Syrma SGS Tech Shares Surge 9% as Q1 Profit Doubles; Management Confident of Beating FY27 Growth Target
Key Takeaways
- •Syrma SGS Technology's first-quarter profit doubled, prompting an approximately 9% surge in its share price.
- •Managing Director J.S. Gujral signaled confidence in exceeding the company's FY27 revenue growth guidance of more than 30%.
- •The company is pursuing a ₹1,000 crore capital raise to fund its expansion and capacity-building initiatives.
- •India's EMS industry is being supported by the government's Production Linked Incentive scheme and a global shift toward diversifying supply chains away from China.
- •Brokerage firms have turned bullish on Syrma SGS Tech following its strong quarterly performance and positive forward guidance.
Syrma SGS Tech Shares Surge 9% as Q1 Profit Doubles; Management Confident of Beating FY27 Growth Target
Shares of Syrma SGS Technology jumped approximately 9% after the company reported that its first-quarter profit had doubled, marking a robust start to fiscal year 2027.
Syrma SGS Tech Managing Director J.S. Gujral told CNBC-TV18 that the company had started FY27 on a "very strong note" and expressed confidence in exceeding its FY27 revenue growth guidance of over 30%.
Growth Drivers
The company's strong Q1 performance and optimistic outlook come amid a broader expansion strategy in India's electronic manufacturing services (EMS) sector, where Syrma SGS Technology operates as a provider of design, manufacturing, and aftermarket services. India's EMS industry has been benefiting from the government's Production Linked Incentive (PLI) scheme and global supply chain diversification trends, with companies increasingly looking to India as a manufacturing alternative to China.
₹1,000 Crore Fundraising
Syrma SGS Tech is pursuing a ₹1,000 crore fundraising initiative, aimed at supporting its growth ambitions and capacity expansion plans. The capital raise reflects a broader trend among Indian EMS firms scaling operations to meet rising domestic and export demand across sectors such as consumer electronics, automotive, healthcare, and industrial products.
Brokerages Bullish on Syrma SGS Tech
Brokerage firms have turned bullish on Syrma SGS Tech following the strong quarterly results and forward-looking guidance, with the company's management signaling sustained momentum across its business segments.
Source: CNBC-TV18