Syrma SGS Tech. Q4 FY26 Earnings Analysis

- Targeting approximately 30% growth in top line (revenue) for the coming year (FY '26-'27). - Expected revenue for current year around INR4,900–5,000 crores, with sequential revenue growth continuing into Q4. - Export revenue expected to grow by 25-30%, potentially crossing INR1,000-1,100 crores next year. - Smart meter revenue expected to grow 20-30% next year, with revised guidance around INR200 crores for this year. - Overall volume growth across verticals seen as secular and steady, with some segments growing over 30%, and IT/railways at about 70% due to low base. - Increasing focus on ODM growth and new PCB manufacturing capacity to support volume and revenue growth. - Expansion of capacity in Pune and addition of Elcome acquisition will support future sales growth. - Goal to maintain profitable growth with positive cash flows alongside revenue expansion.

- Syrma SGS aims for a 30% growth in EBITDA and 25-35% revenue growth for FY '26-'27. - Confident of delivering INR500 crore EBITDA in FY '25-'26, up from INR324 crore last year (~55-57% growth). - Guidance includes attaining a blended 10% EBITDA margin going forward. - PAT growth expected to mirror EBITDA increase, positively impacting EPS. - Smart meter revenue to grow ~20-30% next year. - Defence vertical (via Elcome acquisition) expected to grow 10-15% next year, with high margins (20-25%). - Export revenues projected to grow 25-30%, potentially exceeding INR1,100 crores next year. - Operational efficiencies and working capital management expected to improve further, supporting profit growth. - New PCB manufacturing capacity planned to come online starting FY '26-'27, supporting future growth.

- PCB project capex: INR 360-400 crores planned for completion by Dec 2026 or FY '26-'27, creating capacity for multilayer and single-layer PCBs. Civil infrastructure prepared for 3 multilayer and 1 single-layer line; additional multilayer lines may be added sooner than planned. - Total PCB capex planned by FY '30 is around INR 1,500 crores, including CCL, HDI, and Flex lines pending government approvals. - For FY '27 and '28, organic capex is INR 80-100 crores annually, with an additional INR 300-350 crores for special projects like the PCB business. - Of the PCB capex, 50% is expected as subsidy from Andhra Pradesh government; equity portion partly funded (25%) by collaborator. - Investments focus on capacity expansion, operational efficiency, and capability building with software and online monitoring tools. - Acquisition of Elcome (defense business) adds INR 280-300 crores revenue with high margins (20-25%) and growth potential (10-15%).

- Syrma SGS plans to fund 50% of the PCB project capex (around INR 400 crores total) themselves, with 25% of the equity portion funded by a collaborator. - This implies approximately INR 200 crores funding from Syrma, partially through equity and partially through debt. - Bijay Agrawal mentioned that near INR 300-350 crores capex outflow related to PCB will be funded from Syrma's balance sheet. - No explicit mention of a new large equity or debt fundraising round apart from this planned capex funding. - Existing debt has been partly refinanced, leading to lower finance costs. - Operating cash flows are positive and expected to fund organic capex (INR 80-100 crores yearly). - Future capex beyond PCB and organic growth would be additional and announced if pursued. In summary, the company plans a mix of equity (including partner contribution) and debt for the PCB project capex but no separate new fundraising announcement was made.

- Total order book and visibility is approximately INR 6,400 crores. - Order book composition: - 31% from Automotive segment - 25% from Consumer segment - 27% from Industrial segment - Balance from Healthcare, IT, and Railways segments - Export portion includes Industrial and Med-tech verticals, with Med-tech focused on exports.