Q1 2026 Syrma SGS Technology Ltd Earnings Call Transcript
Key Points
- Syrma SGS Technology Ltd (BOM:543573) reported a significant improvement in margins, with operating margins increasing from 5.2% last year to over 10% this year.
- The company achieved a revenue growth of 25%, EBITDA growth of 50%, PBT growth of 27%, and PAT growth of 32% over a two-year period.
- Exports grew by 29% despite global uncertainties, indicating strong international demand.
- The company entered into a joint venture for PCB manufacturing, targeting a $5 billion market, which is largely untapped by organized players in India.
- High-margin verticals such as automotive and industrial sectors showed significant growth, with automotive increasing from 16% to 24% and industrial from 19% to 30% of revenue.
- The consumer segment, which is a low-margin business, still constitutes a significant portion of revenue at 34%, although it has decreased from 53% last year.
- IT and railways segments showed muted performance, with expectations for improvement in the coming quarters.
- Working capital days remained high at 69 days, with efforts to reduce it to below 65 days in the future.
- The company faces uncertainties related to US tariffs, which could impact export margins and require negotiation with customers.
- The PCB manufacturing venture requires significant capital investment, with $91 million planned over the next 3 to 5 years, and the timeline for government approvals could delay project execution.
Ladies and gentlemen, good day and welcome to Syrma SGS Q1 FY26 earnings conference call hosted by Nuama Institution Liquities. (Operator Instructions) Please note that this conference is being recorded.
I now have the conference over to Mr. Achal Lohade. Thank you and over to Lohati.
Yeah, thank you. Good morning, everyone. On behalf of Nuama Institutional Equities, we welcome you all to the Q1 FY26 earnings call of SISS. Today we have a task with the senior management team of Syrma SGS. I will now hand over the call to Nikhil to take the call forward or to you, Nikhil. Yeah, thank you, Nikhil.
Hi, very good morning to you all.
Welcome to Syrma SGS 401 Financial year 2026 earnings call.
We have with us today.
Mr. JS Gujal, managing director, Mr. Jay Doshi, director, Mr. Saendra Singh, Chief Executive Officer, and Mr. Vijay Agrawal,
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