SYNOPSIS: Syrma SGS accelerated its transformation in Q2 through acquisitions and joint ventures in defence electronics, PCB manufacturing, solar inverters, and European railway–industrial electronics, strengthening capabilities, expanding markets, and enhancing long-term growth visibility.
One of India’s leading Electronics System Design and Manufacturing companies, with over two decades of experience in providing end-to-end solutions across product design, electronics manufacturing, and lifecycle management – is certainly one to keep on your radar.
We are talking about Syrma SGS Technology Limited, which serves high-growth sectors including industrials, automotive, healthcare, and consumer electronics. With a market cap of Rs. 15,852 crores, shares of Syrma SGS Technology Limited were trading in the green at Rs. 821.8 on Tuesday morning’s session, as against its previous closing of Rs. 818.9 on BSE.
So far in 2025, the shares of Syrma SGS Technology Limited have delivered positive returns of around 32 percent, as well as around 9 percent returns in the last one month. Syrma SGS has achieved several key strategic milestones in its recent growth phase during Q2 FY26. Below are the key recent strategic milestones of the company:
Strategic Foray Into Defence Electronics
During the quarter, Syrma SGS completed the acquisition of a majority stake in Elcome Integrated Systems, representing a significant strategic move into the defence and maritime electronics domain. Under the terms of the agreement, Syrma SGS will acquire a 60 percent stake in Elcome for Rs. 235 crore through a combination of primary infusion and secondary purchase. The remaining 40 percent stake will be acquired over the next three years, based on earn-out-linked performance milestones.
Elcome, founded in 1978 and headquartered in Navi Mumbai, is a long-standing provider of advanced electronic systems for defence and maritime applications. Its product portfolio includes integrated bridge systems, navigation radars, maritime communication suites, fire detection systems, and platform monitoring solutions, developed through a mix of in-house engineering capabilities and global OEM partnerships.
Foray into Printed Circuit Board (PCB) Manufacturing
Syrma SGS has also established a new PCB manufacturing venture through a joint venture with South Korea-based Shinhyup Electronics Co. Ltd. Under this partnership, Syrma holds a 75 percent stake, giving it majority ownership and operational control, while Shinhyup retains the remaining 25 percent.
Through this JV, the company aims to develop advanced multi-layer and flexible PCB manufacturing capabilities – an essential step toward strengthening its presence across high-growth electronics verticals. The initiative is further supported by an approved ECMS incentive package of Rs. 765 crore, which provides six years of revenue-linked incentives and enhances long-term manufacturing competitiveness.
From a strategic perspective, this venture marks a major backwards integration move for Syrma SGS. It reduces dependence on imported multi-layer PCBs, bolsters supply chain reliability, and improves cost efficiency. By adding PCB manufacturing to its portfolio, Syrma strengthens its position across the electronics value chain, supporting margin expansion over the medium term.
These capabilities also enable the company to better serve key OEM segments in automotive, industrial electronics, consumer and medical OEMs. Additionally, Syrma has outlined a capex plan of ~Rs. 1,595 crore, which will be deployed in phases in line with demand growth and the planned production ramp-up.
Acquisition of Ksolare Through JVA With Premier Energies
Syrma SGS has strengthened its participation in the clean-energy electronics landscape by acquiring Ksolare in partnership with Premier Energies. Under the joint venture agreement, Premier Energies will hold 51 percent while Syrma SGS will acquire a 49 percent stake, valuing Ksolare at Rs. 1,700 million for 100 percent equity.
From a strategic standpoint, the acquisition provides Syrma access to India’s rapidly expanding Rs. 60-billion solar inverter market (FY24), which is projected to grow at a 25-30 percent CAGR. It supports import substitution efforts, as nearly 50 percent of solar inverters sold in India are currently imported, creating a substantial opportunity for localised manufacturing.
The acquisition further enables Syrma SGS to participate in large government-led initiatives such as the PM Surya Ghar Muft Bijli Yojana and the broader rooftop solar acceleration programs. Over the next two to three years, this integration is expected to bolster profitability, enhance product offerings, and contribute to a stronger and more sustainable earnings growth trajectory.
Elemaster JVA: Strategic Expansion Into Railways & Industrial Electronics
Syrma SGS has further strengthened its global footprint by entering into a joint venture with Elemaster S.p.A., Italy, a leading European electronic design and manufacturing partner known for its deep expertise in high-reliability and regulated electronic systems.
Under the JV structure, the newly formed entity – Syrma SGS Design & Manufacturing Pvt. Limited – will be 60 percent owned by Syrma SGS and 40 percent owned by Elemaster. The collaboration is designed to support European OEM programs through design transfer, technology sharing, and localised manufacturing, enabling cost-efficient production for export as well as domestic applications.
From a strategic standpoint, this partnership opens access to Elemaster’s strong relationships with global OEMs across rail transportation, industrial automation, and medical electronics – sectors characterised by high regulatory requirements, long product lifecycles, and attractive margin profiles.
The JV significantly enhances Syrma’s design-led manufacturing capabilities and positions the company deeper into high-value product categories that demand precision engineering and advanced electronics integration. The investment commitment for the initial phase includes approximately Rs. 33 crore from Syrma SGS and Rs. 22 crore from Elemaster.
Conclusion
Q2 FY26 marks a turning point for Syrma SGS, showcasing a strategic shift far beyond traditional EMS assembly into high-value, technology-driven verticals. With decisive moves across defence electronics, multi-layer PCB manufacturing, clean-energy systems, and European rail-industrial automation, the company has laid the foundation for a more integrated, diversified, and globally competitive business model.
If executed effectively, this transformation could elevate Syrma SGS from a fast-growing EMS player to one of India’s most influential integrated electronics and technology manufacturing platforms over the next decade.
Written by Shivani Singh
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