New Delhi: Syrma SGS Technology Ltd. expects revenue to grow 30% in the ongoing fiscal, driven by strong demand in automotive and healthcare electronics, even as weakness in consumer electronics and geopolitical uncertainty weigh on the wider electronics manufacturing sector,
“We’re expecting our automotive and med-tech verticals to do very well this fiscal, just like what we saw last fiscal,” Managing Director Jasbir Singh Gujral told Mint in an interview on Tuesday. "Our auto electronics business saw a growth of 39% through FY26, while healthcare grew 36%. In the long run, we expect these enterprise segments to remain resilient, and we’re seeing our order book continue to grow steadily.”
The company, India’s second-largest publicly listed electronics maker, reported 27.2% year-on-year revenue growth in Fiscal 2026. Consumer electronics, which contributed ₹1,452.7 crore or 30% of Syrma’s revenue in FY26, remained the company’s slowest-growing business segment last fiscal, expanding 7.6% year-on-year amid slowing domestic and global demand.
Gujral said Syrma expects momentum in higher-margin enterprise segments to help sustain growth this year, although prolonged geopolitical conflicts could force it to revisit its projections.
Enterprise push
On Monday, Syrma reported FY26 revenue of ₹4,819.1 crore, beating Bloomberg analysts’ estimate of ₹4,795 crore. Net profit rose 87.5% year-on-year to ₹345.8 crore, compared with analyst estimates of ₹302.1 crore. The stock reacted negatively, declining 3.60% to ₹1,073.80.
Through FY26, Syrma was the only listed electronics manufacturer whose shares gained during the fiscal year, rising more than 80% between 1 April 2025 and 31 March 2026. Shares of rivals Dixon Technologies Ltd. and Kaynes Technology Ltd. declined over the same period.
Brokerage reports have flagged mounting pressure on electronics manufacturers from elevated memory chip prices, weak consumer electronics demand and higher shipping costs linked to the ongoing West Asia conflict.
Still, Gujral said Syrma’s focus on automotive, healthcare and exports would help cushion some of these pressures.
“There is no argument against the fact that shipping costs have significantly increased, but our contracts with clients mention that any cost rises in operational aspects such as shipping would be borne by our clients,” he said. “We’ve also begun focusing more on the high-margin segments to preserve growth in a challenging market—a plan that also includes exports.”
Export bet
Exports currently contribute about one-fourth of Syrma’s revenue, with the company aiming to raise that share to at least one-third over time, Gujral said.
“The goal is to ensure that exports account for at least one-third of our overall revenue. Right now, exports are about one-fourth of our top line, which also suggests that we’re winning new clients from other manufacturers in North America and Europe—markets that are currently stagnant. This shows that our business is healthy and on the right track,” he said.
Gujral added that the company’s outlook remains contingent on how geopolitical tensions evolve over the coming months.
“We’ll have to wait and watch for at least another month or two, and see where the current spate of geopolitical conflicts stand. For now, based on what we’re hearing from our clients, we’re pretty confident to see our revenue grow 30% through this fiscal. Of course, if the conflicts continue, we’ll have to look at revising our projections,” Gujral said.
Early brokerage commentary remained positive. In an investor note on Tuesday, Motilal Oswal Financial Services Ltd. retained a ‘buy’ rating on Syrma SGS, but also highlighted the collapse of the company’s proposed acquisition of solar energy firm K-Solare Energy after due diligence.
