Syrma SGS Technology Ltd Q2 FY27 Results Analysis: PAT Jumps 87%, Margin Slips Below Guidance

Cofacto Research Published October 30, 2026 5 min read

Positive

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