SJS Enterprises Limited, a leading player in the decorative aesthetics industry, has reported strong financial results for the first quarter of fiscal year 2026, outperforming industry growth rates.

Financial Highlights

• Consolidated revenue grew by 11.2% year-on-year to INR 2,096.60 million
• EBITDA increased by 16.3% to INR 587.20 million, with margins expanding to 27.6%
• Profit After Tax (PAT) rose by 22.6% to INR 346.20 million, with margins at 16.5%
• Operating cash flow amounted to 101% of EBITDA

Automotive Segment Performance

The company's automotive business segment achieved exceptional growth of 22.8% year-on-year, significantly outpacing the industry's growth of 1.2%. This performance was driven by:

• 32.7% growth in the 2-wheeler segment
• 13.8% growth in the passenger vehicle segment

New Customer Acquisitions and Export Orders

SJS Enterprises made significant strides in expanding its customer base and global footprint:

• Added Hero MotoCorp as a new customer and commenced supplies during the quarter
• Secured new export orders from Autoliv and Fiat Chrysler Automobiles (FCA) in the U.S. market
• Added Yazaki as a domestic customer for automotive business
• Started supplies to Whirlpool, with Stellantis orders expected to begin in Q2 FY26

Capacity Expansion and Future Outlook

The company is undertaking capacity expansion projects at its Pune and Bangalore locations to strengthen manufacturing capabilities and meet increasing demand. Key points include:

• Infrastructure development for expansion is currently underway
• New chrome plating and painting facility at SJS Decoplast (formerly Exotech) expected to be operational by the end of Q3 FY26
• Management expects to outperform industry growth by 2x
• Targeting export contribution of 14-15% of revenue by FY28

Cover Glass and Display Technology

SJS Enterprises is exploring opportunities in the cover glass and display assembly segment:

• Discussions ongoing with potential customers for larger scope beyond just cover glass
• Considering technology partnerships to address the expanded opportunity
• Expects to make announcements regarding potential joint ventures in the future

Walter Pack India Performance

The Walter Pack India business faced challenges due to concentration risk with a few customers:

• Experienced a decline in volumes for specific high-value, low-volume parts
• Management is working on diversifying the customer base and onboarding new customers
• Expects a rebound in Walter Pack's performance within 2-3 quarters

SJS Enterprises continues to focus on premiumization, cross-selling opportunities, and expanding its global presence to drive sustainable growth and maintain its leadership position in the decorative aesthetics space.

SJS Enterprises Limited (NSE: SJS, BSE: 543387), a leading player in the decorative aesthetics industry, has announced ambitious growth plans and reported robust financial results for the first quarter. The company aims to outpace industry growth rates significantly, driven by its focus on premium products and global expansion initiatives.

Growth Strategy and Outlook

SJS Enterprises has set its sights on achieving double the industry growth rate by FY26. This aggressive target is underpinned by several key strategies:

1. Focus on Premium Products: The company is leveraging its expertise in high-value aesthetic products to capture a larger market share in the premium segment.

2. Major OEM Contracts: SJS has secured significant contracts with original equipment manufacturers, strengthening its position in the automotive and consumer appliance sectors.

3. Global Expansion: The company is actively pursuing international markets, with a particular emphasis on expanding its presence in North America and Southeast Asia.

4. Margin Maintenance: Despite the ambitious growth plans, SJS Enterprises remains committed to maintaining its EBITDA margin guidance of over 27%.

Q1 Financial Highlights

The company's first quarter results demonstrate strong performance across key financial metrics:

Segment Performance

SJS Enterprises demonstrated strong growth across its key segments:

• Exports: Contributed 6.70% to the consolidated Q1 revenue.

Strategic Developments

The company has made significant strides in expanding its customer base and technological capabilities:

• New Customer Acquisition: SJS has added Hero MotoCorp as a marquee customer and commenced supplies to them during Q1.
• Export Expansion: The company won new business in the U.S. market from Autoliv and Fiat Chrysler Automobiles.
• Capacity Expansion: Projects are underway at Pune and Bangalore facilities to enhance manufacturing capabilities.
• Sustainability Initiatives: SJS received the Green Manufacturing Excellence Award (GMEA) from Futurescaper and the Good Manufacturing Practice (GMP) certification from TUV.

Management Commentary

K. A. Joseph, Managing Director of SJS Enterprises, commented on the results: "We began the fiscal year on a positive note, with Q1 reflecting strong demand across key vehicle segments, despite lower industry growth. We delivered our 23rd consecutive quarter of outperformance, an achievement that highlights our strong commitment to innovation and execution."

Sanjay Thapar, Executive Director & Group CEO, added: "Despite lower industry growth, SJS not only delivered strong revenue growth but also achieved robust profitability margins, with EBITDA margins at 27.60% and PAT margins at 16.50%. We are confident that in the long run, we will be one of the preferred suppliers with a significant share of business in our target markets."

SJS Enterprises' strong Q1 performance and ambitious growth targets underscore its position as a key player in the decorative aesthetics industry. With its focus on premium products, global expansion, and technological innovation, the company appears well-positioned to capitalize on growth opportunities in the automotive and consumer appliance sectors.