India Ratings and Research has upgraded the long-term bank loan facilities rating of Syrma SGS Technology Limited to ‘IND AA’ from ‘IND AA-’ with a Stable Outlook, reflecting the company’s strengthening business profile, sustained revenue growth, improving profitability, and comfortable credit metrics. The agency also affirmed the company’s commercial paper rating at ‘IND A1+’.
According to India Ratings, the upgrade is driven by Syrma SGS’s continued expansion across diversified electronics manufacturing and engineering segments, supported by robust financial performance during FY25 and the first nine months of FY26. The agency highlighted the company’s improving profitability, stronger return on capital employed (RoCE), and disciplined management of working capital requirements as key factors supporting the rating action.
Syrma SGS has established a diversified business presence across printed circuit board assembly, RFID products, magnetic coils, and electronic sub-assemblies, along with growing participation in the higher-margin original design manufacturing segment. The company’s balanced revenue mix across exports, domestic markets, healthcare, consumer electronics, automotive, and industrial sectors has further strengthened its business resilience.
India Ratings noted that the company’s recent strategic initiatives are expected to support long-term growth. These include investments in multi-layer PCB manufacturing, acquisition of a majority stake in Elcome Integrated Systems, joint ventures with KSolare Energy and Elemaster SPA, and expansion into defense, railways, energy, and healthcare electronics.
The company reported strong revenue momentum, with consolidated revenue growing 20% year-on-year to INR 37,867 million in FY25 and 17% year-on-year to INR 33,540 million during 9MFY26. Syrma SGS’s order book also expanded significantly to INR 64,000 million by the third quarter of FY26, providing healthy revenue visibility.
Profitability has also improved substantially over the last 18 months. Consolidated EBITDA margins increased to 11.3% during 9MFY26 compared to 6.8% in the corresponding period of the previous year. India Ratings attributed the improvement to a favorable revenue mix, increasing contribution from high-margin businesses, and enhanced design-led capabilities.
The agency stated that Syrma SGS’s liquidity profile remains adequate, supported by strong cash balances, healthy internal accruals, moderate debt utilization, and proceeds from its qualified institutional placement completed in August 2025. The company also turned net cash positive during 9MFY26.
While acknowledging risks related to working capital intensity, large capital expenditure plans, forex volatility, and competitive industry conditions, India Ratings said the company’s diversified operations, strong customer relationships, and spread-out investment plans provide stability to its financial profile. Syrma SGS is a prominent Indian Electronic Systems Design and Manufacturing (ESDM) company with over three decades of experience. The organisation serves more than 270 customers across 20+ global markets and operates manufacturing facilities in Chennai, Bengaluru, Manesar, Gurgaon, Pune, Jodhpur and Baddi, along with R&D centres in Chennai, Pune, Gurgaon and Stuttgart, Germany.
For FY25, the company recorded consolidated revenue of around INR 3,839 crore. Its portfolio spans Product Design, PCBA and Box-Build Assembly, Quick Prototyping, and Tester Development Services. Alongside EMS solutions, Syrma SGS also offers OEM products such as RFID tags and inlays, high-frequency magnetic components, and electro-mechanical systems. The company’s long-standing customer relationships and millions of units delivered worldwide underscore its reputation for quality and reliability.
