Subros Bets Big on EV Thermal Systems as FY26 Revenue Rises
Subros Ltd. announced an 11.52 per cent rise in FY26 revenue to Rs.3,755.52 crore, but the most significant change is in its business composition: electric vehicles, hybrids, and CNG thermal systems now comprise roughly 25 per cent of sales.
By producing 2.5 to 3 times more content per vehicle than traditional cars, the automotive air-conditioning leader is establishing itself as a premium thermal technology firm.
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Subros Ltd., the top manufacturer of automotive air-conditioning and thermal products in India, announced an 11.52 per cent rise in revenue to Rs.3,755.52 crore in FY26 compared to Rs.3,367.57 crore in FY25, with net profit increasing by 10.23 per cent to Rs.165.78 crore from Rs.150.40 crore.
The firm, a partnership involving Indian promoters with 36.79 percent, Japan's Denso Corporation owning 20 percent, Suzuki Motor Corporation holding 11.96 percent, and public shareholders at 31.25 percent, runs eight production facilities throughout India, in addition to a technical center and a tool engineering center located in Noida.
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However, the larger narrative extends past the yearly figures: approximately 25 percent of the firm's income now originates from thermal systems for electric vehicles (EVs), hybrid vehicles, and CNG-fueled vehicles.
For Subros, its content per vehicle can be 2.5 to 3 times greater than that in typical internal combustion engine (ICE) vehicles, allowing Subros to transform from a conventional automotive air-conditioning provider into a more valuable thermal management firm poised to gain from India's multi-powertrain shift.
The March quarter underscored both growth trends and cost challenges. In Q4 FY26, operational revenue increased by 15.55 percent to Rs.1,049.76 crore from Rs.908.46 crore in Q4 FY25, and profit after tax grew by 7.56 percent to Rs.49.69 crore from Rs.46.20 crore. EBITDA increased by only 0.84 percent to Rs.100.07 crore from Rs.99.23 crore, as rising commodity prices and unfavorable foreign exchange fluctuations reduced the EBITDA margin to 9.57 percent from 10.96 percent.
In FY26, EBITDA grew by 5.77 percent to Rs.362.93 crore compared to Rs.343.12 crore, however, the EBITDA margin fell to 9.70 percent from 10.22 percent, as raw material expenses increased to 73.12 percent of net sales from 72.45 percent.
Profitability was enhanced by Rs.15.48 crore of earned incentive revenue and counterbalanced by a one-time Rs.8.08 crore charge related to labor regulations. Nonetheless, profit before tax excluding exceptional items increased by 12.24 percent to Rs.228.37 crore from Rs.203.46 crore, and earnings per share grew to Rs.25.40 from Rs.23.05. The board suggested a concluding dividend of Rs.3 for each share.
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The commercial vehicle sector, comprising trucks and buses, has become a significant growth catalyst as factory-installed air-conditioning becomes more common. Subros accounts for a 41 percent share of the market in both passenger vehicle air-conditioning systems and truck air-conditioning/blower systems.