Suprajit Engineering Targets EBITDA Breakeven for SCS Division, Maintains Strong Margin Guidance

Suprajit Engineering Limited (SEL) has announced its strategic outlook and financial targets for the current fiscal year, focusing on improved performance and margin stability.

SCS Division Breakeven Target

Suprajit Engineering expects its Suprajit Cable Systems (SCS) division to reach EBITDA breakeven by the fourth quarter of this fiscal year. This projection indicates the company's confidence in the division's improving operational efficiency and cost management.

Performance Expectations

The company anticipates stronger performance in the second half of the fiscal year compared to the first half. This outlook suggests potential for improved revenue and profitability in the coming quarters.

EBITDA Margin Guidance

Management has set an EBITDA margin guidance of 12-14% for the company. Notably, Suprajit Engineering is currently operating at the upper limit of this range, achieving a 14% EBITDA margin. This performance demonstrates the company's ability to maintain strong profitability despite market challenges.

Growth Strategy

Suprajit Engineering has outlined a growth strategy, aiming to outpace the global automotive industry. The company plans to grow 5-10% above the global automotive industry growth rate, which is expected to be in the low single digits of 1-3%.

Key Metrics	Details
SCS Division Target	EBITDA breakeven by Q4
EBITDA Margin Guidance	12-14%
Current EBITDA Margin	14%
Growth Target	5-10% above global automotive industry
Global Auto Industry Growth Expectation	1-3%

Recent Financial Performance

According to the company's latest financial results for the quarter ended September 30:

Total income from operations: ₹23.02 crore
Net profit before tax: ₹(41.93) crore
Net profit after tax: ₹(40.18) crore

While the company reported a loss in the recent quarter, its strategic initiatives and positive outlook for the second half of the fiscal year suggest potential for improvement.

Investors and analysts can access more detailed information about Suprajit Engineering's performance and strategy through the audio recording of the recent analyst and institutional investor meeting, available on the company's website.

As Suprajit Engineering navigates the challenges in the automotive sector, its focus on operational efficiency, margin maintenance, and above-market growth targets positions the company for potential recovery and long-term value creation.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.35%	-0.40%	+1.82%	-1.52%	+4.89%	+114.52%

Suprajit Engineering Limited , a leading manufacturer of automotive and other components, has delivered robust financial performance in the first half of FY26, demonstrating resilience amid challenging global business conditions. The company's mid-year review reveals significant operational improvements and successful strategic restructuring initiatives.

Financial Performance Overview

The company's consolidated financial performance for H1 FY26 showcased strong growth momentum across key metrics:

Metric:	H1 FY26	H1 FY25	Growth (%)
Revenue (₹ million):	16,053.00	15,083.00	6.40%
EBITDA (₹ million):	2,151.00	1,840.00	17.00%
EBITDA Margin:	13.40%	12.20%	+120 bps

For Q2 FY26 specifically, consolidated revenue grew 7.60% to ₹8,320.00 million, while EBITDA surged 18.70% with margins expanding to 14.00%.

Divisional Performance Analysis

Suprajit Controls Division (SCD)

The SCD achieved remarkable operational improvements through strategic restructuring, delivering exceptional EBITDA growth of 50.00% for the half-year period. The division reached a double-digit EBITDA margin of 11.60% for the first time, marking a significant milestone in its turnaround journey.

Parameter:	H1 FY26	H1 FY25	Growth (%)
Revenue (₹ million):	7,384.00	6,934.00	6.50%
EBITDA (₹ million):	864.00	566.00	52.60%
EBITDA Margin:	11.70%	8.20%	+350 bps

Domestic Cable Division (DCD)

The DCD continued its strong performance trajectory, significantly outpacing industry growth with revenue expansion of 10.20% and maintaining robust EBITDA margins of 16.80%.

Phoenix Lamps Division (PLD)

PLD faced headwinds with a 5.10% revenue decline, primarily attributed to reduced exports to Middle Eastern markets. However, the division is positioned to benefit from new opportunities arising from a global competitor's Chapter 11 declaration.

Suprajit Electronics Division (SED)

SED demonstrated exceptional growth with 36.00% revenue increase and remarkable EBITDA improvement of 250.70%, achieving a healthy EBITDA margin of 13.50%.

Strategic Acquisitions and Restructuring

The acquisition of Stahlschmidt Cable Systems (SCS) assets has been successfully completed, with comprehensive restructuring activities progressing as planned. Key initiatives include:

Initiative:	Status
SCS Germany Asset Acquisition:	Completed
Poland Plant Closure:	Operations relocated to Morocco
Juarez Facility Relocation:	Moving to Matamoros
Germany Warehouse Transfer:	Relocated to Hungary
Expected SCS EBITDA Turnaround:	Q4 FY26

Market Context and Outlook

Despite challenging global conditions including geopolitical uncertainties, US tariff issues, and shipping constraints, Suprajit Engineering's performance remained ahead of industry benchmarks. The Indian automotive industry grew 5.80% in H1 FY26, with passenger vehicles and two-wheelers growing 3.80% and 5.80% respectively.

The company's founder chairman expressed confidence in the second-half performance, citing anticipated US trade agreements, improved Indian automotive market conditions, and ongoing restructuring benefits. The management expects all restructuring activities to be completed by December 2025, further consolidating operational performance across divisions.

Suprajit Engineering's ability to deliver consistent growth while navigating global challenges underscores its strategic positioning as a preferred supply-chain partner. The company's diversified product portfolio, innovative development capabilities, and operational excellence continue to drive sustainable value creation for stakeholders.