Setco Automotive Reports Mixed Q2 Results: Standalone Profit Amidst Consolidated Losses

Setco Automotive Ltd has reported mixed financial results for the quarter ended September 30, 2025, with a stark contrast between its standalone and consolidated performance.

Standalone Performance

On a standalone basis, Setco Automotive posted a profit of Rs 19.00 lakhs for the quarter. This represents a significant decrease from the previous quarter (June 30, 2025), where the company reported a profit of Rs 99.00 lakhs. Despite the decline, the company's standalone performance shows resilience in challenging market conditions.

Consolidated Results

However, the consolidated picture paints a different story. Setco Automotive's consolidated operations recorded a substantial loss of Rs 4,127.00 lakhs for the quarter. This loss is primarily attributed to the underperformance of the company's subsidiaries.

Key Financial Highlights

Particulars (Rs. in Lakhs)	Q2 FY2026 (Consolidated)	Q2 FY2026 (Standalone)
Revenue from Operations	17,901.00	24.00
Total Income	18,013.00	52.00
Total Expenses	22,255.00	33.00
Profit/(Loss) before tax	(4,130.00)	19.00
Net Profit/(Loss)	(4,127.00)	19.00

Subsidiary Concerns

The company disclosed that its subsidiaries face material uncertainty with negative net worth. This situation has significantly impacted the group's overall financial health and contributed to the consolidated losses.

Debt Restructuring

In a move to address its financial obligations, Setco Automotive has extended the maturity of its non-convertible debentures worth Rs 57,450.00 lakhs to December 1, 2025. This extension may provide the company with some breathing room to improve its financial position.

Market Implications

The contrasting results between standalone and consolidated performances highlight the challenges Setco Automotive faces in managing its subsidiaries effectively. Investors and stakeholders may need to closely monitor the company's strategies to turn around its underperforming units and improve overall group performance.

As the automotive sector continues to face headwinds, Setco Automotive's ability to navigate these challenges and return its subsidiaries to profitability will be crucial for its long-term financial health and market position.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.12%	-0.78%	-5.09%	-9.18%	+76.29%	+83.42%

Setco Automotive , a leading manufacturer of MHCV clutches and premium supplier of truck products, has announced its unaudited financial results for the first quarter. The company reported a solid performance with revenue growth and margin improvement, while also expanding its product portfolio.

Financial Highlights

Revenue from Operations stood at Rs. 178.80 crore, up 7.8% from Rs. 165.80 crore in the same quarter last year.
EBITDA increased by 11.9% to Rs. 21.60 crore, compared to Rs. 19.30 crore in the same quarter last year.
EBITDA margin improved to 12.1% from 11.6% year-over-year.

Particulars (Rs. Crore)	Current Quarter	Previous Year Quarter	Y-o-Y%
Revenue from Operations	178.80	165.80	7.8%
EBITDA	21.60	19.30	11.9%
EBITDA Margin	12.1%	11.6%	44 bps

Business Highlights

Setco Automotive has made significant strides in expanding its product portfolio:

Automotive Water Pump: The company launched an innovative Automotive Water Pump for Light Commercial Vehicles (LCVs) and MHCVs, marking its strategic expansion into the critical engine cooling segment.
Suspension Solutions: Setco entered the suspension solutions market for the MHCV segment with the introduction of Load Cushion and Torque Rod Bush products.
Tractor Segment Entry: The company has successfully entered the tractor segments, which is showing encouraging results.

Management Commentary

Harish Sheth, Chairman & MD of Setco Automotive Ltd., commented on the results: "We are pleased to start on a healthy note, with quarterly revenues of Rs. 178.80 crore, representing a 7.8% year-on-year growth, alongside an improvement in gross margins to 54%. While EBITDA for the quarter stood at Rs. 21.60 crore, a growth of 12% reflecting our focus on cost discipline and adding more products to the offerings."

Sheth added, "The traction from products launched last year, along with our entry into the tractor segments, have started yielding encouraging results. Our recent product expansion from the Automotive Water Pump to suspension products, CRB and CSB are steadily enhancing our presence across the auto component value chain."

Future Outlook

The company remains confident in its growth prospects, citing its expanding product portfolio and deeper engagement with both OEMs and aftermarket customers. The strong acceptance of Setco's technologically developed clutch variants and the initial traction in its engine cooling and suspension offerings reinforce the company's commitment to innovation, quality, and meeting evolving customer needs.

Setco Automotive's strategic expansion into new product categories and its focus on operational efficiencies position the company well for continued growth in the commercial vehicle component market.