Suprajit Engineering (532509) Q3 25/26 earnings summary

Executive summary

• Consolidated revenue for nine months ended Dec 2025 grew 8% YoY to INR 24,642 million, with operational EBITDA up 11% YoY to INR 3,271 million, outperforming the Indian automotive industry.

• Standalone revenue rose 7% YoY to INR 13,715 million, and standalone operational EBITDA increased 4% YoY to INR 2,345 million.

• Interim dividend declared at 150% (INR 1.5/share), up from 125% last year, reflecting confidence in turnaround.

• SCS restructuring is substantially complete, with acquisition finalized in Germany, Canada, and China; SCS expected to turn EBITDA positive by end of FY26.

• Profit for the period (consolidated) was INR 1,115.60 million for the nine months, up from INR 720.28 million YoY.

Financial highlights

• Consolidated nine-month revenue: INR 24,642 million; EBITDA: INR 3,271 million; EBITDA margin: 13.3%.

• Standalone nine-month revenue: INR 13,715 million; EBITDA: INR 2,345 million; EBITDA margin: 17.1%.

• Q3 FY26 consolidated revenue was INR 9,789.57 million, with profit impacted by an exceptional item of INR 78.15 million related to defined benefit obligations.

• Group debt as of Dec 31, 2025: INR 7,233 million; investments in mutual funds and bonds at INR 2,064 million.

• Standalone profit for Q3 FY26 was INR 710.26 million, up from INR 607.84 million in Q3 FY25.

Outlook and guidance

• SCS expected to be EBITDA positive by Q4 FY26; Controls Division aims for 10% EBITDA margin over time.

• Tariff clarity in the US and EU expected to support new business wins and global supply chain positioning.

• Focus on premiumization, new technologies, and global expansion to sustain growth above industry average.

• No significant restructuring costs anticipated beyond Q4 FY26.

• Management monitoring impact of new Indian Labour Codes and hedge accounting adopted from April 2025.