Shriram Pistons

SPR Auto Technologies Limited (formerly Shriram Pistons & Rings Limited) reported an exceptional FY26, achieving a record consolidated total income of INR 4,571 crores, marking a 25% year-over-year growth. EBITDA also reached its highest ever at INR 989 crores, growing by approximately 18% year-over-year. This strong financial performance was attributed to the company's strategic endeavors, resilient core operations, and effective execution, with all segments contributing positively.

The company's transition to SPR Auto Technologies Limited signifies a strategic shift towards becoming a multi-product, multi-domain auto component supplier. This new identity supports a vision for a future-ready, technology-led business. A key highlight was the successful acquisition of three Indian entities of the Antolin Group on January 8, 2026, expanding into automotive interiors and lighting. Additionally, Karna Intertech was acquired at the beginning of the year to bolster tool manufacturing capabilities, further supporting group growth programs.

In FY26, the company invested approximately INR 200 crores in capacity expansion across various business lines to meet growing market demands. SPR Takahata is establishing a new manufacturing facility at Neemrana, and SPR TGPEL is increasing capacities at its Noida plant. Phase 3 expansion has commenced at the SPL Pithampur plant, alongside other expansions in Ghaziabad and Pathredi. The commissioning of Sunbeam acquired assets is also progressing, enhancing piston manufacturing capacity.

Sustainability is a core component of SPR Auto Technologies' long-term growth strategy. The company received a CDP B rating for 2025 for its climate and water disclosures and a bronze medal from EcoVadis, placing it among the top 25% globally for sustainability. It also achieved an ESG rating of two from Dun & Bradstreet, was TÜV certified, received the Excellence in ESG Award Gold Award 2025 from ACMA, and was recognized by CII for corporate sustainability achievements.

The integration of the acquired Antolin businesses is actively underway to unlock synergies and operational efficiencies. Management reported encouraging initial results from Antolin, with expectations for margin improvement towards the standalone company's profitability levels. A Technology Agreement (TLA) provides seamless access to Antolin's technologies, and internal synergies, such as plastics requirements being met by the company's plastics division, are expected to drive further value creation.

The company observed healthy growth across all segments, including 2-wheelers, 3-wheelers, tractors, and commercial vehicles, post the GST 2.0 announcement. Management anticipates multiple powertrain technologies (ICE, hybrid, EV, CNG, biofuels) will co-exist. They project EV penetration to reach 15-17% by 2030, supported by a 6% CAGR growth, while also expecting 24-25% volume growth in ICE/hybrid vehicles by 2030-2031.

The company maintains a low debt-equity ratio of 0.25, with net debt around INR 750 crores. A Qualified Institutional Placement (QIP) is being considered for future growth, both organic and inorganic, rather than debt repayment. The company has INR 1000 crores in Non-Convertible Debentures (NCDs), with INR 500 crores due in 18 months and another INR 500 crores in 24 months, which they plan to repay on time. The Board has recommended a final dividend of INR 5 per share, in addition to the interim dividend of INR 5 per share paid in February 2026.