Any current/future new fundraising through debt or equity?

Subros plans an investment of INR 150 crores for the Kharkhoda project. The company intends to fund 75% of this through term loan borrowings, approximately INR 112 crores. As of now, no loans have been taken, but the company aims to avail term loans up to INR 112 crores during the financial year. The remaining capex will be funded from internal accruals. No mention of any equity fundraising during the call. Focus remains on using internal cash and debt for expansion and capacity increase.

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

Subros is undertaking a key strategic project at the Kharkhoda plant for capacity expansion and automation. The Board has approved an investment proposal for this project. Land acquisition for Kharkhoda plant is completed and construction is underway. Planned capex for the Kharkhoda project is INR 150 crores. The company intends to finance approximately 75% of the Kharkhoda investment (around INR 112 crores) through term loans during the financial year, with the remainder from internal accruals. Besides Kharkhoda, there is no mention of other specific capex plans but overall capex including Kh

Future growth expectations in sales/revenue/volumes?

Subros expects overall industry growth for FY '26 to be muted, around 1% to 3%, but aims to outperform the industry growth significantly. Growth drivers include increased AC penetration, especially mandatory AC in N2, N3 category trucks from October 2025. The company targets more than 50% market share in the truck AC segment, with expected steep ramp-up post-October 2025. EV bus segment is promising with almost 100% AC penetration expected due to battery cooling needs; large OEM tenders secured. Content per vehicle expected to increase 1-2% in EV passenger vehicles (excluding electric compress

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

Subros expects to continue revenue growth outperforming industry, targeting 1%-3% industry growth but expecting better company growth driven by increasing AC penetration, especially in trucks from Oct 2025 regulation. Margin improvement efforts are ongoing with a long-term target of 12%+ EBITDA margin, recently crossed 10.22% annual margin; FY '27 is indicated as a potential timeline to reach 12%. New segments such as truck AC (N2, N3 category) with over 50% market share target and railway segments are expected to drive future growth. EV and green mobility products currently contribute ~20% of

Current/ Expected Orderbook/ Pending Orders?

Subros has secured almost INR 150 crores worth of orders in the truck AC (N2, N3 category) segment. They anticipate maintaining more than 50% market share in this segment going forward. For the railway segment, Subros has an order book of around INR 40 crores in tenders; INR 17 crores delivered and INR 23 crores expected to be delivered in the first 3 quarters. Large tenders for EV buses have already been agreed with major OEMs; preparing for initial product introduction and battery cooling solutions. The bus AC segment overall market size is about INR 400 crores to 450 crores; expecting to ca

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Subros LtdQ1 FY25Industrial Products

Subros Ltd Q1 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

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Subros expects overall industry growth for FY '26 to be muted, around 1% to 3%, but aims to outperform the industry growth significantly.
→Growth drivers include increased AC penetration, especially mandatory AC in N2, N3 category trucks from October 2025.
→The company targets more than 50% market share in the truck AC segment, with expected steep ramp-up post-October 2025.
→EV bus segment is promising with almost 100% AC penetration expected due to battery cooling needs; large OEM tenders secured.
→Content per vehicle expected to increase 1-2% in EV passenger vehicles (excluding electric compressors), with further growth with compressor localization when volumes justify.
→In commercial vehicle and bus segment, 50-60% growth expected from current levels by FY '27.
→Planned capacity and geographical expansion through the Kharkhoda plant will support growth.
→Alternative fuel segment (CNG, hybrid, EV) currently contributes ~20% of revenue, targeted for growth.

Margin guidance

Category 2

→Subros expects to continue revenue growth outperforming industry, targeting 1%-3% industry growth but expecting better company growth driven by increasing AC penetration, especially in trucks from Oct 2025 regulation.
→Margin improvement efforts are ongoing with a long-term target of 12%+ EBITDA margin, recently crossed 10.22% annual margin; FY '27 is indicated as a potential timeline to reach 12%.
→New segments such as truck AC (N2, N3 category) with over 50% market share target and railway segments are expected to drive future growth.
→EV and green mobility products currently contribute ~20% of revenue, with plans to expand HVAC and associated products aiding growth.
→Capex of INR 150 crores plus ongoing investments are expected to support expansion and automation, especially in the new Kharkhoda plant.
→Overall profitability showed strong improvement: 36.49% Q4 and 44.61% annual profit before tax growth YoY, reflecting operational efficiencies and localization.

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Fundraise plans

Yes

→Subros plans an investment of INR 150 crores for the Kharkhoda project.
→The company intends to fund 75% of this through term loan borrowings, approximately INR 112 crores.
→As of now, no loans have been taken, but the company aims to avail term loans up to INR 112 crores during the financial year.
→The remaining capex will be funded from internal accruals.
→No mention of any equity fundraising during the call.
→Focus remains on using internal cash and debt for expansion and capacity increase.

Order book

Yes

→Subros has secured almost INR 150 crores worth of orders in the truck AC (N2, N3 category) segment.
→They anticipate maintaining more than 50% market share in this segment going forward.
→For the railway segment, Subros has an order book of around INR 40 crores in tenders; INR 17 crores delivered and INR 23 crores expected to be delivered in the first 3 quarters.
→Large tenders for EV buses have already been agreed with major OEMs; preparing for initial product introduction and battery cooling solutions.
→The bus AC segment overall market size is about INR 400 crores to 450 crores; expecting to capture a significant market share.
→The Kharkhoda plant project has a capex of INR 150 crores with ongoing construction; planned SOP next year Q1.
→Half-year impact for CV business in FY '26 due to midyear SOP; full growth expected in FY '27.

Capex plans

Yes

→Subros is undertaking a key strategic project at the Kharkhoda plant for capacity expansion and automation.
→The Board has approved an investment proposal for this project.
→Land acquisition for Kharkhoda plant is completed and construction is underway.
→Planned capex for the Kharkhoda project is INR 150 crores.
→The company intends to finance approximately 75% of the Kharkhoda investment (around INR 112 crores) through term loans during the financial year, with the remainder from internal accruals.
→Besides Kharkhoda, there is no mention of other specific capex plans but overall capex including Kharkhoda and routine investments could be about INR 270 crores for the year.
→The Kharkhoda plant is expected to start production by Q1 of the next fiscal year.

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