SJS Enterprises Q2 FY26 Earnings Analysis

- SJS aims to outperform industry growth by over 2x, leveraging diversified segments, global reach, and strong customer relationships. - Continued strong growth expected in 2-wheeler and passenger vehicle segments with sustained momentum from new marquee customers like Hero MotoCorp. - Export revenue target set to reach 14-15% of consolidated revenues by FY28, supported by expansion into Asia, Latin America, and South Korea. - New product launches and cross-selling across product lines expected to drive higher content per vehicle and increased wallet share. - Capacity expansions underway at Pune, Bangalore, and Hosur to support growing demand and high-value technologies. - Consumer durables segment may rebound with new model launches underway; cover glass segment revenues expected to start from FY27. - SJS maintains confidence in steady double-digit consolidated revenue growth and sustained profitability driven by innovation and operational excellence.

- SJS expects to outperform the underlying industry growth by over 2x, driven by diversified presence, global reach, and strong customer relationships (Page 6). - Revenue growth is expected from higher exports targeted to reach 14-15% of consolidated revenue by FY28 (Page 17, 6). - Addition of new marquee customers like Hero MotoCorp and new product launches support faster-than-market revenue growth (Page 17, 9). - Expansion projects at Pune, Bangalore, and Hosur augment capacity for high-value product offerings, supporting growth and margin expansion (Pages 6, 14). - Margin expansion expected from economies of scale and cost controls; EBITDA margin improved by 106 bps Y-o-Y to 27.6% in Q1 FY26 (Page 5). - Strong free cash flows and low debt enable growth without compromising financial stability, sustaining robust EBITDA and PAT growth (Page 5). - No specific EPS guidance given, but consistent growth in PAT margin (16.5% in Q1 FY26) and earnings expected due to operational excellence and capacity additions (Pages 5, 6, 14).

- Ongoing greenfield projects at SJS Bangalore and new plants for chrome plating and painting at SJS Decoplast, Pune, aimed at scaling high-value technologies and premium aesthetics. - Capacity expansion allocated INR 40-45 crores for FY26 within SJS to support new customers including Hero and exports. - New chrome plating and painting lines at SJS Decoplast plant expected operational by end Q3 FY26. - Cover glass facility ramping up with plant ready; fine-tuning capex and infrastructure, supplies to start in FY27 with potential technology partnerships. - INR 100 crores capex allocated for expansion of chrome plating facility (Exotech), with approximately INR 45 crores spent already; new plant targeted to begin operations from Q3 FY26. - Focus on organic growth through innovation, next-gen tech application, and strategic inorganic growth plans with acquisition processes targeted to start but likely conclude next financial year.

- No immediate fundraising through debt or equity is planned in the current fiscal year. - The company is focused on accumulating cash this year to maintain a robust liquidity position. - Inorganic growth via acquisitions is a key pillar of their strategy. - They are actively looking at acquisition targets and expect the process to take about a year. - Any acquisition-related fundraising or deal closure is expected in the next financial year (FY27). - The company prefers to fund growth largely through internal accruals, minimizing debt burden.

- SJS Enterprises has a strong order book fueled by marquee customers like Hero MotoCorp, Bajaj, HMSI, Yamaha, Stellantis, Whirlpool, Autoliv, FCA, and Yazaki. - Hero MotoCorp's spend on relevant products is around INR 250 crores, with SJS aiming for a significant share. - New export orders from customers like Autoliv are around INR 5 crores annually per customer. - Exotech (SJS Decoplast) and Walter Pack have active orders with ongoing model changes; supplies to Stellantis and Whirlpool have started and are ramping up. - Capacity expansions are underway at Pune and Bangalore, enhancing order execution capability. - Cover glass segment is gearing up for FY27 commercial supplies with new orders in process. - The company emphasizes cross-selling a wide product portfolio, leading to growing order sizes and wallet share gains. - Orders and supplies are expected to ramp up steadily over the next 1-2 years as new models launch and capacities expand.