India Ratings and Research (Ind-Ra) on Wednesday upgraded Syrma SGS Technology Limited’s long-term bank loan facilities rating to ‘IND AA’ with a Stable Outlook, from the previous ‘IND AA-‘. The short-term commercial paper rating was affirmed at ‘IND A1+’. The upgrade covers bank loan facilities worth ₹7,800 million and commercial paper of ₹1,100 million.
The rating action comes on the same day Syrma SGS stock touched a 52-week high of ₹1,075.95 on the NSE, closing at ₹1,059.35. The stock has returned over 130 per cent in the past year and nearly 47 per cent year-to-date, against a Nifty 500 return of negative 3.25 per cent over the same period. Total market capitalization stands at approximately ₹20,364 crore.
Ind-Ra cited sustained revenue growth and improving profitability as key drivers of the upgrade. On a consolidated basis, revenue grew 20 per cent year-on-year to ₹37,867 million in FY25 and a further 17 per cent year-on-year to ₹33,540 million in the first nine months of FY26. EBITDA margins improved sharply to 11.3 per cent in 9MFY26 from 6.8 per cent in the same period a year earlier.
The agency noted that Syrma SGS became net cash positive following a qualified institutional placement of approximately ₹10,000 million in August 2025, with proceeds used to repay debt. Net leverage stood at 1.0x in FY25.
The company has announced four major investments for expansion, including a ₹15,950 million plant for multi-layer printed circuit boards spread over six years, acquisition of a majority stake in Elcome Integrated Systems, and joint ventures with KSolare Energy and Italy-based Elemaster SPA. Ind-Ra said the spread-out nature of these investments, alongside strong internal cash accruals, would keep credit metrics comfortable.
Key risks flagged include the working capital-intensive nature of operations, dependence on imports for 60 per cent of materials exposing the company to forex risk, and execution risk around the large PCB plant.
Published on May 6, 2026