SJS Enterprises Reports Record Q2 FY26 Performance with 25.4% Revenue Growth and 29.6% EBITDA Margins

SJS Enterprises Limited, a leading player in the decorative aesthetics industry, has reported its highest ever quarterly performance for Q2 FY26, significantly outpacing industry growth. The company's strong results reflect its strategic focus on premium products, export expansion, and operational efficiency.

Financial Highlights

Metric	Q2 FY26	Y-o-Y Growth
Revenue	INR 2,417.60 million	25.40%
EBITDA	INR 728.40 million	40.90%
EBITDA Margin	29.60%	300 bps
PAT	INR 432.70 million	48.40%
PAT Margin	17.90%	278 bps

The company's revenue growth of 25.40% year-on-year significantly outperformed the combined 2-wheeler and passenger vehicle industry growth of 9.50%. This robust performance was driven by strong growth across all segments, particularly in the automotive sector.

Segment Performance

Segment	Y-o-Y Growth
Automotive (Overall)	29.50%
2-Wheeler	44.30%
Passenger Vehicle	16.50%
Exports	40.90%

The automotive segment showed impressive growth, with 2-wheeler revenue increasing by 44.30% and passenger vehicle revenue growing by 16.50%. Exports reached a record INR 231.90 million, up 40.90% year-on-year, now contributing 9.60% to total revenue.

Strategic Developments

SJS Enterprises has signed a Memorandum of Understanding (MOU) with BOE Varitronix, a Hong Kong-based company, to collaborate on manufacturing automotive display solutions for the 4-wheeler industry. This partnership marks SJS's entry into advanced display technologies, enhancing its portfolio of premium, high-value products.

The company has also added new customers, including:

Orafol USA (Nissan supplier)
River (EV 2-wheeler manufacturer)
Azad (EV bus manufacturer)

Financial Position and Outlook

SJS Enterprises maintains a strong financial position with a net cash balance of INR 1,588.80 million. The company has revised its guidance upwards, expecting to outperform industry growth by over 2.5x in FY26.

Key targets include:

Increasing export revenue share to 14-15% by FY28
Continuing capacity expansion projects at Bangalore and Pune facilities

Management Commentary

K.A. Joseph, Managing Director, commented on the results: "SJS has gained strong momentum, consistently delivering robust growth and outperforming the underlying industry across all business segments. The company has delivered its highest ever quarterly performance across all key financial parameters, reflecting in both top line growth and margin expansion."

Sanjay Thapar, Group CEO and Executive Director, added: "Our focus remains on scaling up our presence in premium aesthetic solutions, driving innovation for next-generation products, deepening relationships with global marquee OEMs, and maintaining a commitment to sustainability and long-term value creation for our shareholders."

SJS Enterprises' record-breaking quarter demonstrates its strong market position and effective strategy execution. The company's focus on premium products, export expansion, and technological advancements positions it well for continued growth in the decorative aesthetics industry.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.08%	+4.73%	+11.32%	+80.24%	+39.66%	+231.40%

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:

Metric	Value
Capital Expenditure	INR 220.00-230.00 crore
Time Frame	Over three years

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.