SJS Enterprises (SJS) Q1 25/26 earnings summary

Executive summary

• Achieved 23rd consecutive quarter of outperformance, with consolidated revenue of INR 2,096.6 million for Q1 FY26, up 11.2% YoY, driven by strong two-wheeler and passenger vehicle segment growth.

• EBITDA grew 16.3% YoY to INR 587.2 million with margin expanding to 27.6%; PAT rose 22.6% YoY to INR 346.2 million, margin at 16.5%.

• Added Hero MotoCorp as a marquee customer, began supplies, and secured export business wins from Autoliv, Fiat Chrysler Automobiles, Stellantis, Whirlpool, and Yazaki.

• Received Green Manufacturing Excellence Award and Good Manufacturing Practice certification, reflecting commitment to sustainability and quality.

• Board approved allotment of 24,250 equity shares under ESOP 2021, increasing paid-up capital.

Financial highlights

• Consolidated revenue grew 11.2% YoY to INR 2,096.6 million, with domestic sales at INR 1,955.7 million and exports contributing INR 140.9 million (6.7% of revenue).

• EBITDA margin at 27.6%, PAT margin at 16.5%, and EPS for Q1 FY26 at 11.03, up from 8.97 YoY.

• Free cash flow generation of INR 325.6 million, net cash position at INR 1,311.4 million, and cash and cash equivalents at INR 1,472 million.

• Operating cash flows at 101% of EBITDA, reflecting strong cash generation.

• ROCE at 29.5% and ROE at 19.1% for Q1 FY26.

Outlook and guidance

• Confident of outperforming industry growth by over 2x for FY26, leveraging diversified presence, global reach, and product innovation.

• Targeting export revenue contribution of 14%-15% by FY 2028, with recent export wins expected to ramp up from Q2 FY26.

• Cover glass facility expected to start supplies in FY 2027, with ambitions to expand into display assembly.

• Chrome plating and painting facility at Pune to be operational by Q3, with asset turnover expected between 3-4x and margin improvement through exports.

• Order book for FY26 covers close to 90% of forecasted revenue.