Subros Ltd (SUBROS) — concall transcript | 30 June 2026

Subros Limited reported 17.5% revenue growth to Rs. 1,032 crores in Q1 FY26-27, driven by strong passenger vehicle demand and 24% industry growth, but faced margin pressure from elevated commodity prices, logistics costs, and a 1%+ EBITDA decline to Rs. 87 crores. Profit after tax rose 1.76% to Rs. 41.38 crores. Management highlighted ongoing geopolitical and labor cost headwinds, particularly wage increases in UP and Haryana, and emphasized automation and localization as key mitigants. Strategic progress included signing a technology assistance agreement for e-compressor manufacturing with Denso, Toyota, and Toyota Industries, and advancing two greenfield projects: Kharkhoda (targeting SOP in Q3 FY27) and Karsanpura (supporting EV/hybrid growth). The company maintained its focus on emerging mobility segments, with railway business orders reaching Rs. 81 crores and a target to exceed Rs. 100 crores in three years. Despite margin challenges, management expects gradual recovery as supply chain stabilizes, with double-digit margins anticipated beyond FY29. Revenue guidance remains aligned with industry growth, projecting Rs. 300 crores for truck AC segment in FY27 and Rs. 400-450 crores in 2-3 years.