Electronics manufacturing services (EMS) firm Syrma SGS Technology Ltd. posted a strong Q2 fiscal 2026 result, with its consolidated profit after tax (PAT) rising 67% year-on-year to ₹66.3 crore. Revenue climbed around 38% to ₹1,145.88 crore, driven by a shift away from low-margin consumer business to industrial, automotive and export segments.
Margin makeover as focus shifts to high-end segments
Syrma SGS delivered a standout performance for the quarter under review, with PAT improving from about ₹40 crore a year ago to ₹66.3 crore this year, reflecting a sharp uptick in profitability. The company’s revenue from operations climbed from ₹832.74 crore to ₹1,145.88 crore.
Managing Director J S Gujral said the company has re-strategised its business model, reducing dependence on low-margin, high-volume consumer business, which accounted for about 30% of revenue during the quarter, to concentrate on higher-margin segments. Growth came via exports (+36%), automotive (+22%), industrial (+30%) and healthcare (+21%) lines. He added that this shift in mix has boosted margins.
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Gujral also noted that among exports, around 5% currently comes from the United States, pointing out that tariff issues remain a “grey area” but expressed optimism that resolutions in the coming months could spur further growth.
Strategic acquisition and outlook for next phase
In tandem with its turnaround, Syrma SGS announced a stake purchase: the company plans to acquire a 60% majority stake in Elcome Integrated Systems for ₹235 crore, through a combination of primary infusion and secondary share purchase, with the remaining 40% to be acquired over three years, linked to performance terms. This move will help the company expand into the defence and maritime electronics domain, especially in navigation, communication, surveillance and platform automation systems.
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Gujral said the Elcome acquisition complements Syrma’s industrial scale and supply-chain strength and represents a pivot into higher value-added business. With the revenue growth backed by better margin mix and strategic expansion, the company could offer stronger returns.
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