Shriram Pistons

    SHRIPISTON
    Automobile and Auto Components·3 Feb 2026
    Management Summary

    Shriram Pistons & Rings Limited delivered a strong Q3 FY26, with consolidated total income and EBITDA growing 21% YoY, driven by robust demand across all auto segments. The company successfully completed the acquisition of Grupo Antolin's Indian entities for EUR 159 million, significantly diversifying its product portfolio. Despite a one-time exceptional expense of INR 252 million, profitability remained strong, and an interim dividend of INR 5 per share was approved.

    Highlights5
    • Consolidated total income grew 21% year-on-year in Q3 FY26, supported by strong broad-based demand across all segments.
    • Consolidated EBITDA also witnessed a very strong growth of 21% year-on-year in Q3 FY26, driven by improved operating leverage and operational efficiency.
    • Consolidated PBT before exceptional items grew by 22% year-on-year in Q3 FY26.
    • The 100% acquisition of Grupo Antolin's three Indian entities was completed for approximately EUR 159 million (INR 16,700 million), diversifying the business into automotive interiors and lighting.
    • An interim dividend of INR 5 per equity share (50% of face value) was approved, reflecting a policy of rewarding shareholders.
    Concerns Noted2
    • A nonrecurring exceptional expense of Rs. 252 million was incurred in Q3 FY26 due to the statutory impact of new Labour Codes.
    • PBT after exceptional items grew by only 6.4% year-on-year in Q3 FY26, impacted by the exceptional expense.
    What Changed2

    vs Q4 FY26

    Guidance items5 → 7 (+2)Risks discussed3 → 2 (-1)
    Numbers6

    Key Financials

    MetricValueYoY
    Consolidated Total Income Growth21%+21.0% YoY
    Consolidated EBITDA Growth21%+21.0% YoY
    Consolidated PBT (pre-exceptional) Growth22%+22.0% YoY
    Consolidated PBT (post-exceptional) Growth6.4%+6.4% YoY
    9M FY26 Consolidated Total Income Growth16.8%+16.8% YoY
    9M FY26 Bottom Line Growth10.6%+10.6% YoY
    Trend1

    Historical Trend

    Last 5Q
    MetricLatestTrend
    Consolidated Total Income(crores)4571
    Capital5

    Capital Allocation

    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Dividend

    ₹5/share (interim)

    M&A

    Grupo Antolin's three Indian entities (Antolin Lighting India Private Limited, Grupo Antolin India Private Limited, Grupo Antolin Chakan Private Limited)

    acquisition · closed · Consideration ₹NaN (cash)

    Liquidity

    Liquidity disclosed

    Company is self-sufficient and doing extremely well, not requiring additional capital for working capital.

    Promises7

    Guidance & Targets

    CategoryTargetPriority
    Volume
    Stand-alone core business volume growthbreaking records month after month
    Medium
    Volume
    Precision plastics business growth (Takahata, TGPEL)extremely well
    Medium
    Volume
    EV motor and controller sales/outputhitting records almost every month and increasing overall sales
    Medium
    Volume
    Legacy business growthat the level of the market growth
    Medium
    Volume
    EV subsidiary growth (motor and controller segment)5x to 7x
    High
    Performance
    Antolin entities performancebreaking all various records
    Medium
    Industry Outlook
    Auto industry sentimentvery buoyant
    High
    Watchlist4

    Watch for Next Quarter

    #Metric
    01Grupo Antolin entities performance post-acquisition
    02EV subsidiary (motor and controller) growth
    03ROCE parity for Antolin acquisition
    04Impact of FTA with Europe and US on exports
    Risks2

    Risks & Concerns

    SeverityRisk
    low

    Nonrecurring exceptional expense due to new Labour Codes

    A one-time expense of Rs. 252 million impacted Q3 FY26 PBT after exceptional items, reducing its growth to 6.4% YoY.

    Management
    medium

    Tough geopolitical situation impacting export markets

    A very difficult geopolitical situation existed until recently, but the company's teams have successfully worked to secure new markets and programs, leading to increased sales.

    Management
    Q&A7

    Q&A Highlights

    Narrative2m

    Detailed Narrative

    7 chapters
    01

    Robust Q3 FY26 Performance Driven by Broad-Based Demand

    Shriram Pistons & Rings Limited reported a strong Q3 FY26, with consolidated total income growing 21% year-on-year. This growth was fueled by broad-based demand across all segments, including passenger vehicle and commercial vehicle segments growing over 20%, 2-wheelers by almost 17%, and 3-wheelers by 14%. Consolidated EBITDA also saw a 21% year-on-year growth, attributed to improved operating leverage and continuous focus on productivity and cost optimization.

    02

    Strategic Diversification with Grupo Antolin Acquisition

    A significant strategic milestone was the 100% acquisition of Grupo Antolin's three Indian entities, completed in early January 2026, for approximately EUR 159 million (INR 16,700 million). This acquisition diversifies SPRL beyond its legacy business into automotive interiors and electronic lighting solutions, expanding its addressable market. Management expects powertrain-agnostic products to contribute over 35% of consolidated revenue post-consolidation, derisking the business model.

    03

    Operational Enhancements and Capacity Expansion Initiatives

    The company continues to invest in its legacy business through capacity expansion and automation, including an asset purchase agreement for INR 280 million for piston manufacturing lines from Sunbeam Lightweighting Solutions. Additionally, SPRL inaugurated a state-of-the-art assembly center at Bhora Kalan and a world-class facility in Coimbatore for manufacturing motors and controllers in November 2025. Production has commenced at Coimbatore, with the facility reportedly hitting record outputs monthly.

    04

    Product Mix Optimization and Margin Management

    SPRL employs a detailed internal process to evaluate part profitability and benchmarks to identify and address low-margin products. This strategy has contributed to margin improvements over the past five years. Management confirmed that despite shifts in product mix, such as a trend towards smaller cars in the OEM segment, the company has successfully maintained its overall margins.

    05

    Positive Industry Outlook and Export Tailwinds

    Management expressed a buoyant outlook for the auto industry, anticipating continued growth momentum in Q4 FY26, with expectations of record-breaking performance. This positive sentiment is supported by GST 2.0 reforms, successful RBI repo rate cuts, and strong festive seasons. Furthermore, recent trade agreements with Europe and the US are expected to provide significant tailwinds for export growth, with management anticipating increased quantities to America.

    06

    Rapid Growth in EV Segment and Future-Proofing Strategy

    The EV subsidiary's motor and controller segment is experiencing rapid growth, projected to increase 5x to 7x from last year to this year, with expectations for continued strong growth. The company is actively developing new programs, including winning a 300-kilowatt platform, expanding its motor range from 1.5 kilowatts up to 250 kilowatts. This focus on EV and powertrain-agnostic products is central to SPRL's long-term growth strategy and adaptation to new technologies.

    07

    Shareholder Returns and Proposed Name Change

    The Board approved an interim dividend of INR 5 per equity share (50% of face value) during the quarter, consistent with its policy of rewarding shareholders. To better reflect its diversified and multiproduct operations, the company has proposed changing its name from Shriram Pistons & Rings Limited to SPR Auto Technologies Limited, pending necessary approvals from shareholders and government authorities.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.