S.J.S. Enterprises Limited — Q4 FY25 earnings call

Call held 9 May 2025

Management summary

SJS Enterprises reported a strong Q4 FY25 performance, with consolidated revenue growing 7.3% year-on-year to Rs. 200.51 crores and PAT increasing 24.1% to Rs. 33.73 crores. The automotive segment continued its outperformance, growing 9% against an industry average of 5.7%. For the full year, revenue grew 21.1% to Rs. 760.49 crores, with EBITDA and PAT margins expanding by 129 bps and 203 bps respectively. The company also announced significant capex plans for capacity expansion and new product development, targeting 2x industry growth.

Highlights

  • Consolidated Q4 revenue of ₹200.51 crores, up 7.3% YoY.

  • Consolidated Q4 EBITDA of ₹52.8 crores, up 6.6% YoY, with a margin of 26.1%.

  • Consolidated Q4 PAT of ₹33.73 crores, up 24.1% YoY, with a margin of 16.8%.

  • Full-year FY25 revenue of ₹760.49 crores, up 21.1% YoY.

  • Full-year FY25 EBITDA of ₹203.2 crores, up 27.1% YoY, with a margin of 26.4% (129 bps expansion).

  • Full-year FY25 PAT of ₹118.83 crores, up 39.2% YoY, with a margin of 15.6% (203 bps improvement).

  • Automotive segment (2W, 4W) grew 9% YoY in Q4, outperforming industry production volume growth of 5.7%.

  • Declared a final dividend of 25% of face value.

Key financials

3 periods

Headline

  • Revenue
    ₹200.51 Cr
    YoY +7.3%
  • EBITDA
    ₹52.8 Cr
    YoY +6.6%
  • EBITDA Margin
    26.1%
  • PAT
    ₹33.73 Cr
    YoY +24.1%
  • PAT Margin
    16.8%

Q4 FY25

  • Exports % of Consolidated Sales
    7.3%

FY25

  • Revenue
    ₹760.49 Cr
    YoY +21.1%
  • EBITDA
    ₹203.2 Cr
    YoY +27.1%
  • EBITDA Margin
    26.4%
  • PAT
    ₹118.83 Cr
    YoY +39.2%
  • PAT Margin
    15.6%
  • ROCE
    25.7%
  • ROE
    17.2%
  • Operational Cash Flow
    ₹163 Cr
  • Free Cash Flow
    ₹123.29 Cr
  • Net Cash Balance
    ₹99.17 Cr
  • Exports
    ₹56.79 Cr
    YoY +17.6%
  • Exports % of Total Revenue
    7.5%
  • New Generation Products % of Total Revenue
    28%

What they filed

Q1 FY27: revenue up 24.3%, net profit up 111.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue193 179 201 210 242 +25%244 +36%260 +29%261 +24%
EBITDA50 45 51 56 68 +36%71 +58%75 +47%75 +34%
Net profit29 28 34 35 43 +48%45 +61%49 +44%74 +111%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Automotive Business (2W, 4W combined)
    9% Q4 FY25 Growth5.7% Industry Production Volume Growth
  • Walter Pack India Products
    28% FY25 Contribution to Consolidated Revenue

Guidance & targets

Capacity Expansion

  • SJS Decoplast facility commissioning Capacity Expansion · H1 FY26 · High confidence H1 of FY26
    SJS Decoplast facility at Pune on track for commissioning in H1 of FY26.

    — K.A. Joseph, MD

Capex

  • Additional production capacity at SJS Bangalore plant Capex · FY26 · High confidence Rs. 40 to 45 crores
    we plan to invest an additional capex of around Rs. 40 to 45 crores during FY26 to increase production capacity at our SJS plant in Bangalore.

    — Sanjay Thapar, Group CEO and Executive Director

  • Overall capex Capex · FY26 · High confidence Rs. 150-odd crores
    If I say in a number point of view, Rs. 150-odd crores for FY26.

    — Mahendra Naredi, Group CFO

  • Overall capex Capex · three year scenario · High confidence close to Rs. 220 crores
    And if I talk about three year scenario, close to Rs. 220 crores capex allocations we are going to do.

    — Mahendra Naredi, Group CFO

Exports

  • Share of exports and consolidated revenues Exports · by FY28 · High confidence 14% to 15%
    A key focus of our strategy is the expansion of our global footprint with the target to increase our share of exports and our consolidated revenues to 14% to 15% by FY28.

    — Sanjay Thapar, Group CEO and Executive Director

Growth

  • Outperform underlying industry growth Growth · this year · Medium confidence about two times
    We target to outperform the underlying industry growth yet again by about two times this year.

    — Sanjay Thapar, Group CEO and Executive Director

Order Book

  • Order book as % of forecasted revenues Order Book · FY26 · High confidence around 85%
    With our current order book at around 85% of the forecasted FY26 revenues, we are well equipped to capitalize on these emerging opportunities.

    — Sanjay Thapar, Group CEO and Executive Director

Exotech (SJS Decoplast) Turnover

  • Turnover from new expansion Exotech (SJS Decoplast) Turnover · with the new expansion · High confidence close to Rs. 320 crores

    From double the turnover what we currently achieve in FY24 today

    So close to Rs. 320 crores kind of a turnover we can able to generate with the new expansion.

    — Mahendra Naredi, Group CFO

Exotech (SJS Decoplast) Sales Growth

  • Sales growth Exotech (SJS Decoplast) Sales Growth · next three years · Medium confidence double sales
    And moving forward, we again hope to double sales in the next three years.

    — Sanjay Thapar, Group CEO and Executive Director

Stellantis Export Business

  • Business value Stellantis Export Business · over the next seven to eight years · High confidence Rs. 300 crores
    So it's close to about Rs. 300 crores business over the next seven to eight years.

    — Sanjay Thapar, Group CEO and Executive Director

  • Supplies start Stellantis Export Business · Q2 FY26 · High confidence Q2 of this year
    And supplies for the first models will start from Q2 of this year and they gradually ramp up.

    — Sanjay Thapar, Group CEO and Executive Director

Whirlpool Order

  • Order value Whirlpool Order · in five years · High confidence Rs. 50 crores
    Whirlpool, you talked about Rs. 50 crores order, which is coming in five years, right, so that is also wrapping up next year?

    — Sanjay Thapar, Group CEO and Executive Director

  • Supplies start Whirlpool Order · Q2 FY26 · High confidence Q2
    No, that should again start from this year. So, we will start supplies again by about Q2.

    — Sanjay Thapar, Group CEO and Executive Director

Exotech (SJS Decoplast) Capex

  • Remaining capex Exotech (SJS Decoplast) Capex · during this financial year · High confidence Rs. 70 crores
    remaining Rs. 70 crores is going to happen during this financial year.

    — Mahendra Naredi, Group CFO

Exotech (SJS Decoplast) Commissioning

  • Plant setup Exotech (SJS Decoplast) Commissioning · 2025 · High confidence July or August
    we hope that somewhere in July or August it will get set up.

    — Mahendra Naredi, Group CFO

Cover Glass Capex

  • Allocated capex Cover Glass Capex · this year and the next year · High confidence Rs. 40 crores
    On the cover glass, we have allocated the capex for Rs. 40 crores which is going to happen during this year and the next year.

    — Mahendra Naredi, Group CFO

Cover Glass Commissioning

  • Plant commissioning Cover Glass Commissioning · FY26 · High confidence end of this year
    we will be commissioning by end of this year.

    — Mahendra Naredi, Group CFO

Acquisition

  • Actively work on acquisition Acquisition · by next year · Medium confidence —
    So, by next year is when we think that we will actively work on an acquisition.

    — Sanjay Thapar, Group CEO and Executive Director

EV Market Share (2-wheeler production)

  • EV volumes ramp up EV Market Share (2-wheeler production) · by 2030 · Medium confidence anywhere between 25% to 40%
    When the EV volumes ramp up, if its anybody has guessed, by 2030 it will be anywhere between 25% to 40% of the overall 2-wheeler production in India.

    — Sanjay Thapar, Group CEO and Executive Director

Risks & concerns

  • Soft consumer demand in Europe

    medium

    There are pockets where demand has been soft. For example, Europe, consumer demand has been a little soft. We hope this will come back.

    Management acknowledged

  • OEM skepticism on passenger vehicle volume growth

    medium

    All the OEMs are a bit skeptical on the volume growth this year... we expect the two-wheeler growth this year to be in high single-digits and the passenger vehicle growth to be mid single-digits.

    Analyst acknowledged

  • US Tariffs impacting export business

    low

    I do not think the tariffs are going to change that. Manufacturing in U.S. is not going to come back anytime soon... I do not think, in my humble opinion, that tariffs are going to negatively impact us in any manner.

    Analyst downplayed

Areas of evasion (2)

  • Specific competitive reasons for Hero MotoCorp's shift in suppliers
  • Granular product-level realization data

Q&A highlights

3 direct
Impact of US Tariffs on Export Business Direct
So far we do not have any notification from any customer. And as I have said earlier, these tariffs, I think India is at the lower-end of the tariff spectrum. So most of the competitors that we have are going to be equally if not more taxed in terms of these tariffs.

Addresses a macro-economic concern directly impacting export-oriented businesses and clarifies SJS's competitive positioning relative to global tariffs.

Asked by Ganeshram Rajagopalan

Details and Quantification of Hero MotoCorp Order Direct
Hero currently buys about Rs. 250-odd crores of decals and logos, so we hope to win a significant share of that business. In addition, we will pursue some cross-selling opportunities as we ramp up supplies to Hero.

Provides quantification of a significant new business win from a major OEM and highlights potential for future cross-selling opportunities.

Asked by Ganeshram Rajagopalan

Strategic Scope of Cover Glass Business and Capex Flexibility Direct
So we are at this moment looking at opportunities not just for the cover glass but also the possibility of does it make sense for us to play a larger role in the display market. So this facility of course is common, whether it is a display completely or it is cover glass. So we are actually reworking our plans to decide the optimal mix of equipment that we need as these opportunities unfold.

Reveals a strategic pivot or expansion of scope within the cover glass business to the broader display market, indicating flexibility in capex deployment based on market opportunities.

Asked by Smit Shah

3 min read 7 chapters

Detailed narrative

Strong Q4 and FY25 Financial Performance

SJS Enterprises delivered robust financial results for Q4 FY25, with consolidated revenue growing 7.3% YoY to Rs. 200.51 crores and PAT increasing 24.1% YoY to Rs. 33.73 crores. For the full fiscal year 2025, revenue surged 21.1% to Rs. 760.49 crores, while EBITDA and PAT grew 27.1% and 39.2% respectively, with margin expansions of 129 bps and 203 bps. The company maintained strong profitability with a Q4 EBITDA margin of 26.1% and PAT margin of 16.8%.

Automotive Segment Outperformance and Key Wins

The automotive business, encompassing two-wheeler and four-wheeler segments, grew 9% YoY in Q4 FY25, significantly outpacing the industry's production volume growth of 5.7%. A major highlight was the breakthrough win of new business from Hero MotoCorp in April '25, involving decals and logos, with Hero's total market for these products estimated at Rs. 250 crores. This positions SJS as a trusted supplier to all leading two-wheeler OEMs and reinforces its market leadership.

Strategic Capacity Expansion and New Verticals

The company is actively pursuing capacity expansion, with the SJS Decoplast facility in Pune on track for commissioning in H1 FY26. An additional capex of Rs. 40-45 crores is planned for FY26 to boost capacity at the Bangalore plant. Furthermore, SJS is entering the cover glass business, allocating Rs. 40 crores for this capex over FY26-FY27, with commissioning expected by the end of FY26. This initiative aims to capitalize on the growing display market, which is seen as a sunrise area in India.

Export Growth and Global Footprint Expansion

Exports demonstrated strong growth of 17.6% YoY in FY25, reaching Rs. 56.79 crores and contributing 7.5% to total revenue. SJS targets to increase the share of exports to 14-15% of consolidated revenues by FY28. The company has secured a Rs. 300 crore export business with Stellantis over the next 7-8 years, with supplies commencing in Q2 FY26, and a Rs. 50 crore order from Whirlpool over five years, also starting in Q2 FY26.

Focus on Premiumization and New Generation Products

SJS continues to drive premiumization, with new generation products contributing approximately 28% to total revenue in FY25, up from 13% in FY21. The company expects to achieve 2x industry volume growth for the current year, driven by its focus on high-end value-added offerings like IML and IMD technologies. Management noted the significant potential in the IML/IMD market, with products ranging from Rs. 500 to Rs. 5,000 per vehicle.

Strong Cash Flow and Acquisition Strategy

The company generated robust operational cash flows of Rs. 163 crores and free cash flow of Rs. 123.29 crores in FY25, resulting in a net cash balance of Rs. 99.17 crores. This financial strength supports strategic expansion and potential acquisitions. Management indicated plans to actively explore acquisitions, particularly in the U.S. market, by next year (FY27), aiming to leverage its strong cash position.

ESG Initiatives and Industry Recognition

SJS made significant progress in its ESG commitments, evidenced by an upgraded CRISIL ESG score. Key initiatives include a partnership with Amplus to secure 4.65 megawatts of solar power, aiming to meet 60% of overall energy needs from renewable sources. The company also received three ACMA awards in March 2025 for excellence in manufacturing, new product development, and ESG, highlighting its commitment to sustainable and innovative practices.

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