New Delhi, July 29 -- Mumbai-based Syrma SGS Technology Ltd on Wednesday reported a 67% jump in both exports and revenue for the June quarter despite disruptions to the global electronics supply chain, even as India's third-largest listed electronics maker by market capitalization reaffirmed its 2026-27 revenue growth guidance of 35%.

Exports contributed Rs.381.3 crore to the company's revenue, which rose 66.7% year-on-year to Rs.1,588.6 crore, driven by strong growth in demand from its top two verticals-the automotive and consumer electronics industries.

However, a sharp 49% rise in employee expenses to Rs.75.3 crore took some sheen off its net profit growth, though the latter still more than doubled to Rs.105.7 crore from a year ago. Its operating margin rose to 6.6%.

In a post-earnings interview with Mint, Jasbir Singh Gujral, Syrma's managing director, said the company remains on track to surpass the revenue growth guidance of 30-35% set by the top executive on 12 May, following its FY26 annual results.

"We are actively striking long-term partnerships with supply chain vendors to make sure that we can continue on our growth trajectory," he said.

He said that demand from the automotive sector, especially driven by the surge in electric two-wheeler sales, remains phenomenal. "We're actively looking to cash in on this opportunity, even though the memory chip cost and supply chain crisis-related pressures are something that everyone in the electronics industry will have to deal with."

Syrma's Q1 performance "is in line with analyst expectations, and shows strong business execution despite a time of potential supply-chain disruptions", said Harshit Kapadia, vice-president at brokerage firm Elara Capital.

"The fact that Syrma could continue to spend heavily on operations and ramp up export revenue in a tricky market is a big positive sign for the company, showing that it has strong long-term clients for which it is spending heavily to mitigate any disruptions," Kapadia said.

Syrma's shares closed 3.6% higher on Wednesday at Rs.1,353 apiece. The results were declared after market hours.

Syrma SGS is currently setting up printed circuit board (PCB) and camera module manufacturing plants, with final construction to be completed by August, under the Ministry of Electronics and Information Technology's (Meity) Electronics Components Manufacturing Scheme (ECMS).

Gujral said that the two facilities will start jointly contributing to the firm's revenue from FY28, once clients validate their production quality.

For now, however, the executive is witnessing supply shortages in sectors such as raw materials for PCBs and other components. "Some key components are in short supply because the factories producing them in Saudi Arabia were hit during the Iran war, creating an industry-wide crunch."

He said the company had taken a strategic decision to invest heavily in working capital to ensure its supply is not disrupted, and that it could capitalise on the long-term growth opportunity in the sector. Its Q1FY27 results reflected the same: cost of materials consumed surged 93% over the year-ago period to Rs.1,400.9 crore.

Over the past six quarters, the cost of memory chips, which account for 15% to 30% of electronics bills of materials in automotive, defence, consumer and other industries, has risen exponentially. On 28 July, an industry note by the consultancy firm Deloitte said that prices of memory chips used in artificial intelligence servers had doubled in Q1FY27 and could increase fourfold over the previous fiscal by the end of FY27.

The sharp rise in prices coincided with the Iran war, during which missile strikes hit factories producing critical minerals. The war further disrupted the global electronics supply chain, affecting the availability of consumer electronics, including smartphones. While Syrma does not manufacture mobile phones, memory chip applications are universal, thus affecting the company as well.

For now, though, Gujral remains optimistic about surpassing Syrma's guided growth targets for FY27 and reaching close to $1 billion in revenue by the end of next fiscal. "It would be difficult for me to gauge by how much we will surpass our growth target, but going by our current growth pace, I'm sure we'll cross the 30% growth goal this fiscal."

For the next fiscal, his growth projection puts Syrma's revenue at around Rs.8,500-9,000 crore. "That, most certainly, is our goal for now, as PCB and camera modules also begin contributing to our revenue from the next fiscal." Published by HT Digital Content Services with permission from MINT. For any query with respect to this article or any other content requirement, please contact Editor at [email protected]