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IndiaPulse

Subros Limited (SUBROS)

Micro Cap

Industrials stocks · Micro cap · NSE

Established in 1985, Subros is India's largest Air Conditioning & Thermal Products company. A joint venture with Indian Promoters, Denso, and Suzuki, it manufactures thermal products for auto (Car, Bus, Truck, Tractor, Reefer, Railways) and non-auto (Home AC) segments. The company operates 8 plants, a Technical Centre, and a Tool Engineering Centre.

₹709.6
+3.75 · +0.53%
Quote04 Sept, 03:51 pm IST
Fundamentals05 Sept 2026 · screener
Score05 Sept, 10:20 pm IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage13/14 · 93%
Valuation2026-07-20 · Rf 6.8% · Industrials P/E 26.4 (n=540)
Data confidence
Fresh enough for analysis
Investor decision lenses

One read, four checks

75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.

Mixed fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.

Suggested next step
Research, do not rush
The four lenses are not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
FAIR VALUE
59

Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.

Trust
Healthy Trust
78

low confidence · 0/0 claims checked

Technical
Bearish
32

Timing lens: price trend and sector relative strength.

Result consistency
consistent
95

Rolling lens: recent quarterly delivery, not the latest single-result score.

Latest result

Quarter ended 30 Jun 2026

Average · 32/100

margin compression · Rev +18% YoY · PAT +2% YoY

Filed 30 Jun 2026
Open results browser →
MetricThis quarterYoYQoQ
Revenue₹1,032 Cr+17.5%-1.7%
EBITDA₹81 Cr-1.2%-12.0%
Operating margin8.0%-100 bps-100 bps
PAT₹42 Cr+2.4%-14.3%
PAT margin4.1%-60 bps-60 bps

NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.

Business & thesis

Growth engines, tailwinds/headwinds, and risk radar from management commentary

Business and thesis

Where growth can come from, and what can break the case

Thesis intactReviewed 2026-06-11T07:24:46.501Z
Management commentary snapshot

Subros reported record Q4 FY26 revenue of Rs. 1049.76 Cr, up 15.55% YoY and 10.77% QoQ. Full-year FY26 revenue grew 11.52% YoY to Rs. 3755.52 Cr. PBT increased 12.24% YoY for FY26, and 7.86% YoY for Q4, despite margin pressure from higher material costs.

Subros achieved record Q4 FY26 revenue, driven by increased volumes and new business. Full-year revenue and profit also grew. However, EBITDA margins compressed due to adverse commodity/currency movements and product mix, partially offset by cost optimization and incentive income. Capacity expansion and EV product development are underway, but managing input costs remains critical for sustained profitability.

Growth engines

PV Segment Thermal Business Growth

PV Segment Thermal business growth is 19%.

New Business Awards

New business award for future program from various customers including electric compressor, HVAC & HX for forthcoming platforms and railway segment.

EV Business Development

Development in progress of new EV business awarded in 2022-23.

CV Segment Expansion

Business Expansion in CV Segment (Bus, rail, Truck, Tractor).

Capacity and execution

Kharkhoda & Karsanpura Plant Expansion

Kharkhoda plant (Greenfield project) & Karsanpura plant (expansion) for new capacities and product of electric Compressor & FDC Capacity Expansion.

Karsanpura Plant SOP Target

Karsanpura Plant Expansion for localisation of Electric Compressor and New capacity of FDC Compressor, target SOP in 2027-28.

Tailwinds

Market Demand

Highest ever Revenue reported for Rs. 1049.76 Cr. in quarter 4 of FY26 due to market demand.

Accrued Incentive Income

Accrued incentive income of Rs 15.48 Cr contributed to higher EBITDA and PBT.

Positive MTM on Currency Reinstatement

Other Income is higher due to positive MTM on currency reinstatement at the year end.

Headwinds

High Material Cost

High material cost due to adverse commodity/currency movement and product mix change, partially offset by cost optimization.

Increased Employee Cost

Employee Cost is higher due to annual salary/wage revision.

Risk radar

Commodity and Currency Volatility

High material cost due to adverse commodity & Currency movement impacted EBITDA margins.

Product Mix Changes

Product Mix change contributed to higher material costs and impacted margins.

Management accountability

What management said, and what results must prove

Management accountability

What management said, and what results must prove

Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.

Analyst reading lens
Compare BOTH

The company operates in the automotive components sector, where both annual growth (YoY) reflecting market expansion and sequential performance (QoQ) indicating project execution and demand momentum are crucial for assessing operational efficiency and market responsiveness.

Sector KPIs management disclosed

Revenue

FY26: Rs. 3755.52 Cr (up 11.52% YoY). Q4 FY26: Rs. 1049.76 Cr (up 15.55% YoY, 10.77% QoQ).

EBITDA

FY26: Rs. 362.93 Cr (up 5.77% YoY). Q4 FY26: Rs. 100.07 Cr (up 0.84% YoY, 14.77% QoQ).

EBITDA % to Net Sales

FY26: 9.70% (vs 10.22% FY25). Q4 FY26: 9.57% (vs 10.96% Q4 FY25, 9.23% Q3 FY26).

PBT

FY26: Rs. 228.37 Cr (up 12.24% YoY). Q4 FY26: Rs. 66.69 Cr (up 7.86% YoY, 26.43% QoQ).

Management forward view

Industry Growth Alignment

Company Growth aligned to Industry Growth in all segments.

Green Mobility Opportunities

To Realize business opportunities Green Mobility i.e. (EV, SHEV, CNG etc.).

Foreign Exchange Mitigation

Mitigating Impact of Foreign Exchange thru Hedging and Aggressive Localization.

Cost Optimization

Cost Optimization by improvement in Operational Efficiencies.

Thesis monitor

Numbers and claims to verify in the next filings

CheckpointCurrent evidenceWhat to verify next
Karsanpura Plant Expansion SOPExpansion for electric Compressor and FDC Compressor capacity.Target SOP in 2027-28.
EV Business DevelopmentDevelopment in progress for new EV business awarded in 2022-23.Further progress and commercialization of EV & Hybrid Vehicle products.

Verification checkpoints are IndiaPulse research interpretation, not investment advice.

Technical timing lens

Trend score and candlestick chart

32Bearish

full bear SMA stack · SMA20 -8.5% / mo · RSI oversold · MACD − · near 52W low

Stock trend: 22
Sector RS: 48
Sector 3M: -1.6% vs Nifty -1.5%

Technical chart

SUBROSdaily · 1Y · AUTO-3.3%
Latest close ₹709.60 on 2026-09-04
Bar
+0.5%
RSI
27
MACD hist
-1.96
52W pos
15%
2026-09-04O ₹705.85H ₹718.00L ₹705.25C ₹709.60Vol 26,816 sh
₹608.31₹684.15₹760.00₹835.85₹911.6952L709.602026-032026-06VolRSIMACD2026-032026-042026-062026-072026-09
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal

Daily technical trend read

Mixed signals

Signals are conflicting — long-term trend down. RSI 27. Wait for confirmation.

  • Price < SMA20 < SMA50 < SMA200 — full bearish stack.
  • SMA20 falling (~9.2% over last month) — short-term momentum negative.
  • RSI(14) at 27 — oversold zone; bounce conditions.
  • MACD below signal but histogram contracting — bearish momentum easing.
  • 42% off 52W high · 14% above 52W low.

Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.

Valuation & score drivers

U-Score 59 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor

59U-SCORE
Financial Turnaround

Fundamental score breakdown

FAIR VALUE
Valuation8/30
Growth22/25
Quality10/20
Balance Sheet9/15
Cash Flow4/10
Piotroski
8/9 (+5)
Penalties
1
Raw sum
59

Why this score?

Top U-Score contributors and drags from the latest stored fundamentals.

59/100 · FAIR VALUE

Positive drivers

  • Piotroski is strong at 8/9.
  • Fair-value margin of safety is positive at 29.7%.
  • Growth contributes 22/25 to the score.

Main drags

  • Valuation is weaker at 8/30; verify the latest quarterly trend.
  • Cash flow is weaker at 4/10; verify the latest quarterly trend.
  • Quality is weaker at 10/20; verify the latest quarterly trend.
Sector valuation model

Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks

For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.

Blended relative
Primary lens
PE, EV/EBITDA, margin of safety, and FCF yield together.
Secondary checks
ROE/ROCE, growth, cash conversion, leverage, promoter risk.
Main risk check
One cheap metric is not enough if quality or cash flow is weak.
PE
26.9
PB
3.7
EV/EBITDA
10.6
ROE
14.5%
ROCE
19.2%
FCF Yield
Debt/Equity
0.1
MoS
+29.7%
Score movement

Stored run vs live recompute

This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.

Stored run: 05 Sept 2026
v4.3-runtime-valuation
Final score
59
Previous: 59
Verdict
FAIR VALUE
Previous: FAIR VALUE
Margin of safety
+29.7%
Previous: +29.7%

Score history

12 stored score snapshots. Latest stored move: +1 points.

05 Sept 2026
v4.3-runtime-valuation
59
59
55
55
55
55
55
55
56
58
58
59

Factor attribution

No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.

Modelled fair value

Graham Number
₹331.04
-114.4% MoS
Growth-justified P/E
39.6
Growth-justified Value
₹1,009.8
+29.7% MoS
PEG
0.70

Trust score

Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth

Trust Score
78Healthy Trust · low confidenceTrust Lite

Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.

Healthy Trust: Claim history is still being built. It ranks around the 86th percentile of the scored universe and 86th percentile within Industrials. No major sub-score weakness stands out.

High Trust Lite: Promoter pledge is zero.

Computed 05 Sept 2026
management-trust-v1
55 docs text-extracted · 14 concalls text-extracted
Score band
Healthy Trust

Generally investable credibility. Look for weak sub-scores before increasing position size.

Relative rank
86th percentile

overall median 67 · Industrials: 86th pctile, median 68 · Micro: 74th pctile, median 73

Evidence depth
Financial-only

55 documents have extracted text, but claim history is not strong enough yet.

Claim delivery
Outcome history still building

0 claims extracted · No contradicted claim yet

How to read this Trust Score

Healthy Trust · low confidence
What it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Can support position sizing if valuation and trend also agree.

Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.

Forensic breakdown

Read low sub-scores as due-diligence warnings, not automatic sell signals.

Promoter
78
strong · holding, pledge, alignment
Cash flow
67
acceptable · profit to cash conversion
Balance sheet
96
strong · leverage and solvency
Discipline
60
acceptable · capital discipline
Results
95
strong · quarterly consistency

Trust positives

  • Promoter pledge is zero.
  • 9 years of positive FCF.
  • Debt/equity is 0.06.
  • 4/4 latest quarters had positive YoY revenue growth.

Trust risks

  • No major Trust Lite risk flags.

Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.

Financials

Full fundamentals table and 10-year revenue / profit / ROE history

Fundamentals

Valuation

P/E
26.90
P/B
3.72
EV/EBITDA
10.55
Market Cap
4629.00Cr

Profitability

ROE
14.50%
ROCE
19.20%
ROA
7.78%
Dividend Y
0.42%

Growth (CAGR)

Revenue 5Y
16.00%
EPS 5Y
29.00%
Revenue 3Y
10.00%
EPS 3Y
53.00%

Balance Sheet

Debt/Equity
0.06
Interest Coverage
32.30×
Altman Z
6.47
Book Value
191.00

Cash Flow

FCF Yield
FCF Positive Y
9/5
OCF
105.00 Cr
EPS TTM
25.50

Shareholding

Promoter Hold
36.79%
Promoter Pledge
0.00%
Momentum 52W
15%

Financial History

Updated 5/9/2026

Revenue

₹ Cr
Latest: 3,909+4.1% vs prev
03909Mar 2016: 1,298Mar 2017: 1,535Mar 2018: 2,124Mar 2019: 1,796Mar 2020: 2,239Mar 2021: 2,806Mar 2022: 3,071Mar 2023: 3,368Mar 2024: 3,756Mar 2025: 3,909FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25

Net Profit

₹ Cr
Latest: 151+54.1% vs prev
0151.0Mar 2016: 24.0Mar 2017: 13.0Mar 2018: 61.0Mar 2019: 76.0Mar 2020: 85.0Mar 2021: 47.0Mar 2022: 32.0Mar 2023: 48.0Mar 2024: 98.0Mar 2025: 151FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25

Return on Equity

%
Latest: 13.8+34.6% vs prev
015.1Mar 2016: 7.2%Mar 2017: 3.8%Mar 2018: 15.1%Mar 2019: 11.2%Mar 2020: 11.3%Mar 2021: 5.9%Mar 2022: 3.9%Mar 2023: 5.5%Mar 2024: 10.3%Mar 2025: 13.8%FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25

Peers

Business-comparable names in Industrials, ranked by similarity

Verify on:NSE India ↗
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.