Syrma SGS builds electronics for other companies — circuit boards and finished devices that go into cars, consumer electronics, factory equipment, hospital devices, railways and IT hardware — from 17 factories, for customers in more than 35 countries. Most of it is built to the customer's design; a growing slice, ₹270 crore in the June quarter, is designed by Syrma itself. A quarter of sales are exports. The model is working better than it was: revenue grew 67% in the June quarter to ₹1,589 crore, and the operating margin, which had sunk to 6.4% in FY24, was 11.3% for FY26. The weak spot is cash. Customers take about 139 days to pay, and over the last three years only 60 paise of every rupee of profit arrived as cash.
Well, and Syrma discloses most of them. Order book: ₹6,770 crore at the end of June, spread across consumer (30%), automotive (29%), industrial (24%), healthcare (7%) and IT and railways (9%). Own designs: ₹825 crore in FY26, up from 12% of revenue to 17%, and ₹270 crore in the June quarter alone. Exports: 24% of sales, up 61% in the June quarter. Customer concentration: moderate — the top five were 38% of June-quarter revenue, the top ten 51%. The one gap is circuit boards themselves; Syrma still buys the bare boards in, and its own board plant starts production only in April 2027.
Close to debt free, and by the company's own count it holds more cash than debt. Borrowings were ₹400 crore at March 2026 against ₹2,862 crore of shareholders' funds, a debt-to-equity of 0.14. Counting only cash in the bank, net debt is ₹101 crore; counting the money parked in investments, the company states net cash of ₹467 crore, helped by a sale of new shares to institutions during the year. Either way the risk on this balance sheet is not the borrowing. It is the ₹1,841 crore that customers owe.
Strong, and getting stronger. Revenue grew 27% in FY26 to ₹4,819 crore while profit rose 87% to ₹318 crore, because the operating margin widened from 8.5% to 11.3%. The June quarter went further: revenue up 67% to ₹1,589 crore and profit up 112%, by the company's figures. Management is guiding to 35%-plus growth this year at a 10.5% to 11% margin. The one line that has not kept pace is cash, covered further down.
It is now, after a stretch when it was not. Revenue compounded at 40% a year over five years, from ₹862 crore in FY20 to ₹4,819 crore in FY26. Profit lagged for most of that run: in FY24 revenue went from ₹2,048 crore to ₹3,154 crore while profit fell from ₹119 crore to ₹107 crore. FY26 turned it round, with profit up 87% on revenue up 27%. Five-year profit growth, at 36% a year, is still slightly behind sales. The gap is closing because more of the work is higher-margin design and exports.
Mostly organic. The latest purchase is recent: a 60% stake in Elcome, a naval and maritime electronics company, bought for ₹235 crore and owned for about six months. The company puts Elcome's annual revenue at ₹200–300 crore at a 20–25% margin — small against ₹4,819 crore of FY26 sales, and in the numbers for only part of the year. The remaining 40% is to be bought under an agreement already signed. A second step is a joint venture with Kaga, a Japanese electronics firm, in which Syrma holds 60%. The growth itself has come from new customers, exports and its own designs, not from buying revenue.
Improving, from a low base. The margin fell from 15.7% in FY20 to 6.4% in FY24, then recovered to 8.5% in FY25 and 11.3% in FY26. The June quarter came in at 10.2% excluding other income, slightly below the 10.5% to 11% management is guiding to for the full year. Two things pull in opposite directions from here: more own-design and export work lifts it, while consumer electronics, which the company itself calls its lower-margin business, is still about 30% of sales, and costlier chips passed straight through to customers add sales without adding profit.
Respectable, and rising. Return on capital employed was 17.4% in FY26, up from 12.7% in FY25 and 10% in FY24. Kaynes earned 13.2% and Dixon 47.3% on the same measure. Return on equity is lower, at 11.1%, partly because shareholders' funds were enlarged by new shares issued during the year and that money is not yet fully at work. The company's own figure, adjusted for acquisition goodwill, is 20.1%.
Not yet. In FY26 operations brought in ₹290 crore of cash against ₹318 crore of profit — close. Over three years the picture is weaker: ₹357 crore of cash against ₹595 crore of profit, 60 paise per rupee. Customers took about 139 days to pay in FY26 and stock sat for about 80. In the June quarter management deliberately held more stock to protect deliveries against component shortages, and net working capital rose from 63 to 71 days. They plan to keep it high for a quarter or two, until supply settles.
A founder-led board with a new chief executive. Sandeep Tandon is executive chairman, and Jasbir Singh Gujral — a founding promoter of SGS Tekniks, with 41 years in electronics manufacturing — is managing director. Five of the nine directors are independent, among them a partner at the law firm Khaitan & Co and a former chief executive of AGC Networks. Day-to-day running has just changed hands: Jaidit Singh Brar, who spent 24 years at McKinsey, became chief executive on 29 June 2026, taking over from Satender Singh. Pay is restrained: Tandon earned 58 times the median employee and Gujral 37 times, and their pay moved 4.6% up and 1.5% down in a year when profit rose 87%. The thing to watch is how the new chief executive and the founders divide the running of the business.
Nothing that should worry a shareholder. The auditor, Walker Chandiok & Co, gave an unmodified opinion. On the standalone accounts it added an emphasis of matter, drawing attention to the merger of two group companies, SGS Tekniks and SGS Infosystems, into Syrma with effect from April 2023 — a note that explains restated figures rather than questioning them. The disputed tax claims are small and under appeal: GST demands of ₹66 lakh and ₹23 lakh, an income tax demand of ₹48 lakh and a Haryana entry-tax demand of ₹12 lakh. The outside view is improving: India Ratings upgraded Syrma's bank loans to AA from AA- on 5 May 2026, while naming the working-capital-heavy nature of the business as the thing it is watching.
A crowded field — Kaynes, Dixon, Avalon, Cyient DLM, Amber and PG Electroplast all build electronics for other companies — and Syrma's edge is breadth rather than any one strength. No single industry dominates: consumer, automotive and industrial each make up between 24% and 30% of the order book. Own designs are now 17% of revenue and exports 24%, and both grew faster than the rest of the business in FY26. Next comes the bare circuit board: a plant in Andhra Pradesh due to start production in April 2027 will make the one component its platform does not yet make, in a market where imports meet 70–80% of demand. Kaynes earns a fatter margin and Dixon works at far bigger scale; Syrma sits between them on both.
Set against Kaynes and Dixon, Syrma sits in the middle on size and returns, and is the dearest on price. Revenue in FY26: ₹4,819 crore, against Kaynes' ₹3,626 crore and Dixon's ₹48,873 crore. Growth: 27%, against 33% and 26%. Operating margin: 11.3%, against 15.8% and 3.8%. Return on capital: 17.4%, against 13.2% and 47.3%. Debt-to-equity: 0.14, against 0.19 and 0.21. Price to earnings on 1 October 2026: 104 times, against 62.6 and 53.7. The market is paying more for each rupee of Syrma's profit than for either peer's, on the expectation that profit keeps growing faster than sales.
Tailwinds first. India's contract electronics market is projected to grow upwards of 25% a year to around USD 150 billion by FY 2029-30, by the sources the company cites, and the government has set aside ₹40,000 crore for its component-manufacturing scheme. A government incentive is available for half the capital cost of Syrma's circuit-board plant. Exports grew 61% in the June quarter, own-design sales more than doubled, and Elcome gives it a foothold in naval and defence electronics, which management expects to grow 30–35% a year. The order book, at ₹6,770 crore, is larger than a year of sales. The risks are as concrete. Component supply is tight because of the Middle East conflict, and Syrma is holding more stock to cope. Customers take about 139 days to pay. Consumer electronics, its lower-margin business, is still about 30% of sales. US tariffs on Indian goods are being reset after a temporary 10% levy, which will shape export margins. And a new chief executive took over on 29 June 2026.
Long-term growth, with consumer demand as the cyclical part. India's electronics production went from ₹1.9 lakh crore in FY15 to ₹11.3 lakh crore in FY25. The contract-manufacturing slice was roughly USD 40–45 billion in FY 2024-25, about 5–6% of the world's, and is projected to approach USD 150 billion by FY 2029-30 — close to four times the global pace. Mobile phones are about 44% of production; automotive, industrial, medical, defence and railway electronics are growing fastest and carry the better margins. The bust risk sits in consumer goods, and in global buyers delaying orders when trade tensions rise. The next phase, the company argues, turns on making components such as circuit boards, not on adding more assembly lines.
Only if the growth holds for years. At ₹1,717.90 on 1 October 2026 the share traded at 104 times trailing earnings and 11.6 times book value, against 62.6 and 53.7 times earnings for Kaynes and Dixon. The case for paying it is in the latest numbers: June-quarter profit more than doubled, management is guiding to 35%-plus growth, and the higher-margin pieces — own designs, exports and soon circuit boards — are all scaling. The case against is that a price this high leaves little room for a slow quarter, and cash still lags profit.
Expensive. On 1 October 2026 the share was ₹1,717.90 against trailing earnings of ₹16.48 a share — a price to earnings of 104 times, an earnings yield under 1%. It traded at 11.6 times book value and 6.9 times sales. Kaynes was at 62.6 times earnings and Dixon at 53.7 on the same day. The multiple is this high partly because profit is rising fast: June-quarter profit was up 112% on a year earlier, and earnings that keep growing at that rate bring the multiple down quickly. If growth settles at the guided 35%, the price is already paying for several years of it.
Buying, and heavily. Over the four quarters to June 2026 Indian institutions raised their holding from 9.15% to 15.9% and foreign investors from 6.34% to 7.52%; mutual funds within that went from 6.83% to 9.55%. Most of the domestic jump came in the September 2025 quarter, when Syrma placed new shares with institutions. Since then domestic holdings have held at around 16%, and foreign holdings rose in the June quarter. Individual investors followed: shareholders went from 161,089 to 204,149, most of the increase in the June quarter alone.
Mostly small-cap funds and insurers, with three individuals holding more than any of them. Above 1% at June 2026: Franklin India Small Cap Fund 3.76%, Tata AIA Life's multi-cap fund 2.67%, HDFC Life 1.6%, Axis Small Cap Fund 1.54% and Motilal Oswal Small Cap Fund 1.21%. A year earlier the only fund above 1% was Franklin India Smaller Companies Fund, at 4.86%. The largest outside holders are individuals — Krishna Kumar Pant at 6.35%, Ranjeet Singh Lonial at 6.21% and Sanjiv Narayan at 4.71% — each ahead of every fund on the register.
A token dividend and a large share sale. Syrma paid ₹1.50 a share for FY26, 9% of profit. During the year it placed 14.3 million new shares with institutions at ₹699 each, enlarging the share count by 8.19%, and the company says that money went into the Elcome stake, the circuit-board plant in Andhra Pradesh and a joint venture with Italy's Elemaster. Shareholders have since approved raising up to ₹1,000 crore more; management calls it an enabling resolution, renewed every year, with no immediate need. There have been no buybacks. For a company growing this fast, keeping the cash makes sense; the dilution is the price.
A sector, read end to end, and the companies as they are published. Roughly monthly. Nothing else, and one click to stop.
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