Any current/future new fundraising through debt or equity?

There is no mention of any current or planned fundraising through debt or equity in the provided transcript. The company discusses capital expenditure plans, including a new greenfield project at Kharkhoda with INR150 crores allocated, but funding sources are not specified as new fundraising. Maintenance and new product development capex of around INR120-130 crores annually is mentioned as a regular investment, without indication of raising new capital. Management states no immediate plans for further joint ventures or acquisitions, which could typically require fundraising. Overall, no explic

Any current/future capex/capital investment/strategic investment?

New plant at Kharkhoda being set up with an initial capacity of 0.5 million, expandable to 1 million based on customer demand; operational between April to June quarter 2026; partial capex of INR 150 crores to be deployed this year and partly in next year's Q1. Regular annual capex for new product development and maintenance in the range of INR 120-130 crores. No current plans for further joint ventures or acquisitions, but updates will be provided if any progress occurs. Focus on adding new products and increasing content per vehicle aligned to OEM platform transitions. Efforts on inc

Future growth expectations in sales/revenue/volumes?

The market outlook is moderate for this year but shows substantial opportunities over the next 3 to 4 years. Existing product expansion and new feature additions aligned to OEM platform transitions are expected to drive growth. Increasing content per vehicle by adding more products is planned for revenue enhancement. Engagements with key OEMs like Mahindra, Tata Motors, Hyundai, and Kia for new model transitions and EV portfolio expansions are underway. New plant at Kharkhoda with initial 0.5 million capacity (scalable to 1 million) will be operational by Q1 FY '27 to support volume growth. In

Future growth expectations in earnings/operating earnings/profits/EPS?

Subros registered an 8.45% revenue growth in Q1 FY '26, with EBITDA growing 9% and PAT up 16.48% YoY. The company expects to achieve 12% EBITDA margin within the next 2 years, up from ~10.9% in recent quarters. Strong ramp-up in EV and hybrid components, with green mobility sales currently at 20% and expected to grow further. Capacity expansion underway with a new Kharkhoda plant (0.5 million capacity initially), planned operational by Q1 FY '27 to meet rising demand. Truck segment revenues expected to grow from INR125 crores to INR150-165 crores aided by regulatory mandates. Bus segment reven

Current/ Expected Orderbook/ Pending Orders?

The company is participating actively in large railway tenders with order results expected between Q2 to Q3. A large railway tender worth around INR 28 to 30 crores received last year is nearing completion within next 2 months. Two to three more railway tenders, similar or larger in size, are in the pipeline awaiting release. For passenger vehicles, new RFQs with Mahindra and other OEMs are in process, expected to conclude within next two quarters. OEM model transitions (such as at Mahindra, Tata Motors, Hyundai/Kia) provide opportunities but are currently at RFQ or technical evaluation stages

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Subros LtdQ2 FY25Industrial Products

Subros Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹825P/E: 29.0Market Cap: ₹4.9K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→The market outlook is moderate for this year but shows substantial opportunities over the next 3 to 4 years.
→Existing product expansion and new feature additions aligned to OEM platform transitions are expected to drive growth.
→Increasing content per vehicle by adding more products is planned for revenue enhancement.
→Engagements with key OEMs like Mahindra, Tata Motors, Hyundai, and Kia for new model transitions and EV portfolio expansions are underway.
→New plant at Kharkhoda with initial 0.5 million capacity (scalable to 1 million) will be operational by Q1 FY '27 to support volume growth.
→Incremental revenue expected from commercial vehicle segment due to mandatory in-cabin AC regulations from June 2025.
→Growth in passenger vehicle, truck, and bus segments is anticipated, backed by market penetration and regulatory tailwinds.
→Ramp-up of EV/hybrid components contributing to around 20% of current sales with a trajectory for growth.

Margin guidance

Category 2

→Subros registered an 8.45% revenue growth in Q1 FY '26, with EBITDA growing 9% and PAT up 16.48% YoY.
→The company expects to achieve 12% EBITDA margin within the next 2 years, up from ~10.9% in recent quarters.
→Strong ramp-up in EV and hybrid components, with green mobility sales currently at 20% and expected to grow further.
→Capacity expansion underway with a new Kharkhoda plant (0.5 million capacity initially), planned operational by Q1 FY '27 to meet rising demand.
→Truck segment revenues expected to grow from INR125 crores to INR150-165 crores aided by regulatory mandates.
→Bus segment revenue projected to increase from INR44 crores last year to over INR50 crores this year.
→Long-term growth driven by product portfolio expansion and increased content per vehicle.
→No immediate plans for JV or acquisitions, but potential future opportunities exist.
→Operational efficiencies and margin improvement remain key focus areas despite current volatility.

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Fundraise plans

→There is no mention of any current or planned fundraising through debt or equity in the provided transcript.
→The company discusses capital expenditure plans, including a new greenfield project at Kharkhoda with INR150 crores allocated, but funding sources are not specified as new fundraising.
→Maintenance and new product development capex of around INR120-130 crores annually is mentioned as a regular investment, without indication of raising new capital.
→Management states no immediate plans for further joint ventures or acquisitions, which could typically require fundraising.
→Overall, no explicit plans or announcements about debt or equity fundraising were disclosed in the document.

Order book

Yes

→The company is participating actively in large railway tenders with order results expected between Q2 to Q3.
→A large railway tender worth around INR 28 to 30 crores received last year is nearing completion within next 2 months.
→Two to three more railway tenders, similar or larger in size, are in the pipeline awaiting release.
→For passenger vehicles, new RFQs with Mahindra and other OEMs are in process, expected to conclude within next two quarters.
→OEM model transitions (such as at Mahindra, Tata Motors, Hyundai/Kia) provide opportunities but are currently at RFQ or technical evaluation stages.
→Commercial vehicle (truck) AC business will see a full impact of new regulatory mandate from Q2 onward, with existing secured shares around 44-45%.
→New plant at Kharkhoda will add 0.5 million capacity, operational by Q1 FY '27, supporting order fulfillment.

Capex plans

Yes

→New plant at Kharkhoda being set up with an initial capacity of 0.5 million, expandable to 1 million based on customer demand; operational between April to June quarter 2026; partial capex of INR 150 crores to be deployed this year and partly in next year's Q1.
→Regular annual capex for new product development and maintenance in the range of INR 120-130 crores.
→No current plans for further joint ventures or acquisitions, but updates will be provided if any progress occurs.
→Focus on adding new products and increasing content per vehicle aligned to OEM platform transitions.
→Efforts on increasing localization in EV components dependent on volume growth viability.

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