Suprajit Engineering Ltd

Overview

• Standalone BRSR for the financial year 2025-26 covering main automotive components business.
• Main activity: manufacturing automotive cables, halogen lamps, speedometers; 100% turnover from these activities.
• 18 plants in India; serves 28 states and 8 union territories; exports 10% of turnover; 11 international markets.
• Solar capacity 2,929 kWp; 5.89 million units of green energy annually; PPAs set to scale from April 2026.
• PNG adoption at NCR plants; 954 kW solar at Phoenix Lighting plants; CSR focus aligned with SDGs.

Key ESG Risks & Opportunities

• Waste management and circular economy: opportunity; 3R strategies, recycling, and certified recyclers; potential negative financial impact.
• Energy consumption: risk from costs; mitigated by efficiency, long-term cost modeling, procurement, and renewables.
• Reduce carbon footprint: opportunity; deploying energy-efficient tech, logistics optimization, renewable materials.
• Cybersecurity & data protection: risk; multi-layer security, IT audits, and staff training.
• Occupational health & safety: risk; strict EHS guidelines, audits, training, and zero-tolerance safety culture.
• Sustainable supply chain & responsible sourcing: opportunity and risk; Supplier Code of Conduct and 50% supplier sustainability assessments by 2027.
• Innovation & product stewardship: opportunity; EV shift drives eco-design and greener product development.
• Corporate governance: opportunity; strong governance, Code of Conduct, anti-corruption policies, and internal controls.

Governance & Policy Highlights

• CSR Committee of the Board and MD & Group CEO oversee ESG policy implementation.
• Key policies include Code of Conduct, Whistle Blower, Principles & Ethics, Business Responsibility, and OHS.
• ISO 27001 data security certification noted; zero-tolerance stance on corruption and regulatory compliance.
• Alignment with National Guidelines on Responsible Business Conduct (NGRBC).
• No fines or penalties reported in the year; policies publicly accessible via company website.

Social Responsibility & Workforce

• Total employees: 1,016 permanent; 817 workers; male 939/秋77; female 77/0 for permanent/workers data.
• Board female representation: 2 of 8 directors (25%); KMP female 0%.
• Welfare basics: 100% coverage for PF/Gratuity/ESI; 0.18% of revenue spent on well-being measures.
• Parental leave return-to-work: 100% for permanent employees and workers.
• Targets for 2027 include 3 hours of annual training per employee, 90% anti-discrimination training, and 90% environmental training.
• CSR programs: education, healthcare, rural development; scholarships (9,009 beneficiaries), mid-day meals (900), skill development (3,344).
• Disability access: facilities designed for barrier-free access per Disabilities Act; 10% female wage share noted.

Environmental Performance

• Total energy: 114,564 GJ; renewable share: 2,929 kWp solar; 5.89 MU green energy annually.
• Scope 1 emissions: 2,233 tCO2e; Scope 2: 14,390 tCO2e; combined intensity 9.0 tCO2e/Cr turnover.
• Water withdrawal: groundwater 81,972 KL; third-party 49,340 KL; total withdrawal 131,312 KL; consumption 129,701 KL.
• Water intensity: 70.5 KL per crore turnover; 100% on-site STPs with reuse for greenbelts; near-zero liquid discharge.
• Waste: total 998 t; recycled/recovered 839.72 t; incinerated 158.25 t; landfilled 22.63 t; 15/18 sites ISO 45001 certified.
• Renewable energy projects include 2,929 kWp capacity and PPAs for 5.89 MU; PNG adoption at NCR plants.

Stakeholder Engagement & Complaints

• Key stakeholder groups: customers, employees, shareholders, regulatory authorities, media, and communities.
• Engagement channels include meetings, feedback, intranet, dashboards, and investor interactions; frequency varies by group.
• Communities: grievance mechanism in place; complaints filed 0 in FY2025-26.
• Shareholders filed 13 complaints in FY2025-26; 0 pending at year-end.
• Employees/workers filed 8 workplace-related complaints in FY2025-26; 0 pending at year-end.

Other Notable Metrics

• Exports contribute 10% of standalone turnover; top dealers account for 25% of sales across 923 dealers.
• Related-party transactions: purchases 0.04% of total; sales 5.37%; loans to related parties 100%; investments 33%.
• Inputs sourced sustainably: 55% of total inputs; Supplier Code of Conduct and Sustainable Procurement Policy in place.
• Affiliations with CII, ACMA, and Bengaluru Chamber; POSH and anti-corruption policies in effect.
• No product recalls; data breaches: none reported; cyber policy documented in IT Policies & Procedures.

AGM Details

• 41st AGM on 12 Sep 2026 at 2:30 PM IST via VC/OAVM.
• AGM conducted via VC/OAVM; registered office deemed AGM venue.
• Register of Members closed from 6 to 12 Sep 2026.
• Interim dividend of ₹1.50 per share paid; interim record date 2026-02-13.
• Final dividend proposed ₹2.00 per share for FY2025-26; record date 2026-09-01.

Key Resolutions

• Adopt standalone financial statements for FY2025-26.
• Adopt consolidated financial statements for FY2025-26.
• Re-appoint K Ajith Kumar Rai as Director, liable to retire by rotation.
• Special: Ratify remuneration payable to Cost Auditors for FY2026-27 at ₹2,00,000.

Record date and book closure

• Record date for dividend, if approved at the 41st AGM: 01 September 2026.
• E-voting cut-off date: 05 September 2026.
• Book closure: 06 September 2026 to 12 September 2026 (inclusive).
• 41st AGM scheduled for 12 September 2026.

Financial snapshot

• Consolidated revenue rose to 38,248.23 million, up 16.7% YoY.
• Consolidated net profit rose to 1,826.73 million, up 84% YoY.
• EBITDA excluding SCS was 4,432.28 million with a 13.12% margin.
• EPS (basic) ₹13.31 for FY2025-26; interim and final dividends total ₹445.79m.

Strategy and execution

• Global architecture execution completed; acquisitions LDC and SCS integrated.
• Divisions renamed to GCM, SED, ICM and PLE for clarity.
• Beyond Cables progress with new products and multi-year wins.
• Technology Centre consolidation enables global engineering integration.

Capital structure and liquidity

• Total borrowings: ₹7,849.59m; net debt ₹6,561.55m; gearing 31%.
• Liquidity: cash ₹1,000.10m and current investments ₹2,364.52m.
• Equity: share capital ₹137.17m; reserves ₹14,232.16m; total equity ₹14,369.33m.

Dividends and capital returns

• Interim dividend of ₹1.50 per share; final ₹2.00 per share; total payout ₹445.79m.
• Final dividend proposed at ₹2.00 per share for 2025-26, subject to shareholder approval.

Governance, risk and audit

• Auditors S.R. Batliboi & Associates LLP issued an unqualified opinion.
• New independent directors: Gauba and Mishra appointed in 2025.
• No material going concern issues; robust risk management and internal controls.

ESG and CSR highlights

• CSR spend ₹56.82 million in 2025-26; focus on education, healthcare, rural development.
• Solar capacity 2,929 kWp; 5.89 million units green energy; STP water recycling progress.
• SDG alignment and governance to reduce environmental footprint.

Subsidiaries and acquisitions

• Material subsidiaries: Suprajit Automotive, Wescon, Luxlite, Suprajit USA.
• Second stage SCS acquisitions completed May 31, 2025; Canada/China consolidated.
• Trifa Lamps Germany and SCS Polska liquidated; impairment adjustments recognized.

Outlook and key risks

• FY27: expected double-digit revenue growth; capex around ₹2,000 million.
• Key risks: US tariffs, global supply chain disruption, inflation, rare-earth material constraints.

Meeting Details

• Date and time: August 13, 2026, 9:00 AM–5:00 PM IST.
• Type and mode: Group and one-on-one; physical meeting in Mumbai.
• Organiser: Emkay Global Financial Services Ltd – Emkay Confluence 2026.
• Key participants: Company management to attend; CFO & Company Secretary involved.
• Purpose: Investor meet with investors and analysts.
• Materials: Investor presentations/press release filed with BSE/NSE and on the company website.
• Attendees: Tentative list of investors attached.

Business overview

• Diversified auto components group across cables, lighting, electronics, actuators, and STC R&D.
• Divisions renamed: DCD to ICM; PLD to PLE; SCD to GCM.
• STC drives 'beyond cables' product lines with in-house IP.
• Corrigendum corrects Phoenix Lamps to Phoenix Lighting & Electricals (PLE) naming.
• SCS financials now clubbed with GCM.

Operational highlights

• Consolidated revenue Rs 10,696 mn; YoY growth 24%; EBITDA Rs 1,287 mn; up 57.5%.
• GCM revenue Rs 6,025 mn; EBITDA Rs 758 mn; margin 12.6%.
• ICM revenue Rs 3,310 mn; EBITDA Rs 425 mn; growth 20.8%.
• PLE revenue Rs 911 mn; EBITDA Rs 61 mn; margin 6.7%.
• SED revenue Rs 450 mn; EBITDA Rs 42 mn; growth 48%; EBITDA up 100%.
• Highest quarterly operating revenue achieved: Rs 1,070 cr.
• STC building completion expected in Q3 FY27.

Financial performance

• Consolidated revenue Rs 10,696 mn; YoY growth 24%; EBITDA Rs 1,287 mn; margin 12.0%.
• Standalone revenue Rs 4,697 mn; EBITDA Rs 603 mn; margin 12.8%.
• GCM Q1 EBITDA margin 12.6% (up from 5.8% prior year).
• ICM Q1 EBITDA margin 12.8% (approximate from 14.9% prior year).
• PLE EBITDA margin 6.7% (down from prior year).
• SED EBITDA margin 9.3%.

Capital structure & liquidity

• Group total debt Rs 7,755 mn in Jun-2026 vs Rs 7,850 mn in Mar-2026.
• Debt composition: long-term Rs 2,199 mn; short-term Rs 5,556 mn.
• Group investments in mutual funds & bonds Rs 2,431 mn in Jun-2026.

Strategic priorities & outlook

• Outlook: Middle East turmoil remains a risk; inflationary pressures continue.
• Margin impact in ICM and PLE expected to be temporary; guidance unchanged from May release.
• Focus on STC-led premium products (Actuation, Electronics & Sensors, Braking).

Risks & mitigation

• Risks: geopolitical volatility, oil/commodity price swings, wage inflation, supply disruptions.
• Mitigations: diversified product mix, onshore/offshore supply model, tariff recoveries ongoing.

Governance & leadership

• Corrigendum issued to correct PLE naming; no substance change.
• SCS financials reclassified into GCM for reporting.

Meeting Details

• Date and time: August 7, 2026 at 11:00 IST.
• Type/mode: investor conference call (virtual teleconference).
• Organizer: Anand Rathi Research.

Participants

• Founder & Chairman
• MD & Group CEO
• Director & Chief Strategy Officer
• CFO & Company Secretary

Purpose

• Discuss Q1 FY27 results with investors.

Certificate submission status

• Certificate under Regulation 74(5) received from Integrated Registry Management Services Private Limited for quarter ended June 30, 2026.