Suprajit Engineering (532509) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue for H1 FY26 grew to ₹18,039.37 million, up from ₹15,684.53 million year-over-year, with operational EBITDA rising to ₹2,151 million from ₹1,840 million YoY.

• Standalone revenue for H1 FY26 was ₹9,465.21 million, up from ₹8,909.75 million, with EBITDA flat at ₹1,452 million.

• Profit before tax (consolidated) for H1 FY26 was ₹1,521.66 million, up from ₹868.72 million YoY.

• Most divisions outperformed the industry, except for a muted Phoenix Lamps Division (PLD) performance.

• SCS acquisition and integration in Canada, China, and Germany completed, with operational improvements underway.

Financial highlights

• Consolidated net profit for H1 FY26 was ₹990.33 million, compared to ₹386.18 million YoY.

• SCD operational revenue grew 7% YoY, with EBITDA up nearly 50% and margin at 11.7%.

• Domestic Cable Division revenue grew over 10% YoY, with EBITDA margin stable at 16%+.

• Phoenix Lamps Division saw revenue decline and EBITDA margin drop to 12.7% due to reduced exports.

• Electronics Division revenue surged 36% YoY, with EBITDA margin rising from 5.2% to 13.5%.

Outlook and guidance

• SCD restructuring on track, with completion expected by December 2025; outlook remains positive despite global uncertainties.

• Second half expected to be stronger, driven by anticipated US trade agreements, easing Middle East uncertainties, and GST reductions in India.

• SCS expected to turn EBITDA-positive by Q4 FY26.

• Guidance remains to grow 5%-10% ahead of global industry, with margins (excluding SCS) targeted at 12%-14%.

• Adoption of hedge accounting for forecast sales is expected to reduce volatility in future results.