Suprajit Engg.

For the 9 months ended December 31, 2025, consolidated revenue (excluding SCS) reached INR 2,464 crores, marking an 8% growth over the previous year's INR 2,290 crores. Consolidated operational EBITDA (excluding SCS) grew 11% to INR 327 crores, up from INR 295 crores in the prior year. Standalone revenue for the same period was INR 1,371 crores, a 7% increase, with standalone operational EBITDA growing 4% to INR 234 crores.

The Suprajit Controls division (excluding SCS) saw operational revenue grow by 13.7%, but operational EBITDA declined by 10.5%. This was primarily due to the shutdown and relocation of operations from Juarez to Matamoros, leading to one-time^📎 severance costs and overtime expenses for expedited shipments. Management noted approximately USD 2 million (INR 15-18 crores) in one-off^📎 costs for the quarter. The division also faced delayed cash recovery from tariff pass-through mechanisms, impacting gross margins.

The Domestic Cable division's revenue grew by 9%, aligning with the domestic industry's performance, and maintained strong EBITDA margins. The aftermarket segment showed particularly strong performance. The Suprajit Electronics Division (SED) demonstrated robust growth of nearly 20%, with EBITDA increasing by almost 160% and margins reaching a strong double-digit territory of 11.2%. This growth reflects strong traction in electronics programs, clusters, and plotters, despite ongoing risks from memory chip shortages.

The Phoenix Lamps division experienced a muted quarter, primarily driven by a sharp reduction in exports to the Middle East. The Indian aftermarket for Phoenix Lamps also faced challenges from counterfeit products and low-cost Chinese imports. Management is aggressively working to overcome these issues, with the outlook for the next year appearing brighter due to new inquiries.

The restructuring of Stahlschmidt Cable Systems (SCS), following its acquisition, is substantially complete. Key actions included relocating a tool room from Germany to Morocco, ramping up the new Hungary warehouse, and finalizing headcount reductions in Germany. SCS is progressing well towards achieving positive EBITDA by the end of the current financial year, with renewed customer confidence and new business wins starting to materialize.

Suprajit completed a EUR 1 million strategic investment in Blubrake Italy, its ABS partner, complementing an earlier licensing agreement. The company is actively developing new products, including ABS hydraulic brake systems, which are currently under testing at multiple OEMs with hopes for commercialization this financial year. The Chuhatsu JV for transmission cables is also progressing, with RFQs received from Japanese OEMs in India and for exports, though commercialization is expected to take time due to the cautious nature of Japanese partners.

The company highlighted the impact of tariff changes, particularly the increase from 25% to 50% in the last quarter, which led to a significant hit on reported gross margins. While customers have provided written confirmation of payment, the cash recovery is delayed, creating a timing issue that strains working capital. Management expects gross margins to normalize once these tariff amounts are recovered, and believes improving tariff clarity will accelerate new business wins globally.