Synopsis:
Suprajit Engineering projects a 12–14% EBITDA margin in FY26, supported by double-digit growth, product diversification, and the SCS acquisition turnaround.
A leading automotive component supplier known for critical vehicle systems offers a glimpse into its future financial health and strategy. This article covers the company’s projected 12-14% EBITDA margin for FY26, showcased by a deliberate de-risking approach and the expansion of its product offerings to drive sustained growth.
Suprajit Engineering Limited’s stock, with a market capitalisation of Rs. 6,390 crores, fell to Rs. 464, hitting a low of up to 0.65 percent from its previous closing price of Rs. 467.5. Furthermore, the stock over the past year has given a negative return of 9.9 percent.
Management Guidance
Suprajit Engineering aims to maintain an EBITDA margin of 12–14% this year and next, according to Executive Chairperson Ajith Rai. The company is targeting double-digit growth and plans to grow its electronics, braking, and actuation divisions into Rs 500 crore businesses each over the next five years.
It recently acquired SCS in a two-part deal covering operations in Europe, China, and Canada. The integration has been challenging, especially in Germany and Hungary, but the company expects SCS to become EBITDA positive by Q4.
Suprajit is focusing on de-risking by diversifying its product range and global presence. Its Morocco unit benefits from low US tariffs, and a potential India-US trade deal could further support growth. Rai believes Suprajit’s ability to offer localised service across major global markets is a key competitive edge, especially amid global uncertainties like geopolitical tensions.
Financial Highlights
In Q4FY25, the company reported revenue of Rs. 877 crore, up 12 percent YoY from Rs. 783 crore and 5 percent QoQ from Rs. 832 crore. Over the past three years, revenue has grown at a CAGR of 21 percent, reflecting strong topline momentum.
However, profitability declined, with Q4FY25 net profit at Rs. 27 crore, down 18 percent QoQ from Rs. 33 crore and sharply lower by 52 percent YoY from Rs. 56 crore. The 3-year profit CAGR stands at -16 percent, and ROE has grown at 11 percent CAGR over the same period, highlighting pressure on margins despite steady revenue growth.
Written By Fazal Ul Vahab C H
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