SPR Auto Technologies Limited
BSE: 544344 | NSE: SHRIPISTON
Sector: Automobile | Industry: Auto Component
01
ABOUT COMPANY
SPR Auto Technologies Limited (hereinafter as “SPRL“ or “The Company”), earlier known as Shriram Pistons & Rings Limited, was incorporated in 1963. The promoters of the company are Mr. Luv Deepak Shriram and Ms. Meenakshi Dass, related as brother and sister.
SPRL manufactures Pistons, Piston Pins, Piston Rings, Engine Valves, Cylinder Liners, Electric Motor & Motor Controllers, Precision Injection Moulded Parts etc. The company caters to different types of customers which can be categorized into four primary groups such as Domestic OEMs, Domestic Aftermarket, International OEMs and International Aftermarket. The company’s products are served to aftermarket under the brand name of SPR and USHA.
| Particulars | FY25 |
|---|---|
| Enterprise Value (₹ Crore) | 7,837 |
| EV/EBITDA | 11 |
| P/E | 16 |
| Revenue Growth % YoY | 14.9% |
| Gross Margin | 58.1% |
| EBITDA Margin | 20.4% |
| Net Margin | 14.5% |
Overview
| Location Type | Number |
| National (No. of States) | 28 States |
| National (No. of Union Territories) | 8 Union Territories |
| International (No. of Countries) | 45 |
| Direct Parent Company | Entity / Subsidiary Name | Former Name (if applicable) | Holding Stake (%) | Business Description / Core Focus | Marketing Brands |
| SPR Auto Technologies Ltd. | SPR Engenious Ltd. (SEL) | — | 100% | Directly holds stakes in further precision engineering and EV component companies. | SPR and USHA |
| Karna Intertech Pvt. Ltd. | — | 100% | Key supplier of gravity die casting moulds to SPR Auto Tech, utilized in manufacturing piston castings. | SPR and USHA | |
| SPR Auto Interior Lighting Solutions Pvt. Ltd. | Formerly Antolin Lighting India Pvt. Ltd. | 100% | Indian manufacturer of automotive interior lighting systems for leading OEMs. | SPR and USHA | |
| SPR Auto Interior Solutions Pvt. Ltd. | Formerly Grupo Antolin India Pvt. Ltd. | 100% | Supplying automotive interior components. | SPR and USHA | |
| SPR Engenious Ltd. (SEL) | SPR Takahata Precision India Pvt. Ltd. | Formerly Takahata Precision India Pvt. Ltd. | 62% | Technical collaboration with Takahata Japan; a leading precision injection moulded parts manufacturing company globally. | SPR and USHA |
| SPR EMF Innovations Pvt. Ltd. | Formerly EMF Innovations Pvt. Ltd. | 73% | A young tech company having a research base in Singapore and manufacturing operations in India. | SPR and USHA | |
| SPR TGPEL Precision Engineering Ltd. | Formerly TGPEL Precision Engineering Ltd. | 100% | Engaged in the manufacturing of high precision injection moulds and injection moulded components. | SPR and USHA | |
| SPR Auto Interior Solutions Pvt. Ltd. | SPR Auto Interior Solutions Chakan Pvt. Ltd. | Formerly Grupo Antolin Chakan Pvt. Ltd. | 100% | Focused on producing vehicle interior systems for leading OEMs from its Chakan plant. | SPR and USHA |
| State | Location | Facility / Manufacturing Focus |
| Madhya Pradesh | Pithampur | Manufacturing of engine valves |
| Tamil Nadu | Coimbatore | Manufacturing of electric motors and motor controllers |
| Rajasthan | Neemrana | Design and manufacturing of high precision injection moulded components for automotive applications |
| Uttar Pradesh | Noida | Design and manufacturing of high precision injection moulded components for automotive applications |
| Metric | Value |
| Industry Presence (Decades) | 5+ |
| Manufacturing Plants | 14 |
| Assembly Units | 8 |
| World Class Technology Centres | 1 |
| Logistics Centers Globally | 22 |
| Countries with Presence | 45+ |
| Continents with Presence | 5 |
| Category | Details |
| Under SPRL | 3 |
| Under SEL | 1 |
| Under EMFi | 1 |
| Under Takahata | 1 |
| Under TGPEL | 2 |
| Under Karna | 1 |
| Assembly Units | 5 (catering to specific requirements of major customers) |
| World Class Technology Centre | 1 |
Entity Notes
|
Manufacturing Facilities under SPRL
|
Manufacturing Facilities under SPRL
|
List of Products
| Main Product Segment | Sub-Category / Range | Specific Components & Technical Features |
| Core / Legacy Products | Pistons & Piston Pins | Thin walled, KS Lite, Crown Anodizing, Nanofriks, DLC coating on pins |
| Core / Legacy Products | Piston Rings | Plating & coating |
| Core / Legacy Products | Engine Valves | Chrome plating, Tuff riding (Nitro Carbonizing), Multiple head profiles, Seat Stellite Engine Valves, 16 groove profiles |
| High-Precision Injection Moulded Components | N/A | FI – Components, Throttle Unit, Brake Unit, ECU, Air Bag, FI – Connectors, Door Locks, Steering, Speaker Grills, Air Vents, Flange Cover, Manifolds, Bobbins, Door Handles, Fuse Box Covers, Electrical Parts, Industrial Parts, Medical Parts |
| Motors & Controllers for EVs | Ranging from 2 kW to 250 kW | Brushless DC (BLDC) motors, SRM & PMSM Mid Drive Motors, Motor Controllers |
| Automotive Interior Solutions | N/A | Headliners & Headliner Substrates, Door Panels Trim Components, Centre Consoles & Instrument Panels, Overhead & Console Systems, Lighting Systems (Interior & Functional), Electronics / Touch Components, Floor Consoles |
Clients
02
Earning Calls Summary
Q4 FY 2026
FY26 Revenue Surges 25% to ₹4,571 Cr; 60% Business Now Powertrain Agnostic
Management opened noting FY26 was truly a landmark year with record consolidated total income. The transition to SPR Auto Technologies Limited marks a significant milestone in the journey towards becoming a multiproduct, multi-domain auto component supplier, reflecting the broader strategic vision to build a future-ready technology-led business franchise.
FY26 REVENUE GROWTH
25% YoY to ₹4,571 crores
FY26 EBITDA
₹989 crores (18% YoY growth)
TOTAL DIVIDEND FY26
₹10 per share (interim ₹5 + final ₹5 recommended)
Key Takeaway: FY26 consolidated total income grew 25% YoY to ₹4,571 crores with EBITDA of ₹989 crores (18% YoY growth). The company completed the Antolin Group acquisition (€159 million), with powertrain-agnostic businesses contributing ~35% of Q4 revenue and ~60% of business now not directly impacted by powertrain changes. Total dividend declared at ₹10 per share.
Concall Notes
Q1 FY26
Opening Context & Performance Overview
- The Managing Director, Mr. Krishnakumar Srinivasan, began by noting that the company has started FY26 with a very strong performance, building on its track record over the last few years. He highlighted that Q1 is typically a soft quarter for the automotive industry due to OEM plant maintenance shutdowns, so year-on-year comparisons are more meaningful than sequential ones.
- Despite industry headwinds (PV, CV, and 3W volumes near-flat; 2W degrowth of ~1% YoY), the company significantly outperformed the end markets.
Key Financial Highlights (Consolidated, Q1 FY26)
- Total Income: ₹9,917 million, growth of 14.9% YoY.
- EBITDA: ₹2,234 million, growth of 16.5% YoY. EBITDA margin expanded to 22.5% (from 22.1% in Q1 FY25).
- PAT: ₹1,348 million, growth of 15.1% YoY. PAT margin maintained at 13.6%.
Standalone Performance & Outperformance Drivers
- Standalone revenue grew 9.8% YoY, while industry production volumes grew only ~1% YoY – an outperformance of nearly 9x.
Drivers of outperformance:
- Focus over the last 4-5 years on entering newer segments: marine engines, defense engines, railway applications, lawn mower applications, snowmobile applications, industrial engines, off-highway engines.
- Market share gains in pistons business (both in India and internationally) through new program launches with customers.
- Diversified presence across PV, CV, 2W, tractors, and non-automotive applications.
- Presence across ICE components, EV motors & controllers, and high-precision injection moulded components.
Export Business
- Exports are classically around 18-20% of sales (base growing, so percentage varies).
- New export businesses won in Q1 as well.
- Tariff impact (US): Management does not foresee any major impact. India remains competitive compared to other supplying countries. No major volume reductions from customers seen yet.
- Geographic diversification: Export mix is well spread across the globe (North America, Europe, Asia, etc.). Even within North America, supplies go to Mexico, Brazil, and other countries. This de-risks the business model.
Strategic Business Updates
EV Motors & Controllers (EMFI – Electric Motor Factory India)
- Product range: Motors from 250 watts up to 350 kilowatts (hub motors, mid-drive motors, switch reluctance motors, synchronous motors, magnet-free motors).
- Key differentiator: One of very few manufacturers that size, test, and supply motor + controller together (100% final testing with controller). This eliminates customer sizing problems.
- Technology collaborations: Lingbo (controllers), Greatland Electrics (mid-drive motors). Technologies include hairpin bending and other advanced capabilities.
New Coimbatore plant:
- Originally planned for end of July, now expected to start operations by end of September (first week of October).
- Reason for delay: Decision to combine existing facility into the new plant for management synergy and operational efficiency. Both facilities will operate complementarily without any production halt.
- State-of-the-art plant for both motors and controllers.
- Market position: Among top 3 motor manufacturers in India. Only significant player offering motor + controller as a combined, sized solution.
- Customer concentration: Cannot disclose names due to customer confidentiality (EV space is sensitive).
- Integrated offerings: Capable of supplying 2-in-1 (motor + controller), 3-in-1 (motor + controller + gearbox), etc., based on customer requirements.
- ICAT & PM E-Drive approvals: Among top few to receive these approvals.
- Rare earth magnets: Non-availability mitigated by alternate sourcing methodologies; production running smoothly.
High-Precision Injection Moulded Components (Subsidiaries)
- Applications: Spread across steering applications, gearing applications, braking applications, seatbelt applications, headlamp adjustment applications, trimming applications, and even non-automotive (music industry, etc.).
- Complexity: High-accuracy, finish-to-finish dimensions in one stroke. Not many players in India make these.
- Aftermarket potential: Yes, there is aftermarket demand (e.g., steering gears when damaged). Networked through SPRL’s existing aftermarket channels.
- Margin drivers: Niche segment, high precision requirements, high-accuracy capex ahead of time, diversified customer mix (automotive and non-automotive).
Alternative Fuel Solutions (Future-ready)
- Actively developing components for: CNG, LNG, PNG, hybrid engines, flex engines, hydrogen engines, H-CNG (hydrogen-blended CNG), and electric engines that complement ICE.
- Management believes all powertrain solutions will co-exist for quite some time due to infrastructure and technology maturity challenges.
M&A & Strategic Partnerships
- Company continues to pursue strategic partnerships and M&A that will bolster capabilities, broaden product portfolio, and be accretive.
- Looking at both automotive and non-automotive opportunities. Strong balance sheet provides leverage.
- Goal: Make SPRL a multi-product franchise.
Sustainability
- Implementing initiatives to reduce carbon footprint and promote renewable energy across operations.
Other Key Discussions
Piston Pricing Trends
- Piston prices are linked to aluminum and metal prices (LME model).
- Customers provide compensation as metal prices move up or down. Margins are protected through back-ended contracts.
Working Capital
- Management does not see any major issues. Working capital has moved in the same band over the years, in line with norms.
Marine, Railways, Defense Opportunities
- These are newer entry points for the company with multiple applications. Management did not provide specific sizing but confirmed active supply to these segments.
Outlook for FY26 & Beyond
- Management aims to continue outperforming end markets, as demonstrated consistently over the last 5 years.
- Diversified presence across segments and geographies provides resilience.
- Exports expected to continue growing.
Key Takeaways
- Strong Q1 Performance with Margin Expansion: Consolidated revenue grew 14.9% YoY, EBITDA grew 16.5% YoY, and EBITDA margin expanded to 22.5% despite a soft industry environment (industry production growth of only ~1%).
- Significant Outperformance vs. Industry: Standalone revenue growth of 9.8% YoY vs. industry production growth of ~1% – outperformance of nearly 9x. Driven by newer segments (marine, defense, railways, lawn mower, snowmobile) and market share gains.
- EV Motor & Controller Business Scaling Up: Among top 3 motor manufacturers in India. Unique differentiator of supplying motor + controller together (sized and tested). New Coimbatore plant operational by end of September (combining existing facility). Range from 250W to 350kW covers all applications (2W, 3W, PV, CV, buses, mining).
- Exports Resilient Despite Tariffs: Exports at 18-20% of sales, well-diversified across geographies. Management sees no major tariff impact as India remains competitive. Presence in North America includes Mexico, Brazil, etc., reducing concentration risk.
- High-Precision Plastics – Niche, High-Margin Business: Subsidiaries make complex, high-accuracy injection moulded components for steering, braking, seatbelt, headlamp, and non-auto applications. Not many players in India. Margins driven by niche positioning and diversified customer mix.
- Future-ready on Alternate Fuels: Actively developing components for CNG, LNG, hydrogen, H-CNG, hybrid, flex, and electric engines. Management believes all powertrains will co-exist for a long time.
- M&A Pipeline Active: Company is actively pursuing acquisitions (auto and non-auto) to become a multi-product franchise. Strong balance sheet provides leverage.
- Strong Cash & Working Capital Management: Working capital within norms; no major issues. Cash position supports M&A and capex.
- No One-offs from Plant Transition: The delay in the new Coimbatore plant (from July to September) is due to combining existing and new facilities for synergy. No production halt is expected during the transition.
- Confident in Sustaining Outperformance: Management reiterated that consistent outperformance over the last 5 years is expected to continue, driven by diversification, new segment entries, and strong customer relationships.
Q2 FY26
Opening Context & Performance Overview
- The Managing Director, Mr. Krishnakumar Srinivasan, began by noting that the company has continued to show resilience during the first half of FY26, achieving strong growth despite very challenging market conditions in the auto industry (geopolitical situations and muted domestic end-market growth).
- The domestic automotive industry showed mixed performance in Q2: Passenger Vehicles declined by 1%, while Two-Wheelers registered healthy 7% growth. The GST reforms (GST 2.0) were implemented from September 22, 2025, giving only one week of impact in Q2. However, post-GST reduction, demand is showing signs of improvement, with all segments recording double-digit sales growth during the festive season in October.
Key Financial Highlights (Consolidated)
Q2 FY26
- Total Income: Grew by 15% YoY.
- EBITDA Margin: Maintained at 22.4%.
- PAT Margin: Maintained at 13.6%.
H1 FY26
- Total Income: 14.9% YoY growth.
- EBITDA: 14.2% YoY growth.
Outperformance vs. Industry
- The company continued to outperform the industry by a wide margin, driven by:
- Presence in diverse markets and product segments.
- Healthy performance from all subsidiaries (EV motors & controllers, high-precision injection moulded components).
- New business wins across legacy business and all subsidiaries.
- Process efficiency initiatives and cost optimization programs.
Export Business
- International operations remained resilient despite tariff uncertainties and geopolitical headwinds.
- Presence across more than 45 countries helps navigate regional demand fluctuations.
- While certain export regions saw temporary softness, improved traction is expected in coming quarters as global supply chain conditions stabilize.
- Off-road segments (US, UK, Europe) have done particularly well.
Strategic Business Updates
EV Motors & Controllers (EMFI – Electric Motor Factory India)
- New Coimbatore plant commissioning completed. Commercial production expected to start during the ongoing quarter (Q3 FY26).
- Phase 2 expansion at SEL Pithampur (Indore) completed. Phase III expansion already started due to continuing excess demand from customers.
- Product range: Motors from 250 watts up to 350 kilowatts (hub motors, mid-drive motors). Company is probably the only player in India manufacturing motors and controllers together, sizing them as a complete solution for customers.
- PM E-Drive certification: Among the first to receive this certification.
- Rare earth magnets: Non-availability mitigated through alternate sourcing methodologies. Also working on substitution technologies (ferrite-based solutions and other rare earth elements not under sanctions). Advanced stages of development; some products already introduced.
- Revenue target: Plan is to reach ₹100+ crores in the next 2-3 years (FY25 revenue was ₹26 crores). Asset turnover is good (over 4x).
- Customer base: Working with top OEMs (names not disclosed due to competition tracking) and also some export customers.
High-Precision Injection Moulded Components (Subsidiaries – TGPEL, Takahata)
- Both plants are performing to plan, outgrowing end markets by more than double (end market growth ~3-4%, subsidiaries growing over 8-10%).
- Margins are accretive to the overall business (consolidated margins maintained).
- Strong new business wins in the last 2 quarters across plastics business.
Legacy Business (Pistons, Rings, Engine Valves, Pins)
- Piston market: Highly technical product (manufactured in few microns). Not easy to substitute with imports. OEMs work closely with piston manufacturers from the drawing board stage (co-design).
- Global opportunity: People vacating capacities due to fear of EV is creating supply vacuum. SPRL is receiving many global inquiries.
- Export customers: Caterpillar, Jaguar Land Rover (JLR), and many other big names. Company works with them on the drawing board.
- India-UK FTA: Green shoots visible.
- Capex in legacy business: Over the last 5 years, including investments in SEL (engine valves), company has invested over ₹550 crores. Automation and digitization have driven efficiency improvements.
Alternative Fuel Solutions (Future-ready)
- Actively developing components for: CNG, LNG, PNG, Hybrid, Flex, Hydrogen, H-CNG (hydrogen-blended CNG), and electric powertrains.
- Management believes all powertrain solutions will co-exist for quite some time (infrastructure and technology maturity challenges for pure EV).
- This is visible globally: Europe leaning towards hybrids, US towards hybrids and ICE, China EV growth slowing.
Japanese OEM Expansion in India
- Toyota, Honda, Suzuki are significantly expanding manufacturing presence in India.
- SPRL sees this as a very positive trend. The company has made good inroads and is working with them on various newer platforms from the drawing board stage.
M&A & Strategic Partnerships
- Company continues to pursue strategic partnerships and M&A that will bolster capabilities, broaden product portfolio, and be value accretive.
- Focus areas: ICE-agnostic segments (consistent with direction over last 5 years). Small ICE opportunities exist but are not the primary focus.
- M&A pipeline active: Various opportunities being worked on. Extra cash being used for M&A and non-linear growth. Looking at bigger M&A opportunities.
- Core strength remains automotive, but company already supplies to railways, defence, industrial applications, gensets using existing products.
Sustainability & Awards
- Golden Peacock Award (Institute of Directors, London) for Excellence in Corporate Governance 2025.
- Bronze rating from Ecovadis (top 35 percentile globally on sustainability).
- ESG rating 2 from Dun & Bradstreet (top 500 value creators globally).
- Multiple customer awards for innovation, quality, delivery, productivity, and sustainability.
Other Key Discussions
GST 2.0 Impact on Q2 Margins
- The announcement on August 15 led to a wait-and-see approach until GST implementation on September 22.
- Aftermarket customers stopped material flow (waiting for lower GST). OEMs built stock for festive season.
- This resulted in a mix impact, not a volume impact. This caused the small moderation in gross margins seen in Q2.
- Sustainable margins expected to be at the current run rate (H1 levels).
Rare Earth-Free Motors (Ferrite-based)
- Advanced stages of development. Some products already introduced.
- Multiple trials and testing ongoing, including PM E-Drive approvals.
- Expect to offer complete suite from lower to higher range.
Piston Realizations & Hybrid Vehicles
- Hybrid engines are planned with Euro 6/Euro 7 requirements (very high demands: low frictional resistance, different coatings, hard anodizing, different rings).
- Featured products command improved prices.
- With every emission norm change, products get more featured, and prices increase accordingly.
Non-Auto Opportunities
- Marine applications, industrial applications, compressor applications, snowmobiles, off-highway segments, stationary machines.
- SPRL is catering to many of these segments, which has helped maintain growth.
Outlook for ICE vs. EV
- Management expects overall ICE market CAGR of 6-7% over next 4-5 years.
- EV penetration expected around 15-20%.
- Even with 20% EV penetration, ICE segment will still grow (2-4%).
- With people vacating capacities globally due to fear of EV, SPRL sees opportunity to outgrow end markets by more than double.
Shareholding Increase in EMFI (Subsidiary)
- Already in effect. Capital raised for further investments.
- Non-piston segments (plastics business + EV segment) are already a very sizable part of the business.
Capacity Utilization (Coimbatore EV Plant)
- Management does not disclose specific utilization figures (closely tracked by competitors).
- Enough capacity exists. State-of-the-art plant with modern equipment.
Key Takeaways
- Strong H1 Performance with Resilient Margins: Consolidated total income grew 14.9% YoY in H1, with EBITDA margin maintained at 22.4% and PAT margin at 13.6% in Q2, despite GST-related mix impact.
- Significant Outperformance vs. Industry: Company outgrew end markets by a wide margin (industry growth ~3-4%, SPRL grew 15%). Driven by new segments (marine, defence, railways, off-highway, snowmobile) and new business wins across all subsidiaries.
- EV Motor & Controller Business Scaling Up: New Coimbatore plant commissioning completed, commercial production starting in Q3. Revenue target of ₹100+ crores in 2-3 years (from ₹26 crores in FY25). Asset turnover over 4x. Rare earth magnet substitution technologies in advanced stages.
- Subsidiaries (Plastics) Outperforming: Both TGPEL and Takahata growing at more than double the end market rate (~8-10% vs industry 3-4%). Margins accretive to consolidated business.
- Export Business Resilient Despite Tariffs: Presence in 45+ countries helps navigate regional fluctuations. Off-road segments (US, UK, Europe) performing well. Export customers include Caterpillar, JLR, and other global OEMs (drawing board-level collaboration).
- Legacy Business (Pistons) – Global Opportunity Emerging: People vacating capacities due to fear of EV is creating supply vacuum globally. SPRL receiving many inquiries. India-UK FTA showing green shoots.
- All Powertrains to Coexist – SPRL Present in All: Management’s long-held view (5+ years) that ICE, hybrid, CNG, hydrogen, and EV will coexist is playing out globally. Company is actively developing components for all alternative fuel solutions.
- M&A Pipeline Active – Focus on ICE-Agnostic Segments: Company looking at bigger M&A opportunities. Extra cash being deployed for non-linear growth. Consistent with 5-year direction of focusing on ICE-agnostic segments.
- Japanese OEM Expansion – Positive for SPRL: Toyota, Honda, Suzuki expanding in India. SPRL has made good inroads and is working with them from drawing board stage on newer platforms.
- Confident in Sustaining Outperformance: With expected ICE market CAGR of 6-7%, even with 15-20% EV penetration, ICE will still grow 2-4%. SPRL’s goal remains to outgrow end markets by more than double.
Q3 FY26
Opening Context & Performance Overview
- The Managing Director, Mr. Krishnakumar Srinivasan, began by noting that Q3 FY26 was an eventful quarter, with the company delivering its highest-ever quarterly total income. This was supported by strong broad-based demand across all auto segments as the industry witnessed record production and sales volumes.
- The auto industry performed exceptionally well in Q3:
- Passenger Vehicles and Commercial Vehicles: grew by more than 20% YoY
- Two-wheelers: grew by almost 17% YoY
- Three-wheelers: grew by 14% YoY
- Total industry production grew by 17% YoY
- Growth drivers included GST 2.0 reforms (improved affordability), repo rate cuts by RBI (lower financing costs), and one of the strongest festive seasons in recent years.
Key Financial Highlights (Consolidated)
Q3 FY26
- Total Income: Grew by 21% YoY (highest ever quarterly total income).
- EBITDA: Grew by 21% YoY, driven by improved operating leverage, productivity, cost optimization, and operational efficiency.
- PBT before exceptional items: Grew by 22% YoY.
- Exceptional item: Non-recurring expense of ₹25.2 crores (₹252 million) pertaining to the statutory impact of new Labour Codes introduced in November 2025.
- PBT after exceptional items: Grew by 6.4% YoY.
9M FY26
- Total Income: Grew by 16.8% YoY.
- Bottom line (PAT): Grew by 10.6% YoY (despite the one-time exceptional expense).
Standalone Business (Legacy)
- Standalone revenue growth was slightly lower than industry production growth due to:
- Industry production picked up only from mid-November (post-Diwali).
- OEMs initially reduced production in October due to high finished vehicle inventory.
- December has annual shutdowns for preventive maintenance.
- Small cars (lower value per vehicle) drove volume growth, impacting overall value realization.
- Management clarified: No loss of market share (not even 1%). In fact, market share grew in almost all segments.
- Aftermarket, exports, and domestic OEM all grew compared to previous quarter.
Major Strategic Announcements
Acquisition of Grupo Antolin’s Three Indian Entities (100%)
- Announcement: Completed in first week of January 2026.
- Enterprise Value: €159 million (approximately ₹1,670 crores) on a debt-free, cash-free basis.
- Entities acquired: Antolin Lighting India, Grupo Antolin India, Grupo Antolin Chakan.
- Products: Headliner substrates, modular headliners, sunvisors, door panels, door trims, central floor consoles, dome lamps, ambient lighting, touch panels, electronic capacitive pads.
- Customers: Tata Motors, Mahindra & Mahindra, Volkswagen India, Toyota, Hyundai, Renault, and others.
- Strategic significance: Marks meaningful diversification beyond legacy business. SPRL has now become a well-diversified, multiproduct organization, thereby de-risking its business model.
- Post-acquisition, powertrain-agnostic products will increase to over 35% of consolidated revenue (including TGPEL, Takahata, EMFI, and now Antolin).
Proposed Name Change
- The company has proposed changing its name from Shriram Pistons & Rings Limited to SPR Auto Technologies Limited (subject to shareholder and government approvals).
- Rationale: Reflects the company’s evolution into a multiproduct domain and its commitment to newer technologies while staying true to legacy products.
- Management believes this move will be highly value-accretive to all stakeholders.
Interim Dividend
- Board approved interim dividend of ₹5 per equity share (50% of face value).
Asset Purchase from Sunbeam Lightweighting Solutions (Craftsman Automation subsidiary)
- Signed agreement to acquire piston manufacturing lines and related machinery for a total consideration of ₹28 crores.
- First tranche concluded during the quarter.
- Addresses capacity needs in piston manufacturing; provides sufficient capacity to scale up fast.
New Facilities Inaugurated
- Coimbatore EV motor & controller plant: State-of-the-art, world-class facility inaugurated in November 2025 as committed. Manufacturing has already started. Hitting record outputs almost every month.
- Gurugram assembly center: Inaugurated at Bhora Kalan in November 2025 to strengthen supply chain.
NCD Raise (Non-Convertible Debentures)
- Raised ₹1,000 crores via NCDs with a 2-year tenure (two tranches).
- Purpose: Primarily acquisition-related (Antolin acquisition). Company is self-sufficient for working capital.
- Management plans to repay as soon as possible.
Subsidiaries & Business Segments – Performance & Outlook
Overall Subsidiary Performance
- All subsidiaries performed exceedingly well.
- Post-Antolin consolidation, powertrain-agnostic products will exceed 35% of consolidated revenue.
Precision Plastics (TGPEL, Takahata)
- Growth driven by: (a) increased volumes from OEMs, (b) new business wins, (c) higher Tier-1 requirements.
- Margins are accretive to overall business.
- Outlook extremely positive.
EV Motors & Controllers (EMFI – Coimbatore plant)
- New plant operational from November 2025.
- Growth drivers: new business wins, increased volumes with existing customers, massive improvement in output.
- Product range: 1.5 kW to 250 kW (soon 300 kW platform). Hub motors and mid-drive motors.
- Multiple lines for motors and controllers. Fair amount of localization achieved on controllers side (helps margins and ICAT approvals).
- Expecting 5x to 7x growth from last year (base small, growth will continue).
- Export inquiries also underway (samples under validation).
Antolin (Interiors & Lighting – newly acquired)
- Initial meetings indicate figures are extremely positive. Breaking all previous records.
- Many new programs being worked on with customers.
- Integration has already happened; management control taken over. Working in SPRL’s style.
- Management expects to bring ROCE of this asset to par with company-level ROCEs.
Export Business
- Exports grew well despite very tough geopolitical situation (up to December).
- North America: Won some very good new businesses. Tariff situation should further help.
- Legacy players vacating capacities globally is creating opportunities.
- Long validation cycles take time, but program managers are very busy with new programs.
- Export inquiries also coming for electric motors and controllers.
Capex & Capacity
- Piston capacity: Sunbeam asset purchase provides sufficient capacity to scale up fast.
- Other businesses: Required capacity expansions already in place for at least the next 2 quarters.
- Maintenance capex: Within industry norms and planning parameters (no specific breakup given).
- Overall capex: The company will continue to invest in both legacy and new businesses to grow the franchise.
Aftermarket Business
- Record sales in some months.
- GST rate cut from 28% to 18% in aftermarket.
- There was a lag effect in previous quarter due to inventory liquidation (higher GST stock being cleared). That issue has been overcome.
- Piston aftermarket requires specialized knowledge (oversize, undersize, coatings, fitment). Not easy for unorganized players or cheap imports to succeed.
Other Key Discussions
Raw Material Price Pass-through
- Back-ended contracts with customers.
- Pass-through has a lag of approximately 1 quarter (due to inventory in the pipeline).
Product Mix & Margins
- Margin moderation in standalone is primarily due to product mix shift (more small cars, which have lower value per vehicle).
- Company has maintained overall margins despite mix change.
- All segments of business (OEM, aftermarket, exports) grew compared to previous quarter.
- Management does not expect major margin fluctuations at company level due to fungibility of manufacturing lines.
Customer Concentration
- Has come down drastically. Company is well represented in almost all OEMs.
- No single customer concentration in any of the businesses.
Management Structure for Subsidiaries
- Existing management structures in subsidiaries work alongside a core central management team.
- This ensures agility and quick decision-making.
Non-Auto Business in Legacy
- Includes marine engines, railway engines, gensets, compressors.
- Fairly big number (percentage not disclosed).
- Potential to increase market share in both Indian and international markets.
Outlook & Guidance
- Q4 FY26: Expected to continue strong momentum. All indications are buoyant. Expecting record-breaking months.
- Long-term: Auto industry outlook positive (GST reforms, trade agreements with Europe and US, Union Budget focus on rare earth mining and infrastructure).
- Legacy business growth: Expected to be at least in line with industry growth (6-7% CAGR). Additional growth from new segments (marine, snowmobile, aftermarket penetration, exports).
- Subsidiaries: All expected to do extremely well (plastics, EV motors, Antolin interiors).
- EV business: Expecting 5x to 7x growth from last year (small base).
- Exports: Expected to continue growing, with North America as a new focus area.
- M&A: Company is still underleveraged and can do much more. Will not stop here.
Key Takeaways
- Record Quarter with 21% Revenue Growth: Highest-ever quarterly total income, driven by broad-based auto industry growth (17% production growth) and strong performance across all subsidiaries.
- Transformational Acquisition of Antolin India (€159 million): SPRL has become a well-diversified, multiproduct organization. Powertrain-agnostic products will exceed 35% of consolidated revenue post-acquisition. Integration has started well, with records already being broken.
- Proposed Name Change to SPR Auto Technologies Limited: Reflects evolution into multiproduct domain and commitment to newer technologies while staying true to legacy products.
- No Market Share Loss in Legacy Business: Management clarified that not even 1% share was lost. In fact, market share grew in almost all segments. Standalone growth lagged industry production due to product mix shift toward small cars (lower value per vehicle) and OEM inventory adjustments.
- EV Motor & Controller Business Scaling Rapidly: New Coimbatore plant operational from November 2025. Expecting 5x to 7x growth from last year (small base). Range from 1.5 kW to 250 kW (soon 300 kW). Export inquiries also underway.
- Exports Growing Despite Geopolitical Challenges: New business wins in North America. Legacy players vacating capacities globally creating opportunities. Tariff situation should further help.
- Aftermarket Recovering Post-GST Implementation: Initial lag due to inventory liquidation has been overcome. Record sales achieved in some months.
- Strong Balance Sheet & Acquisition Capacity: NCD of ₹1,000 crores raised (2-year tenure) primarily for Antolin acquisition. Company is still underleveraged and can do much more.
- Interim Dividend of ₹5 per Share: Consistent policy of rewarding shareholders.
- Confident Outlook for Q4 & Beyond: All indications buoyant. Expecting record-breaking months. Union Budget focus on rare earth mining and infrastructure, along with trade agreements with Europe and US, provide strong tailwinds.
Q4 FY26
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