Board Meeting Outcomes

The Board of Directors of Syrma SGS Technology Limited met on July 29, 2026 (12:45 PM to 3:15 PM IST) and approved the following matters:

1. Unaudited Financial Results: Approved standalone and consolidated financial results for quarter ended June 30, 2026, along with limited review report.

2. Re-appointment of Executive Chairman: Re-appointed Mr. Sandeep Tandon (DIN: 00054553) as Executive Chairman for further five years from October 1, 2026 to September 30, 2031, subject to shareholder approval.

3. Fundraising: Approved raising funds up to ₹1000 Crores through Qualified Institutional Placement (QIP) or other permissible modes.

4. Cost Auditor Appointment: Appointed M/s Umesh Sagta & Associates, Cost Accountants (FRN:001801) as Cost Auditors for FY 2026-27, subject to shareholder remuneration confirmation.

5. AGM Convening: 22nd Annual General Meeting scheduled for Tuesday, August 25, 2026 at 4:00 PM via VC/OAVM.

Standalone Financial Results (Quarter Ended June 30, 2026)

Income Statement Highlights (Amount in ₹ million):

  • Revenue from operations: ₹14,428.21
  • Other income: ₹126.84
  • Total income: ₹14,555.05
  • Cost of materials consumed: ₹13,103.68
  • Employee benefits expense: ₹483.07
  • Finance cost: ₹113.09
  • Depreciation and amortization: ₹172.33
  • Other expenses: ₹1,366.54
  • Total expenses: ₹13,314.97
  • Profit before tax: ₹1,240.08
  • Tax expense: ₹299.47 (Current tax: ₹269.65, Deferred tax: ₹29.82)
  • Profit after tax: ₹940.61
  • Other comprehensive income (net of tax): (₹9.29)
  • Total comprehensive income: ₹931.32

Key Metrics:

  • Basic EPS: ₹4.88 (face value ₹10 per share)
  • Diluted EPS: ₹4.88
  • Paid-up equity share capital: ₹1,926.09 million

Comparative Performance:

  • Revenue growth: 59% YoY (vs ₹9,080.56 million in Q1 FY26)
  • PAT growth: 75% YoY (vs ₹537.73 million in Q1 FY26)

Consolidated Financial Results (Quarter Ended June 30, 2026)

Income Statement Highlights (Amount in ₹ million):

  • Revenue from operations: ₹15,886.18
  • Other income: ₹150.64
  • Total income: ₹16,036.82
  • Total expenses: ₹14,628.62
  • Profit before tax: ₹1,408.20
  • Tax expense: ₹351.28
  • Profit after tax: ₹1,056.92
  • Total comprehensive income: ₹1,049.72
  • PAT attributable to owners: ₹1,000.74
  • PAT attributable to non-controlling interests: ₹56.18

Key Metrics:

  • Basic EPS: ₹5.19 (face value ₹10 per share)
  • Diluted EPS: ₹5.19
  • Paid-up equity share capital: ₹1,926.09 million

Important Notes to Financial Results

IPO Proceeds Utilization (as of June 30, 2026):

  • Funding capital expenditure: ₹4,030.00 million (fully utilized)
  • Funding working capital requirements: ₹1,315.80 million (fully utilized)
  • General corporate purposes: ₹1,911.42 million (fully utilized)
  • Total utilization: ₹7,257.22 million (100% of net IPO proceeds)

Business Segment:

The Company operates in one reportable business segment - Electronics Manufacturing Services (EMS).

Kaga Electronics Joint Venture:

During the quarter, the Company executed an electronic manufacturing services business agreement with Kaga Electronics India Private Limited. The Company shall invest for up to 60% ownership stake in a new company to be incorporated, with Kaga investing for up to 40% stake. The transaction is subject to customary conditions precedent.

Amalgamation Impact:

The Scheme of Amalgamation between SGS Infosystems Private Limited, SGS Tekniks Manufacturing Private Limited and Syrma SGS Technology Limited was approved by NCLT on October 7, 2025 with appointed date of April 1, 2023. The comparative figures for Q1 FY25 have been restated accordingly:

  • Revenue from operations increased from ₹5,617.47 million to ₹9,080.56 million
  • Profit before tax increased from ₹355.34 million to ₹713.10 million
  • Profit after tax increased from ₹267.51 million to ₹537.73 million

Subsidiary Investment:

During the quarter, the Company made additional investment of ₹326.99 million (1,143,322 equity shares) in Syrma SGS Design & Manufacturing Private Limited. The subsidiary also issued 768,881 equity shares to Elemaster S.P.A. Tecnologie Elettroniche for ₹219.90 million. The Company holds 60% equity stake in this subsidiary as of June 30, 2026.

Dividend:

The Board recommended final dividend of 15% (₹1.5 per share of ₹10 each) for FY 2025-26, subject to shareholder approval.

Auditor's Review Report

Walker Chandiok & Co LLP issued unmodified review reports on both standalone and consolidated financial results. The review highlighted:

  • The amalgamation accounting treatment using pooling of interest method
  • Reliance on review reports of other auditors for 13 subsidiaries
  • One subsidiary's financial information was not reviewed by their auditors but was not material to the Group

Management Appointments

Mr. Sandeep Tandon Re-appointment Details:

  • Distinguished technology catalyst and entrepreneur with 25+ years experience
  • B.S. in Electrical Engineering from University of Southern California
  • Co-founder of FreeCharge (acquired by SnapDeal)
  • Director of Infinx Technology Solutions Private Limited
  • Independent Director in Aavas Financier Limited and 360 One WAM Limited
  • Related to Mr. Sudeep Tandon (Brother)

Cost Auditor Appointment:

M/s Umesh Sagta & Associates appointed for FY 2026-27, specializing in statutory cost audit, cost management solutions, and financial optimization strategies.