SPR Auto Technologies FY26: Record revenue, sharper diversification, and a balance sheet that changed shape

SPR Auto Technologies Limited, formerly Shriram Pistons and Rings Limited, closed FY26 with a clear message: the company wants to be seen as a multi-domain auto components group, not just a legacy internal combustion engine supplier. The year ended with record consolidated total income of INR 4,571.3 crores, up 25% YoY, and consolidated EBITDA of INR 988.5 crores, up 18% YoY. Profit after tax rose 9% YoY to INR 561.4 crores, though margins eased versus last year.

The quarter also showed the trade-offs of scale and integration. Q4FY26 consolidated total income grew 46% YoY to INR 1,480.7 crores, but EBITDA margin dropped to 19.8% from 23.4% in Q4FY25. Higher depreciation and finance costs were visible in the consolidated P&L, consistent with an acquisition-led year and a more leveraged balance sheet.

FY26 in numbers: growth stayed strong, margins softened

On a consolidated basis, the company reported total income of INR 4,571.3 crores in FY26 versus INR 3,661.2 crores in FY25. EBITDA margin moved to 21.6% from 22.6% and PBT margin before exceptional items moved to 17.0% from 18.6%. PAT margin declined to 12.3% from 14.1%.

Management and the presentation both highlighted a non-recurring impact from the statutory implementation of the New Labour Code. The investor presentation quantified this as INR 27.1 crores (consolidated) and INR 23.7 crores (standalone) in FY26.

Note: Figures are converted from INR million to INR crores.

On the standalone business, FY26 total income was INR 3,626.1 crores, up 10% YoY, with EBITDA margin of 23.3% versus 23.7% in FY25. Standalone PAT was INR 513.7 crores, up 3% YoY.

Diversification is no longer a slide, it is the operating model

Over the last few years, SPR has expanded beyond pistons, rings, pins and engine valves into adjacent, powertrain-agnostic categories. The FY26 presentation laid out the product canvas clearly: high-precision injection moulded components, motors and controllers for EVs, and automotive interiors and lighting.

The defining FY26 step was the acquisition of three Indian entities of the Antolin Group in interiors and lighting. Management described this as a strategic expansion into “high-growth technology-driven areas” and said the acquired businesses have already shown encouraging performance post takeover. The company also signed a technology licensing or technology agreement with Antolin Global, which management said provides access to Antolin technologies for an identified India territory against a royalty.

In the earnings call, management stated that powertrain-agnostic businesses contributed around 35% of consolidated total income during the quarter. It also stated that nearly 60% of the business is now not directly impacted by powertrain shifts, reflecting the intended de-risking.

At the same time, SPR has kept a firm stance that the legacy ICE business remains relevant. Management argued that hybrid platforms still need redesigned engines and that OEMs are working on multiple hybrid programs. The company positioned itself as a supplier aiming to service “the last ICE engine globally” while also building EV capability through SPR EMF Innovations.

Capacity expansion and integration: the operating agenda for FY27 and beyond

The concall provided a practical view of what FY27 is likely to look like: integration work plus capex across multiple subsidiaries. Management stated it invested close to INR 200 crores in FY26 in capacity expansion across business lines and indicated that similar levels of annual capex are expected for the next 2 to 3 years.

Projects named during the call included:

• A new manufacturing facility for SPR Takahata at Neemrana
• Capacity increase at TGPEL’s Noida operations
• Phase 3 expansion at the Pithampur plant
• Capacity expansions at Ghaziabad and Pathredi
• Commissioning progress of Sunbeam acquired assets to improve piston capacity

The strategic logic is that growth programs in auto components often need capacity and tooling ahead of volume ramp-ups. Management said these investments mature over two to three years, which is consistent with typical OEM program cycles.

In precision plastics, management linked new business wins to technology changes. It cited new requirements such as components for 2-wheeler anti-skid braking systems, which need high-precision moulding and specific technology. It also referenced internal synergy opportunities, including supplying plastic requirements into the interiors business.

On EV motors and controllers, management stated the business has become EBITDA positive and highlighted that the company can operate across low and high voltage systems up to 800 volts. The investor presentation also referenced a new state-of-the-art EV plant at Coimbatore.

Balance sheet and funding choices: more debt, and a planned equity raise

FY26 altered the balance sheet, mainly due to the Antolin acquisition. The presentation explicitly stated that the company issued non-convertible debentures of INR 1,000 crores for the acquisition.

This is visible in FY26 ratios and cash flows:

• Standalone debt-to-equity rose to 0.59x in FY26 from 0.15x in FY25
• Consolidated debt-to-equity rose to 0.62x in FY26 from 0.19x in FY25
• Standalone interest coverage dropped to 15.3x in FY26 from 27.9x in FY25
• Consolidated interest coverage dropped to 13.5x in FY26 from 20.8x in FY25

In the call, management clarified that the NCDs consist of two tranches of INR 500 crores each, with maturities of 18 months and 24 months. It said repayment is planned on time and it does not intend to prepay.

Management also discussed a planned QIP. The key message was that the QIP is not to repay debt but to fund growth, including both organic expansion and acquisitions. The company did not disclose the internal split between organic and inorganic uses, citing competitive sensitivity.

What to track from here

SPR Auto Technologies entered FY27 with stronger scale and a more diversified portfolio than it had just a few years ago. FY26 showed that the diversification strategy is real, supported by acquisitions, new verticals, and ongoing capacity investment.

But the execution focus is now clear: integrate the interiors and lighting acquisition, lift profitability of newer businesses toward group benchmarks, and manage the balance sheet as leverage normalises over time.

The next phase will be judged less by announcements and more by proof points: margin progression in acquired subsidiaries, stable cash generation despite higher finance costs, and evidence that the company can keep outgrowing end-markets while expanding into newer, technology-led domains.