Can Suprajit Engineering Maintain Its Accelerated Growth Momentum?
About Suprajit Engineering
Suprajit Engineering Ltd, India’s leading cable and automotive component manufacturer, supplies to major OEMs across two-wheeler, passenger-car, and export segments. The company has diversified into halogen and LED lighting systems, expanding its product portfolio globally.
Q2 FY26 performance highlights a remarkable recovery, aided by volume growth, cost control, and favorable currency movements.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY25 | Q2 FY26 | Change |
|---|---|---|---|
| Revenue | ₹835 Cr | ₹941 Cr | +12.7% |
| EBITDA | ₹62.9 Cr | ₹99.5 Cr | +58.2% |
| EBITDA Margin | 7.6% | 10.6% | +304 bps |
| PAT | ₹0.49 Cr | ₹50.9 Cr | ↑ >100x |
Revenue ₹941 Cr — supported by robust exports and better domestic demand.
EBITDA ₹99.5 Cr — benefited from operational efficiency and lower freight costs.
PAT ₹50.9 Cr — reflects turnaround from last year’s base impact and improved leverage.
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Peer Comparison
| Company | Segment | EBITDA Margin |
|---|---|---|
| Suprajit Engineering | Control Cables & Lighting | 10.6% |
| Minda Corp | Auto Components | 9.3% |
| UNO Minda | Electricals | 11.1% |
Among peers, Suprajit’s margin expansion trajectory signals efficient execution and improving pricing discipline.
Strengths & Weaknesses
Strengths
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Weaknesses
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While cyclicality persists, its strong balance sheet and diversification mitigate earnings volatility.
Opportunities & Threats
Opportunities
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Threats
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Valuation & Investment View
- Short-term: Momentum favorable with order visibility.
- Medium-term: Positive as export share rises above 30%.
- Long-term: Sustainable compounding through diversification.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, notes that Suprajit’s turnaround in profitability and margin expansion demonstrates operational resilience. Explore more insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Auto Component Stocks
- What Drives Suprajit Engineering’s Export Growth?
- How Do Auto Cycles Impact Component Makers?
- Which Auto Ancillary Stocks Show Margin Expansion?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
