Suprajit Engineering Ltd Q1 FY27 Earnings Analysis

- Expectation of double-digit revenue growth this year, driven by existing business wins and new projects. - SCD (Suprajit Controls Division)预计实现10%以上增长，并计划扩充产能，以满足新增订单。 - India operations targeting double-digit growth, supported by market share gains and Beyond Cable project ramp-ups. - Electronics division expected to maintain comfortable double-digit margins with growth depending on product mix. - Phoenix Lamps division anticipates recovery and growth due to new business wins amid competitor insolvencies. - Global Cables and Mechatronics (GCM) division expects double-digit revenue growth with significant EBITDA margin improvement. - Confidence based on order book visibility and ongoing discussions with new customers, especially in India and China. - Growth outlook subject to commodity price inflation and geopolitical uncertainties (e.g., Middle East conflict).

- Suprajit Engineering expects double-digit revenue growth for FY27, led by strong performances in Global Cables and Mechatronics (GCM) and India Cables and Mechatronics (ICM) divisions. - EBITDA margins are forecasted to improve to around 12.5%-13.5%, driven by operational restructuring and capacity expansions, notably in the SCD and SCS businesses. - The Global Cables and Mechatronics division (inclusive of SCS) aims to increase EBITDA margins from 6%-7% to 10%-12% through operational excellence and consolidation efforts. - The Electronics Division is expected to maintain comfortable double-digit margins in the near term. - Phoenix Lamps division margins, which declined in FY26 due to subdued volumes and price pressures, are expected to recover with new business wins and market share gains. - Overall, profit growth is supported by new business wins, tariff recoveries, and expected normalization of commodity costs. - CAPEX of around INR 200 crores is planned to support growth and capacity expansions.

- Total planned CAPEX is approximately INR 200 crores. - Allocation breakdown: - India operations: ~INR 80 crores (including Electronics Division with a new 3-story building replacing old facility, spread over two years, with about half allocated this year). - Global operations: ~INR 50 crores. - STC (Strategic Technology Center): ~INR 50+ crores. - Projects include: - AURIC Maharashtra land purchase. - Completion of STC building. - SAL Chennai Plant-2 expansion. - SCD capacity expansion. - Upgrades to IT infrastructure and software (~INR 15 crores). - Focus on relocating Electronics Division to leased premises for modernization. - Investments also cover maintenance, equipment replenishment across the group.

- The document does not mention any current or planned new fundraising through debt or equity. - Total debt as of March 2026 stands at INR 785 crores. - Surplus cash balance invested in mutual funds is INR 235 crores as of March 2026. - CAPEX plans are funded internally, with no indication of external fundraising. - INR 200 crores CAPEX allocated for land, building, plant, expansions, and IT infrastructure across the group. - No explicit discussion on raising new debt or equity for future financing.

- Suprajit Engineering Limited does not maintain a traditional fixed order book with specific quantities. - Orders are received and processed daily via the SAP portal, with pricing fixed but quantities variable based on OEM vehicle production. - The company works closely with OEMs; order volumes depend on how specific vehicle models perform in the market. - Once orders are received, the company knows its supply share (100%, 70%, or 50%) but does not project volumes annually. - This approach is standard in the auto component industry, focusing on customer demand rather than fixed order quantities. - Therefore, no conventional order book figures are shared or emphasized in their communications.