With investments in electronic components and international partnerships, Syrma SGS is expanding the scope of its electronics manufacturing business. Its next chapter will depend on how effectively these capabilities come together.
For an electronics manufacturer, growth can take several forms. More customers bring additional orders. New factories expand production capacity. A move into engineering, the components ecosystem or specialised products changes something more fundamental: the role the company plays in its customers’ businesses.
Syrma SGS Technology is pursuing that broader opportunity. Having built an industry-agnostic electronics manufacturing business in the flexible-volume, high-mix segment, the company is expanding into capabilities that could give it greater involvement in how products are designed, sourced and manufactured. Its recent investments in printed circuit boards, defence and maritime technology, medical technology and international partnerships suggest an enterprise preparing for a different scale of responsibility. The emerging strategy connects several businesses with different operating demands.
Automotive electronics requires consistency and rigorous qualification. Industrial customers value reliability and continuity. Med-tech brings regulatory complexity. Component manufacturing requires engineering, process expertise and capital. Bringing these capabilities together could broaden the company’s relevance to customers, provided expansion is matched by execution.
For Sandeep Tandon, Executive Chairman of Syrma SGS Technology, the next phase is about building an organisation capable of participating more deeply in the electronics industry. “We have reached a stage where we can build on the manufacturing foundation and take a longer view of the business,” says Tandon. “Our investments are directed towards capabilities that strengthen our relevance to customers. Engineering, components and specialised manufacturing each have a role to play in the company we are building.”
The financial performance provides a stronger starting point. In FY26, Syrma SGS reported consolidated revenue from operations of Rs4,819.1 crore, an increase of 27.2 per cent over the previous year. Operating EBITDA, excluding other income, rose 68.2 per cent to Rs544.5 crore, while profit after tax increased 87.5 per cent to Rs345.8 crore. Operating EBITDA margin improved to 11.3 per cent, from 8.6 per cent. The challenge now is to carry that progress into a business that is becoming broader and more complex.
A foundation built
Syrma SGS combines the experience of the Syrma and SGS businesses, drawing on more than four decades of electronics manufacturing heritage. Its leadership brings complementary perspectives. Tandon has an engineering background and experience in electronics manufacturing. The company’s MD, Jasbir Singh Gujral, a chartered accountant and founding promoter of SGS Tekniks, brings extensive operating experience in the sector.
Those backgrounds are relevant to a business in which commercial ambition must translate into detailed operating decisions. A customer’s product has to move through component procurement, production planning, assembly, testing and delivery. Each stage affects cost, quality and the ability to meet schedules. An electronics manufacturing relationship is therefore built through repeated performance. A customer may initially evaluate capacity and pricing, but the relationship develops around how a manufacturer handles production changes, component shortages, quality issues and new product introductions.
“Customers place a great deal of trust in a manufacturing partner,” says Gujral. “Their product, delivery commitments and reputation depend on the work being done correctly. We have to demonstrate that reliability every day, across every programme.”
That operating foundation provides context for Syrma SGS’s expansion. New capabilities will have to meet the standards of existing customers while helping the company qualify for more demanding assignments.
Engines of growth
The breadth of Syrma SGS’s business is already visible in its revenue composition. In FY26, industrials contributed approximately 29 per cent of operating revenue, automotive 24 per cent, consumer electronics 30 per cent, healthcare 8 per cent, and IT and railways 9 per cent. Automotive revenue grew 39 per cent during the year, industrials 30 per cent, healthcare 36 per cent, and IT and railways 74 per cent. These businesses expose the company to different customer requirements and demand cycles.
They also offer different routes to growth. An existing customer may introduce additional products, increase production volumes or seek support in another geography. Engineering involvement can lead to a manufacturing assignment. A specialised capability can create access to a new customer group. The opportunity lies in developing these relationships systematically. Diversification by itself does not ensure resilience; each business needs sufficient depth, management attention and commercial discipline.
“We see considerable scope to grow within the industries we already serve,” says Tandon. “As customers increase the electronic content in their products, the requirements become more demanding. Our responsibility is to understand where those requirements are heading and build the capabilities to support them.” This places customer selection alongside capacity expansion as an important strategic decision. The quality of a programme depends on its commercial terms, technical requirements, working capital needs and potential to develop over time.
A more substantial engineering role could help Syrma SGS participate earlier in those customer decisions. The company’s services encompass engineering and technology support, PCB assembly, complete product assembly, tester development, repair and rework. Its offering also includes magnetics, RFID and medical technology capabilities. Together, these provide several points of engagement across the product lifecycle. The timing of that engagement matters. Decisions taken during design influence the availability of components, ease of assembly, testing procedures and eventual production cost. Identifying a constraint before manufacturing begins can save time and reduce expensive changes later.
For the manufacturer, early involvement also develops a more detailed understanding of the customer’s product. That knowledge can prove valuable when the product is upgraded, production volumes change or components become unavailable.
“Engineering and manufacturing have to communicate closely,” says Gujral. “A product may work well as a prototype, but scaling it introduces another set of considerations. We can contribute by helping customers think through component choices, testing and production requirements early in the process.” The commercial value of such work ultimately depends on measurable outcomes: a smoother production launch, better yields, dependable quality or a more manageable cost structure. Building that record can deepen a relationship beyond individual purchase orders.
The proposed printed circuit board facility at Naidupeta in Andhra Pradesh represents one of the clearest expressions of Syrma SGS’s next phase. The company announced the start of construction in December 2025 through its subsidiary, Shinhyup Syrma Circuits. . The project involves a partnership with South Korea’s Shinhyup Electronics, bringing PCB engineering expertise to the planned operation. The facility is intended to manufacture both single-layer and multilayer boards.
PCBs sit at the foundation of electronic products, connecting the components that enable them to function. Their manufacture involves a different set of processes from assembling components onto a finished board.
For Syrma SGS, entering this area expands its participation in the supply chain. It could also create opportunities for closer coordination between board requirements, engineering and downstream manufacturing.
“Components are an important part of the long-term electronics opportunity,” says Tandon. “The PCB investment is a deliberate step towards building a broader capability base. We want the business to develop around technology, customer requirements and a clear understanding of what it takes to manufacture competitively.”
The project will bring its own execution milestones. Equipment installation must be followed by stable processes, acceptable yields and customer qualification. Capacity becomes commercially valuable when it can repeatedly produce boards that meet customer specifications at a competitive cost. That progression will be an important test of the company’s ability to translate a strategic investment into an operating business.
A different discipline
Med-tech is another area in which Syrma SGS is developing specialised capabilities. Through Syrma Johari MedTech, the group offers services covering medical-device design, engineering, manufacturing, regulatory support and product lifecycle management. Its capabilities include precision manufacturing and medical plastics, serving applications such as diagnostics, patient monitoring, critical care and rehabilitation.
Medical devices bring together engineering performance and regulatory responsibility. Documentation, traceability, validation and change control can influence decisions throughout development and manufacturing.
For a customer, coordinating these requirements across several suppliers can be demanding. A partner capable of managing more of the process can offer practical value, particularly when a product moves from development into commercial production.
“In healthcare, the manufacturing process has to reflect the purpose of the product,” says Gujral. “Quality systems, documentation and engineering decisions are closely connected. Building a strong business in this sector requires patience, specialised teams and consistent attention to detail.”
The broader opportunity is to combine electronics expertise with additional manufacturing capabilities. Medical plastics, for example, involve different processes but can form part of the same finished device.
Successfully coordinating those disciplines could increase the range of work the group can undertake. It also requires the organisation to preserve the specialised standards on which medical-device customers depend.
International partnerships provide another route to expanding the business. In 2026, Syrma SGS announced a joint venture with Kaga Electronics India, focused on an advanced electronics manufacturing operation serving Japanese customers. The announced structure gives Syrma SGS a 60 per cent holding and Kaga a 40 per cent holding, with total investments of Rs25 crore.
The strategic logic is to combine manufacturing capability in India with access to customer relationships and market knowledge. For customers evaluating a production location, a familiar business partner can help bridge the distance between an initial assessment and a commercial programme.
Partnership for expansion
The partnership also illustrates how Syrma SGS is approaching expansion: identifying a capability or market opportunity, then working with a partner whose contribution complements its own. “A partnership should make the customer proposition stronger,” says Tandon. “We look at what each organisation brings, how responsibilities will be managed and whether there is a sound basis for building the business over time. The relationship has to translate into execution.”
That last point will determine the value of the approach. Agreements establish the framework, but the resulting business depends on customer conversion, programme launches, quality and delivery.
As partnerships develop, the company will also need to balance common operating standards with the specific requirements of each relationship.
Syrma SGS entered FY27 with continued growth. For the June 2026 quarter, it reported revenue from operations of approximately Rs1,588.6 crore, operating EBITDA of Rs161.6 crore and profit after tax of Rs105.7 crore. Exports accounted for 24 per cent of operating revenue. Supporting a larger business requires resources well before revenue is collected. Components have to be purchased, inventories positioned and production prepared. New customer programmes can require working capital during their initial ramp-up.
The company’s June-quarter disclosures showed net working capital days increasing to 71 from 63 at the end of March. This reflects strong customer onboarding and ramp-ups, as well as inventory requirements for critical components. It also reported a net cash position of approximately Rs122.4 crore at quarter-end.
These figures highlight an important part of the growth equation. Supply security and cash efficiency have to be managed together. Holding additional inventory may protect production, but its value depends on the strength of demand visibility and the ability to convert it into deliveries.
“We have to evaluate growth through the full operating cycle,” says Gujral. “Revenue, profitability, inventory and cash are connected. As the business expands, the discipline around those decisions becomes even more important.”
Syrma SGS’s next act will therefore be judged through the connections between its investments. Engineering must support stronger customer programmes. Component manufacturing must establish quality and commercial competitiveness. Healthcare must build specialised relationships. Partnerships must generate sustained business. Across the group, management systems have to support a larger enterprise while keeping accountability close to operations.
There is also an organisational dimension. New businesses bring different skills, practices and customer expectations. Integrating them requires clear responsibilities, capable leadership and a willingness to share expertise across teams. The potential is a company with more ways to serve customers and a deeper role in the products it manufactures. The work ahead lies in making that breadth productive.
For Tandon, that is the central purpose of the next phase. “We want each investment to strengthen the enterprise,” he says. “That means building teams, developing customer relationships and maintaining the discipline to execute well. Over time, the success of this strategy will be reflected in the quality of the business we create and the confidence customers place in us,” concludes Tandon.