Syrma SGS, Kaga Electronics plan Haryana JV as Q1 profit more than doubles

Syrma SGS Technology plans to invest ₹25 crore this fiscal year through a JV with Japan’s Kaga Electronics to add advanced EMS capacity at its Haryana plant. June-quarter revenue rose 67% to ₹1,603.7 crore, while net profit reached ₹105.7 crore and exports contributed 24% of operating revenue.

— Source publishedThu, 30 Jul, 2026, 01:23 IST·First seen Thu, 30 Jul, 2026, 02:06 IST·Source ET Small Business

What happened

Syrma SGS Technology · Syrma SGS will invest ₹25 crore through a JV with Japan’s Kaga Electronics to build advanced EMS capacity at its Haryana plant. Q1 profit

Key facts

  • ₹25 crore planned investment this fiscal year
  • ₹105.7 crore consolidated net profit in April-June
  • Net profit more than doubled year-on-year
  • ₹1,603.7 crore revenue from operations, up 67%
  • ₹176.6 crore EBITDA, up 72%
  • Exports contributed 24% of operating revenue
  • Exports grew 67% year-on-year

Why this matters

The Kaga Electronics partnership gives Syrma SGS a relatively capital-efficient route to advanced manufacturing capabilities, Japanese technology access and potentially deeper export-market customer relationships.

What to watch

  • JV incorporation, regulatory approvals and Haryana commissioning timeline.
  • Disclosure of Kaga customer programs, technology transfer or committed order volumes.
  • Quarterly EBITDA margin versus the 72% year-on-year EBITDA growth rate.
  • Export revenue share relative to the current 24% of operating revenue.
  • Working-capital days, inventory levels and receivable growth as revenue expands.
  • Capacity utilization, new-customer wins and order-book commentary.
  • India EMS incentive policy changes, import-duty shifts and component supply conditions.
  • Finalize JV structure, governance, product scope and Kaga-linked customer pipeline.
  • Deploy Haryana investment toward advanced, exportable EMS lines rather than incremental low-margin assembly.
  • Secure long-term component sourcing and customer commitments before capacity commissioning.
  • Use stronger Q1 profitability to fund working-capital needs as revenue scales.
  • Pursue additional Japan-linked design, automotive, industrial and consumer-electronics accounts enabled by the partnership.