SPR Q2 income rises 61% while EBITDA margin falls to 17.9%

SPR Auto Technologies Limited reported consolidated total income of Rs 1,674.6 crore in Q2FY27, up 60.6% year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) margin declined to 17.9% from 22.4%. SPR attributed the margin movement to commodity costs, sales mix, minimum-wage revisions and acquisition-related finance costs.

What drove SPR's Q2FY27 income growth?

SPR's consolidated total income increased to Rs 1,674.6 crore in Q2FY27 from Rs 1,042.7 crore in Q2FY26, with the company attributing the 60.6% growth to a strong performance across businesses. Management said domestic demand strengthened across passenger vehicles, commercial vehicles, two-wheelers and three-wheelers, which recorded their highest-ever second-quarter sales.

The consolidated expansion was substantially higher than growth in the standalone business. Standalone total income rose 16.9% to Rs 1,050 crore in Q2FY27 from Rs 897.9 crore a year earlier, compared with 60.6% consolidated growth. Management said the recently acquired auto interiors and lighting business performed well in both topline and bottom-line terms.

The first-half comparison showed the same difference in growth rates. Consolidated income for H1FY27 reached Rs 3,173.8 crore, up 56.0% from Rs 2,034.4 crore in H1FY26, whereas standalone income increased 14.4% to Rs 2,012.7 crore from Rs 1,760.1 crore.

Why did SPR's EBITDA margin decline to 17.9%?

SPR's consolidated EBITDA margin fell by 4.5 percentage points to 17.9% in Q2FY27 because EBITDA rose more slowly than income. Consolidated EBITDA increased 28.6% to Rs 300.4 crore from Rs 233.5 crore, while total income grew 60.6% over the same period.

Management cited geopolitical tensions, supply-chain disruptions, commodity-price pressure, minimum-wage revisions and a shift in sales mix as factors affecting profitability in Q2FY27. The standalone business reported EBITDA of Rs 208.7 crore, almost unchanged from Rs 208 crore, while its EBITDA margin reduced to 19.9% from 23.2%.

Margin moderation also continued over the six months ended September 30, 2026. Consolidated H1FY27 EBITDA rose 27.6% to Rs 583.1 crore from Rs 457 crore, but EBITDA margin fell to 18.4% from 22.5%. The disclosed EBITDA measures include other income, which is the basis for both the consolidated and standalone margin comparisons.

How did SPR's Q2FY27 profit growth compare with income growth?

SPR's profit before tax (PBT) and profit after tax (PAT) grew in Q2FY27, but both rose at a slower rate than consolidated income. PBT increased 10.7% to Rs 212.9 crore from Rs 192.4 crore, while PAT increased 14.2% to Rs 162.3 crore from Rs 142.1 crore.

PBT margin was 12.7% in Q2FY27 versus 18.5% a year earlier, while PAT margin was 9.7% versus 13.6%. That means PBT margin declined by 5.8 percentage points and PAT margin by 3.9 percentage points, alongside the 4.5-percentage-point decline in EBITDA margin.

SPR said consolidated finance costs included a temporary Rs 23.4 crore increase to fund the acquisition of three Indian entities of Antolin. Management said this effect would normalise after the debt is repaid, and that consolidated PBT would have grown 23% year on year in Q2FY27 excluding the finance-cost impact.

For H1FY27, consolidated PBT rose 8.7% to Rs 408.1 crore from Rs 375.4 crore and PAT increased 11.9% to Rs 310 crore from Rs 277 crore. PBT margin was 12.9%, compared with 18.5% in H1FY26, while PAT margin was 9.8%, compared with 13.6%; management said PBT growth excluding the temporary acquisition-financing effect was 22%.

How did SPR's standalone results compare with group results?

SPR's standalone results showed rising income but lower profits in Q2FY27. Standalone PBT declined 11.7% to Rs 158.8 crore from Rs 179.8 crore, and PAT declined 11.2% to Rs 118.9 crore from Rs 133.9 crore, in contrast with increases in consolidated PBT and PAT.

Standalone PBT margin reduced to 15.1% from 20.0%, while PAT margin declined to 11.3% from 14.9%. SPR said standalone finance costs increased by Rs 21.2 crore to fund the acquisition of the three Indian Antolin entities, and management described the effect as temporary until the related debt is repaid.

The six-month standalone comparison also remained below the prior year on profit. H1FY27 standalone PBT fell 12.6% to Rs 309.5 crore from Rs 354.1 crore and PAT declined 12.5% to Rs 230.8 crore from Rs 263.7 crore; the corresponding margins were 15.4% and 11.5%, versus 20.1% and 15.0% in H1FY26.

SPR completed a qualified institutional placement during the quarter, raising Rs 1,000 crore. Management said the proceeds would strengthen the balance sheet and support future growth initiatives, while the company continues to focus on existing customers, product and geographic penetration, and engineering and manufacturing capabilities.

Conclusion

SPR's Q2FY27 results show that consolidated income expansion outpaced earnings growth. Income rose 60.6% to Rs 1,674.6 crore and EBITDA increased 28.6% to Rs 300.4 crore, but the EBITDA margin fell to 17.9%; the slower 16.9% rise in standalone income and near-flat standalone EBITDA underline the difference between company and group performance.

The next disclosed factors to watch are repayment of the debt used for the three Antolin-entity acquisitions, which management says should normalise finance costs, and deployment of the Rs 1,000 crore qualified institutional placement proceeds. SPR has also entered a power purchase agreement with Sunsure Solarpark Forty Private Limited for renewable power at its Pathredi and Neemrana facilities in Rajasthan, intended to support renewable-energy objectives and optimise energy costs.