SPR Auto Technologies Limited: agnostic products exceed 35%

SPR Auto Technologies Limited said in Q2 FY27 that powertrain-agnostic products contributed more than 35% of consolidated revenue, while nearly 60% of its business was relatively insulated from powertrain-technology shifts. The disclosure follows a five-year expansion from four legacy engine-component products into precision plastics, EV motors and controllers, automotive interiors and lighting.

How diversified is SPR Auto Technologies' revenue?

SPR Auto Technologies said powertrain-agnostic products contribute more than 35% of consolidated revenue, while nearly 60% of its business is relatively insulated from shifts in powertrain technology. Management did not provide an exact percentage, a segment-wise revenue split, or a comparable Q2 FY26 figure for either measure.

About five years ago, SPR Auto Technologies had four legacy products: pistons, piston pins, piston rings and engine valves. Its current portfolio includes core engine components, high-precision injection-moulded components, EV motors and controllers, and automotive interiors and lighting solutions. The more-than-35% measure refers to powertrain-agnostic products, whereas the nearly-60% measure covers the broader set of businesses management considers relatively insulated from powertrain shifts.

What were SPR Auto Technologies' Q2 FY27 results?

SPR Auto Technologies reported consolidated total income of Rs 1,674.6 crore in Q2 FY27, up 61% year on year, and consolidated EBITDA of Rs 300.4 crore, up 29%. EBITDA, or earnings before interest, tax, depreciation and amortisation, margin was 17.9% in the quarter.

For H1 FY27, consolidated total income was Rs 3,173.8 crore, up 56%, while EBITDA was Rs 583.1 crore, up 28%. Income therefore rose faster than EBITDA in both reported periods. Management cited commodity prices, direct-material costs, sales mix and minimum-wage revisions as factors affecting profitability.

Standalone total income rose 17% year on year to Rs 1,050 crore in Q2 FY27. Consolidated growth included the three Indian entities acquired from Antolin, but SPR Auto Technologies did not quantify how much of the 61% consolidated income increase came from those acquisitions and how much came from its existing operations.

Which businesses are expanding beyond engine components?

SPR Auto Technologies said high-precision injection-moulded components are gaining momentum in applications such as anti-lock braking system, or ABS, systems for two-wheelers. The company linked this business to capacity expansion in Neemrana and Noida, extending its portfolio into components that are not directly dependent on an internal-combustion powertrain.

Its EV motors and controllers business is scaling through a new Coimbatore facility and a growing customer base, according to management. The automotive interiors and lighting operations acquired from Antolin are also delivering operational and financial performance during integration, alongside new customer wins. The call did not disclose revenue, production volumes, customer numbers or profitability for these individual businesses.

The legacy powertrain business remains an active part of the portfolio. Management said it continues to outperform its end markets, supported by new programme wins in alternative applications and additional piston capacity from the Sunbeam assets. The stated transformation is therefore an expansion beyond pistons, rings, pins and valves rather than an exit from engine components.

What supported Q2 FY27 demand and capacity spending?

SPR Auto Technologies said domestic automotive demand supported Q2 FY27 performance, with passenger vehicles, commercial vehicles, two-wheelers and three-wheelers recording their highest-ever second-quarter sales. Management estimated weighted-average industry production growth at more than 17%, across categories ranging from single-cylinder two-wheelers to six-cylinder commercial vehicles.

Management attributed the demand environment to Goods and Services Tax 2.0 reforms, rural and urban consumption, improved financing, infrastructure-led activity and freight movement. It said prior investment in technology and capacity enabled the company to serve higher volumes across customers and segments, though it did not provide company production-volume data for Q2 FY27.

Most expansion projects are backed by firm customer orders, including orders from aftermarket and export customers, management said. SPR Auto Technologies identified capacity activity at Pithampur, Pathredi, Ghaziabad, Neemrana, its TGPEL facility and interiors operations. It completed a Rs 1,000 crore qualified institutional placement during the quarter but did not give a full-year capital-expenditure target because project decisions remain under evaluation.

Why did margins and finance costs change in Q2 FY27?

SPR Auto Technologies said its 17.9% consolidated EBITDA margin in Q2 FY27 was temporarily affected by elevated commodity prices, higher direct-material costs including tools and oils, sales mix and revised minimum wages. Management said commodity-price movements are normally passed through to customers under back-to-back arrangements, with a lag of about one quarter.

The company listed cost optimisation, plant debottlenecking, productivity improvements, affordable automation, digitisation, supply-base streamlining, backward integration, and inventory and logistics planning as its operating actions. It also signed a renewable-power purchase agreement with Sunsure for Pathredi and Neemrana, which management said is expected to support energy-cost optimisation.

Finance costs increased by Rs 23.4 crore in Q2 FY27 and Rs 48.6 crore in H1 FY27 to fund the acquisition of Antolin's three Indian entities. Management described the effect as temporary and said it should normalise after debt repayment. Excluding that finance-cost impact, management said profit before tax, or PBT, rose 23% in Q2 FY27 and 22% in H1 FY27.

Conclusion

SPR Auto Technologies' Q2 FY27 disclosure quantifies the shift in its product mix: powertrain-agnostic products account for more than 35% of consolidated revenue and nearly 60% of business is relatively insulated from powertrain changes. That portfolio transition coincided with Rs 1,674.6 crore of consolidated quarterly income, up 61%, across legacy components, precision plastics, EV systems, interiors and lighting.

The next items to watch are the commissioning and utilisation of projects in Pithampur, Pathredi, Ghaziabad, Neemrana, TGPEL and the interiors business, along with integration of the three Antolin entities. Management also identified a roughly one-quarter lag in commodity pass-through arrangements and debt repayment as factors that could affect the timing of margin and finance-cost normalisation.