Syrma's profit rises 66.87% YoY, but sequential margin slips
Revenue growth remained strong, though faster cost growth cut operating margin after two consecutive quarterly increases.
Filed 23 May 2026, 18:47 IST · after market close · Syrma SGS Technology Ltd (SYRMA)
Key takeaways
- Consolidated revenue grew 58.49% year on year, while net profit rose 66.87% to Rs 119.23 cr.
- Operating margin fell 0.72 percentage points sequentially because expenses grew 16.84%, faster than revenue at 15.89%.
- Other income accounted for 7.08% of pre-tax profit, while the tax rate was 2.76 percentage points lower year on year.
Price around the results
Revenue growth lifted Q4FY26 profit
Syrma SGS Technology reported consolidated revenue growth of 58.49% year on year and 15.89% sequentially, with operating profit rising 62.00% and 9.25%, respectively. Net profit grew 66.87% year on year and 8.09% sequentially to Rs 119.23 cr. The year-on-year profit increase also benefited from a lower tax rate and a 16.81% decline in interest expense.
Sequential cost growth narrowed the margin
Expenses grew 16.84% sequentially against 15.89% revenue growth, reducing operating margin by 0.72 percentage points. Year on year, expenses grew slightly slower than revenue, allowing margin to improve by 0.26 percentage points. Other income was 7.08% of pre-tax profit, so reported earnings included a meaningful non-operating contribution.
Margin eased after two quarters of improvement
Operating margin had risen from 9.18% in Q1FY26 to 10.06% in Q2FY26 and 12.61% in Q3FY26 before falling to 11.89% in Q4FY26. Despite the year-on-year improvement, the margin was 3.77 percentage points below the 15.66% median for 71 Industrial peers that had reported the quarter. The company ranked 21st from the bottom on this comparison.
Management disclosed FY26 investment of Rs 7,420 million
Management said the company invested Rs 7,420 million in capex and investments during FY26. The disclosure provides context for the business's expansion spending alongside the quarter's revenue growth, but the sequential margin decline shows that costs still grew faster than sales in Q4FY26.
Recorded result reaction was smaller than the stock's usual move
In the latest recorded result reaction, the stock fell 3.36% on day zero and 11.55% by day five, while its relative return was -10.71% at day five.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,465 cr | ₹1,264 cr | +15.89% | +58.49% |
| Other income | ₹11 cr | ₹7 cr | +53.98% | -52.22% |
| Expenses | ₹1,291 cr | ₹1,105 cr | +16.84% | +58.03% |
| Operating profit | ₹174 cr | ₹159 cr | +9.25% | +62.00% |
| Operating margin (%) | 11.89% | 12.61% | — | — |
| Interest | ₹13 cr | ₹8 cr | +69.53% | -16.81% |
| Depreciation | ₹21 cr | ₹20 cr | +5.52% | +3.13% |
| Profit before tax | ₹150 cr | ₹138 cr | +8.70% | +61.06% |
| Tax | ₹31 cr | ₹28 cr | +11.13% | +42.11% |
| Net profit | ₹119 cr | ₹110 cr | +8.09% | +66.87% |
| EPS (₹) | ₹5.29 | ₹5.33 | -0.75% | +44.14% |
Operating margin of 11.89% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.36% | -1.53% |
| Next session | -6.92% | — |
| 5 sessions | -11.55% | -10.71% |
| 15 sessions | +7.43% | — |
| 30 sessions | +28.05% | — |
Volume on the results session was 7.11× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company invested ₹7,420 million in capex and investments during FY26.
What to watch
- Whether operating margin holds above 11.89% after the 0.72-percentage-point sequential decline.
- Whether expense growth remains below revenue growth after costs rose 16.84% sequentially against revenue growth of 15.89%.
- Whether other income remains below or above its 7.08% share of pre-tax profit.