Will focus on high-margin export goods for growth: Syrma SGS MD Gujral

Electronics manufacturing service provider Syrma SGS will continue to focus on high-margin export products, such as healthcare, railways, and defence, to achieve double-digit earnings before interest, taxes, depreciation, and amortisation (Ebitda) growth by 2027-28, the company’s managing director, Jasbir Singh Gujral, said. 

“Over the last three years, we have had a good run. Ebitda  increased significantly from ₹215 crore in 2023-24 to ₹325 crore in 2024-24. It is expected to grow another 30 per cent this year,” Gujral told Business Standard, adding that the exports of the company had also grown 19 per cent over the last year. 

The company has a strong domestic presence in the combustible and electric vehicle segment , as well as in industrial electronics equipment manufacturing. The automotive business contributes around 27 per cent in the total business, whereas the industrial electronics equipment business contributes about 30 per cent of the company’s revenue, Gujral said, adding that healthcare and consumer electronics are new verticals with high-growth potential. 

For the quarter ended June 2025, the EMS company reported a net profit of ₹49.74 crore, while its revenues decreased by nearly 19 per cent year-over-year to ₹944 crore. In the first quarter, the company also registered a healthy 29 per cent growth in exports, despite global uncertainties, including those induced by US tariffs. 

“So, as things pan out and settle down, I am very confident that going forward, we would be able to grow on the solid platform which we have built now,” Gujral had told investors in June, during a post-earnings conference call. 

In the future, Syrma SGS would aim to generate at least 33 per cent of the company’s revenues from exports, he said during the interview. Although the company is currently relatively shielded from the tariffs, Gujral believes that all EMS companies will have to factor the US market into their plans for the next five to seven years. 

“Just as you cannot wish away China in the input supply chain, you can’t not think of the US because it is such a large consumer market,” he said. 

Countries such as India and EMS companies based in the country will continue to be competitive globally, not just due to cost advantage but also due to the increase in the quality of services being provided, Gujral said.