Syrma SGS Technology Ltd Management Discussions

GLOBAL ECONOMIC REVIEW

According to the IMFs April 2026 World Economic Outlook (WEO), the global economy is recalibrating after the outbreak of war in the Middle East in late February 2026. From a resilient 3.4% expansion in 2025, growth is projected to moderate to 3.1% in 2026 and 3.2% in 2027, below the 3.7% average of 2000–2019. Inflation is expected to rise to 4.4% in 2026 before easing to 3.7% in 2027, as energy and food prices respond to the closure of the Strait of Hormuz.

Before the conflict, the global economy had been recovering steadily, supported by a technology-led investment cycle, accommodative financial conditions and easing trade tensions through late 2025. The current landscape introduces a counterforce through three channels: a direct supply shock to energy prices, secondary pressure on inflation expectations, and a cautious market reaction that has lifted bond yields and strengthened the US dollar.

ADVANCED ECONOMIES

Advanced economies are projected to grow 1.8% in 2026 and 1.7% in 2027. The United States leads at 2.3% in 2026, aided by lagged monetary easing and fiscal carryover, before easing to 2.1% in 2027; Japan is projected at 0.7% in 2026.

The Euro Area is expected to grow 1.1% in 2026 and 1.2% in 2027, weighed by competitiveness pressures, higher energy costs since 2022 and a stronger euro. Germany, Europes largest economy and a key manufacturing partner for our sector, is projected at 0.8% in 2026, with stronger growth from 2027 as infrastructure and defence spending flows through the industrial value chain.

EMERGING MARKETS AND DEVELOPING ECONOMIES

Emerging-market and developing economies are projected to grow 3.9% in 2026 and 4.2% in 2027, anchored by emerging Asia. China is expected to expand 4.4% in 2026, aided by stimulus and lower US tariffs, before moderating to 4.0% in 2027. India is set to remain the fastest-growing major economy throughout.

TRADE AND TARIFF ENVIRONMENT

The trade landscape has stabilised. The effective US statutory tari_ rate settled at 13.5% in early 2026, below the peaks feared in mid-2025, and several large partners, including India and the EU, concluded or opened key negotiations during the year. For globally integrated manufacturers like Syrma SGS, this brings clearer operating conditions, even as the legal frameworks remain fluid.

INDIAN ECONOMIC REVIEW

India remained the worlds fastest-growing major economy in FY 2025–26. Per MoSPIs Second Advance Estimates (February 2026, 2022–23 base year), real GDP grew an estimated 7.6% and nominal GDP 8.6%, with a strong first half at 8.0% underscoring domestic resilience even as global conditions softened.

Growth was led by manufacturing and services. Production scale-up under the Production Linked Incentive (PLI) schemes lifted manufacturing output, especially in electronics, pharmaceuticals and automotive components, while services, the largest contributor to Gross Value Added, sustained above-trend momentum.

Headline inflation stayed within the RBIs 2–6% band for most of the year, allowing a cumulative 125 bps of repo-rate cuts between February and December 2025, to 5.25% at year-end The Middle East conflict lifted inflation slightly in early 2026, but it remained controlled.

DEMAND DRIVERS

Private consumption remained the main engine of growth, backed by tax-led real-income gains for salaried households and improving urban and rural sentiment, which supported a steady recovery in discretionary spending on services and consumer durables.

Investment was equally strong: government capital expenditure rose 10.1%, sustaining public-infrastructure momentum and drawing in private participation, while capacity utilisation in organised manufacturing continued to rise.

STRUCTURAL REFORMS

Three major changes significantly improved the operating environment during the year:

GST 2.0

Launched on 22 September 2025, it simplified the multi-rate system into three slabs — 5%, 18% and 40%. For most consumer durables the rate fell from 28% to 18%, and with Union Budget tax cuts lifting take-home pay, household purchasing power rose. Festive-season volumes climbed, feeding stronger order pipelines for contract manufacturers, while corrected inverted-duty anomalies began freeing working capital across the durables chain.

India–US Trade Stabilisation

US tariffs on Indian exports fell from a peak of 50% in August 2025 to 18% under the November 2025 Interim Trade Agreement, then to 10% under the Section 122 framework on 24 February 2026, following a US Supreme Court ruling. These cuts improved export margins across electronics, engineering, textiles and pharmaceuticals, and reopened order pipelines slowed during peak tariffs.

Business Environment and Infrastructure

Continued progress on labour laws and ease-of-doing-business, alongside steady infrastructure spending, reduced administrative bottlenecks and enabled faster production ramp-ups across key manufacturing hubs and industrial corridors.

INDUSTRY OVERVIEW

Global Electronics Manufacturing Services (EMS) Industry

The global Electronics Manufacturing Services (EMS) industry is the outsourced engineering, manufacturing and integration engine between OEMs and end markets. It spans PCB assembly (PCBA), box-build integration, functional testing, front-end design support and lifecycle management, serving consumer electronics, automotive, industrial automation, medical technology, aerospace, defence and telecom infrastructure.

The global EMS market was worth roughly USD 648 billion in CY 2025, up from USD 610 billion a year earlier, and is projected at USD 690 billion in CY 2026, advancing toward USD 1.19 trillion by 2034 (~7.1% CAGR). Consumer electronics and ICT hardware make up close to 70% of spend, with industrial, automotive, aerospace, naval and maritime electronics, and healthcare the higher-complexity remainder. Asia Pacific holds over two-thirds of activity, and India leads the China-plus-one cohort absorbing relocated volumes.

RISK AND OPPORTUNITIES

To sustain long-term competitiveness, we weigh near-term market vulnerabilities against emerging structural drivers. The table below outlines the core themes shaping our operational focus.

Opportunities		Risks
{	Agentic AI is pulling hardware demand beyond	{	Rare-earth mining and refining remain concentrated,
	standard data centres into industrial, automotive and		where unilateral export licensing threatens cost stability
	consumer endpoints
{	Diversification mandates are converting from exploratory	{	Import duties and trade policies stay volatile,
	reviews into multi-year manufacturing commitments		leaving cross-border legal frameworks subject to
			frequent change
{	Nearshoring is rising as global brands shorten lead times	{	Energy-cost pressures feed directly into petrochemicals,
	and dilute single-region supply risk		plastics and freight across the value chain
{	Portfolio rebalancing is shifting weight from consumer	{	Specialised talent shortages persist in SMT, micro-
	electronics into higher-margin aerospace and		packaging, and power electronics
	MedTech system

Sources: Fortune Business Insights, Electronic Manufacturing Services Market, 2026 — https://www.fortunebusinessinsights.com/electronic-manufacturing-services-ems-market-105519; Mordor Intelligence, Electronics Manufacturing Services Market Analysis, 2026 — https://www.mordorintelligence.com/industry-reports/electronics-manufacturing-services-market; IEA, Global EV Outlook 2026 — https://www.iea.org/reports/global-ev-outlook-2026; McKinsey, Mapping the Automotive Software and Electronics Landscape, 2026 — https://www.mckinsey.com/features/mckinsey-center-for-future-mobility/ our-insights/mapping-the-automotive-software-and-electronics-landscape; GMI, Medical Electronics Market, 2025 — https://www.gminsights.com/industry-analysis/medical-electronics-market; Dell'Oro Group, Data Center Capex Quarterly Report, March 2026 — https://www.delloro.com/news/data-center-capex-surges-57-percent-in-2025-as-ai-deployments-accelerate/ https://know.creditsights.com/insights/technology-hyperscaler-capex-2026-estimates/ IMF, World Economic Outlook, April 2026 — https://www.imf.org/en/Publications/WEO/Issues/2026/04/14/world-economic-outlook-april-2026

INDIAN ELECTRONICS

MANUFACTURING SERVICES INDUSTRY

Indias electronics ecosystem has staged one of the countrys most visible industrial reinventions of the past decade. Total electronics production expanded roughly six-fold over eleven years, from H1.9 lakh crores in FY15 to H11.3 lakh crores in FY25, a 17% CAGR across FY 2020-21 to FY 2024-25, momentum the Economic Survey 2025-26 confirms has carried into the current year.

MeitY projects the broader electronics ecosystem can reach USD 500 billion in production value by FY 2030-31, aided by domestic demand the Economic Survey 2025-26 estimates will exceed USD 150–180 billion over the next four to five years.

India Electronics	FY2015	1.9
Production
Trajectory	FY2025		11.3
(Lakh Cr)
	FY2031		USD 500 bn (Target)

The Indian EMS market, the third-party manufacturing and design layer within this ecosystem, was roughly USD 40-45 billion in FY 2024-25, about 5-6% of global output, and is on course to approach USD 150 billion by FY 2029-30 at upwards of 25% a year, close to four times the global pace. Mobiles anchor the largest volume (~44% of production), while automotive, industrial, medical, defence and railway electronics scale fastest and hold the margin upside.

KEY GROWTH DRIVERS

Indias EMS build-out reflects enduring shifts in demand and policy rather than a passing cycle. The principal catalysts are:

Domestic consumption depth

Rising incomes, lower durable prices under GST 2.0 and deeper smart-hardware penetration widen the home base. The pattern is sharpest in automotive: Indias EV registrations reached 25 lakh units in FY 2025–26, up 24.6%, with electric passenger-vehicle volumes up 86% to ~2.19 lakh units, lifting electronic-component value per vehicle.

Export tailwinds

Electronics was Indias fastest-growing export category. Per the Economic Survey 2025–26, exports reached USD 22.2 billion in H1 (up 42%) and USD 31 billion in the first eight months (up 38%), on track to become the countrys second-largest export. Indias share of global electronics exports rose from 0.6% in 2021 to 1.1% in 2024, the steepest gain among major hubs.

Supply-chain diversification

Exploratory sourcing reviews have firmed into multi-year procurement mandates, with OEMs contracting secondary production outside China. India, with a competitive cost base, expanding clusters and a maturing components layer, is a principal beneficiary of this reallocation.

Vertical migration to higher-margin segments

High-barrier segments: naval electronics, aerospace sub-assemblies, advanced MedTech and railway signalling – once minor slices of Indian EMS, now draw sustained order flow from public-sector outlays and international sourcing alike, lifting operating margins.

From assembly to ODM platforms

Indian operators are moving off low-margin contract assembly toward Original Design Manufacturing (ODM). Owning design, schematics and component selection deepens customer stickiness and margin durability, aided by India hosting the R&D of close to 80% of the worlds semiconductor-design companies.

GOVERNMENT INITIATIVES AND REGULATORY PUSH

The steady maturation of Indias electronics sector is heavily shaped by structured, long-term fiscal incentives and targeted industrial policy, now pivoting from headline capacity toward domestic value addition, targeted at roughly 38% by 2030. The core frameworks reshaping our operating environment include:

Production Linked Incentive (PLI)

Per the Economic Survey 2025-26, the electronics PLI scheme has reached maturity, generating cumulative production of ~H9.34 lakh crore, exports of H5.12 lakh crores and H13,759 crores of capex by September 2025, completing its planned tenure in March 2026.

Electronics Components Manufacturing Scheme (ECMS)

Notified in April 2025 to curb sub-assembly import dependence, ECMS targets the components layer: multilayer PCBs, connectors, passives and advanced modules. After drawing over H1.15 lakh crores in commitments, the

FY27 Union Budget raised its outlay from H22,919 crores to H40,000 crore. As a downstream operator, Syrma SGS is well placed to benefit from a localised component ecosystem that lowers input overheads.

India Semiconductor Mission (ISM) and ISM 2.0

The initial H76,000 crores framework has cleared ten units across fabrication, assembly, testing and packaging. ISM 2.0, introduced in the FY 2026-27 Union Budget, extends support into semiconductor equipment, engineered materials and indigenous full-stack IP.

Make in India and Electronics Manufacturing Clusters (EMC)

The EMC framework keeps widening manufacturing infrastructure across Tamil Nadu, Andhra Pradesh, Maharashtra, Uttar Pradesh, Haryana and Karnataka, supplying reliable power, logistics and shared utilities that compress commissioning timelines.

Opportunities Risks

{ Strong export growth puts electronics on track to { Heavy import reliance on bare-board PCBs (~90%), become Indias second-largest export in FY 2026–27 capacitors, and connectors squeezes margins until ECMS units come online

{ Expansion into defence, maritime, aerospace, medical { High customer concentration, with a large revenue share and railway systems, backed by public-sector demand tied to thin-margin consumer-electronics accounts

{ Rising ODM contracts strengthen gross-margin { Shortages of skilled technical personnel in SMT durability and client retention across the engineering operations, RF design and advanced quality-production chain engineering lines

{ State support from PLI, ECMS, ISM and EMC helps seed { High energy intensity in fabrication, testing, and the missing local component and semiconductor layer assembly risks margin compression if power costs stay elevated

{ Lower US tari_ lines (now at 10%) improve the financial { Exchange-rate swings and high ocean-freight rates returns of our export-focused manufacturing lines driven by ongoing shipping disruptions in the Gulf

Sources: PIB, Electronics Components Manufacturing Scheme (Third Tranche), January 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2210864 Ministry of Finance, Economic Survey 2025–26 — https://www.indiabudget.gov.in/economicsurvey/ IBEF, Electronics System Design & Manufacturing in India, 2026 — https://www.ibef.org/industry/electronics-system-design-manufacturing-esdm IBEF, Electric Vehicle Industry in India, 2026 — https://www.ibef.org/industry/electric-vehicle

PIB / MeitY, Electronics Exports FY 2025–26 — https://www.newsonair.gov.in/indias-electronics-exports-reached-31-billion-dollars-in-1^st-8-months-of-this-fy-ashwini-vaishnaw ICEA, Mobile Phone Production Outlook FY 2025–26 — https://www.ibef.org/news/mobile-phone-production-to-reach-us-75-billion-by-fy26-end-icea P&S Intelligence, India EMS Market Report, 2026 — https://www.psmarketresearch.com/market-analysis/india-electronics-manufacturing-services-market-report Drishti IAS, ECMS Analysis, 2026 — https://www.drishtiias.com/daily-updates/daily-news-analysis/electronics-components-manufacturing-scheme PIB / Ministry of Electronics and IT: https://www.newsonair.gov.in/75-projects-worth-rs-61000-cr-approved-under-ecms-programme-ashwini-vaishnaw

AUTOMOTIVE INDUSTRY

Global Overview

The global light-vehicle market grew steadily in CY 2025 to an estimated 89.6 million units, up 1.7% (S&P Global Mobility), with China the largest market at over 26 million sales. Structural EV adoption drove global electric car sales past 20 million units, up 20% and one in four new cars, with the IEA projecting 23 million (28% share) in CY 2026.

Sources: IEA, Global EV Outlook 2026, May 2026. https://www.iea.org/ reports/global-ev-outlook-2026 S&P Global Mobility, 2025 Auto Sales Forecast. https://www.spglobal. com/automotive-insights/en/blogs/2025-auto-sales-forecast-global

Indian Overview

Per SIAM (April 2026), Indias automobile industry closed FY26 with its strongest run in seven years, with wholesale up 10.4% to a record 2.83 crores units and all-time highs across all four segments, driven by GST 2.0, 125 bps of repo-rate easing and Union Budget tax rationalisation. Per JMK Research and VAHAN, EV sales hit a record 25.5 lakh units, up 25%, lifting EV penetration from 7.5% to 8.5%.

Sources: SIAM, Annual Sales Data FY 2025–26, April 2026. https://www. outlookbusiness.com/industry/automobile-wholesales-in-india-clock-record-283-crore-units-in-fy26-siam JMK Research, India EV Penetration FY 2025–26, April 2026. https://jmkresearch. com/indias-ev-penetration-reached-8-5-in-fy2025-26/ Autocar Professional, India EV Sales FY 2025–26, April 2026. https://www. autocarpro.in/analysis-sales/ev-sales-in-india-surpass-245-million-units-in-fy2026-all-4-segments-register-double-digit-growth-131974 EVreporter, India EV Sales FY 2025–26, April 2026. https://evreporter.com/india-sold-2550865-electric-vehicles-across-categories-in-fy-2025-26/

KEY GROWTH DRIVERS

Increasing vehicle electronics value

Rising electronic content, ADAS and fleet-tech features sustain automotive PCBA demand independent of powertrain-adoption speed.

Policy and incentive architecture

The PM E-DRIVE scheme, extended for electric two-wheelers to July 2026 and three-wheelers to March 2028, alongside the H25,938 crores Auto and Auto-Component PLI, supports adoption and deepens component localisation.

Macro-policy boost

Union Budget tax rationalisation, 125 bps of repo-rate cuts and GST 2.0 narrowed the price gap between ICE and electric two-wheelers, lifting purchasing power across urban and rural markets.

Expanding export volumes

Passenger-vehicle exports grew further from a 7.7 lakh-unit base, establishing India as a cost-competitive hub for Latin America, Africa, the Middle East and Southeast Asia, aided by the reduction in US Section 122 tariffs to 10%.

INDUSTRIAL ELECTRONICS INDUSTRY

Global Overview

Industrial electronics covers the control boards, power systems and edge infrastructure behind factory automation. Per MarketGenics, the market was ~USD 211.4 billion in CY 2025 and is estimated near USD 412 billion by 2035 (6.9% CAGR).

Growth stems from three structural forces: worldwide smart-manufacturing deployment, integration of edge and IIoT hardware into existing plants, and grid modernisation for renewables and EV charging. Its low-to-medium volumes and strict thermal and vibration tolerances match the engineering strengths of diversified Indian contract manufacturers.

Indian Overview

Per Research and Markets, Indias industrial automation sector stood at USD 17.28 billion in CY 2025 and is on track for USD 38.02 billion by 2031 (14.05% CAGR), outpacing the global average on a deep domestic modernisation cycle. The Industrial IoT segment reached USD 10.1 billion in CY 2025, growing ~12.1% a year through 2032.

Capital commitments announced in 2024–25 crossed USD 50 billion across new semiconductor, appliance and automotive-component facilities. As these come onstream, demand for control units, PCBAs and power electronics should rise, while ongoing retrofitting of existing lines creates a steady replacement market.

KEY GROWTH DRIVERS

Make in India & PLI schemes

PLI continues to attract investment across electronics, automotive, renewables and semiconductors, creating demand for industrial electronics and control systems in new facilities.

Renewable energy and infrastructure build-out

Heavy solar and wind installations, with utility-scale battery banks, generate steady demand for rugged inverters, variable-speed drives and automated switchgear.

Industrial retrofitting initiatives

Firms are upgrading older machinery with wireless sensors and cloud-connected cards for predictive maintenance and reduced downtime.

Control system electrification

The shift from mechanical controls to micro-controlled boards in industrial HVAC, pumps and heavy appliances widens the market for industrial PCBAs.

High-barrier engineering localisation

Engineering partnerships help domestic manufacturers clear the validation thresholds for long-term railway, marine and aviation supply orders.

MEDTECH INDUSTRY

Global Overview

Driven by ageing demographics, rising chronic disease, technology advances and emerging-market infrastructure, the global healthcare industry kept expanding in CY 2025. Per Precedence Research, the global medical-devices market was ~USD 678 billion in CY 2025, projected near USD 1.15 trillion by 2034 (6% CAGR).

North America held a 38% share in 2025, while Asia-Pacific grew fastest, led by China and India. Three sub-segments carry the highest electronics intensity and fastest scaling: connected medical devices, AI-augmented diagnostic imaging, and minimally invasive surgical devices.

Indian Overview

Indias healthcare sector was ~USD 372 billion in 2023, projected to USD 638 billion by 2025 (17–22% CAGR), aligning with targets to raise health spending from 3.3% of GDP in 2022 to 5% by 2030. The domestic medical-devices market, ~USD 15.2 billion in FY25, is expected to triple to USD 50 billion by FY30 (26.9% CAGR), with demand shifting toward higher-value, electronics-rich equipment.

COMPANY OVERVIEW

Syrma SGS Technology Limited is a leading Indian Electronics System Design and Manufacturing (ESDM) company with over four decades of operating experience, focused on high-mix, flexible-volume manufacturing for high-margin, fast-growing industrial sectors. It serves over 350 customers across 35+ countries through 17 domestic manufacturing plants, an international facility in Stuttgart, Germany, and R&D centres in Chennai, Pune, Bengaluru and Stuttgart.

The operating model spans several verticals: Automotive & EV, Consumer Electronics, Healthcare & MedTech, Industrial Systems, IT, Railways, and a newly established Defence & Maritime division. With design capability, an export footprint above 25% of revenue, and sites inside major domestic electronics clusters, the business operates as an end-to-end engineering and contract-manufacturing partner.

PRODUCTS AND SERVICE OFFERINGS

Printed Circuit Board Assembly (PCBA)

Multi-layer circuit board engineering and assembly for automotive, industrial machinery, healthcare and consumer electronics applications.

Box-build integration

Complete system-level assembly, final mechanical housing integration and functional testing for finished electronic products.

RFID solutions

Dedicated design and production of high-frequency tags, inlays, and complete software-integrated tracking systems for asset management.

High-frequency magnetic components

Custom-engineered magnetic coils, transformers, and chokes for power electronics and telecom equipment.

Electro-mechanical assemblies

Precision subsystems that support the broader contract manufacturing portfolio.

New offerings:

{ Fuel injection system PCBAs: High-precision, thermally stable circuit boards for modern automotive fuel systems

{ Solar inverter module assembly: Multi-layer power electronic boards and power assemblies designed for commercial and utility-scale solar energy infrastructure

{ EV powertrain and charging electronics: Sophisticated battery management systems (BMS), motor controllers, and sub-assemblies for vehicle charging interfaces

Project pipeline:

Integrated bare-board PCB manufacturing:

A H1,600 crores greenfield facility is under construction in Naidupeta, Andhra Pradesh. Approved under the ECMS, it will produce HDI boards, copper-clad laminates and flexible circuits, with civil works targeted for completion in the second quarter and trial production between December 2026 and early 2027, are a major backward-integration step to cut reliance on imported bare boards and improve consolidated margins.

BUSINESS PERFORMANCE

Operational Performance

FY26 was a period of operational consolidation and strategic expansion. The business advanced across its primary metrics, entered new growth segments through targeted acquisitions and partnerships, added domestic capacity, and strengthened data security across production lines.

Elcome Integrated Systems acquisition

The Company acquired a 60% stake in Elcome, a maritime and naval engineering specialist with nearly five decades of operating history. This transaction incorporates an annual revenue baseline of approximately H 200-300 crores into consolidated financials. Operating at higher margins, this acquisition forms the operational foundation for the newly established Defence & Maritime division.

Elemaster Joint Venture (Italy)

Syrma SGS entered into a partnership with Italian electronics designer Elemaster, forming Syrma SGS Elemaster Private Limited. Operating out of a dedicated facility in Bommasandra, Bengaluru, this entity integrates Elemasters product lifecycle management and European original equipment manufacturer (OEM) networks with our domestic production framework, focusing on high-reliability railway, medical, and industrial electronics.

Andhra Pradesh Greenfield PCB project

The Company commenced civil works on its backward-integration project in Naidupeta, Andhra Pradesh, addressing Indias ~USD 6.3 billion bare-board PCB market, which relies on imports for roughly 90% of supply. The project runs on state fiscal incentives and ECMS approvals.

Automotive security certification with TISAX

Syrma SGS became among the first manufacturers in India to secure TISAX certification for automotive data protection, satisfying the data-governance requirements of European premium automotive brands and clearing the Company for secure international electronic-component programmes.

Financial Performance

FY26 was one of the strongest periods of financial delivery in the Companys history, with growth, profitability and balance-sheet strength improving in tandem. The year closed with stronger credit metrics, a diversified revenue profile and the flexibility to fund the next investment phase.

Top-line revenue rose 27% year-on-year/

This was achieved despite a deliberate decision to cap the lower-margin consumer business at ~30% of the portfolio; excluding consumer, the core business grew 38%, validating the pivot toward higher-value industrial sectors.

All four targeted higher-margin verticals outpaced consolidated growth

Automotive rose 39%, Industrial 30%, Healthcare 36%, and IT & Railways 74%. The revenue mix entering FY 2026–27 is structurally healthier, with Automotive at 24% of revenue and Consumer contracting to 30%.

Exports and ODM crossed distinct thresholds

Total exports grew 41% to surpass H1,200 crores for the first time, while ODM revenue rose 80% to H825 crore, a clear migration from build-to-print assembly toward design-led ownership. ODM now accounts for 17% of revenue, up from 12%, and is a primary driver of margin expansion.

Financial returns exceeded internal targets

Goodwill-adjusted ROCE expanded from 16.0% to 20.1%, clearing the 20% internal threshold reached while the core asset base is still building and ahead of the main capital deployment for the bare-board PCB facility.

Key Financial Ratios	FY 2025–26	FY 2024–25
EBITDA Margin (Ex Other Income, %)	11.3	8.6
EBITDA Margin (%)	12.0	9.7
PBT Margin (%)	9.3	6.2
PAT Margin (%)	7.1	4.8
Net Debt to EBITDA (LTM)	0.9	0.8
Debt to Equity	0.1	0.3
ROCE (%)	16.9	12.4
ROCE — Adjusted for Goodwill (%)	20.1	16.0
Net Working Capital Days	63	69

HUMAN RESOURCES

People are the foundation of the Companys growth. As of 31 March 2026, the employee base exceeded 10,000 across plants, R&D centres and offces in India and Germany, reflecting new facilities, the Elcome consolidation and deeper engineering teams. The Great Place to Work score rose from 83 to 86, a fifth consecutive certification, with further recognition at Indias Best Workplaces™ in Electronics 2025 and the Asia Best Employer Brand Awards 2025.

Read more on page XX (People Chapter)

RISK MANAGEMENT

Syrma SGS operates a structured enterprise risk management framework designed to identify, assess, prioritise and mitigate the strategic, operational, financial, compliance and reputational risks affecting the business. The Risk Management Committee of the Board oversees this governance framework, reviewing it periodically against changes in the external operating environment.

Read more on page XX (Risk Management Chapter)

INTERNAL CONTROL SYSTEMS

The Company maintains an internal control system suited to the size, complexity and nature of its engineering and manufacturing operations, ensuring effective management of sales, inventory procurement and fixed-asset acquisition in compliance with internal standards and statutory requirements. The annual internal audit plan, approved by the Audit Committee, covers all major production facilities, warehouses and centralised corporate functions.

CAUTIONARY STATEMENT

This Management Discussion and Analysis contains forward-looking statements on business prospects, operational targets and industry trends. These involve known and unknown risks and uncertainties that could cause actual outcomes to differ materially from those expressed or implied.

Projections and estimates are based on management assumptions using the most recent internal and external data and remain subject to change. Forward-looking statements speak only as of the date written; the Company assumes no obligation to update them for subsequent events or new information.