Syrma SGS Technology Maintains Hold Rating, Target Price Set at Rs 1128: Prabhudas Lilladher

Syrma SGS Technology Reports Robust Q4FY26 Performance

Syrma SGS Technology has announced its Q4FY26 performance, which has seen a significant increase in profit after tax (PAT) and revenue. The company's PAT grew by approximately 67% year-over-year (YoY), while revenue increased by 58.5% YoY. This growth is attributed to the strong traction in the Auto, Consumer, and Industrial segments, which collectively contributed 81% of the company's topline in Q4FY26. Specifically, the Auto, Consumer, and Industrial segments contributed 24%, 26%, and 31% to the company's revenue, respectively.

Key Highlights

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The company has guided for a 35% revenue growth in FY27, with an expected EBITDA margin of 10.5-11%. Additionally, Syrma SGS Technology expects its export revenue to reach INR 15 billion during the year. The company's order book stands at INR 66 billion in Q4FY26, primarily driven by the Auto, Consumer, and Industrial segments. Furthermore, the company received benefits of approximately INR 380 million under the Production-Linked Incentive (PLI) scheme in FY26, with Q4FY26 PLI benefits amounting to INR 100 million.

Revised Estimates and Outlook

We have revised our FY27/FY28 earnings per share (EPS) estimates upward by 8.3% and 9.1%, respectively. Our estimates also indicate a revenue/EBITDA/PAT compound annual growth rate (CAGR) of 33.3%/26.2%/29.8% over FY26-28E. However, we have downgraded our rating to 'HOLD' from 'BUY' due to the recent run-up in the stock price. Our revised price target is INR 1,128, which values the company at 40x FY28 earnings.