Q2 FY27 results analysis · October 30, 2026
Syrma SGS Technology Ltd Q2 FY27 Results Analysis: PAT Jumps 87%, Margin Slips Below Guidance
+87.2%PAT year on year, Rs. 124.20 Cr
Source: Quarterly results filing (BSE)
Quick summary
Syrma SGS Technology Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,989.68 Cr (+73.64% YoY) and PAT growth of +87.22% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | October 30, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,989.68 Cr (+73.64% YoY) |
| PAT (Q2) | Rs. 124.20 Cr (+87.22% YoY) |
| EBITDA margin | 10.21% (-61 bps YoY) |
| EPS (Q2) | Rs. 6.08 (+76.74% YoY) |
Quarter Snapshot
Q2 FY27 revenue of Rs.1,989.68 Cr grew 73.64% YoY with PAT up 87.22%, tracking well ahead of management's >35% FY27 revenue growth guidance and on pace for the Rs.700 Cr EBITDA target (54.3% achieved in H1). Percentage margins are the swing variable: EBITDA margin of 10.21% sits at the bottom of the guided 10.5-11% band as memory/PCB/copper pass-through inflates the material cost ratio, while the strategic inventory build pushed CFO/PAT to 0.52× and more than doubled current borrowings. H2 requires a modest margin recovery to ~10.94% to hit the EBITDA target, with demand showing no strain.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue "likely ahead" | Order book + IIP/consumer demand tailwinds | Rs.1,989.68 Cr, +73.64% YoY — accelerated vs Q1's ~67%; the mechanical-deceleration sub-expectation did not happen — deceleration call Contradicted | Played out |
| Margins "likely compressing on % margin" | Memory/PCB/copper pass-through, "absolute EBITDA the swing variable" | EBITDA margin 10.21% (−91 bps QoQ, −61 bps YoY) while absolute EBITDA Rs.203.14 Cr grew +63.9% YoY | Played out |
| Input-cost headwind visible in BOM | "current quarter and subsequent quarter will continue to see pressure" (company comment via pre-call note, web-sourced, Aug 2026) | Material expense ratio +~343 bps vs Q1 | Played out |
| NWC trajectory from 71 days | Drawdown vs further build | Further build: inventories +Rs.517.28 Cr in H1; borrowings up; management-basis NWC days not restated | Materialized |
| Guidance qualification risk | Margin line "under visible pressure" | No guidance change in the filing; H1 margin 10.61% in band | Partially |
| Execution milestones (Elemaster SMT line, Kaga operationalization, PCB equipment arrival, QIP deployment) | Watch items for the call | Not addressed in this quarterly filing — remain open for the call | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 revenue growth >35% (upgraded from 30–35%) | Q1 FY27 earnings call (30 Jul 2026) | H1 +71.22% YoY; H1 = 55.0% of the 1.35×-growth floor of Rs.6,505.73 Cr | On Track |
| FY27 total EBITDA Rs.700 Cr | Q4 FY26 call (12 May 2026), reiterated Q1 FY27 call | H1 EBITDA Rs.379.79 Cr = 54.3% of target; H2 needs Rs.320.21 Cr | On Track |
| FY27 EBITDA margin 10.5–11% | Q1 FY27 earnings call (30 Jul 2026) | H1 10.61% (Q2 10.21%, Q1 11.12%) — lower half of band | On Track |
| FY27 EBITDA growth ≥30–35% | Q1 FY27 call / Q4 FY26 call | H1 +67.57% YoY | On Track |
| FY27 tax rate >26% | Q3 FY26 call (30 Jan 2026) | Q2 ETR 24.82% | Tracking below |
| Exports Rs.1,500–1,600 Cr; MedTech >Rs.500 Cr; ODM 18–19% of mix; capex ex-PCB Rs.100–150 Cr | Q1 FY27 / Q4 FY26 calls | splits not disclosed in this quarterly filing | Too Early / Cannot assess |
| "Based on the strong performance of the 1st Quarter, we should exceed that guidance" (revenue & EBITDA) | Q1 FY27 earnings call (30 Jul 2026) | H1 revenue +71.22%, H1 EBITDA +67.57% — both running well above the >35% guide | Confirmed to date |
| Margin guidance 10.5–11% held "conservative" despite ~12% run-rates | Q4 FY26 call (12 May 2026) | Q2 printed 10.21% — below the conservative framing; H1 10.61% inside but at the low end — % margin, not absolute, is where the pressure shows | Partially |
| Inventory treated "as a strategic asset for the next quarter or two" | Q1 FY27 call (30 Jul 2026) | Inventories +Rs.517.28 Cr in H1; current borrowings more than doubled | Confirmed |
Key Investment Insights
Key Positives
- Revenue grew 73.64% YoY to Rs.1,989.68 Cr, accelerating from ~67% YoY in Q1 FY27, with +25.25% QoQ growth
- PAT grew 87.22% YoY to Rs.124.20 Cr; PAT-to-owners grew 83.05% YoY, faster than revenue
- H1 revenue of Rs.3,578.30 Cr is tracking well above management's >35% FY27 growth guidance; H1 EBITDA Rs.379.79 Cr is 54.3% of the Rs.700 Cr FY target
- H1 EBITDA margin of 10.61% is within the guided 10.5-11% band
- H1 CFO turned positive at Rs.119.72 Cr vs −Rs.114.87 Cr in H1 FY26
- Company remains net cash at Rs.252.92 Cr with debt/equity of 0.23×
- Subsidiaries added Rs.8.83 Cr of owner PAT in the quarter; standalone PAT grew 65.80% YoY
- No exceptional items booked in Q2 FY27; normalized PAT equals reported PAT
Risk Factors
- EBITDA margin compressed 91 bps QoQ and 61 bps YoY to 10.21%, at the bottom of the guided 10.5-11% band on a quarterly basis
- Material expense ratio rose to 78.92% of revenue from 75.49% in Q1 on memory/PCB laminate/copper cost pass-through
- H1 CFO/PAT of 0.52× with FCF of −Rs.204.86 Cr as inventory build and capex were debt-funded
- Current borrowings more than doubled to Rs.721.18 Cr since Mar-26; net cash cushion halved to Rs.252.92 Cr
- Purchase of stock-in-trade jumped to Rs.87.12 Cr from Rs.2.28 Cr in Q1, a traded-goods component with undisclosed margin profile
- Q2 ETR of 24.82% is tracking below management's stated >26% FY27 tax rate
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