Syrma SGS Technology Limited (NSE: SYRMA) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Jasbir S. Gujral — Managing Director
Satendra Singh — Chief Executive Officer
Bijay Agarwal — Chief Financial Officer
Nikhil Gupta — Head, Investor Relations
Analysts:
Sumant Kumar — Analyst
Nikhil Kandoi — Analyst
Sameet Sinha — Analyst
Sonali Salgaonkar — Analyst
Tanay Shah — Analyst
Naushad Chaudhary — Analyst
Aniruddha Joshi — Analyst
Keshav Lahoti — Analyst
Praveen Sahay — Analyst
Dhaval Shah — Analyst
Presentation:
operator
Ladies and gentlemen, you are connected for the Sarma SGS Technology Limited Con call. Please stay connected. The call will begin shortly. Ladies and gentlemen, good day and welcome to Serma SDF Technology Q3FY26 earnings conference call hosted by Access Capital Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Nikhil Kandohi from Access Capital Limited. Thank you. And over to you sir.
Nikhil Kandoi — Analyst
Thank you Ikra. Good morning everyone. On behalf of Axis, I welcome you all to Q3FY26 earnings concur of Cinema ACH Technology Limited. We have with us the entire management of the company. At this point I will hand over the floor to Nithyal Gupta, Head of Investor Relations of Cirma. Take the proceeding forward. Thank you.
Nikhil Gupta — Head, Investor Relations
Yeah, thank you Nikhil. A very good morning to everyone. Welcome to Sirma SDS third quarter financial year 2026 earnings call. We have with us today Mr. J.S. khajal, Managing Director, Mr. Jayesh Toshi, Director, Mr. Satyendra Singh, Chief Executive Officer and Mr. B.J. agrawal, Chief Financial Officer Sirma Sgis to discuss the performance of the company during the third quarter of the financial year 2026 followed by a detailed question and answer. SE kindly note during this call certain statements that will be made are forward looking which involves several risks, uncertainties, assumptions and other factors that can cause results to differ materially from those in such forward looking statements.
We request you to kindly refer to the disclaimer statements as presented in the earnings release. For the same with this, I now hand over the call to Mr. J.S. khal, Managing Director for his opening remarks on the performance. Thank you.
Jasbir S. Gujral — Managing Director
Thank you Nikhil. Ladies and gentlemen, a very good morning and welcome to Cermay S Q3FY26 earning call. The last three months have been good and exciting and I’m happy to share that the company has posted robust performance on all parameters. If we look at the sale, my Q3 sales have gone up by 45% compared to last year. Q3 of FY25 EBITDA has shown a very healthy growth of 101% up from 79 to 159 crores. PBT and PAT have also registered corresponding good growth of about 108%. One of the redeeming features of this quarter was a 66% growth in my exports up from 202 crores to 335 crores between Q3 FY25 and Q3 FY26.
Now if I sort of scan the nine month performance again, we find that the performance is in line with what we had guided and in fact better on some of the parameters. We have achieved in nine months revenue of about 3350 odd crore with the operating EBITDA of 370 crores up from 208 crores, a PBT of 295 crores up from 146 crores, a PAT of 227 crores up from 113 crores and exports up by 45% from 576 to 837 crores. Going into sort of a bit granular detail, what is satisfying and gives us confidence of maintaining this tempo of performance is almost a secular growth across all verticals.
All the sort of four cylinders are firing. The auto has grown by a robust margin of growth of 30%. Medtech by 31%. Industrial by 29%. IT Railways because the base was very low. It has shown a robust performance of 70% growth. So this gives us the confidence that going forward we would be able to achieve the guided figures and maybe exceed on the margin front. When we started off this year we had guided a margin of 8% EBITDA margin of 8% which was revised to 9%. And now we are confident that we should be able to deliver 500 crores plus of EBITDA up from 324 crores of last year which would translate into a 55, 57% growth against a targeted growth of 30% which we had guided Going forward in the coming year.
We believe that we are well poised to take sort of capitalize on the emerging opportunities and grow healthy growth rate across all verticals such that we would be able to deliver a 30% growth rate in the coming year. Also one of factors which we should keep in mind is that this performance has been under sort of the so called cloud of tariff uncertainties from usa. We have been hoping for the last quarter or four, five months that it would settle. We are still very hopeful that in this quarter this sort of thing that the tariff uncertainty should be out of our way.
When I say overall it also applies to the entire industry. One very positive thing which has happened a couple of days back is the signing of the EU FTA with the EU union. And this in the long run, not in the short run, not maybe in 26, 27, but in the long run. I think it bodes very well for the electronic industry in two ways. A, some of the end equipments which were attracting duties, they have been rationalized or brought down to zero or very low duties which would enable export of end products from India.
Automobile is a case now. If automobiles are exported, the electronics which go into the automobiles, we are there to service that. And plus it creates a broad ecosystem and environment, a positive environment that going forward the trade with EU would see upright. We are very strong in EU. We have been exporting for the last 30 years. We have a plant in Germany. So I believe that in the long run this thing, the FDA would help us in sustaining the growth of our exports, which, as I just shared, have grown by 45% over nine months. And I expect that we should be able to cross the 1,000 crores, maybe close to 1,100 crores in the coming year.
We’re already sitting at 837 crores of exports. On the domestic front, we, the industrial literary service, are seeing robust growth and I expect the growth to continue in the coming year. Also, as far as the new vertical projects are concerned, or PCB project is on track. The construction has started and we expect the construction to be completed by about June, July parallel, the equipments are being ordered and we are on track to start the trial production by December 26, January, March 27 quarter, so that we have a first one year of sales from the capacity which we are creating this year.
Further capacities will be created based on the demand, which we believe would be very good and that we believe that the additional capacities which you have planned should come in sooner than later. We are sort of expanding our footprint in Pune. Expansion of capacity in Pune. We have acquired Elkom. The deal has been closed and we expect that going forward Defense Vertical would contribute to the bottom line more and to the top line as a proportionate figure, little lower because it will be about 5, 6% of our overall revenue. On the whole, I think it’s been very satisfying.
Nine months on the financial parameters, performance, delivery, everything. One soft thing which we believe is of very great significance for our company and the country is that we have got the gold rating from Ecovide, which is the ESG compliance, and we are now rated among the top 5% companies globally. Last year it was a bronze rating. So we have qualified from bronze to gold. Some of our customers are in platinum. So I think the journey is on and we’ll endeavor to do that. With that I hand over to Vijay to run you through with the detailed number crunching, but overall I think the team has done very well and we are happy that we are on track and are delivering what we have guided this week.
Thank you.
Bijay Agarwal — Chief Financial Officer
Thank you sir. Good morning everyone. I will now take you through our brief financial performance for the quarter and nine months ended December 2025. I can start with the update on ELCOM first. During the quarter we consummated the deal sometime mid of December So for about 1516 days we have been able to include or consolidate financials of P and L performance of elcom also considering the same Our overall total consolidated revenue for the quarter is 1274 crore rupees as against 891 crore corresponding quarter previously last year registering a 45% growth year on year basis. Our total revenue for the nine month is approximately 3380 crore rupees which is again a 17% growth on a year on year basis.
The robust growth for the period is contributed by higher growth in auto, industrial, healthcare and mainly export business. The consumer sector business for the quarter is approximately 31% which is in line with our previous guidance. Our export revenue for the quarter is approximately 335 crores highest ever per quarter which has grown by 65% on a year on year basis and for the nine month it is around 837 crore rupees which is again a 45% growth year on year basis. Overall export business mix is approximately 25% for the entire nine month period which was about 22.5% for last financial year.
So we can see overall export has improved by almost 250bps in the overall revenues. Our ODM revenue for the quarter is approximately 16%. Coming to gross margin Gross margin for the quarter is 27.4% as against 26% for Q3 of last year. The margin improvement is mainly led by export, higher export mix, higher odm, higher industrial and healthcare business and also lower consumer and IT which is relatively lower gross margin business. We again continue to focus our efforts on. We continue to focus our efforts on our operational efficiency improvement further to improve margin. Our operating EBITDA for the quarter stood at healthy 159 crores with a year on year growth of 100% and an operating EBITDA margin of 12.6%.
The current quarter consolidated EBITDA also includes 12 crore rupees from Elkom Consolidation so excluding El Com Apple to Apple basis it is 147 crore rupees our nine month operating EBITDA is approximately 370 crore rupees which has grown by 78% year on year basis and nine month operating EBITDA margin is approximately 11%. PVT for the quarter is of 138 crore and for the nine month it is 295 crore which has grown again by 105% on a year on year basis. EBIT margin for the nine month period is 8.7%. Coming to PAT performance PAT for the quarter is 110 crore which has again grown by 108% year on year PAT margin is 8.7% for the quarter.
Similarly for the nine month period PAT is 227 crore rupees with 100% growth on a YOY basis. Overall net working capital days investment as on December end we are running the business at around 76 days of net working capital days investments. These numbers also includes consolidation of L. Com so if we remove it to make it Apple to Apple my net working capital investment is 68 days which is five days lower than the previous quarter. So that much of efficiency we were able to bring in during the quarter and considering the same overall operating cash flow for the entire nine month period is now positive for the company.
We again continue to focus on reduction of net working capital by another maybe three to five days over the next two to three quarters. Moving to our debt position we have a total gross debt of 529 crore as on December end and as against same we are carrying a healthy treasury balance of 933 crore rupees. With this we have a net cash position of 404 crores as on December 8th. Coming to capex spend it is all on track. We have been able to spend around 55 crore during the quarter and for the entire nine month it is approximately 115 crore coming to ROC performance ROC for the quarter is approximately 16% on adjusted basis.
When we adjusted for the goodwill and unutilized IPO money we expect this to improve further up for the year when we are able to when we are able to take the full P and L benefit full period related full benefit of LCOM because as of now LCOM is already included into the capital employed but returns should also include it further going forward. Our order book visibility as on December end is approximately 6400 crores which includes auto sector related approximately 31% consumer business about 25% industrial business 27% and balance is healthcare IT railways. Just an update on the merger we have Already concluded the merger firma IGS merger is all done and now we are reporting only AGS is already in merge into Cirma so there is nothing pending on that side.
Once again we continue to focus on high margin verticals, operational efficiencies improvement, improving the overall working capital investment and thereby improving the overall operating cash flows. That is all and thank you very much. I will now hand it over to Satyendra please our CEO.
Satendra Singh — Chief Executive Officer
Thanks Nijeel and good morning from my side as well. I think we had an excellent quarter as already summed up by Mr. Gujral and Vijay in their remarks with numbers. I couldn’t be happier. I think this is a culmination of all the efforts made by our team across the plants, across all the support functions and most importantly the customers. We have a very healthy, strong pipeline and we are looking forward to exciting times ahead. Our factories are getting busier as Mr. Gujaral alluded to in his remarks. We have seen utilization improvement between quarter two to quarter three almost 5% up and that would mean that we are very closely watching for expansion of capacities.
Last quarter I had commented that we are building a factory in Bangalore that’s on track and we are looking forward to more capacity enhancements in this year which will obviously be required and the right step to do to meet the exciting growth ahead. Strategy wise we remain very focused. We are working basis what we always believed in and what we continue to execute on. First things first, customer. We’re listening to the customers very, very carefully, working with them, walking the walk and ensuring that we are ready as and when they want us to be ready with the capacities, with the systems, with the competencies needed to support their business.
We have continued focus on the segments which we always talk about, auto, industrial, medical, railways. We are continuing to build our capabilities. I think last week also brought in interesting news to the trade and manufacturing ecosystem which is the Europe India deal. I think that’s as the newspapers call it, mother of all deals. I would kind of believe that this is going to be a significant impact on the way businesses are growing. It definitely will bring strong tailwinds to Indian electronics companies and we as Cirma SGS have been in European market for more than two decades and we have been physically present for almost a decade via our factory and engineering presence in Stuttgart.
We are looking forward to building on that to ensure that our export growth which already Vijay said We grew almost 45% year on year. We are looking forward to using our position there, our knowledge of the market to ensure that we have solid growth. Last but not the least, I think we continue to be a business which is keeping doing all the right things required for the planet. And that’s reflected in our Ecowaters rating. Moving from bronze to gold there is clearly way ahead. Our endeavor would be to get to platinum. But the best good part is that we are on the right track with this.
I’ll turn it back to Nikhil and thank you very much. Looking forward to exciting times together. Nikhil, over to you.
Nikhil Gupta — Head, Investor Relations
Yeah, thank you Satinder. Thank you Satinder. Over to you Iqra for getting into the Q and A session.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Samanth Kumar from Motilal OSWAL Financial Services Ltd. Please go ahead.
Sumant Kumar
Hi, good morning. So my question is for consumer. We have seen a swing of 116 crore in this quarter and also in industrial 120 crore. So I understand industrial is majorly driven by the smart meter. So but can you talk on consumer side what is leading this kind of growth? Because we have focus on high value high margin business for consumer what we have discussed earlier that is number one, number two what other other sub segment is driving industrial.
Bijay Agarwal
So we have done mostly 390 crores in this quarter while it was 365 crore in the previous quarter. So there is a growth approximately 2324 crore rupees over the last quarter. And this is again mainly largely driven by telecom business which we are doing the setup boxes, idu, odu that is one last thing. Additionally the consumer sector driven ODM business what we are doing is like water purification and maybe some bit of RFID tax going for consumer end use. Those are the products which we are doing in the.
Jasbir S. Gujral
You see end of the day when we started off this year we had said that we would like all consumer sort of basket to be about 31% 30, 31% of our revenue and for this quarter it is at about 30 and even if I say for the full year it is at about 32% of the total sales. So I think we are on track. The industrial is driven by across the sort of applications including exports. It’s not purely driven by the energy metering which is a Domestic business but by growth in my exports. My exports predominantly are in medtech and industrial with a component of automotive also which is touching around 100 crores.
So it’s the business growth across verticals and within verticals across applications. That’s what is, I think the strength and satisfaction which we derive when we see the quality of growth that it is not driven by one leg. All the cylinders are firing and within them, within each vertical, the different applications are also growing secularly with marginal variation. Some will grow faster, some will be at a slightly sort of lower clip than the fastest one.
Sumant Kumar
Okay, so can you talk on the industrial side? What is the smart meter contribution of Overall industrial in Q3 and also in IT and Railways? What is the mix of railway in IT and railway increase in this quarter?
Bijay Agarwal
In this IT and Railways during the quarter we have done approximately 82 crore rupees. Office Railways is only 1718 crore rupees and balances it and similar way in the industrial breakup, smart metering is less than 50 crore rupees for the quarter year.
Sumant Kumar
How much?
Bijay Agarwal
Around 50 crore rupees.
Sumant Kumar
Smart meter?
Jasbir S. Gujral
Yes.
Sumant Kumar
So in industrial we have a higher. Proportion of telecom.
Jasbir S. Gujral
Other applications.
Bijay Agarwal
Industrial has power supplies, it has exports, it has the ME training.
Sumant Kumar
Okay, thank you so much.
operator
Thank you. The next question is from the line of Sameh Sinha from Macquarie Capital. Please go ahead.
Sameet Sinha
Yes, thank you. So good performance here. So if I’m looking at your full year guidance, 30, 35% year over year growth requires, so fourth quarter, you’re assuming it implies about 3 to 500 crores. How can you help us get there? Because that’s a pretty sequence in a strong year over year acceleration that’s required. Of course LCom will contribute how much is lmster closing depend, you know, included in guidance. And then I have a follow up question.
Jasbir S. Gujral
Okay, now if you see the quarter on quarter performance, Q1 we had a negative revenue growth of 19%. Q2 we did a 37 odd percent positive growth. So from a negative 19, 18, 19 to 37 it implies whatever the growth is. And in Q3 this 37 has grown up to 44 or 45%. Q4 going forward we are confident that we should be able to grow sequential. On our sequential target, which we did about 1264 crore, we should be able to grow this figure by about 1600 plus such that we should be sitting at anything between 48504900 to 5000.
That’s the range. But to me the revenue figures are very important. But more important is the ebitda. I think we started off the year with a guidance of 400 crores of EBITDA. We are already sitting at 370 crores in nine months. Even if I exclude the 12 crores of EBITDA which has been consolidated it means 358 crores. I am very confident that we should be able to cross the 500 crore mark of EBITDA for the full year. If 500 we do that it’s almost like 58 odd percent increase over previous year and it would have a similar positive increase in the pact.
Once the pat goes up it will have a similar positive impact on my eps. So I think on the finer points of performance I think we are delivering or exceeding what we had committed to the street.
Bijay Agarwal
Just to add here we are not expecting any revenue from Le Master JV in the fourth quarter and also L. Com related we are expecting 100 to 120 crores of revenue in the quarter four that that would be included there in the market.
Sameet Sinha
Got it. Okay.
Bijay Agarwal
And ELCOM also expecting healthcare higher number in the next quarter as it is always a much more rear loaded business in any year.
Sameet Sinha
Got it. Okay. Thank you. Thank you for that clarification. So the seems like you’re pretty high visibility into 27 as well. Can you help us think about some of these segments and the key drivers are and if you can bracket sort of growth rates for each of these segments that’ll be helpful. Thank you.
Jasbir S. Gujral
As I just shared that if I see my nine month performance or my sort of three months performance all my major verticals are growing at a pace of 30 plus percent railways and IT because of a lower base growth at about 70 odd percent. I expect this secular growth among verticals to continue. Some may grow mild, some may grow at 35, some may grow at 28. But on an overall basis we believe that we are in a position to deliver a 30% growth on top line and on EBITDA in the coming year. 26:27.
Sameet Sinha
Okay, that makes sense. Thank you very much.
operator
Thank you ladies and gentlemen. In order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to one per participant. Should you have a follow up question please rejoin the queue. The next question is from the line of Sonali S from Jeffries. Please go ahead sir.
Sonali Salgaonkar
Thank you for the opportunity and many congratulations for such a wonderful result to you Gujaratji, Bijay Ji and the team. So my first question is margin trajectory has been really strong this quarter. Vijay did Talk about the levers for that. But just wanted to get in a little more detail because if I look at the product mix in Q3FY26 versus Q3FY25, I mean consumer autos were broadly in and around the same, you know, percentage of sales as they are right now. So keen to understand what led to this excellent margin and the sustainability of the same.
Jasbir S. Gujral
See we don’t as we all the time been saying we don’t concentrate or point on quarter on quarter margins. So even if you recall my Q4 of last year was I think it was about a 12% EBIT margin Q4 of last year and this time it has, it is in Q3. So let’s not say that Q3 becomes the base for future projections. What we are saying is that we guide a 30% growth in absolute EBITDA which translates into 10% EBITDA margin going forward. What drove the margins in Q3 is my export performance. See exports is a very high margin business and it has grown by 66% compared to Q3 of last year.
So in exports we are up from 202 to 335 crores. This 135 crores additional sales results in a comparatively very high contribution towards ebitda. Similarly if I see my performance on industrial, my industrial is 31% in quarter three grown 46% over corresponding period of last year. So these high margin verticals where the growth has come this quarter has resulted in 12 odd percent of EBITDA. Going forward we guide that we should be able to deliver a blended ebitda margin of 10% for the next year.
Bijay Agarwal
Just to add Sonali here you are right. The overall business mix is exactly same as it was in Q3 of FY25. So that is where when you see gross margin level overall improvement is only 1% because of the better margin controls or maybe some bit of procurement efficiency. And the larger part of saving is coming because of the scale improvement versus Q3 of FY25. There is a 45% of the scale improvement which is also helping us in the operating leverage improvement. That is where the overall EBITDA margin increases 3.5% versus future of FY25.
Sonali Salgaonkar
Got it sir, very clear sir. And just one last question for the PCB manufacturing we had set out the overall Capex estimate to about 15 billion INR. How should we look at the per annum Capex guidance considering that you know we’ll be doing this Capex in phases so is about 3 billion per annum a fair number to go by in FY 2627.
Jasbir S. Gujral
Okay. So in the first phase which would be completed by December 26 or 2627 we should be spending approximately 360, 370 odd crores. 360 to 400 crores which would give us capacity of seven 20,000 square meters of multi layer line and four 80,000 square meters of single bore single layer PCBs. The facility which is being created is to accommodate two additional multi layer lines. So the civil and the infrastructure which we are creating, the attendant utilities and all that, they are all geared up for my full 3ml and 1ml means multi layer and one single airline.
I personally believe that the stuffing of the multilayer lines, the additional multilayer lines would be sooner than what we had envisaged. We had envisaged that the second and the third line would come towards end of calendar 27 or beginning of FY 27 28. I think it would be preponed because the traction or the inquiries or the interest which we are receiving from potential customers is very strong. So this year it is about 360 to 400 crores. And next year I think on the PCB for this would be approximately the same amount and purely dependent on demand.
As far as the 1500 crores you said that also included CCL and HDI and Flex. We are yet to receive the approvals of the government because we had also planned the starting of those projects in 2728.
Bijay Agarwal
But overall the 1600 crore we want to we are planning to spend that by FY30 in December.
Sonali Salgaonkar
Understood? Got it, Very clear. Thank you. And all the best to you.
Bijay Agarwal
Thank you.
operator
Thank you. The next question is from the line of Praveen Sahai from PL Capital. Please go ahead.
Praveen Sahay
Yeah, thank you for opportunity and many conversation of a very good set of numbers. My first question is related to the export because the last year I can see that the US contribution for the export were on the higher side. And now again, you know, even after a lot of fluctuation because of a tariff, you are doing very good in the export as well. So can you give some geographical indication from where you are getting growth? As you already highlighted, industrial contribution in the export is higher. And also is that the ellicon contribution in the export is also there?
Jasbir S. Gujral
No, ALCOM is all domestic consumption, domestic sales. So it was not included in the export. The export which for the nine months stand at 837 crores versus last full year actually exports of about 858 or 60 crore. These exports have primarily been driven by my robust growth in the industrial exports and also metals and healthcare. Healthcare is preeminently to USA and other are primarily to eu. Breakup wise. Yes.
Bijay Agarwal
So breakup wise during the quarter we have done almost 103 crore rupees on the healthcare side and about 178 crore on the industrial side. Out of the program. 335.
Praveen Sahay
Geographical also if you can give, sorry, geographical bifurcation. If you can give for nine months.
Bijay Agarwal
5% is US and 35% is Europe. And industrial is largely 90% is European.
Jasbir S. Gujral
My medtech business is preeminently going to your usa. My RFID and EMS business is directed towards EU and maybe Mexico and something to that. Geography wise I don’t have the figures offhand. We’ll have to sort of work out. But I think it should be maybe 55, 45. But I have to work out the figures.
Praveen Sahay
Right sir, any number on PLI for a quarter and nine months.
Bijay Agarwal
If you can say PLI annualized number for any year is near about 30, 32 crore rupees for us back. Right. That’s what is coming in the normal business.
Jasbir S. Gujral
And there are no abnormal variations quarter on quarter.
Praveen Sahay
Yes. Okay. Thank you sir. And all the best.
operator
Thank you. The next question is from the line of Tanesha from DAM Capital. Please go ahead.
Tanay Shah
Hi sir. Good morning. Congratulations on a very good set of numbers. Sir, my first question is if you could possibly spend, you know, just a couple of minutes on all the newer initiatives, especially the defense acquisition since it’s consummated in our numbers and if you can just give some direction on where we want to take this business in terms of revenues, how it’s going to sort of be accretive to our margin profile and what sort of return ratios does it enjoy. So one is on defense and second is if you can possibly just for the bare PCB project indicate what kind of applications you know we are sort of aiming at.
Will it be more industrial, Auto, you know, what are the segments which are looking at and what would the indicative margin profile be on basis of current projections for the bare PCB plant? Yeah. Thank you.
Jasbir S. Gujral
Okay. Now Elcom, we just acquired it and this year we believe that it will account for approximately maybe about on a com as an entity. I’m not talking of what it will be consolidated into because of the previous nine months which were not done. ELCOM should be delivering anything between 280 to 300 crores of revenue. L. Com as an entity. The entire thing Will not get line wise, it will not get consolidated into over things going forward we expect that the business has the potential to grow at maybe 10%, 15%, 20% with the present offering of bouquets of products which we have got.
But obviously when we have acquired a platform and we have got a foot in the door in defense application, we would like to increase the bouquet of offerings next year. I think if we are doing about 280 to 300 crores this year in Elcom, next year we should be taking it anything between 10 to 15% growth rate because in defense the gestation period is pretty long and the orders could also be lumpy. As far as the margin profile is concerned, this is a high margin business and the margins are upwards of 20%, 24%, 25% which we believe we will be able to sustain in the coming years also.
That’s as far as ELCOM is concerned. On PCB front we are in touch with customers in the industrial, automotive and consumer segment. And industrial is a very wide application. Energy metering is one of them. And broadly in the PCBA industry the margin profile is 15 to 17% EBITDA margin profile without the PLI. So I think we would be in line with the industry margins and grow in the industrial automotive segment. Automotive also within automotive there are various categories, the lighting PCBAs, the infotainment PCBAs. So we’ll be catering to the entire sort of consumption what you call the PCB which goes into the automotive and subsequently we would also be targeting the MedTech.
The they are high end PCBAs and have a longer approval cycle. So we’ll be plucking the low hanging fruits in the initial phase and finally build up the ecosystem and the pipeline to target the high end PCBAs which would also include exploring export market.
Tanay Shah
Sure. And just to follow up on the PC.
operator
Sorry to interrupt, can you please speak a little louder?
Tanay Shah
Yeah. So just to follow up on the PCB business, right. You know we’ve spoken about multi layers but what, what kind of multi layers are we going to do till what amount of.
Jasbir S. Gujral
Typically if we analyze the pcb consumption, about 10% to 15% is HDI and other things and rest is all single and multi layer. And if we further drill down bulk of the consumption, which I say if I take the total PI, 875% of that, 70 to 75% of that would be sub eight layer single to sub eight layer of eight layers. Then as you go up in the layer profile from 8 to 10 to 15 or whatever, it’s like oxygen, it gets very fine. The quantities keep reducing. So we are targeting the market which is available, which is bulk market.
And not saying that will not be targeting the 15 layer or 12 layer. The volumes are very less.
Tanay Shah
Fair point, sir. Fair point. Fair point. Thank you sir. Thank you so much for clarification.
operator
Thank you. The next question is from the line of Nasha Chaudhary from Aditya Birla Mutual fund. Please go ahead.
Naushad Chaudhary
Hi, just one clarification sir. Apologies, I’m repeating. I joined a bit late. Did you share your order book number?
Bijay Agarwal
Can you reshare it if you have. Already shared Order book? Yes, yes, we have already shared. So total order book and visibility is approximately approximately 6400 crore. And out of that around 31% is from export auto segment. About 25% from consumer segment and approximately 27% from industrial segment. Balance is healthcare, IT and railways.
Naushad Chaudhary
And exports.
Jasbir S. Gujral
Sir, exports are within say when I say industrial it will be exports. Medtech is all exports.
Naushad Chaudhary
Export is about 24% there in that.
Jasbir S. Gujral
24, 25% of the enhanced value. So if we are targeting, we are doing about 1100 crores this year. So next year we expect this figure to go up further. If you’re targeting a 30% growth rate. So we should be having a 25, 30% growth rate in exports also.
Naushad Chaudhary
I thank you. All the best.
operator
Thank you. The next question is from the line of manan goyal from icici securities. Please go ahead. Hello Manan, your line is. Yeah. You are audible. Please go ahead.
Aniruddha Joshi
Yeah, Anirudh Soshi here. Just one question. After all the acquisitions mnd, what is the goodwill on the balance sheet and how do you see the in a way writing off of the or amortization of the goodwill panning out over next two, three years and will it qualify for any tax benefits? And second question, what is the capex that we are looking at for FY26. Sorry FY27 and 28. And lastly, what is the current networking capital inventory days or data days if you can share. Yeah, that’s it. From my side. Thanks.
Bijay Agarwal
So to answer your first one on the goodwill and intangibles and the tax benefit and the amortization of the same. That is something we are working out along with our valuers and the auditors together. And probably in the next quarter result we will be able to disclose it completely. That way whatever intangible is coming out of that PPA valuation, purchase price allocations that intangibles will be eligible for a tax benefit, amortization and tax benefit goodwill is something we will not be able to amortize it. So there will not be any tax benefit or P and L impact of the same thing.
But that is something we will be able to disclose properly in the next quarter Results coming to your CAPEX requirement, normal organic related CAPEX requirement would be 80 to 100 crore rupees on a year on year basis. Apart from that special project just like PCB business related near about 300 to 350 crore is what we will be spending over the next. And beyond that if we furthermore announce any other new special project that will be over and about that thing. Additionally coming to net working capital trade requirement we are already at a 76 days of working capital days.
We are still that is also including Elcom related working capital number so far we are still working on it and trying to reduce it further. Over probably next two to three quarters we should be able to bring in an efficiency of around five to six days. And we have already disclosed that this 76 days if we exclude ELCOM on the current year number or excluding Elcome this is about 68 days. That’s where we are currently.
Jasbir S. Gujral
So which five days or six days reduction from September 23rd and a four days increase from last year corresponding figure.
Bijay Agarwal
And even after considering all these things My overall 9 month operating cash flow is positive right now which we are trying to furthermore improve for the entire full year.
Aniruddha Joshi
No sir, this is a really great many thanks for the detail.
Bijay Agarwal
Thank you.
operator
Thank you. The next question is from the line of Keshav Bijayrathan Lahorti from HDSA Securities. Please go ahead.
Keshav Lahoti
Thank you for the opportunity. I remember your smart meter revenue which was 50 crore each quarter which was coming and this quarter also you highlighted. It is 50 crore so totaling 150160. Crore in nine months. But your guidance for this year was 300 crore. Earlier you indicated possibly H2 would be better on smart meter front. So what’s the update on that side?
Jasbir S. Gujral
See on the smart meters one thing is it is a very sticky business in terms of working capital cycle and we don’t want to land into a situation where we have the sales but not the recoveries to be very honest. So the growth is driven by choice. As long as I am confident of delivering on the overall business and we are selective about customers in the what you call energy metering business and has this sort of slight softness in growth numbers of the value of the energy meters in terms of quantities we are growing well and because of the sort of working capital cycle.
We at times ask our customers to sort of give us the key dedicated controllers free of cost. So while my quantitative numbers may go up then since the material is being sort of procured by the customer, it does have an impact on the value of sales. So there are two, three factors. A the working capital cycle, we are choosy about the customers we service. If I am not going to be choosy the sales, the business is available. I can grow several times what I am doing today in the energy metering business. But I don’t want to land in a situation where the sales cycle does not result into a sort of a shorter cash flow cycle.
Keshav Lahoti
Got it. So what is the revised guidance of smart meter revenue for this and next year?
Jasbir S. Gujral
Next year? I think if we are doing about 200 crores this year, we should be going about another 20, 25, 30% next year. Again what I sort of focused on the company is focused on is overall growth with profitable margin and positive cash flow. So these are the three parameters. So if we find that the growth is not coming then go into the sort of sticky business, sort of a sticky thing where the cash flow cycles a lot. But if you are able to manage the growth without the longest working capital cycle business, I think we prefer that.
Keshav Lahoti
Understood. Got it. One last question from my side. The guidance of 30% revenue growth. This is including everything ELCOM and whatever inorganic you do or it’s purely organic you are talking.
Jasbir S. Gujral
See we had guided last year also and this year also we are saying that we’ll be growing at around 30% now this year when we say we are growing at this rate from whatever we did last year, 324 crore a bit. 3700 odd crores of revenue. So it will be Apple to Apple and the ELCOM will be in addition next year ELCOM comes into a fold. We would share the defense vertical separately but then the growth overall would be blended of all the things. So if you are able to do about 5000 crores, 4900 crores of revenue this year, a 30% growth will be what would result in two.
And more importantly if we deliver a 500 crores EBITDA which I’m very confident it’s not if we’ll deliver a 500 crores EBITDA this year. Next year 30% growth rate is 650 crores of EBITDA.
Keshav Lahoti
That is very helpful. Thank you so much.
Bijay Agarwal
Also just to add on the previous question, the breakup of export during the nine month we did total export of approximately 835 crore rupees of which near about 255 is to us and balance 580 crore rupees is for other than other markets other than US which includes Belgium, Germany, Mexico, Canada and China and Singapore together.
operator
Thank you. The next question is from the line of Dhrumail Vani from Greig Capital Please go ahead.
Dhaval Shah
Hi Dhavil Shah this side thank you for the opportunity, great performance and good luck for the future. Sir, my only question is regarding the good drop in the finance cost quarter or quarter while the debt number is higher so is it some refinancing of the debt or can you just help us understand?
Bijay Agarwal
Yes this closing debt was not exactly available for the entire period so this is something for during the quarter the debt number was actually lower and yes we were able to negotiate or renegotiate some of the interest costs with the bankers to achieve some efficiency so it is a result of both the things.
Dhaval Shah
Okay got it. And Vijay Bhai the other question is on the what tax should we assume tax rate for fourth quarter and next year plus you mentioned the total cash outflow from our balance sheet will be around 400 crores for capex like 300 for the PCBA plus 100 for our existing business so then next year we planning to meet this entire requirement with our operating cash flow or how it’s going to be funded. So what sort of debt will on 31st March 27th how the balance sheet will look like so of this capex.
Bijay Agarwal
Whatever PCB is related capex we are planning to raise 50% debt 50% through equity and part of that equity 25% of that equity requirement will also be funded by my partner also. So in totality yes including debt or equity outflow whichever way we can say capex related near about 300 to 350 crores will be the overall outflow here.
Dhaval Shah
On the CAPEX side and what was. Your first question regarding the cash balance?
Jasbir S. Gujral
Yes so on this capex 300 crore so from our balance sheet 300 crore will go from SEMA balance sheet on the apex for the PCB350, 400 crores whatever is the figure by March 27 would be making us eligible for a 50% subsidy from the government of Andhra Pradesh so it is sort of a bridge financing over a period of one year so whatever I spend till March of 27 I expect to get the money in 27, 28, 50% of that so on a full sort of cycle basis my investment in the PCB Project would for this phase, if it is 400 crores, will be actually 200 crores from SG Thermal.
And out of that 200 whatever is the equity portion, 25% will be funded by my collaborator. Okay, understood, understood. And my other question was on the tax rate for the fourth quarter and for the next year, what should we be assuming?
Bijay Agarwal
Tax rate for the fourth quarter would be somewhere around 23%, 23, 24%. And next year we can assume about 24, 26%.
Dhaval Shah
Got it, got it. Okay, thank you, thank you.
operator
Thank you. Ladies and gentlemen, due to time constant, that was the last question for today. I now hand the conference over to Mr. J.S. gural for closing comments. Over to you, sir.
Jasbir S. Gujral
Thank you. Ladies and gentlemen. I think we are well poised, well positioned. What we had set out to do when we hit the street in 2022, when we got lifted, we had guided all the investors on the street that we are making a truly global EMS company and we are on wave, sort of on right track for that. In between there would be bumps, but on a long term basis, I think we are very well poised with our customers, with our vendors, with all the stakeholders. And to take benefit of the emerging opportunities in electronic manufacturing, we are building an organization which is now almost there.
The capability building is an ongoing exercise which would continue year on year. When I say capability building, it is introducing the best of the software, the best of the tools, online monitoring of performance of the machine so that we sort of get a better efficiency out of the sort of assets which we have created. We have, as I shared last time, tied up with the Canadian American company ARC Systems, which gives us sort of access to online monitoring of my SMT lines across plants. So sitting in the corporate office, my teams who have been given access can on a real time basis monitor the performance it has.
We have started a pilot project and the results are very, very encouraging. And if we have say 40 lines and 500 hours is per line, it is 20,000 hours of capacity. If I’m able to get a 5% improvement, it gives me 1,000 hours of capacity, which is equivalent to two lights. So I think we have now embarked on a journey to bring in the operational efficiencies, which Vijay also alluded to that while my gross material margin has improved by 1.7, 1.5%, my EBITDA margins have improved by almost like 3%. The remaining 1.5% has come in from the operational efficiencies and we continue relentlessly to work on this.
So the motto on the shop floor is relentless improvement of efficiencies. This coupled with our other objectives of increasing the value, increasing the exports, increasing the odm. ODM growth is sort of a treacherous path. It’s not easy, but we are very focused on increasing that. This with our foray into PCB and other sort of piece parts under the ECMS policy I think positions Therma SGS in a very, very strong position to capitalize on the emerging opportunities within India and outside India. So overall satisfactory 9 months globally also macro also and micro also. And we believe that we are in a good position to keep growing at profitable margins and which we have said that our objective is to grow a 30% growth on EBITDA positive cash flows 25 30, 35% growth on top line.
So these three are the cornerstones on which we measure over performance and each one of them has its own importance. And I now hand over to Sinder to give his view on the overall thing. Stinder, over to you.
Satendra Singh
Thank you Gujalji. I think this was a great call from all of us. We are very excited about the growth. We have reported and we’re looking forward to great future. Thank you everyone. Have a good rest of the day.
operator
Thank you very much on behalf of Access Capital Ltd. That concludes this conference. Thank you all for joining us today and you may now disconnect your lines.
Satendra Singh
Thank you.