Suprajit Engineering (532509) Q1 25/26 earnings summary

Executive summary

• Consolidated Q1 FY26 revenue rose to ₹8,629.15 million, up from ₹7,348.57 million in Q1 FY25, with EBITDA up 15% and margin improvement to 12.8%.

• Standalone revenue grew to ₹3,900.08 million, but standalone EBITDA declined 6.5% with margins at 15.5%.

• Operational efficiencies and international operations are in line with internal targets, with the Controls Division showing significant margin turnaround.

• SCS acquisition completed, finalizing China and Canada operations, strengthening global presence.

• The company continues to outpace industry growth, despite muted automotive sector growth and global uncertainties.

Financial highlights

• Group debt stands at ₹6,735 million, with investments in mutual funds and bonds at ₹2,568 million.

• Consolidated EBITDA for Q1 FY26 improved, with profit before tax at ₹709.75 million, up from ₹584.15 million year-over-year.

• Standalone profit before tax for Q1 FY26 was ₹654.57 million, up from ₹641.36 million year-over-year.

• One-off restructuring and employee costs in Q1 estimated at ₹150-200 million.

• CapEx outlook is ₹1,500-1,600 million, mainly for restructuring, technology center, and infrastructure.

Outlook and guidance

• SCS expected to turn EBITDA positive by Q4 FY26, with restructuring benefits anticipated.

• Controls Division aims for double-digit growth by year-end, with margin improvements expected to sustain.

• Phoenix Lamps Division expected to remain soft in the near term due to Middle East and Africa order cancellations.

• Electronics Division anticipates margin and utilization improvement as new projects ramp up.

• The effect of consolidation from the SCS acquisition means current quarter results are not directly comparable to previous periods.