Subros Ltd. reported an 11.52 per cent increase in FY26 revenue to ₹3,755.52 crore, but the bigger shift is in its business mix: electric vehicle, hybrid and CNG thermal systems now account for about 25 per cent of sales. With these products generating 2.5 to 3 times higher content per vehicle than conventional cars, the automotive air-conditioning leader is positioning itself as a higher-value thermal technology company.
Subros Ltd., India’s leading automotive air-conditioning and thermal products manufacturer, reported an 11.52 per cent increase in revenue to ₹3,755.52 crore in FY26 from ₹3,367.57 crore in FY25, while net profit rose 10.23 per cent to ₹165.78 crore from ₹150.40 crore. The company, a joint venture between Indian promoters holding 36.79 per cent, Denso Corporation of Japan with 20 per cent, Suzuki Motor Corporation with 11.96 per cent and public shareholders with 31.25 per cent, operates eight manufacturing plants across India, along with a technical centre and a tool engineering centre in Noida.
But the bigger story lies beyond the annual numbers: about 25 per cent of the company’s revenue now comes from thermal systems for electric vehicles (EVs), hybrid vehicles and CNG-powered vehicles.
“About 25 per cent of our revenue now comes from EV, hybrid and CNG-related thermal systems, reflecting the gradual shift of Subros from a conventional automotive air-conditioning supplier to a broader thermal management company.”
For Subros, it is seeing its content per vehicle can be 2.5 to 3 times higher than in conventional internal combustion engine (ICE) cars, positioning Subros to evolve from a traditional automotive air-conditioning supplier into a higher-value thermal management company geared to benefit from India’s multi-powertrain transition.
The March quarter reinforced both growth momentum and cost pressures. Revenue from operations in Q4 FY26 rose 15.55 per cent to ₹1,049.76 crore from ₹908.46 crore in Q4 FY25, while profit after tax increased 7.56 per cent to ₹49.69 crore from ₹46.20 crore. EBITDA rose just 0.84 per cent to ₹100.07 crore from ₹99.23 crore as higher commodity prices and adverse foreign exchange movements compressed EBITDA margin to 9.57 per cent from 10.96 per cent.
For FY26, EBITDA increased 5.77 per cent to ₹362.93 crore from ₹343.12 crore, but EBITDA margin declined to 9.70 per cent from 10.22 per cent as raw material costs rose to 73.12 per cent of net sales from 72.45 per cent.
Profitability was aided by ₹15.48 crore of accrued incentive income and offset by a one-time ₹8.08 crore labour-code-related charge. Even so, profit before tax before exceptional items rose 12.24 per cent to ₹228.37 crore from ₹203.46 crore, while earnings per share improved to ₹25.40 from ₹23.05. The board recommended a final dividend of ₹3 per share.
EV Thermal Systems and Commercial Vehicles Drive Growth
The commercial vehicle business, including trucks and buses, has emerged as an important growth driver as factory-fitted air-conditioning becomes increasingly standard. Subros holds a 41 per cent market share in both passenger vehicle air-conditioning systems and truck air-conditioning/blower systems.
More significantly, EV, hybrid and CNG-related thermal systems now account for about one-fourth of total revenue. Management said content per vehicle in EVs can be 2.5 to 3 times higher than in conventional vehicles, while electric compressors can command up to four times the value of standard compressors. New business awards in Q4 included electric compressors, HVAC systems, and heat exchangers for future vehicle platforms and the railway segment, broadening the company’s addressable market beyond passenger vehicles.
₹175 Crore Capex Targets Electric Compressor Opportunity
Subros is investing about ₹175 crore in an electric compressor programme with peak annual revenue potential of around ₹250 crore and targeted localisation of nearly 70 per cent. The investment is being executed through an expansion of the Karsanpura plant and a new greenfield facility at Kharkhoda, with production targeted to start in FY2027-28.
The capex reflects where management sees the strongest future demand: higher-value thermal systems for EVs, hybrids and CNG vehicles, alongside continued growth in passenger vehicles, trucks, buses and railways.
The company is also positioning itself as a powertrain-agnostic thermal technology provider serving ICE, CNG, hybrid, and battery-electric vehicles.
With tightening BSVI, RDE and CAFE norms, Subroz is expected to increase demand for advanced thermal management solutions across the industry.