Jasbir Singh Gujral, Managing Director, Syrma SGS Technology
Electronics manufacturing services (EMS) company Syrma SGS is optimistic about its Original Design Manufacturing (ODM)business as medtech and defence business in this segment drive revenue.ODM revenue of Syrma nearly doubled during the quarter, with revenues rising to ₹269 crore in Q1FY27 from ₹125 crore a year ago. “ODM now accounts for 17 per cent of total revenues, up from 13.3 per cent in Q1 last year,” Jasbir Singh Gujral, Managing Director, Syrma SGS Technology, told businessline.Backed by the company’s design capabilities across medtech, defence and other smaller segments like BLDC motor solutions, Syrma expects ODM revenues to cross ₹1,100-1,200 crore in FY27.Syrma’s strides in original design come at a time when more companies are eyeing to strengthen their ODM capabilities to shift from assembly-led growth to a growth driven by design, technology, and intellectual property strengths.New productsGujral explains that medtech push is being driven through its Pune R&D centre, where around 70-80 engineers are working on new products in IV therapy, microfluidics, microneedling and pain rehabilitation, among others. The company is also creating intellectual property and wherever appropriate secures regulatory approvals to support exports.Exports have emerged as another major growth engine for Syrma.The executive said customers onboarded over the past two years have begun contributing meaningfully, giving the company confidence to target export revenues of ₹1,500-1,600 crore this year. Additional customers signed this year are expected to enter commercial production next year, providing another avenue of growth, said Singh.Syrma SGS is confident of outperforming its FY27 revenue guidance after posting a strong first quarter, even as supply chain disruptions remain its biggest challenge. The company had guided for around 35 per cent revenue growth with matching EBITDA expansion.Q1FY27 revenue grew 67 per cent year-on-year to ₹1,604 crore, and operating EBITDA up 68 per cent year-on-year to ₹162 crore, while PAT more than doubled.Despite the strong demand outlook, he cautioned that supply chain management would determine industry performance this year.“The demand side is buoyant and robust; the challenge is the supply chain,” he said, adding that Syrma has created a dedicated “war room” headed by a senior supply chain executive to mitigate disruptions and ensure uninterrupted supplies to customers.Capacity expansionAs for capacity expansion, the company’s Printed Circuit Board (PCB) project in Andhra Pradesh remains on schedule, with trial production expected by March 2027. Syrma is also exploring the construction of a new facility at Hosur in Tamil Nadu to cater to future automotive and industrial electronics demand, as its Bengaluru facilities near capacity. The company already owns the land, and the investment for the factory is estimated at ₹25-30 crore over a period of 8-9 months.The company also sees long-term strategic value from its recently announced joint venture with Japan’s Kaga Electronics. Besides supplying to Japanese companies operating in India through the JV, the partnership is also expected to improve access to Japanese manufacturers looking to diversify production beyond China, Gujral said. In the long-term, it will also help strengthen Syrma’s component procurement capabilities through Kaga’s global sourcing network, he added.Published on August 6, 2026
