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 capitalisation 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.