)% | 88.4% |
| PAT | 203 | 715 | 499 | (30.1)% | 145.4% |
| Margin% | 1.7% | 7.5% | 5.2% | (2.3)% | 3.5% |
Industry Segment Revenue (₹ in Million)
The revenue breakdown by industry segment highlights shifts in demand and operational focus:
| Industry | Q1 FY25 | Q4 FY25 | Q1 FY26 | QoQ | YoY |
|---|---|---|---|---|---|
| Auto | 1,877 | 2,146 | 2,215 | 3% | 18% |
| Consumer | 6,166 | 1,897 | 3,178 | 68% | (48%) |
| Healthcare | 589 | 929 | 674 | (27%) | 14% |
| Industrials | 2,152 | 3,775 | 2,873 | (24%) | 34% |
| IT and Railways | 814 | 496 | 500 | 1% | (39%) |
| Total | 11,599 | 9,244 | 9,440 | 2% | (19%) |
Financial Ratios
Key financial ratios reflecting the company’s efficiency and leverage are as follows:
| Particulars | Q1 FY25 | Q4 FY25 | Q1 FY26 |
|---|---|---|---|
| EBITDA Margin (Ex Other Income,%) | 4.7% | 12.4% | 10.0% |
| EBITDA Margin (%) | 5.2% | 13.7% | 10.7% |
| PBT Margin (%) | 2.5% | 9.9% | 7.0% |
| PAT Margin (%) | 1.7% | 7.5% | 5.2% |
| Net Debt to EBITDA (LTM) | 0.5 | 0.8 | 0.9 |
| Debt to Equity | 0.4 | 0.3 | 0.4 |
| ROCE (%) | 7.7% | 12.5% | 11.4% |
| ROCE (% Adj. of IPO Money and Goodwill) | 11.2% | 16.1% | 14.4% |
| NWC Days | 62 | 69 | 69 |
Note on ROCE Calculation: The Return on Capital Employed (ROCE) is calculated as Annualized Earnings Before Interest and Tax (EBIT) divided by the Average Net Capital Employed. The average net capital employed is based on figures as of June 30, 2025, and June 30, 2024, adjusted for goodwill and unutilized IPO proceeds.
Debt and Cash Position (₹ in Million)
The company’s debt and cash position provides insight into its liquidity and financing structure:
| Particulars | 31-Mar-25 | 30-Jun-25 |
|---|---|---|
| Term Loan | 898 | 857 |
| Working Capital Loan | 5,213 | 6,950 |
| Total Debt | 6,112 | 7,807 |
| Investments | 538 | 1,519 |
| Cash and cash Equivalents | 2,935 | 3,149 |
| Total Cash & Equivalents | 3,473 | 4,668 |
| Net Debt/(Cash) | 2,639 | 3,139 |
Overall Summary
Syrma SGS Technology Limited’s Q1 FY26 results present a mixed picture with strong year-on-year (YoY) profitability growth despite a decline in overall revenue, while sequential (QoQ) performance shows some moderation.
Key Changes:
- Revenue: Total Revenue increased by 1.4% sequentially (QoQ) from Q4 FY25 to Q1 FY26, but experienced an 18.3% decline YoY compared to Q1 FY25. This YoY revenue contraction is primarily attributed to a significant 48% drop in the “Consumer” segment, which was partially offset by strong growth in “Industrials” (+34% YoY) and “Auto” (+18% YoY).
- Profitability: Despite the YoY revenue decline, the company achieved remarkable YoY growth in profitability metrics: Gross Profit rose by 33.4%, EBITDA by 69.3%, PBT by 127.7%, and PAT by 145.4%. This indicates improved operational efficiency and cost management compared to the previous year.
- Margins: All key margins (Gross, EBITDA, PBT, PAT) expanded significantly on a YoY basis, showcasing enhanced profitability per unit of revenue. For instance, PAT margin increased from 1.7% in Q1 FY25 to 5.2% in Q1 FY26.
- Sequential Performance (QoQ): While YoY growth was strong for profits, Q1 FY26 saw a sequential decline from Q4 FY25 in profitability metrics. Gross Profit, EBITDA, PBT, and PAT all decreased QoQ, indicating some pressure on margins or a change in sales mix compared to the immediate preceding quarter. Gross Margin decreased from 27.8% to 25.4% QoQ, and PAT Margin decreased from 7.5% to 5.2% QoQ.
- Debt and Cash: The company’s Net Debt increased from ₹ 2,639 Million at 31-Mar-25 to ₹ 3,139 Million at 30-Jun-25, primarily driven by an increase in working capital loans. However, total cash and equivalents also increased, providing some liquidity.
- ROCE: ROCE (Adjusted) improved YoY from 11.2% in Q1 FY25 to 14.4% in Q1 FY26, indicating better returns on capital employed. However, it saw a slight dip from 16.1% in Q4 FY25 sequentially.
The results suggest that while Syrma SGS Technology faced challenges in overall revenue growth compared to the previous year, it has demonstrated strong control over its costs and improved its profit generation capabilities from operations, leading to robust percentage growth in its bottom-line figures. The sequential decline in profitability metrics, despite a modest revenue increase, warrants attention for future quarters.
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