SJS Enterprises

SJS Enterprises delivered its highest ever quarterly revenue of INR2,601.2 million in Q4 FY26, a 29.7% YoY increase, and highest ever PAT of INR488.7 million, up 44.9% YoY. For the full year FY26, consolidated revenues grew 25.6% YoY to INR9,550.7 million, with PAT increasing 44.6% to INR1,718 million. The company achieved robust EBITDA margins of 30.3% in Q4 and 29.6% for FY26, driven by improved product mix, export contribution, and operational efficiencies. Return on Equity (ROE) improved to 19.5% and Return on Capital Employed (ROCE) expanded sharply to 35.5% in FY26.

The automotive segment, comprising 2-wheelers and passenger vehicles, grew 41% YoY in Q4 FY26, significantly outperforming the industry's 18.9% growth. This was attributed to winning new businesses, adding new customers, and offering higher value-added products. The company's strategy of premiumization, leveraging in-house design and R&D, aims to enhance content per vehicle, with new generation products already contributing 24% of FY26 revenues and expected to reach 30% in the next 5 years. This focus on differentiated, technology-driven offerings supports margin expansion.

SJS is actively expanding its capabilities, with the SJS Bangalore facility operating at 75% capacity and undergoing a 20% expansion (INR450 million investment). The SDPL chrome plating facility in Pune is at 95%+ utilization, with a new greenfield project (INR1,000 million) nearing commissioning to double capacity. The Hosur optical display facility, part of the BOE Varitronix partnership for automotive display systems, is ready, with equipment on order and supplies expected to start by early FY27/FY28. Total special initiative capex over three years starting FY26 is projected at INR2,200 million, with INR800 million spent in FY26.

The company generated strong free cash flow of INR1,426.6 million in FY26, maintaining a net cash position of INR2,437.1 million against total debt of only INR77 million. This financial strength supports ongoing capital expenditures, strategic initiatives, and potential inorganic opportunities. The board recommended a final dividend of INR3.5 per share (35% of face value), reflecting commitment to shareholder value. Management emphasized a focus on bite-size, value-accretive acquisitions in target geographies like North America, Southeast Asia, and India, while maintaining a largely debt-free status.

Exports grew 74.6% YoY in Q4 FY26 to INR255.5 million and 60.5% YoY for FY26 to INR911.4 million, reaching their highest ever level. SJS aims to increase exports to 14-15% of consolidated revenue by FY28, driven by deeper penetration in existing geographies and entry into new markets like Germany. The company is strengthening its presence across 3 regions (ASEAN, Europe, North America) and enhancing on-ground sales capabilities in several countries. This strategy leverages built-up capacity and competitive global positioning.

SJS expects to outperform underlying industry growth by 1.5x to 2x in FY27, supported by a diversified customer base, strong order visibility, and expanded capacity. Management targets a long-term EBITDA margin of 27-28% with a high growth trajectory, attributing current strong margins to product differentiation, cost reduction, and higher export contribution. The company remains confident in navigating global uncertainties due to its ability to pass on input cost increases, with new product pricing automatically incorporating cost changes and chrome plating having back-to-back pass-through arrangements.