Suprajit Engineering (532509) Q1 26/27 earnings summary

Executive summary

• Consolidated revenue for Q1 FY27 grew 24% year-over-year to INR 10,696 million, with operational EBITDA up 57.5% to INR 1,287 million, marking the highest-ever quarterly operating revenue.

• Indian automotive sector grew 22.1% in the quarter, with the company outperforming the sector and global markets remaining muted.

• Wage increases and labor shortages in India led to higher costs, with delayed pass-through to customers impacting margins in ICM and PLE.

• SED division saw 48% revenue growth and 100% EBITDA growth, driven by new project ramp-ups and digital cluster growth.

• SCS financials are now included with GCM, which posted 27.6% revenue growth and 174.6% EBITDA growth.

Financial highlights

• Consolidated revenue: INR 10,696 million (up 24% YoY); Standalone revenue: INR 4,697 million (up 20.4% YoY).

• Consolidated operational EBITDA: INR 1,287 million (up 57.5% YoY); Standalone operational EBITDA: INR 603 million (flat YoY).

• Consolidated net profit for Q1 FY27 was INR 522.29 million, compared to INR 480.85 million in Q1 FY26.

• Total debt: INR 7,755 million; Surplus cash: INR 2,431 million as of June 2026.

• No material one-offs or FX impacts in operational results; margin expansion driven by restructuring and cost improvements.

Outlook and guidance

• Double-digit consolidated revenue growth and EBITDA margin guidance of 12%-13.5% for FY27 reaffirmed.

• Margin impact in ICM and PLE expected to be temporary, with normalization anticipated in Q2 and Q3.

• GCM expected to maintain 10%-12% EBITDA margin; ICM and PLE to recover margins as cost pass-throughs are implemented.

• Ongoing geopolitical conflicts and supply chain disruptions pose risks to business performance.

• The company continues to monitor regulatory changes, including the implementation of new Indian Labour Codes.