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%.

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.

Suprajit Engineering Limited , a leading manufacturer of automotive and other components, has reported strong financial results for the half-year ended September 30, 2025. The company's performance showcases significant growth in key financial metrics, indicating robust operational performance.

Financial Highlights

• Consolidated revenue growth of 6.4% for H1 FY26 (excluding recently acquired SCS assets)
• EBITDA growth of 17% for H1 FY26
• Q2 FY26 consolidated revenue grew 7.6% to ₹8,320.00 million
• Q2 FY26 EBITDA growth of 18.7%

Industry Performance

• Indian automotive industry grew 5.8% in the first half of FY26
• Passenger vehicle segment grew 3.8%
• Two-wheeler segment grew 5.8%

Divisional Performance

• Suprajit Controls Division: Strong performance with 50% EBITDA growth
• Domestic Cable Division: Achieved 10.2% revenue growth
• Phoenix Lamps Division: Faced challenges with 5.1% revenue decline due to reduced Middle East exports

Operational Highlights

• Company's performance ahead of industry growth despite challenging global business environment
• Challenges include geopolitical conflicts, US tariff issues, and shipping constraints
• Completed acquisition of Stahlschmidt Cable Systems assets
• Expects positive EBITDA turnaround for SCS by the last quarter

Future Outlook

Management expects better second-half performance due to:

• Anticipated US trade agreements
• Improved Indian automotive market conditions
• Ongoing restructuring benefits

Suprajit Engineering appears well-positioned for continued growth. The company's ability to outperform industry growth and improve profitability metrics indicates a robust foundation for future expansion and value creation for shareholders.

Investors and market analysts will likely keep a close watch on Suprajit Engineering's performance in the coming quarters to see if this growth trajectory can be sustained amidst global economic challenges and evolving automotive industry dynamics.

Note: The financial figures in this article are based on the consolidated results provided in the company's regulatory filings.