SPR Auto Technologies says 60% is insulated from powertrain shifts

SPR Auto Technologies Limited said in Q2 FY27 that nearly 60% of its business was relatively insulated from powertrain-technology shifts, while powertrain-agnostic products contributed more than 35% of consolidated revenue. The disclosure accompanied 61% year-on-year growth in consolidated total income to Rs 1,674.6 crore.

How far has SPR Auto Technologies moved beyond legacy engine components?

SPR Auto Technologies has expanded from four legacy engine products into a broader automotive-components portfolio over about five years. Its earlier range comprised pistons, piston pins, piston rings and engine valves, while its current portfolio also includes high-precision injection-moulded components, electric-vehicle motors and controllers, and automotive interiors and lighting.

The company’s stated measure of this transition is that powertrain-agnostic products contribute more than 35% of consolidated revenue, while nearly 60% of the overall business is relatively insulated from powertrain shifts. The larger 60% measure indicates that SPR Auto Technologies has exposure to products used beyond conventional internal-combustion-engine applications, without abandoning its legacy engine-components franchise.

The shift combines organic capacity investment with the acquisition of three Antolin India entities. SPR Auto Technologies said the acquired businesses added interiors and lighting, while the legacy powertrain business continued to gain new programme wins in alternative applications and received additional piston capacity from the Sunbeam assets.

What were SPR Auto Technologies’ Q2 FY27 financial results?

SPR Auto Technologies reported consolidated total income of Rs 1,674.6 crore in Q2 FY27, up 61% year on year, and consolidated earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 300.4 crore, up 29%. Management said all businesses contributed to growth, including the three acquired Antolin India entities.

For H1 FY27, consolidated total income was Rs 3,173.8 crore, rising 56%, while EBITDA was Rs 583.1 crore, up 28%. The 61% increase in Q2 total income was higher than the 56% first-half growth rate, whereas EBITDA growth was 29% in Q2 and 28% in H1.

Standalone total income increased 17% year on year to Rs 1,050 crore in Q2 FY27, below the group’s 61% consolidated growth rate. Management linked the difference to contributions from the acquired Antolin India entities as well as growth across the existing businesses.

Which products are increasing SPR Auto Technologies’ powertrain-agnostic exposure?

SPR Auto Technologies is building powertrain-agnostic exposure through precision injection moulding, electric-vehicle systems, interiors and lighting. Management identified high-precision moulded components for emerging applications, including anti-lock braking systems for two-wheelers, supported by capacity expansion at Neemrana and Noida.

The electric-vehicle motors and controllers business is scaling through the new Coimbatore facility and a growing customer base, according to management. Automotive interiors and lighting, added through the three Antolin India entities, were also delivering operational and financial performance during integration and securing new customer wins.

SPR Auto Technologies did not provide separate revenue figures for moulded components, electric-vehicle systems, interiors or lighting. It did, however, disclose work with at least two or three customers after proof-of-concept discussions for newer headliner technologies, including programmes for electric vehicles, without providing an adoption timetable or content value.

What affected SPR Auto Technologies’ margins and finance costs?

SPR Auto Technologies reported a consolidated EBITDA margin of 17.9% in Q2 FY27. Management attributed temporary margin effects to elevated commodity prices, direct-material costs, changes in sales mix and revised minimum wages, saying commodity movements are generally passed through to customers with a lag of about one quarter.

The company listed cost optimisation, plant debottlenecking, productivity improvement, affordable automation, digitisation and supply-chain planning as its responses. It also signed a renewable-power purchase agreement with Sunsure for the Pathredi and Neemrana facilities, which management said should help optimise energy costs.

Finance costs increased by Rs 23.4 crore in Q2 FY27 and Rs 48.6 crore in H1 FY27 to fund the acquisition of the three Antolin India entities. Management said the impact should normalise once the acquisition debt is repaid; excluding that finance-cost impact, it said profit before tax rose 23% in Q2 and 22% in H1.

What capacity additions has SPR Auto Technologies disclosed?

SPR Auto Technologies has disclosed capacity additions across Pithampur, Pathredi, Ghaziabad, Neemrana, its TGPEL facility and the acquired interiors operations, but it has not given a current-year capital-expenditure amount. Management said it had recently expanded at Pathredi and was continuing expansion at the other locations.

The Neemrana project is a new precision injection-moulding plant beside the existing facility, while the TGPEL and interiors investments cover additional capacity across multiple product lines. Management described total spending as sizable but said further decisions could change the plan, preventing it from providing a rupee figure.

Most capacity expansions are backed by firm orders from customers, including aftermarket and export customers, according to management. The company also said it has maintained normal group working-capital levels despite higher manufacturing activity, although some precision-plastics operations hold raw material for at least three months of production.

Conclusion

SPR Auto Technologies’ more-than-35% powertrain-agnostic revenue contribution and nearly 60% relatively insulated business mix quantify a portfolio transition beyond four legacy engine products. The transition coincided with Q2 FY27 consolidated total-income growth of 61% to Rs 1,674.6 crore, supported by the acquired Antolin India entities and existing operations.

The next points to watch are the ramp-up of the Neemrana injection-moulding plant, the Coimbatore electric-vehicle motors and controllers facility, and expansions at Pithampur, Pathredi, Ghaziabad and the interiors business. Management has not disclosed a current-year capital-expenditure target and expects acquisition-related finance costs to normalise only when debt is repaid.