Subros Q2 FY27 results: net profit up 9.6% to ₹44.64 crore, revenue up 36.3%

How did Subros perform in Q2 FY27?

On a consolidated basis, Subros reported revenue of ₹1,199 crore in the quarter ended 30 September 2026, up ₹319.07 crore or 36.3% from ₹879.83 crore in Q2 FY26 and ₹166.79 crore or 16.2% from ₹1,032 crore in Q1 FY27. Total income was ₹1,206.19 crore, up ₹306.85 crore from the year-ago quarter. On a standalone basis, revenue for the quarter was ₹1,198.9 crore.

EBITDA for the quarter was ₹84.10 crore, up ₹15.63 crore or 22.8% from ₹68.47 crore a year earlier and ₹3.30 crore from ₹80.80 crore in the previous quarter. The EBITDA margin was 7.0%, against 7.8% in both Q2 FY26 and Q1 FY27, a narrowing of 0.8 percentage points in each comparison. The company reported no exceptional item for the quarter.

Profit before tax was ₹59.87 crore, up ₹5.38 crore from ₹54.49 crore a year earlier and ₹4.28 crore from ₹55.59 crore in the previous quarter. After tax of ₹15.33 crore, net profit was ₹44.64 crore against ₹40.74 crore a year earlier and ₹41.52 crore in the previous quarter. Basic EPS was ₹6.85, compared with ₹6.24 and ₹6.36 respectively.

What changed in Subros' costs and profit?

Cost of materials was ₹914.75 crore in Q2 FY27, up ₹279.73 crore or 44.1% from ₹635.02 crore in the year-ago quarter and ₹134.82 crore from ₹779.93 crore in the previous quarter. Employee cost rose ₹10.17 crore to ₹101.27 crore, other expenses rose ₹19.84 crore to ₹99.46 crore, and finance costs rose ₹0.29 crore to ₹2.39 crore. Depreciation was ₹29.13 crore, down ₹2.26 crore from ₹31.39 crore.

Other income fell ₹12.22 crore to ₹7.29 crore from ₹19.51 crore in the year-ago quarter, while it rose ₹1.10 crore from ₹6.19 crore in the previous quarter. Tax expense was ₹15.33 crore, up ₹1.43 crore from ₹13.90 crore a year earlier. There was no exceptional item in the quarter, and total expenses rose ₹301.47 crore to ₹1,146 crore.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹2,231.01 crore, up ₹472.93 crore or 26.9% from ₹1,758.08 crore in H1 FY26. Total income was ₹2,244.49 crore against ₹1,783.28 crore, up ₹461.21 crore or 25.9%. The investor presentation reported H1 EBITDA of ₹178.46 crore against ₹175.68 crore a year earlier, with the EBITDA margin at 8.03% against 10.03%.

Profit before tax for the half year was ₹115.46 crore, up ₹6.53 crore or 6.0% from ₹108.93 crore, and profit after tax was ₹86.16 crore against ₹81.57 crore, up ₹4.59 crore or 5.6%. EPS for H1 FY27 was ₹13.21 against ₹12.5 in H1 FY26. Management said the half-year margins remained under pressure from the increase in MSR of 2.84% on account of commodity and currency movements and product mix.

What do the balance sheet and cash flow show?

As on 30 September 2026, total assets were ₹2,416.67 crore against ₹2,134.11 crore at 31 March 2026, and total equity was ₹1,309.7 crore against ₹1,244.1 crore. Borrowings rose to ₹98.96 crore from ₹29.81 crore, while cash and cash equivalents were ₹24.37 crore against ₹11.77 crore. Inventories stood at ₹517.7 crore against ₹451.2 crore, trade receivables at ₹689.86 crore against ₹575.58 crore, and trade payables at ₹747.93 crore against ₹617.82 crore.

For H1 FY27, operating cash flow was ₹68.2 crore against negative ₹11.0 crore in H1 FY26. Investing cash flow was negative ₹113.16 crore against negative ₹25.94 crore, financing cash flow was ₹57.56 crore against ₹18.29 crore, and capital expenditure was ₹157.05 crore against ₹47.77 crore.

How has Subros done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters, and profit after tax also rose year on year in each of the last eight quarters. In the eight-quarter series, revenue peaked at ₹1,198.9 crore in Q2 FY27 and the profit after tax peak was ₹49.33 crore in Q4 FY26, while the EBITDA margin bottomed at 7.0% in Q2 FY27 after 10.2% in Q4 FY25.

The direction now is upward on revenue and profit, with revenue up ₹166.79 crore from Q1 FY27 and profit after tax up ₹3.12 crore over the same period, while the EBITDA margin narrowed from 7.8% to 7.0%. Over the full series, revenue was lowest at ₹820.98 crore in Q3 FY25 and profit after tax was lowest at ₹32.92 crore in the same quarter.

What else did the company announce?

In a separate same-day filing, Subros informed the exchanges that ICRA had reaffirmed and assigned ratings for an enhanced amount. The long-term fund-based term loan rating was [ICRA]AA (Stable) on an enhanced amount of ₹140.00 crore against a previous rated amount of ₹40.00 crore, and total bank facilities were rated at ₹370.00 crore against ₹305.00 crore previously. Short-term non-fund-based facilities of ₹50.00 crore were reaffirmed at [ICRA]A1+, and cash credit limits of ₹80.00 crore were reaffirmed at [ICRA]AA(Stable)/[ICRA]A1+. No dividend or fund raise was announced in the same-day filings.

What did Subros' management say?

In the investor presentation filed on 3 November 2026, management said Q2 FY27 revenue of ₹1,198.90 crore was the highest ever reported for a quarter and attributed the increase to higher market demand, with revenue growth of 36.27%, EBITDA growth of 3.96%, PBT growth of 10.02% and PAT growth of 9.93% against the year-ago quarter. Management also reported new business awards for future programmes for HVAC, Compressor and HX.

Management said the Kharkhoda greenfield plant and the Karsanpura plant expansion for FDC capacities and electric compressor expansion are in progress. It set a target start of production in 2027-28 for the Karsanpura plant expansion for localisation of the electric compressor and new FDC compressor capacity. Management also listed product expansion in the BEV and SHEV space and business expansion across bus, rail, truck and tractor in the CV segment.

How did Subros shares react?

Subros filed the results after market hours on 3 November 2026. From the price when the filing appeared, the stock fell 2.6% in the first five minutes, 2.2% after 15 minutes and 2.2% after 30 minutes. On the reaction day, measured from the previous close of ₹586.00 to the close of the first session that could trade on the news, the stock rose 1.5%.

By the next day's close the stock was up 3.2% from its pre-results close, while the Other Industrial Products sector posted a median move of 1.8%, leaving Subros 1.4 percentage points ahead of the sector on that measure. On the reaction day the sector median was 2.3% against Subros at 1.5%, a shortfall of 0.8 percentage points. Earlier reaction-day moves were mixed: −4.3% on 7 August 2026, 0.6% on 18 May 2026, −6.7% on 30 January 2026 and −9.8% on 10 November 2025.

How did other Other Industrial Products companies do?

Fourteen Other Industrial Products companies have filed for this quarter, and their median revenue growth was 11.3%. Subros grew faster than 12 of those peers and slower than two of them. Of the 10 peers for which profit was compared, five reported higher profit.