Shriram Pistons & Rings Limited (SPRL) has demonstrated resilience in the face of challenging market conditions, reporting a robust 15% year-on-year growth in consolidated total income for the second quarter. The company's performance outpaced the overall automotive industry, which showed mixed results during the period.

Financial Highlights

• Consolidated total income grew by 15% year-on-year in Q2
• Consolidated EBITDA margin maintained at 22.4%
• Consolidated PAT margin stood at 13.6%
• H1 saw a 14.9% year-on-year growth in consolidated total income
• Consolidated EBITDA for H1 increased by 14.2% year-on-year

Market Performance and Challenges

The domestic automotive industry presented a mixed picture during the quarter:

• Passenger vehicle segment declined by 1%
• Two-wheeler volumes registered a healthy 7% growth

The implementation of GST reforms initially impacted the sales mix but subsequently led to improved demand from OEMs post-implementation.

Strategic Developments

1. EV Motor and Controller Plant: The company's new facility in Coimbatore for EV motors and controllers has completed commissioning and is expected to start commercial production in the ongoing quarter.

2. Expansion at SEL Pithampur: Phase 2 expansion at the SEL Pithampur facility has been completed, with Phase 3 expansion already underway due to excess customer demand.

3. International Operations: Despite geopolitical headwinds, SPRL's international operations remained resilient, with a presence across more than 45 countries.

4. Product Diversification: The company continues to develop components for alternative fuel solutions, including CNG, LNG, PNG, Hybrid, Flex, Hydrogen, H-CNG, and electric powertrains.

Future Outlook

Krishnakumar Srinivasan, Managing Director and CEO, expressed optimism about the company's future, stating, "As we move into the second half, we remain very optimistic yet prudent. Ongoing market conditions are expected to support steady growth across key vehicle segments."

The company's strategic focus remains on:

• Driving operational excellence
• Investing in technology-led solutions
• Building long-term partnerships
• Pursuing strategic M&As to bolster capabilities and broaden product portfolio

Industry Insights

SPRL management believes that multiple powertrains will coexist in the market for the foreseeable future. The company expects:

• A CAGR growth of 6-7% in the overall automotive market
• EV penetration of 15-20% in the next 5 years
• Continued growth in ICE engines, with an estimated 10% growth over the next 4-5 years

Shriram Pistons & Rings Limited is well-positioned to cater to various powertrain solutions, including ICE, hybrid, and electric vehicles, ensuring sustainable growth across segments.

The company's strong performance and strategic initiatives demonstrate its ability to navigate the evolving automotive landscape while maintaining profitability and growth.

Shriram Pistons & Rings Limited (SPRL), a leading manufacturer of automotive components, has announced robust financial results for the second quarter of fiscal year 2026, demonstrating resilience and growth in a challenging market environment.

Financial Highlights

For the quarter ended September 30, 2025, SPRL reported:

Performance Overview

SPRL's consolidated total income for Q2 FY26 stood at Rs. 10,427.00 million, marking a significant 15.00% year-on-year growth. This performance was driven by strong festive demand and partially supported by the positive impact of GST rate reduction effective from late September 2025.

The company's EBITDA grew by 12.10% year-on-year to Rs. 2,335.00 million, reflecting SPRL's continued focus on cost optimization and process efficiencies. The EBITDA margin, however, saw a slight decrease of 60 basis points to 22.40% compared to the same quarter last year.

Profit After Tax (PAT) increased by 12.90% year-on-year to Rs. 1,421.00 million, demonstrating the company's ability to maintain profitability in a competitive market environment.

Operational Highlights

SPRL reported that its EV and high-precision injection moulded components businesses performed well during the quarter, contributing positively to the consolidated topline growth.

The company continues to maintain a strong global presence, operating in over 45 countries across 5 continents, which helps mitigate softness in demand from certain regions due to ongoing tariff uncertainties and geopolitical situations.

Strategic Investments

During the quarter, SPRL invested Rs. 500.00 million in SPR Engenious Limited, its wholly-owned subsidiary, by subscribing to 50 million equity shares of Rs. 10 each. This investment is likely aimed at strengthening the company's position in emerging automotive technologies.

Management Commentary

Krishnakumar Srinivasan, Managing Director & CEO of Shriram Pistons & Rings Limited, commented on the results: "Despite tough market conditions due to geopolitical situations and low-growth in the domestic end markets for the first half, SPRL has registered a growth of 14.9% YoY to Rs. 20,344 Million in Consolidated Total Income, and 14.2% YoY in Consolidated EBITDA for H1 FY26."

He added, "The company remains committed to outperforming the industry and strengthening its operations through process efficiency, automation, and cost discipline across all aspects of the business. We are committed to sustainable growth and generating long-term value for all our stakeholders by consistently focusing on innovation and diversification of the business."

Industry Outlook

The Indian automotive industry had a mixed performance in Q2 FY26, with passenger vehicle volumes reporting a 1% decline and two-wheeler volumes registering a 7% growth. The implementation of GST 2.0 reforms has been welcomed by the industry, with the auto sector emerging as one of the biggest early beneficiaries.

SPRL management expressed optimism about the resolution of tariff uncertainties and expects to see good traction from the export market in the near future.

Conclusion

Shriram Pistons & Rings Limited's Q2 FY26 results demonstrate the company's ability to navigate challenging market conditions while maintaining growth and profitability. With its focus on innovation, diversification, and operational efficiency, SPRL appears well-positioned to capitalize on the evolving opportunities in the automotive components sector.