Syrma's growth stays high, but margin falls for a third straight quarter
Revenue rose +73.64% YoY, yet faster cost growth and higher interest kept operating margin below the Industrials peer median.
Filed 30 Oct 2026, 21:11 IST · after market close · Syrma SGS Technology Ltd (SYRMA)
Key takeaways
- Consolidated revenue rose +73.64% year on year, but expenses grew faster at +74.30%, narrowing operating margin by 0.35 percentage points.
- Net profit grew +87.22% year on year as the tax rate fell by 1.06 percentage points, partly flattering earnings growth.
- Operating margin fell for a third straight quarter to 9.71%, leaving it 2.72 percentage points below the Industrials peer median.
Price around the results
Revenue scaled, but profit conversion lagged
Syrma SGS Technology reported consolidated revenue growth of +73.64% year on year and +25.25% sequentially in Q2FY27. Operating profit grew more slowly year on year at +67.72%, as expenses rose +74.30%, while sequential operating-profit growth of +19.62% also trailed revenue growth. Net profit growth was faster at +87.22% year on year, helped by a lower tax rate.
Faster cost growth and higher interest weighed on margins
Expenses grew +74.30% year on year against +73.64% revenue growth, narrowing operating margin by 0.35 percentage points to 9.71%; sequentially, the margin fell by 0.46 percentage points as costs rose +25.88% against +25.25% revenue growth. Interest expense increased +20.82% year on year and +14.39% sequentially, adding pressure below the operating line. The tax rate fell by 1.06 percentage points year on year and 0.13 percentage points sequentially, while other income contributed 5.97% of pre-tax profit.
The margin decline has now lasted three quarters
Operating margin has declined from 12.61% in Q3FY26 to 11.89% in Q4FY26, 10.17% in Q1FY27 and 9.71% in Q2FY27. It was 2.72 percentage points below the 12.43% median among 75 Industrials companies that had reported the quarter. This makes the sequential margin slippage part of a sustained direction rather than a one-quarter move.
Results were filed after market close
There was no immediate market reaction because the consolidated results were filed after market close. Across the eight most recent results reactions, the stock rose five times and fell three times, with a median absolute move of 5.10%, so its historical response has been mixed but material.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,990 cr | ₹1,589 cr | +25.25% | +73.64% |
| Other income | ₹10 cr | ₹15 cr | -34.46% | +12.93% |
| Expenses | ₹1,796 cr | ₹1,427 cr | +25.88% | +74.30% |
| Operating profit | ₹193 cr | ₹162 cr | +19.62% | +67.72% |
| Operating margin (%) | 9.71% | 10.17% | — | — |
| Interest | ₹15 cr | ₹13 cr | +14.39% | +20.82% |
| Depreciation | ₹23 cr | ₹22 cr | +0.84% | +3.80% |
| Profit before tax | ₹165 cr | ₹141 cr | +17.32% | +84.59% |
| Tax | ₹41 cr | ₹35 cr | +16.74% | +77.07% |
| Net profit | ₹124 cr | ₹106 cr | +17.51% | +87.22% |
| EPS (₹) | ₹6.08 | ₹5.19 | +17.15% | +76.74% |
Operating margin of 9.71% compares with a Industrials sector median of 12.43% across 75 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 9.71% after three consecutive quarterly declines.
- Whether expense growth falls below the +73.64% year-on-year revenue growth rate.
- Whether interest expense moderates after rising +20.82% year on year.