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Suprajit Engineering LtdQ1 FY26

Suprajit Engineering Ltd Q1 FY26 Earnings Call Analysis

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

Price: 468P/E: 40.9Market Cap: ₹5.7K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3
  • 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).

Margin guidance

Category 3
  • 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.

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Fundraise plans

  • 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.

Order book

  • 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.

Capex plans

Yes
  • 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.

How does Suprajit Engineering Ltd rank vs peers in Auto Components?

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1Suprajit Engineering Ltd
Rev 3Mar 3

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