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.

Shriram Pistons & Rings Limited (SPRL) has announced that its wholly owned subsidiary, SPR Engenious Limited, has further increased its equity stake in SPR EMF Innovations Private Limited (SPR EMFI). The latest acquisition raises SPR Engenious' ownership in SPR EMFI from 66.42% to 72.58%, continuing its progressive stake buildup.

Transaction Details

The transaction was completed through a further issue and allotment of equity shares to SPR Engenious. Following this acquisition, SPR Engenious now owns 1,55,71,507 equity shares in SPR EMF Innovations, representing a 72.58% stake in the company.

Historical Context

This latest increase is part of a series of strategic moves by SPR Engenious to strengthen its position in SPR EMF Innovations:

• December 15, 2022: Initial acquisition of a 51% equity stake in SPR EMFI
• March 2, 2024: Increased stake from 51% to 66.42%
• September 11, 2025: Further increase to 72.58%

Regulatory Compliance

SPRL, the parent company of SPR Engenious, has duly informed the National Stock Exchange of India Limited and BSE Limited about this development. The company's Company Secretary & Compliance Officer, Pankaj Gupta, submitted the regulatory filing on September 11, 2025.

Market Implications

This continued investment by SPR Engenious in SPR EMF Innovations suggests a strong commitment to the subsidiary's operations and potential. The progressive increase in ownership from 51% to 72.58% over the course of several transactions indicates a strategic long-term approach to strengthening the group's position in this business segment.

Investors and market watchers may view this as a sign of confidence in SPR EMF Innovations' future prospects and its alignment with Shriram Pistons & Rings Limited's overall business strategy. However, the specific reasons for this increased investment and its potential impact on the group's financial performance were not disclosed in the available information.