Syrma profit more than doubled YoY, but margin fell for a second quarter
Revenue grew 8.44% sequentially, but faster cost growth and a higher tax rate cut net profit 11.36% from Q4FY26.
Filed 29 Jul 2026, 17:35 IST · after market close · Syrma SGS Technology Ltd (SYRMA)
Key takeaways
- Consolidated net profit rose 111.72% year on year to Rs 105.69 cr, helped by 68.29% revenue growth and a 0.99 percentage-point margin expansion.
- Sequentially, operating margin narrowed 1.72 percentage points to 10.17% as expenses grew 10.55%, faster than revenue at 8.44%.
- Syrma's 10.17% operating margin was 4.47 percentage points below the 14.64% median for 27 Industrials peers that had reported.
Price around the results
Profit growth stayed strong year on year
On a consolidated basis, revenue increased 68.29% year on year, while expenses grew 66.45%, allowing operating profit to rise 86.54%. Net profit grew faster at 111.72% as interest expense fell 10.65% and the tax rate declined 0.71 percentage points. Other income contributed 10.69% of profit before tax, so reported profit also included a meaningful non-operating component.
Sequential momentum came with margin pressure
Revenue rose 8.44% sequentially, but expenses grew 10.55%, which reduced operating margin by 1.72 percentage points. The higher cost growth cut operating profit 7.22% and net profit 11.36%; the tax rate also increased 4.24 percentage points. This was the second consecutive quarterly decline in operating margin, from 12.61% in Q3FY26 to 11.89% in Q4FY26 and 10.17% now.
Margin remains below the reported peer median
Syrma's 10.17% operating margin was 4.47 percentage points below the 14.64% median among 27 reported Industrials peers. The company stood ninth from the bottom on this measure, placing the sequential margin decline in a weaker sector-relative context.
Results were filed after market close
The consolidated results were filed after market close on 29 Jul 2026, so there was no immediate market reaction to assess. Across the stock's last eight result reactions, moves were evenly split between four rises and four falls, with a median absolute move of 6.8%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,589 cr | ₹1,465 cr | +8.44% | +68.29% |
| Other income | ₹15 cr | ₹11 cr | +41.54% | -6.11% |
| Expenses | ₹1,427 cr | ₹1,291 cr | +10.55% | +66.45% |
| Operating profit | ₹162 cr | ₹174 cr | -7.22% | +86.54% |
| Operating margin (%) | 10.17% | 11.89% | — | — |
| Interest | ₹13 cr | ₹13 cr | +2.46% | -10.65% |
| Depreciation | ₹22 cr | ₹21 cr | +5.09% | +9.28% |
| Profit before tax | ₹141 cr | ₹150 cr | -6.36% | +109.71% |
| Tax | ₹35 cr | ₹31 cr | +12.78% | +103.89% |
| Net profit | ₹106 cr | ₹119 cr | -11.36% | +111.72% |
| EPS (₹) | ₹5.19 | ₹5.29 | -1.89% | +86.02% |
Operating margin of 10.17% compares with a Industrials sector median of 14.64% across 27 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 10.17% after two consecutive quarterly declines.
- Whether expense growth falls below the 8.44% sequential revenue growth rate.
- Whether the tax rate moves back from 24.95% toward the 20.71% reported in Q4FY26.