Thanks, Michelle. ICICI Securities is pleased to invite you all to Q4 FY '26 and FY '26 results conference call of Syrma SGS Technology.

We have with us today senior management team to attend the call. I congratulate the management for posting strong set of numbers.

Now I hand over the call to Mr. Nikhil Gupta, Head of Investor Relations, to introduce the management and take the call forward.

Thanks, and over to you, Nikhil.

Thank you, Aniruddha. Hi, very good morning to all.

On behalf of Syrma SGS family, we welcome you all to Syrma SGS quarter four and fiscal year 2026 earnings call. We have with us today Mr.

J.S. Gujral, Managing Director; Mr.

Jayesh Doshi, Director; Mr. Satendra Singh, Chief Executive Officer; and Mr.

Bijay Agrawal, Chief Financial Officer, Syrma SGS, to discuss the performance of the company during the fourth quarter and fiscal year 2026, followed by a detailed question-and-answer session. Kindly note, during this call, certain statements that will be made are forward-looking, which involves several risks, uncertainties, assumptions, and other factors that can cause results to differ materially from those in such forward-looking statements.

All forward-looking statements made herein are based on the information presently available to the management and to the company, and the company does not undertake to update any forward-looking statements that may be made during this call. In this regard, kindly review the disclaimer statements in the earnings release and all the other factors that can cause a difference.

With this, I will now hand over the call to Mr. J.S.

Gujral, Managing Director, Syrma SGS. Thank you.

Over to you, sir.

A very warm welcome, ladies and gentlemen, to the FY '26 earnings call of Syrma SGS Technology Limited. When we sit back and sort of reflect on what has happened in the year gone by, it gives us a great sense of satisfaction that we have achieved almost all the parameters or exceeded them what we had set for ourselves at the start of the year.

Just to recollect, we had started off the year with a guidance of about 400-plus crores of EBITDA figures; a revenue growth of about 30% to 35%; and a positive cash flow, with exports targeted to cross the 1,100-crore mark. These were the four, five sort of set of parameters which we had set for ourselves.

When we look at the figures for the year gone by, it gives a great sense of satisfaction that we have achieved EBITDA of 545 crores. Even if we exclude the Elcome EBITDA, it still stands at 490-plus crores.

Against a original start guidance of 400 to 490 crores of operating EBITDA. Exports, we had targeted 1,100 crores; we are at 1,200-plus crores.

Working capital cycle, we had said that we will endeavor to bring it down, and we have brought it down from 69 days to 63 days. Ex-Elcome, this figure is at 58 days.

All this has enabled us to generate a positive operating cash flow of 290-plus crores, which is almost at 53% of the operating EBITDA. On all these four parameters, we have sort of exceeded what we had guided the market.

If I was to sort of exclude consumer business from our sort of portfolio, because consumer is a low-margin business and there's a conscious effort of the management to sustain it at a certain level, my revenues have grown by a healthy 38%. Ex-Elcome, they have grown by 31%.

All the key drivers of superior margin—automotive, industrial, healthcare, exports, and ODM—they've all fired in the right direction. Automotive has grown 39%, industrial 30%, healthcare 36%, exports 41%, and ODM has also gone up significantly to approximately 17%, which is almost like an 80% jump, from 453 to 825 crores.

Now this gives us a good platform to grow in the coming year. We achieved 1,477 crores revenue in the last quarter, which is a run rate of approximately 500 crores a month, which translates into 6,000 crores revenue at the same pace without a growth coming in in the second half of the year.

My exports, at 372 crores, give a good run rate of 125 crores, which is again equivalent to the next year's target of about 1,500 crores. We are well set to capitalize on this consolidation which we have done in the current year.

Going forward, we are very confident that on the three critical parameters which we measure ourselves against, primarily the EBITDA, operating cash flow, and the revenue growth, on all these three, we would be able to exceed the performance of this year or sustain the performance of this year. Thank you very much.

Yeah.

Now I hand over the call to Mr. Bijay Agrawal, Chief Financial Officer.

Hi. Good morning, everyone, and welcome to Syrma SGS earnings call for quarter four and full financial year 2026.

I'm pleased to report that this has been a landmark year for us, defined by strong execution, meaningful margin expansion, and significantly strengthened balance sheet. Let me begin with quarterly numbers first, and then I'll take you through the annual performance.

Quarter four 2026 was our strongest quarter yet. Consolidated total revenue for the quarter was 1,477 crores, up by 56% on a year-on-year basis and 16% sequentially, an outcome in a way.

On business mix side, industrial vertical contributed maximum at 31% of our revenue, followed by consumer vertical 26%, auto vertical 24%. While all verticals showed a solid double-digit growth on a year-on-year basis, IT and railways was the standout segment this quarter, growing 122%—182% year-on-year basis.

Our operating EBITDA for the quarter came in 174 crores, up by 51% year-on-year, at 11.9% EBITDA margin. PBT grew 61% YoY to 150 crores, and PAT rose 67% to 119 crores, with PAT margin of 8.1%, up by 60 basis points over last year.

On a sequential basis, margins moderated slightly. Operating EBITDA margin was 11.9% versus 12.6% in quarter three, primarily due to higher mix of IT business during this quarter.

Moving to our annual performance, our total revenue for FY '26 came in at 4,857 crores, reflecting 27% year-on-year growth. As we have previously guided that we will keep consumer business vertical below 35%, which is actually 31% for FY '26.

When we calculate our growth ex of consumer business, my revenue growth is actually 38% on a year-on-year basis. More importantly, this growth was highly profitable.

Operating EBITDA expanded 68% year-on-year basis to 545 crores, with operating EBITDA margin improving 270 basis points to 11.3%. Reported EBITDA stood at 582 crores at a 12% EBITDA margin.

The profitability story is even stronger at the bottom line. PBT grew at 88% year-on-year basis to 445 crores, with a PBT margin expanding 300 basis points to 9.2%.

PAT is about 346 crore rupees for the year, up by 87% on a year-on-year basis, with PAT margin of 7.1%. We can see this kind of a leverage where bottom-line growth is nearly double the top-line growth, reflecting a structural improvement on our business model, reflecting our operating leverage benefit, reflecting into the business model.

On revenue mix side, export business constitute 24%, 25% of my operating revenue and grew 41% year-on-year basis, highlighting our increasing global relevance. Across vertical, IT and railways was our fastest growth segment, 74% year-on-year, followed by auto 39% and healthcare at 36% growth on a year-on-year basis.

Our ODM revenue for the year is about 17%, substantially increased from 12% last year. Coming to customer concentration, our top 5 customers contribute around 34% of revenue, top 10 around 47%, top 20 around 63% of my revenue on a full-year basis, FY '26.

On the order book visibility, as on March end, we have about 6,600 crores of total order book plus visibility together, of which auto is about 29%, consumer is about 30%, industrial vertical is about 24%, healthcare is about 5%, and IT and railways together is about 11% of my revenue order book. Coming to balance sheet and capital allocation, we moved from a net debt position of 264 crores as on FY '25 end to now a net cash position of 467 crores this year-end.

Total debt reduced sharply from 611 crores to 353 crores, and while cash and cash equivalents increased to 820 crores at year-end. Debt-to-equity is now 0.1x, and ROCE improved from 12.4% to 16.9% this year.

When we calculate ROCE on a goodwill-adjusted basis, my actual ROCE is 20.1%, the threshold number which we have been tracking always. Coming to working capital performance, our working capital days improved from 69 days to 63 days on a year-on-year basis, reflecting better operational efficiency.

Net working capital days, when we calculate on ex of Elcome, which we have recently acquired, it is actually 58 days. On a like-to-like basis versus last year, the overall improvement into the net working capital days is about 11 days.

For the year, we generated a healthy operating cash flow of 290 crore rupees, which is around 53% of my operating EBITDA. This outcome is based on disciplined working capital management and strong profitability delivery here.

The capex investment for the year is about 140 crore rupees, and we expect another 100 to 150 crore rupees of capex investment into the current year, which is FY '27. We want to update regarding one of our previously announced JV with Premier Energies, wherein we were planning to acquire a company called K-Solar through that JV.

We want to update that there was certain conditions precedent which we agreed with the sellers for the acquisition, and which the seller was not able to fulfill as per the timeline. Hence, we decided to drop the same acquisition or JV transaction.

To summarize, FY '26 has been a strong execution across revenue, profitability, cash flows. We enter FY '27 with a net cash position, improving ROCE, a diversified and growth revenue base, and capacity investments that position us well on the next phase of the growth.

We also want to update to the market on our rating upgrade, long-term rating upgrade from AA- to AA now, showing a strong confidence of all the stakeholders in the market in our credibility. We remain committed to our aspirations of sustained revenue growth of 35%, with a sustainable operating EBITDA margin of at least 10% to 10.5%, targeting 700 crores of total EBITDA for the next year, FY '27.

The demand environment across all key verticals—auto, industrial, healthcare, and the emerging IT, railways, and the defense, maritime business—remains encouraging. With that, I'll hand it over to Mr.

Satendra Singh, our CEO.

Thank you, Bijay. Thank you, Gujral, and everyone on the call.

Thank you for joining today. As always, I would start my comments with thanking all my 10,000-plus colleagues in our factories, in our offices, who work day in and day out to ensure that our customers stay delighted and they help us in the growth story which Gujral and Bijay shared with you.

Financial year '26 has been a defining year for Syrma. It's the one where we didn't just grow the top line, but we strengthened every pillar of our business: our people, customers, operations, and supply chain.

On profitability, margin expanded meaningfully across the year. Our gross margin improved from 22.6% to 25.6% year-on-year.

EBITDA margins improved significantly, as Bijay shared. Profit after tax doubled almost year-on-year, and margins touching 7.1%.

This clearly reflects operating leverage at scale. We continue to make improvements in our customer acquisition.

We acquired several customers, and those customers will help us fuel the growth in financial year '27 and onwards. Most importantly, we continue to deepen our engagement with the customers, which is reflecting in larger wallet share with many of our customers and maturity of the programs which we execute with them.

This year, operationally, we have made several improvements. The utilization of our people resources, utilization of our machines have gone up significantly over FY '25.

All the improvements and all the efforts across the operations and across our businesses clearly has been noticed by our customers and by industry alike. We got nine customer awards and 19 industry recognition during the year.

As we know, the supply chains are going through certain anxieties, and our supply chain team and procurement teams across the plants have worked hand-in-hand with our customers to ensure continuity of supply chain and ensuring that we stay competitive together. On people, our engagement continues to improve, and our last Great Place to Work score rose from 83 to 86 this year.

We continue to upgrade our processes across all the areas of our business. Looking ahead, FY '27 reflects strong conviction in our pipeline, our new customer additions, and our operational readiness.

Strong balance sheet gives us the flexibility to invest in this growth while delivering consistent returns. We remain committed to our long-term vision of being India's leading integrated electronics manufacturing partner.

This year, FY '26 has brought us meaningfully closer to that goal. Thank you, everyone, on this call, and once again to our customers, to our colleagues across the factories for great support, and we look forward to similar support in the years ahead.

Thank you once again, and I'll hand it over to Nikhil. Yeah.

Yeah.

Thank you, Satendra. Over to Michelle.

If we can go ahead on the Q&A session. Thank you.

Hi. Congratulations on a good set of numbers, and thank you for the chance.

Two questions from my side. If you can highlight spending capex on key projects, not just for FY '27, but also over the medium term, PCB and any other projects that you're undertaking right now?

Sure, I'll take this one. Overall, the large project which we are taking over right now is a PCB-related business.

PCB-related, we said that we are planning to spend approximately $90 million, which is 800 crores of capex over the years for this multi-layer line kind of a PCB setup. This capex, we are spreading across two phases.

Initial phase is 400 crores, which is going on, and of which about 50 crore is already spent till last year. This year, we are expecting we'll be spending around 250-odd crore rupees against the same project.

Balance 100 can go in the next year. The second phase can be spent over the next year and maybe mid of FY '29 also.

That's what we are spreading that multi-layer business-related 800 crores of capex. Apart from that, organic capex within the system, normal EMS business, we are expecting 100 to 150 crore of capex this year.

Okay. So 100 to 150 is only the organic, and then add to that the 250 crore.

Broadly overall capex something around 350 to 400. When do we expect the incentives or the benefits to come from the government?

Post FY '28, right?

We are expecting commissioning of the project towards the end of this year, maybe start of next financial year, FY '28. Then we will be eligible to claim for the incentive in a part basis.

Generally, I expect at least a year will take to get that incentive finally.

Sure. This is helpful.

Second, while you touched upon it in the opening remarks, if you can get more granular details on the impact of the current geopolitical tension site. Is there an issue in availability of raw materials?

What kind of inflation are you seeing? Are we passing that on, with what lead, lag?

See, the supply chain issues are again global in nature and not specific to one company or one industry. It is a phenomenon where the basic metal prices have gone up, the Middle Eastern crisis has sort of disrupted the supply chain routes, the logistic costs have gone up.

Now these things are a part and parcel of the business, and when all the companies are impacted, sort of it's not unique to us. Having said that, we are in constant touch, and we have contract arrangements with the customers where there's a pass-through mechanism of variation in prices.

Now does it happen on day zero? The answer is no.

It is negotiated and then taken into account. We believe that in the current year, these things would continue to play out till the situation comes back to normal.

We believe that this partial increase in these costs could be offset by better buying—the volumes go up, you get a better negotiation power—operational efficiencies, and then sharing these costs among the four stake—there are essentially four stakeholders in the entire supply chain. In our case, it is our vendor, Syrma SGS, the customers of Syrma, and the ultimate consumer.

Now once the situation sort of stabilizes, then the cost impact will be borne by all the four stakeholders. What is the impact of that, we are not very clear right now.

Having delivered EBITDA margin of 12-odd percent this year, next year we are guiding 10.5% to 11%, keeping this turmoil into account. Now if the situation stabilizes and we come back to normal situations, if it warrants an upward revision beyond that, we will guide the market accordingly.

Sure. This is helpful.

Thank you so much.

Hi, sir. Can you talk on the IT and railway?

We have seen a 182% growth. Can you talk on more sub-segment, how other sub-segment, and what are the key driver for the segment?

See, the IT and the railways are a small portion of our revenue, and again, we don't look at the revenues on a quarterly prism. If I look at it on an overall basis, my IT and railways have gone up from about 240 to about 476 on an annualized basis.

This is, as we said, that the railways, we were in touch with the customers. IT is essentially the laptop-related and the motherboard-related business and the memory-related business which we do.

Going forward, we expect this momentum of 80-odd, 90% not to continue, but it will continue to deliver healthy 30%, 40% growth rates over the coming years.

Okay. Thank you so much, sir.

Good morning, sir. Am I audible?

Yes, please.

Yeah. Thank you for the opportunity.

Congratulations for excellent performance. I was just curious, sir, while you have kind of indicated on the margin front, I'm just trying to dig a bit deeper on this aspect.

You have touched 12% margin for last two quarters, 12.5% and 12%. If you're talking about a similar growth across verticals, why the margin guidance that 10.5% to 11%, despite having an improvement on account of exports, ODM mix going up, and third, the operating leverage?

Just curious, given it's kind of a pass-through arrangements for the cost, any particular reason apart from the generic reasons? What is the reason for the margin guidance?

See, as I just said in the preceding questions, we would like to on the side of caution. The current volatility in the global trade, in the shipping routes, in the geopolitical, the basic metal prices going up, would cause a stress on the economy on a macro level, which is beyond our control.

Hence, we would like to on the side of caution, and we have guided 10.5% to 11% margin despite having delivered 12% margin, to be very honest. Now if three months down the line when we talk, when we meet you again for the Q1 earnings call of FY '27, if the situations have stabilized and we have a better picture, we'd revise the guidance.

We'd like, again, at the expense of repetition, on the side of caution. The pass-throughs are there, but it doesn't happen on day zero.

It takes time. Keeping all the things into account, we have guided that thing.

The more critical thing which we have guided is that we'll deliver a 30% absolute increase in EBITDA.

Understood. If you could comment on each of the segments.

What is the outlook on the growth part, while you have given a broad guidance, if you could give on each of the segments, the key segments?

Which segment? There's a echo in your voice.

Which segment? You'll

have to come closer to the mic. Voice is not clear.

Sorry for that. If you could talk a little bit on each of the segment like auto, consumer, healthcare, is the underlying industry growth is as much?

If this growth is driven by domestic or exports and stuff like that, would give a little bit more detailing on each of these four, five key segments? Yeah.

If we go back to '25, '26, what do we see? We see a 39-odd percent growth in automotive, 30% in industrial, 36% in healthcare, 38—10% in only consumers, and 31—41% growth in exports.

My current order book has the same level of component of each, with automotive accounting for about 30%, industrial about 25%, healthcare about 5%. Based on this, I think we are in a position to deliver a blended growth of about 30%, 35% for the current year.

Individual verticals on a annualized basis, some would be at 35%, some would be at 28%. The industrial growth would primarily be driven by exports and new sort of products which we'll be manufacturing for the power management units and other things.

Automotive would primarily be driven by domestic, though for the first time last year, we have crossed 125 crores in automotive exports. They would register some increase over there also.

Medtech has grown significantly. The healthcare business has gone significantly from 291 to 395 this year, and we expect this continuous growth to happen, which means the next year, my medtech business should cross the 500-crore mark.

Consumer, we are consciously pegging it down at about 30% of our revenue, and which this year it's about 1,452 crores, and 8%, 10% growth, it should be about 1,600, 1,500, 1,600 crore rupees. The blended growth would come in from the dominant sectors of automotive, industrial, healthcare, which is medtech.

IT and railways are a small portion of our revenue. They would grow.

Got it. Thank you.

I'll fall back in the queue, sir. Thank you.

Yeah. Hi.

Thanks for the opportunity. My first question is regarding the total order book.

Between December and March, our order book has grown by almost 3% versus our historical run rate of 7% to 10%. If you can explain, is there any slowdown in terms of order intake, or what is the reason for this?

A better execution or any other factors, if you can provide?

I'll request Bijay to take this answer.

When we see, there is a higher delivery in this quarter. We have done almost 1,500 crores of revenue for the quarter.

This is after executing that quarter four also. The previous quarter is 6,400.

You should actually see if out of 6,400 crore, 1,470 is already delivered during the quarter. Then additionally, we were able to add about 1,670 or 1,700 crore to reach to 6,600 crore level.

The growth is even higher than the previous quarter's net addition. This 200 crore is net addition after the delivery of the quarter.

Right. Basis the current order book and run rate, the overall revenue growth for the next year comes to 24%, whereas we are guiding for 35%.

Are we seeing any order pipeline that we are expecting order intake in coming quarters?

We are guiding actually about 35% of growth for FY '27. This order book is indicative whatever is there in hand today.

This order book, over the next few quarters, has to be continuously upgraded based on as new order addition. All these orders are not for one year.

In this order book, there will be many customers who will be giving you orders for a very shorter period, maybe three months, six months, five months, four months that way. That's how this operates in a way.

See, just to add on, we have achieved a run rate of about 1,465 crores in the current quarter, which is a tad less than sort of 500 crores a month. That's the starting point.

Now if the starting point is 500 crores or 495 crores a month, the run rate, and going forward historically the second half is much better than the first half, we are very confident of delivering the figures which Bijay just pointed out.

As I

said in my opening remarks, my exports are currently at 125 crores run rate, and we are targeting 1,500 crore-plus. We are already at a 6,000-plus crore revenue level at the current run rate.

The second half typically is a superior half in terms of top line and the resultant figures on the bottom line.

Right. Right, got it.

No, wonderful. Sir, just in terms of cash, we are around 470 crores of net cash at this point in time, and basis your capex that you announced for the PCB, if I'm not wrong, we have to spend around 1,400 crores.

After a year, we'll be short of cash, and if you assume another 200, 300 crores of operating cash flows also next year, still we'll be short of cash. How do we plan to fund this, because we've only spent 50 crores for the PCB thing?

This year for the PCB business, we will be spending around 250 crore rupees. For the same, it will be partly funded through debt and partly through internal accruals.

There is a JV partner also. 25% of this capex has to be funded by the JV partner also together.

That's how this has to be funded. Net cash position is 470, but actual cash on the balance sheet is about 820 crore rupees.

We are confident of using this cash on the balance sheet for the growth purpose going forward, and cash flow side we don't see any challenge over here.

Just wanted to understand on the PCB capex, we will not fall short of cash, right? That is what I wanted to understand.

No, we'll not fall short of cash. You see, we have projected about $40 million, which is about 400 crores or whatever, 360, 400 crores, for the current year.

Next year, we'll get a 50%, 60% subsidy of that. This will be a sort of circular thing that you spend in one year, you get back a subsidy in the next year, then you again invest partly from that subsidy, partly from your cash flows and borrowings, and you get back.

We have planned our cash flows that we will not fall short of cash for this project over its execution life cycle.

Perfect. Really helpful.

Wonderful. That's it from my end.

Thank you so much.

Hi. Thank you.

My first question is you recently received ECMS approval for flexible PCB and copper clad laminate. Any color you can provide in terms of the capex which will go into this and over what time frame we could expect?

We got approval for CCL, copper clad laminate, plus HDI and flex PCB, that's another one. Both put together, we will be spending another 800 crores for those projects.

That project capex may get executed somewhere between FY '28 to FY '30, this entire 800 crores.

Got it. The second question is on working capital and cash flows.

How should we think about working capital for next year? Will it keep on coming down, and hence the OCF will keep on going up in FY '27?

See, with the defense business coming in our portfolio, and we have reached a 63 days working capital cycle, the endeavor would be to see if we can bring it down further. How much, by three days, five days, I really can't say.

I think we should be all rest assured that working capital management and capital allocation is one of the prime focus of the management. We are willing to sacrifice top-line growth if the working capital cycle is elongated.

We are not chasing growth at the expense of working capital cycle. We'll be selective in our customers.

We'll be selective in the verticals. Selective is that we'll do our due diligence to ensure that each vertical has its own typical working capital cycle.

We would like to have the best working capital cycle in that vertical. That is reflected in the way we have brought down the working capital cycle over the last four years, four, five.

I think when we started off, it was 90-odd days. From 90 days, last year we came down to 69 days.

This year, if 69 was to compare apple to apple, if I have to exclude Elcome, both from the revenue and the working capital, my days have come down from 69 to 58, which is a 11 days reduction. 11 days on 69 is almost like a 16% reduction, efficiency improvement in my working capital cycle.

That would remain the focus of the management. I think everyone should be rest assured that we'll not let this slip out on an annualized basis.

Quarter-on-quarter, there could be some variations.

Got it. Thank you.

Hi. Good morning, team.

Sir, if you can throw some more insights in terms of the value-add products and inputs that you're targeting within the industrial segment, and how do we see these applications scaling up in our portfolio over the next two years? Some more insights would be helpful.

That's my first question.

See, the superior value addition, as I was saying in my opening remarks, comes in from ODM business, from exports within these each vertical. Each vertical has its own margin profile, and medtech.

Now what do we see? That we have seen our ODM business growing up from 453 crores to 825 crores.

Now this is almost a growth of 70% growth. My exports have gone up by 41%.

Our effort in the current year is to try and sustain the ODM growth to around 16%, 17%. I don't see it going up beyond 17% because we are targeting to grow by 35%, 30%, 35%.

I personally don't see that in the current year the ODM growth would grow. If we are able to sustain it at 17%, it means we have grown the ODM business by another 30%.

17% of the revenue mix.

Yeah. No.

See, if my overall revenue goes up by 35% and if the ODM business has to sustain at 17%, this also has to grow by that rate. A 30% growth on 825 is we have to grow the ODM business by another 250 crore rupees next year in '26, '27.

We'll endeavor to sustain this in the coming year. The profitability would come in from working capital management, exports, medtech, and ODM.

In all these verticals, we are showing a very healthy growth over the last year, and we expect this growth to continue. My exports grew by 41% last year.

I expect them to cross the 1,500-crore mark from the 1,200 crore against the target of 1,100 crores which we had set. A 300 crore in exports, absolute increase in exports, adds to the margin profile.

Long-term would I was just wanting to ask what percentage of the ODM business would be housed in the industrial segment, or how would be the ODM split across key end segments in which we operate?

See, medtech is typically all ODM. If I was to take my healthcare business, which is 395 crores, it's all broadly back-of-the-hand calculations.

We have to split it into the thing, but back-of-the-hand calculations, out of the 825 crores, 395 crores is medtech. Remaining comes in from consumer and industrial.

Automotive has very little ODM business.

Got it.

430 crores is both industrial and consumer, but I don't have the figures of how much of this is among it.

Sure. Sir, secondly, just follow-up and harping a bit again on the margin side.

While I understand you would to be slightly more conservative here, but given that the ODM portfolio exports both are expected to further improve in terms of mix, rupee has been in our favor, which will probably help offset some of other cost headwinds that we're sitting on. There's operating leverage.

Still do you think that the quarterly run rate which you were doing in the second half or mid of the year of 12% will see headwinds of about 200 basis points, or you think the cushion are very thin here and we may not have beyond 100 bps margin cushion?

End of the day, the current situation in the market, volatility and everything, I think we expect that we should have the luxury of being conservative. Let's put it that way.

No point tomorrow I say 12 and I give 11, you'll skim me down why it is 11. We would like to have the luxury of being conservative.

Absolutely. Sir, lastly, just your thoughts on now we are seeing larger players also foray into electronics EMS focusing on industrial and other segments.

How do you see A, the India EMS market growing, and also do you feel that competitive intensity in the domestic space may increase even for experienced veterans like Syrma SGS here despite newer entrants entering in the space? For example, Larsen has recently announced a significant foray in electronics, 50 billion rupees of capex in the next two years.

I'm just trying to connect the dots and see how are you looking at the market outlook.

See, okay. Now we've been in the industry for 40 years.

We've been exporting since '96 when China was at its prime and our exports have grown. Domestic, there are big players already in the country, whether it was Flextronics, whether it is Jabil, whether it is Sanmina.

They were present, not now, they've been present for quite a while. We are competing with tier-2 level global EMS companies.

Competitive intensity would increase. Am I afraid of it?

No. Am I mindful of it?

Yes. How do we take care of that?

I think we can give a far better cost structure than the big corporates within the country. We have to be relentless in our focus on cost control, frugality, efficient buying.

As we get integrated to the global supply chains with our global customers, it gives us the confidence that we are doing something right, otherwise my exports would not have gone up by 41% when there are companies all around the world who are competing for the same business. We are very mindful of the emerging competition, but we welcome it.

We can't stop it, welcome it.

Got it. Understand.

All right, sir. Thank you and best wishes.

Thank you.

Hi. Thank you for the opportunity.

Just want to understand when you talk about 30%, 35% addressable growth in your business going forward for multiple years, this growth is industry growing so fast, or is it more like you're gaining market share, or is it like you are getting in new product segment? How should we see this growth?

I think you have hit the nail on that. You have provided all the answers in your question.

We are gaining market share. We are expanding our portfolio.

Medtech was not there in my portfolio a couple of years back. It is now contributing approximately 7%, 8% of my 8% of my revenue.

Defense has just been added, so that's an incremental sort of a vertical to a thing. We are now migrating to bigger contracts with bigger customers.

It's not one piece which gives me the confidence of a 30%, 35% growth rate. It's a mosaic of all the customers put together, global, domestic, verticals, my ODM business, which gives me the confidence of delivering what I am saying.

This is backed by a very detailed working by our teams, going down to industries, customers, SKU of customers, what are the plans of the customers, how they intend to grow, what is the wallet share which we'll be taking. To us, growth is just a figure.

To me, what is more satisfying is the quality of growth. The quality of growth comes in when I gain market share from my competition, when I gain wallet share from my competition.

On both these two fronts, I think our teams are doing a phenomenally good job.

Got it. What would be the addressable market growth as you cater to multiple segment, but blended, what would be the addressable market growth?

Lastly, when you talk about this growth in FY '28, you will be entering PCB manufacturing business, possibly this growth would be faster because of entry in that segment?

The PCB business would kick in somewhere in '27, '28. Whatever growth I am projecting today for the next year '27, '28 would be the first year when my PCB business will kick in.

If it gives me a 400 crore, 300 crore, 700 crore, whatever is the figure, that will be incremental to this growth. If we are saying we'll grow by let's take a round figure of 30% or 35%, you'll have to calculate on 4,800 crores, it will result into some resultant figure, add another 30%, 35%, that will be the organic growth in '27, '28.

Add the PCB to that. So '27, '28 logically the growth should be superior to 30%, 35% because of the addition of the PCB vertical.

Fine,

sir. One of my question was what would be the addressable market growth where you are catering?

See, the addressable market is so huge what we're talking of, we are not even a billion-dollar company. If you take the likes of Jabil and all that, there will be multibillion, $20 billion, $25 billion company.

I think addressable market is sort of just a feel-good factor that this is a big market what we are addressing. What we are concentrating is the market is there.

We should be able to consistently deliver 30%, 35% growth over the next 2 to 5 years, organic coupled with inorganic when we grow big.

Maybe if I just could add on, as a business, we are addressing not only India, we are addressing global. If you see our numbers, 25% of our revenue comes from exports.

Global addressable market for reference is about north of $600 billion. Today what we report to you is, give or take, about $500 million-plus revenue.

There is huge potential for growth. That's the market we are looking at addressing overall.

Got it. That is very helpful.

Thank you so much.

Yeah. Thank you for opportunity and many congratulations for a very good set of numbers.

The first question is related to the export. As you had guided for 1,500-odd crore for '27, and also in the last call, you had highlighted the strong EU market exposure is driving your number.

If you can give some color on how the EU market and how much is the contribution and how is the growth going there?

See, my growth in exports last year has been 41%, and what we are targeting this year is less than 30%. If I do 1,560, it will be about 30%, I'm guiding 1,500.

These are based on the customers which are on board, where we have started supplying. Some of the new customers which we have onboarded this year, which means till March '26, would go on stream on a pilot basis in '26, '27.

That gives me the confidence that '27, '28, the customers which would have 2, 5, 10, 15, 20 crores of revenue in FY '26, '27 would have the potential to cross the 50-crore revenue, 100-crore revenue, 40-crore revenue in '27, '28. We believe that with the existing customers already sort of reaching their regular optic levels, the new customers which you have onboarded, which would be doing the prototyping this year, the growth of exports of about 25% minimum over the coming years is a distinct possibility, and we would be able to achieve that.

If some of the major customers which you have onboarded, they have the potential to further accelerate the export growth. For the time, we are being conservative and putting in a target of 20% to 30%, 25% to 30% export growth for the coming year.

Any contribution from the EU, can you highlight?

Sorry?

If you're talking about EU FTA, that has a positive impact in a way that, maybe sentimentally, psychologically, there will be larger business opportunities that are available which we can expand further. In terms of number, yes, in few of the select cases, there was a duty applicable of about 1%, 1.5%.

That is a financial benefit one can look for going forward.

See, these FTA agreements don't typically have a immediate positive or negative impact. You see, it takes time for the negativity to set in.

In negativity, it is slightly faster. In case of positivity, it is slightly slower.

Long-term impact is very, very positive, and I believe that we are very well-positioned to take benefit of the FTAs which the Government of India has signed with EU, with America, with New Zealand, Canada, and other things.

Okay. Next question is related to the Syrma and the Premier which decided to not go with the K-Solar acquisition.

Is there any expense related to that we have accounted? Related to that is See,

there was very little expense related to the K-Solar acquisition. Whatever has been spent has been charged off to the P&L.

There was certain conditions precedent which K-Solar had to comply with. When they expressed their inability to comply with, we both decided that it was best to drop the deal.

We have dropped the plans to acquire K-Solar, but I would like to reiterate that we have not dropped the plans not to be in the renewable energy space. We have very solid intent of entering the renewable energy space market in the inverter business and the related products.

Instead of a inorganic acquisition, we would now be putting up a greenfield project. Currently, we are evaluating various proposals which we have got from the technology partners.

I would not be able to give a color on that because nothing is firmed up, but I think in the coming quarter or something, we should come back to share our plans on that. Renewable energy space is very much in our focus for future growth.

Thank you. Anything on the PLI benefit for a full year?

Last quarter, you had given indication of a 30 to 32 crore for '26. How much PLI benefit we received?

Gross PLI for the full year would be approximately 80 crore rupees, and post sharing, we are expecting net PLI would be approximately 38 crore rupees for the year FY '26.

Thank you, sir, and all the best.

Thank you for the opportunity, and congratulations for a good set of results, sir. Sir, just continuing with the Q4 PLI number also.

Q4 PLI.

Q4 PLI, proportionate number would be approximately 10 crore rupees.

Okay. Sir, just wanted to understand that the order inflow of 6,200 crores include majority inflow from consumer and IT business, around 44%.

If I include also, that comes around to 70%. Just want to understand that these are relatively lower-margin business where the ODM share from these business are very low.

The guidance of 10%, 10.5% is because of the increasing share of lower-margin business? Is that right understanding, apart from the supply chain issue which you highlighted?

Order book is just an indication, first of all. Order book is not a clear reflection of the similar way percentage for the full year of business.

In order book, you can see current order book for industrial business is 24% only, because in industrial segment, customers generally does not give you maybe more than 12 months kind of a order book initially. That's how generally it follows.

My business mix, mostly we are expecting it should remain same as it was in FY '26. Consumer should be around 30%, 32%.

IT business, yes, it is growing. It can be around IT plus railways around 10%, and about 25% of auto business, and 28% to 30% of industrial business.

Keeping the same, my margin would be in check. Yes, as Mr.

Gujral has already guided, we are expecting because IT business is also slightly growing and maybe some bit of geopolitical factors which are also impacting, including raw material prices increase, that's where we are guiding for this margin.

Understood. Sir, one last question from my side.

Sir, can you throw in more light on this smart metering business? How much is it in the order book, and how much did we do in FY '26?

A related question to that would be that, sir, can we consider Elcome business to be similar to smart meter business, which is high working capital intensive, but also gives us high margins?

Smart metering business, we have done in the current year approximately 250, 260 crores of total business. In the order book, I need to check exactly what's the number is, but as Mr.

Gujral has already explained that we are going slightly selective here, keeping the working capital balance in measure here. That's how we are following.

Sir, on the Elcome and smart metering business, are they almost similar because not in terms of industry, but in terms of high working capital and high margins, which can impact future working capital days for us?

The smart metering business is not a high-margin business. It is a normal industrial.

It would come lower in the industrial category. In terms of margin profile, the two businesses cannot be compared.

One is a superior, very high margin business. The smart metering business is not a very high margin business.

It's a moderate, 15-odd percent gross material margin business, 12% to 15% gross margin material business. It has the same elongated working capital cycle.

Hence, the profitability of a smart metering business, if you are not choosy about your customers, if you chase revenues, would be suspect. In case of defense, despite its longer working capital thing, but since it's a very high margin business, it's a ODM, you give a solution to the customer, it is offset such that even the higher working capital cycle results in a very superior EBITDA margin business.

If I just shared that if we were to exclude Elcome business from our working capital for a minute and exclude its revenue, my working capital cycle for my business is down from 69 to 58 days. With Elcome, it is down to 63 days.

Elcome on its own, the business is notorious for long, 3 to 5 months, 6 months working capital cycles. Since it forms a very small portion of our revenue, I don't see it negatively impacting my overall working capital cycle significantly.

Got it. Sir, just if I can add one more question.

Sir, what will be the percentage of order book from Elcome in the total order book?

In the total order book, Elcome's order book would be approximately 5%.

Okay. Thank you.

That's all from my side.

Hi, sir. Good morning, and congratulation on a great set of numbers.

I have two questions. First one being that while we're on track to grow at around 30%, 35% for FY '27, can you possibly discuss how are we going to get that growth?

Possibly some client additions which you would have added through FY '26, and for what applications would that be across segments which will sort of help us get that growth? The second question would be, I'm assuming that the defense number is coming in the industrial piece right now.

If we exclude that, we have seen some softness out there as indicated by you for smart meters. Going forward, ex of the defense business, some color on the applications in industrial, which would sort of help us continue the growth profile?

Thank you.

Okay. Now going forward, we are projecting a growth of 30%, 35%, and that backed by the orders which we have in hand and the visibilities which you have received from the customers.

We expect the businesses to grow equally sort of at the same pace. Automotive, this year has grown by 39%.

Healthcare has grown by 36%. Industrial, including Elcome, has grown by 30%; excluding Elcome, it would be slightly lower.

Some of the new customers in the power management sector and the UPS sector and those industrial electronics and controls would give us the revenue in the next year. We have added how many customers last year, Bijay?

So

32 customers is what we have onboarded in the last year. Of which, if we talk about industrial, about seven customers we have onboarded on the industrial segment.

In fact, if we talk about applications, it is varying across fuel injection systems, solar trackers, data center applications-related motherboards, liquid processing machines for FMCG, as well as utility applications. Those kind of applications for which we have added this customer here.

When we talk about these 32 customers, they have a potential to add at least 1,000 crore-plus in my current year revenue of FY '26, and full potential, maybe about 2,500 crore-plus in a long-term basis per annum.

Got that, sir. Thank you.

That was helpful. Congratulations, and wishing you all the best for the new year.

Thank you. Thank you.

Thank you. On a overall basis, a very satisfying year, but that's past.

We have to focus on what we are going to do in the future. As we have all the time been saying, that we would like to build a sustainable business which has superior margin profile, which has a decent component of export and ODM.

On all these fronts, I think we are well-poised to achieve that. We are relentlessly focusing on quality and environment.

A small issue, but would like to share with you that we are the first company in the country to get a certification for automotive electronics, information security for automotive industry, known as TISAX. I didn't know it about 6, 7 months back.

We were sort of informed by one of our overseas customers, which we are starting off the production somewhere towards the end of the year, which will give us a series production in '27, '28, to get the certification. We are relentlessly focused on building top-notch factories with solid processes to give us operational efficiencies.

We are among the first Indian company to have a real-time monitoring system on our SMT lines. It is being inducted in phases over all the plants.

The initial results have been very, very encouraging. We have seen a 5% to 7% improvement in the operational efficiency.

I think broad customer base, solid customers, reputed blue-chip companies, leaders in their vertical, very strong set of operational parameters in place at the plants, and a hunger for growth and hunger for learning. I think these two, three factors define the DNA of Syrma SGS.

I think going forward in couple of years when we again talk, I think Syrma would be at a different platform level in terms of revenues and product mix which it is servicing, and the customer profile which it is servicing. This is a journey.

It's not a 100-meter sprint. It's a marathon which we are running, but mindful of meeting the Street expectations on a quarterly and annual basis.

I think we are well-poised to be among the top leading companies globally also. Currently, I was told we are ranked somewhere about 65 globally.

I was reading in some EMS magazine. The effort is to keep graduating, that Syrma SGS is the first brand which is recalled in the mind of a potential customer when he is looking for an EMS or ODM business.

With this, I thank everyone for the support, all the stakeholders: the vendors, the employees, the bankers, the investors, for the faith reposed in the management of Syrma SGS, and we on our part would ensure that we build an institution which is par excellence in the country. Thank you.