The automotive components sector has been showing robust growth, driven by increasing domestic demand and rising export opportunities. Investors are keeping a close eye on companies delivering both innovation and consistent financial performance, as these players stand to benefit from expanding vehicle production and global supply chain participation. Strong quarterly results and strategic partnerships have further highlighted opportunities in this space.
SJS Enterprises Ltd
Founded in 1987, SJS Enterprises Limited is a leading provider of aesthetic and functional solutions primarily catering to the automotive and consumer appliance industries. The company manufactures a wide range of products including decals, 3D lux badges, overlays, aluminium badges, chrome-plated parts, and optical plastics.
With a strong focus on in-house capabilities, SJS operates advanced facilities in Bangalore and Pune covering design, tooling, printing, moulding, and electroplating processes. The company has a market capitalization of Rs. 5,619.90 crore, with its current market price at Rs. 1,759.
SJS Enterprises serves over 220 customer locations and operates in 22 countries, with a workforce of approximately 2,300 employees. The company’s portfolio includes more than 12,200 SKUs as of FY25, and it has four operational production facilities in Bangalore, Pune (2), and Manesar, with an additional facility under construction in Hosur.
Growth has been particularly strong in the two-wheeler segment, which saw a 44.3 percent year-on-year expansion. Domestic quarterly business increased 24.0 percent YoY, while exports surged 40.9 percent YoY.
The company has also strengthened its technological capabilities through strategic collaborations. SJS signed a memorandum of understanding with BOE Varitronix, Hong Kong, to manufacture automotive displays in India.
The arrangement includes technology transfer for assembly and optical bonding of display screens, as well as localization of cover glass and backlight units for the four-wheeler segment, to be formalized through a Technical Assistance Agreement or a joint venture. SJS counts major automotive brands like FIAT, Honda, TVS, Hyundai, Brembo, Revolt, Bajaj, Mahindra, and Volkswagen among its clients.
The company is focusing on developing new technologies and advanced products, including Optical Cover Glass, Illuminated Logos, In-Moulded Electronic (IME) parts, and other next-generation solutions, while enhancing innovation and expanding product applications across industries. Key customers are being strengthened through mega accounts and cross-selling of existing products, alongside efforts to acquire new clients.
On the export front, the company aims to deepen its presence in existing markets, enter new geographies with emphasis on ASEAN, and strengthen its sales teams in Turkey, Brazil, Argentina, Colombia, and South Korea. Capacity expansion is progressing well, with a new chrome plating and painting plant at SJS Decoplast expected in Q3FY26, a greenfield plant for Optical Cover Glass and display business at Hosur, and ongoing expansion at SJS Bangalore to support significant new business opportunities.
On the guidance front, SJS expects to continue its strong financial performance and outperform industry growth by more than 2.5 times, driven by premiumisation, expansion of mega OEM accounts, and increasing exports. Breakthroughs with new large OEMs are anticipated to contribute significantly to business growth, while the current order book slated for execution in FY26 already accounts for over 90 percent of the company’s forecasted revenue. The company also aims to maintain a robust margin profile by balancing higher growth with profitability.
Financially, SJS has delivered strong growth in Q2FY26 compared with the same quarter last year. Sales increased from Rs. 193 crore to Rs. 242 crore, reflecting a 25.4 percent rise. Operating profit rose from Rs. 50 crore to Rs. 68 crore, up 36.0 percent, while operating margins improved from 26 percent to 28 percent. Profit before tax grew 48.7 percent from Rs. 39 crore to Rs. 58 crore, and net profit jumped 48.3 percent from Rs. 29 crore to Rs. 43 crore. Earnings per share increased from Rs. 9.34 to Rs. 13.71, marking a 46.8 percent increase.
Pricol Ltd
Pricol Limited, established in 1975 and headquartered in Coimbatore, is a leading provider of automotive technology and precision engineered products. The company has grown to become a trusted partner to major automotive OEMs worldwide by consistently pushing innovation in product design and process technology. Pricol operates through three key verticals: Driver Information and Connected Vehicle Solutions (DICVS), Actuation, Control and Fluid Management System (ACFMS), and Precision Products. The company’s market capitalization stands at Rs. 7,166.02 crore, with the current share price at Rs. 587.95.
Pricol employs over 470 product and process engineers and maintains a presence in 16 countries through direct OEM supplies. Its manufacturing footprint includes 14 plants, including subsidiaries, in India, UAE, Indonesia, Singapore, and Japan. The company’s product offerings span a range of automotive solutions. In DICVS, it provides e-cockpits, LCD and TFT clusters, hybrid clusters, heads-up displays, telematics systems, reed-type fuel level sensors, and battery management systems. ACFMS offerings include electrical oil and coolant pumps, disc brake systems, fuel pump modules, cabin tilt systems, and electronic purge valves. The Precision Products segment covers dashboards, radiators, grills, roof racks, garnish and decorating components, windshields, fuel tanks, and other interior and exterior fittings.
Pricol caters to a wide array of global automotive brands, including BMW, Bajaj, Harley Davidson, Hero, Honda, Kawasaki, KTM, Piaggio, Royal Enfield, Suzuki, Triumph, TVS, Yamaha, Hyundai, Kia, Mahindra, Maruti Suzuki, and Toyota. The company has maintained its customer centric approach and technological edge, allowing it to expand its market reach while supporting innovation in vehicle components.
The management noted three key issues including the rare earth magnet shortage which has largely subsided and was well managed. The management noted that Q3 will naturally be weaker than Q2 as usual for the auto industry and a new, larger challenge has emerged with Nexperia halting production of 80 to 90 automotive semiconductor parts, affecting OEMs and Tier-1s like Pricol. This shortage, combined with soft demand, will impact the quarter, though sales are not expected to drop significantly. Alternative components have been sourced and validated, so revenue may only be delayed by two to three weeks, not lost. The management said, “We are unlikely to exceed our internal targets this quarter (Q3FY26) and will probably meet them or be short by four to five percent.”
The management said the company will invest around INR 250 to 300 crores in CAPEX this year, starting a new cycle driven by acquisitions, new business opportunities, and technology expansions in switches, SPM, and disc brakes, including land purchases for growth, with similar CAPEX planned for next year.
On the financial front, Pricol posted strong year-on-year growth in Q2FY26. Sales surged from Rs. 669 crore to Rs. 1,007 crore, an increase of 50.5 percent. Operating profit increased from Rs. 77 crore to Rs. 118 crore, a 53.2 percent rise, while operating margins remained steady at 12 percent. Profit before tax rose from Rs. 60 crore to Rs. 85 crore, up 41.7 percent, and net profit increased from Rs. 45 crore to Rs. 64 crore, marking a 42.2 percent jump. Earnings per share improved from Rs. 3.70 to Rs. 5.25, a 41.9 percent increase.
-Manan Gangwar
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