Suprajit Engg.

Suprajit Engineering reported a consolidated revenue (excluding SCS) of INR 3,106 crores for FY25, reflecting a 7% year-on-year growth from INR 2,896 crores. Consolidated operational EBITDA saw a robust increase of 23% to INR 401 crores, up from INR 326 crores in the previous year. Standalone revenue grew 12% to INR 1,718 crores, with operational EBITDA rising 8% to INR 298 crores. The Board recommended a final dividend of 175%, bringing the total dividend for FY25 to 300%, an increase from 250% in FY24.

The acquired SCS business, which recorded an operational loss of INR 49 crores over nine months, is a key focus for turnaround. Management projects SCS to achieve EBITDA positive status by Q4 FY26 and generate approximately USD 40 million in revenue for the full year FY26. The integration of Canada and China operations is nearing completion, and the full consolidation of SCS under the Suprajit Controls Division (SCD) is targeted for FY27, aiming to leverage global footprints and synergies.

The Suprajit Controls Division (SCD) demonstrated strong performance, with Y-o-Y margins increasing by 65% to 9.7% and Q4 EBITDA jumping 52%, driven by new business wins. The Domestic Cable Division (DCD) grew its revenue by 13%, though margins were impacted by increased corporate and technology center staffing. The Phoenix Lamps Division (PLD) maintained flat revenue but improved EBITDA to 22.7%, despite Q4 write-offs. The Electronics Division saw revenue growth of 27%, but Q4 performance was weaker due to sales drops from large customers and provisioning.

Suprajit is actively diversifying its product portfolio beyond traditional cables, with significant traction in combi brake systems, which have been launched for 4 OEMs (1 ICE, 3 EV). The Suprajit Tech Center (STC) is expanding, with a new building expected this financial year, supporting global entities and introducing new products. A technical tie-up with Blubrake, Italy, for an innovative ABS product for the Indian market further underscores the company's commitment to advanced technology solutions.

The company highlighted the significant impact of global tariffs, particularly from the US, on supply chains. Management is implementing a multi-pronged strategy to mitigate these effects, including passing on duties to customers, changing sourcing locations to India and Morocco, and pursuing legal avenues for legacy tariff issues. They expressed confidence in their ability to manage the duty situation effectively, leveraging their global footprint for nearshore and onshore supplies.

For the upcoming financial year (FY26), Suprajit expects double-digit revenue growth for the group, excluding the SCS business. The company also targets an EBITDA margin in the range of 12% to 14%. A capital expenditure budget of INR 160 crores has been set for FY26, following a conservative spend of INR 80-90 crores in FY25. The effective tax rate is anticipated to remain stable at 25-26%.

Approximately INR 25-30 crores in one-off^📎 expenses were incurred in FY25, primarily due to SCS transaction costs, restructuring efforts in Matamoros, and warehouse relocation from Germany to Hungary. Customer write-offs affected Phoenix Lamps due to an insolvent European customer and the Electronics Division due to issues with certain EV customers. Management confirmed that write-offs for these EV customers have already been accounted for, and no further significant write-offs are expected.