Subros Limited Q2 FY27 Revenue Rises 36.27% to ₹1,198.90 Crore

Subros Limited reported Q2 FY27 revenue of ₹1,198.90 crore for the quarter ended September 30, 2026, a 36.27% increase from ₹879.83 crore a year earlier, while its EBITDA margin declined to 7.66% from 10.04%, according to its investor presentation released on November 3, 2026.

What did Subros report for Q2 FY27?

Subros reported revenue from operations of ₹1,198.90 crore in Q2 FY27, compared with ₹879.83 crore in Q2 FY26. The company said revenue grew 16.16% sequentially from Q1 FY27. The results cover the quarter and half-year ended September 30, 2026.

EBITDA for the quarter was ₹91.47 crore, representing 7.66% of net sales. EBITDA rose 3.96% year on year, substantially slower than revenue growth. The investor presentation reported profit after tax of ₹59.95 crore, or 5.41% of net sales, with year-on-year PAT growth of 9.93%.

How did Subros build revenue during the quarter?

Subros linked its sales expansion to increased market demand, new business awards and progress in its manufacturing initiatives. The company said it secured business awards for future HVAC, compressor and heat-exchanger programmes from various customers.

Operations also added new vehicle programmes during the period. Subros said the start of production for two new internal-combustion-engine vehicle models began in Q2 FY27. It also reported that the start of production for Fronx had commenced from its Karsanpura plant in Q4, without specifying a separate revenue contribution from that programme.

The presentation separately showed net sales of ₹1,193.74 crore for the quarter ended September 30, 2026. This differs from the ₹1,198.90 crore revenue-from-operations figure because the presentation uses the two labels separately. Investors should therefore retain the source label when comparing these reported figures.

Why did Subros's margin decline despite higher sales?

Subros's EBITDA margin fell to 7.66% in Q2 FY27 from 10.04% in Q2 FY26 because material and currency costs increased. The company explicitly said margins remained under pressure, citing an MSR increase of 2.84%.

The difference between the 36.27% rise in revenue and the 3.96% rise in EBITDA illustrates the effect of these costs on operating profitability. PAT increased 9.93% year on year in the investor presentation, but this was also below the reported pace of sales growth.

The company identified cost optimisation and mitigation of foreign-exchange impact as operational priorities under its way-forward strategy. Its stated focus also includes technology upgrades and human skill development, alongside growth aligned with the industry and expansion in the commercial-vehicle segment.

Which capacity projects are Subros advancing?

Subros is progressing with its Kharkhoda greenfield project for FDC capacity and electric-compressor expansion. The company identified the project as part of its manufacturing plans but did not provide a project cost, current commissioning date or expected capacity in the supplied presentation details.

At Karsanpura, Subros is expanding capacity for FDC compressors and working on localisation of electric compressors. The target start of production for this expansion is FY28. These projects place electric-compressor localisation and compressor capacity within the company's disclosed plans for green-mobility opportunities.

The new manufacturing programmes are relevant because Subros operates in automotive thermal products, including HVAC, compressor and heat-exchanger units. However, the presentation does not quantify expected revenue, margins, capital expenditure or order-book conversion from the Kharkhoda and Karsanpura initiatives.

What do the statutory results and cash flows show?

The unaudited standalone results reported revenue from operations of ₹1,198.90 crore and PAT of ₹44.62 crore for the September quarter. Consolidated revenue from operations was also ₹1,198.90 crore, while consolidated PAT was ₹44.64 crore. The statutory-results data therefore presents a PAT figure different from the ₹59.95 crore reported in the investor-presentation summary.

For the half year ended September 30, 2026, standalone revenue from operations was ₹2,231.01 crore and PAT was ₹86.00 crore. Consolidated revenue was ₹2,244.49 crore and PAT was ₹86.16 crore. The Board approved the unaudited standalone and consolidated results on November 3, 2026, and Price Waterhouse Chartered Accountants LLP conducted the limited review.

Standalone cash flow data showed operating cash inflow of ₹68.20 crore in the first half, investing cash outflow of ₹113.16 crore and financing cash inflow of ₹57.56 crore. Cash and cash equivalents increased by ₹12.60 crore over the period. The investment outflow provides context for the company's ongoing capacity and manufacturing initiatives, although the results do not assign the outflow to individual projects.

Conclusion

Subros delivered strong Q2 FY27 revenue growth, with revenue from operations reaching ₹1,198.90 crore and rising 36.27% year on year. Profitability also improved in absolute terms, but the lower EBITDA margin of 7.66% showed that increased material and currency costs constrained the benefit of higher sales.

The next disclosed operational milestones are the continued Kharkhoda greenfield project and the Karsanpura expansion, where start of production is targeted in FY28. Investors will also watch whether the company's cost-optimisation and foreign-exchange mitigation measures reduce the reported pressure on operating margins.