Setco Automotive Q2 FY27: PAT ₹13,642 Cr & Rev ₹25,928 Cr

Investor Takeaways

Revenue of ₹25,928 lakhs ([amount not verified]) reported for FY2026, up from ₹178.75 Cr in Q1FY26.

Net profit of ₹13,722 lakhs ([amount not verified]) for FY2026, compared to a loss of [amount context mismatch] Cr in Q3FY26.

Negative equity of ₹70,817 lakhs ([amount not verified]) as of FY2026, indicating liabilities exceed assets.

Interim dividend of ₹13 per share declared and paid post-quarter.

Merger scheme with Lava Cast finalized; 41% stake in Setco Auto Systems sold for ~₹215 crore, with gain to be recognized in FY2027.

SEBI matter involving promoter penalties stayed, posing no material operational risk.

Overall Tone: Cautious

Key Financial Highlights

Metric	Value	YoY Change
Revenue	[amount not verified]	+45.1% from Q1FY26 (₹178.75 Cr)
Net Profit	[amount not verified]	Turnaround from loss of ₹57.19 Cr in Q3FY26
EBITDA	Not available	N/A
EPS	[amount context mismatch]	From [amount context mismatch] in Q4FY26
OPM	5.82%	From 5.82% in Q4FY26

What Changed

Setco Automotive reported consolidated revenue of ₹25,928 lakhs ([amount not verified]) and profit before tax of ₹13,722 lakhs ([amount not verified]) for FY2026, reflecting a significant turnaround from losses in the previous quarters. The company recorded an operating profit margin (OPM) of 5.82% in Q4FY26, up from negative or low margins in prior quarters. Interim dividend of ₹13 per share was declared and paid after the quarter. A merger scheme with Lava Cast was finalized, and a phased divestment of 41% stake in Setco Auto Systems was initiated, with proceeds of ~₹215 crore received. However, the gain from this stake sale will be recognized in FY2027, deferring its impact on current earnings. Total assets stood at ₹53,438 lakhs ([amount not verified]), while equity was negative at ₹70,817 lakhs ([amount not verified]), indicating structural financial weakness. Operating cash flow was strong at ₹23,394 lakhs ([amount not verified]), but financing activities used ₹21,828 lakhs ([amount not verified]), resulting in a net cash increase of ₹2,010 lakhs ([amount not verified]). The company’s P/B ratio of -0.34 and negative equity underscore balance sheet risks, despite improving profitability. Peer comparison shows lower ROE (0.62%) and ROCE (16.35%) relative to industry leaders like Maruti Suzuki and Mahindra & Mahindra, though its ROCE aligns with Mahindra’s. The SEBI matter involving promoter penalties was stayed, reducing regulatory risk. Shareholding in SASPL remains at 65% as of March 31, 2026.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Setco Automotive	32.98	0.62%	16.35%	238.24
Maruti Suzuki India Ltd	29.57	13.38%	17.61%	4,23,814.67
Mahindra & Mahindra Ltd	20.09	21.74%	16.35%	4,12,975.92
Bajaj Auto Ltd	28.73	29.75%	27.5%	3,38,192.38

Setco’s profitability metrics are significantly lower than peers, though its ROCE matches Mahindra’s.

Risks & Concerns

Negative equity of [amount not verified] signals structural liabilities and financial instability.

Deferred gain recognition from stake sale may impact future earnings visibility.

Low ROE (0.62%) compared to industry leaders suggests limited capital efficiency.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q4FY26	250.63	136.42	5.82
Q3FY26	196.55	-57.19	11.43
Q2FY26	179.01	-41.27	9.78
Q1FY26	178.75	-42.23	7.80

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About Setco Automotive Ltd (SETCO)

Automobile and Auto Components · Auto Ancillaries · Listed on BSE

Market Cap: ₹244.26 Cr P/E: 33.8 ROE: 0.6% ROCE: 16.4%

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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

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