SJS Enterprises , a leading player in the decorative aesthetics industry, has announced an ambitious growth strategy, setting its sights on outpacing industry growth rates and improving profitability margins.

Revised Growth Guidance

The company has revised its growth guidance upwards, projecting to surpass the industry growth rate by more than 2.5 times by fiscal year 2026. This aggressive target underscores SJS Enterprises' confidence in its market position and growth potential.

Margin Improvement

SJS Enterprises has set a target to sustain EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins at around 27.00%. This represents a notable improvement from the company's historical EBITDA margins of 25.00-26.00%.

Capital Expenditure Plans

To support its growth ambitions, SJS Enterprises has outlined a significant capital expenditure plan:

This investment is likely aimed at enhancing production capabilities, improving efficiency, and supporting the company's growth initiatives.

Export Targets

SJS Enterprises is also focusing on expanding its international presence. The company has set an export target of 14.00-15.00% of consolidated sales by fiscal year 2028, indicating a strategic push towards global markets.

Industry Outlook

The revised guidance from SJS Enterprises suggests a positive outlook for the decorative aesthetics industry. By targeting growth rates significantly higher than the industry average, the company appears to be positioning itself to capture a larger market share in the coming years.

While these targets are ambitious, investors and stakeholders should note that they represent the company's expectations and are subject to various market factors and risks. As always, it's advisable to consider a range of financial and market indicators when evaluating the company's prospects.

SJS Enterprises' focus on margin improvement, coupled with its substantial capital expenditure plans and export targets, indicates a comprehensive strategy aimed at sustainable long-term growth. The success of this strategy will likely depend on factors such as market demand, competitive dynamics, and the company's execution capabilities.

SJS Enterprises Limited, a leading player in the decorative aesthetics industry, has reported robust financial results for the second quarter, outperforming the automotive industry growth for the 24th consecutive quarter. The company has also announced plans to increase its export contribution to 14-15% of total revenue by FY28.

Financial Highlights

Revenue Growth

SJS reported consolidated revenue of ₹2,417.60 crore, marking a 25.4% year-on-year growth. This performance was driven by:

• 44.3% YoY growth in the two-wheeler (2W) segment
• 16.5% YoY growth in the Passenger Vehicle (PV) segment
• 16% YoY growth in the Consumer segment

The company's automotive business grew by 29.5% YoY, significantly outpacing the 9.5% YoY growth in automotive industry (2W+PV) production volumes.

Profitability

SJS demonstrated strong profitability metrics:

• EBITDA grew by 40.9% YoY to ₹728.40 crore, with EBITDA margins expanding to 29.6%
• PAT increased by 48.4% YoY to ₹432.70 crore, with a PAT margin of 17.9%

The enhanced profitability is attributed to a better product mix, operational excellence, and disciplined execution.

Export Performance and Strategic Initiatives

Exports increased by 40.9% YoY to ₹231.90 crore, constituting 9.6% of total consolidated sales. This growth was driven by new projects from key global OEMs and expanding presence across regions such as North America.

SJS has signed an MoU with BOE Varitronix (Hong Kong) to collaborate on manufacturing 4-wheeler automotive displays in India, marking a strategic step into new premium product categories.

The company plans to increase its export contribution to 14-15% of total revenue by FY28 through acquiring new customers and business diversification strategies.

Financial Position

SJS reported a net cash position of ₹1,588.80 crore, providing adequate financial flexibility to support both organic and inorganic growth initiatives.

Management Commentary

K. A. Joseph, Managing Director of SJS Enterprises, commented: "Our enhanced profitability reflects better product mix, operational excellence, and disciplined execution. This performance demonstrates the success of our business diversification strategy and strong OEM partnerships."

Sanjay Thapar, Executive Director & Group CEO, added: "Our strategic initiatives and strong execution have led to SJS achieving business results in Q2FY26 almost equal to our annual performance of FY21. We aim to increase exports to 14–15% of consolidated revenue by FY28 through diversification and new customer additions."

Outlook

With a debt-free balance sheet, robust cash flow generation, and strong order visibility, SJS remains well-positioned to sustain its growth trajectory, enhance market leadership, and create long-term value for stakeholders. The company's focus on premium product additions and expansion into new technologies is expected to increase kit value and strengthen its position as a one-stop decorative aesthetics solutions partner for OEMs.

SJS Enterprises continues to demonstrate its ability to outperform the industry, leveraging its strategic positioning and focus on innovation in the decorative aesthetics sector.