Syrma SGS Technology (SYRMA IN) – Q3FY26 Result Update – Strong orderbook & exports to drive growth – Upgrade to ‘BUY’
Published on 30 Jan 2026
We upward revise our earnings estimates for FY27/FY28 by 13.3%/9.0% and upgrade rating to ‘BUY’ due to strong performance. Syrma SGS Technology (SYRMA) has reported robust earnings growth of ~108% YoY for Q3FY26. Growth was driven by a 350bps YoY expansion in EBITDA margin to 12.6%, attributed to a favorable segment mix (with consumer contribution reducing to 31% of revenue) and improved operating efficiency. Its orderbook stood at Rs64bn, driven by industrials and auto segments. SYRMA has maintained its revenue growth guidance of 30%, but upgraded its EBITDA margin guidance to 10%+ from 9% for FY26; revenue growth will be driven by auto and industrials segments. SYRMA expects exports to reach Rs11bn by FY26 (Rs8.4bn in 9MFY26), driven by the industrials and medtech segments and supported by the EU–India FTA. The management anticipates 25–30% growth in exports in FY27, backed by strong EU market exposure. The company expects to receive PLI benefit of Rs300-320mn in FY26. We estimate FY25-28E revenue/EBITDA/PAT CAGR of 29.4%/34.7%/43.7%. Upgrade to ‘BUY’ from ‘Accumulate’ with TP of Rs929 (earlier Rs860) valuing at 35x Mar’28 earnings.
