Company Update : Syrma SGS Technology Ltd by Motilal Oswal Financial Services Ltd
Operating performance above our estimates
* Consol. revenue grew by 37.6% YoY to INR11.5b (est. INR10.6b) in 2QFY26.
* EBITDA margins expanded 160bp YoY to 10.1% (est. 8.6%), led by a decrease in share of employee and other expenses.
* EBITDA grew 62% YoY to INR1.2b (est. INR921m).
* Adj. PAT grew 77% YoY to INR641m (est. INR570m).
* For 1HFY26, revenue/EBITDA/adj. PAT rose 5%/75%/2x to INR20.1b/INR2.0b/ INBR1.1b.
* Gross debt stood at INR2.8b as of Sept’25 vs. INR6.1b as of Mar’25. The company reported a cash outflow of INR1.2b as of Sep’25 vs. CFO of INR2.1b as of Sep’24.
* Further, Syrma is to acquire 60% share of Elcome Integrated Systems in the first tranche of for ~INR2.35b. Elcome will simultaneously acquire 100% of Navicom using part of this investment
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