SJS Enterprises Q1 FY27 Earnings Call — Analysis (NSE: SJS)
SJS reports highest-ever quarterly revenue of ₹261 Cr (+24.5% YoY) and PAT of ₹74.4 Cr (+115% YoY), with EBITDA margin expanding 239 bps to 30%.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q1FY27 Consolidated Revenue ₹261 Cr ( +24.5% YoY ) . New guidance — FY28 export revenue as a percentage… 14%-15% . New story: Industry Outperformance Track Record .
Results
Q1FY27 revenue ₹261 Cr (+24.5% YoY); EBITDA ₹79.96 Cr (+36.2% YoY), margin 30% (+239 bps); PAT ₹74.42 Cr including one-time gain of ₹24.17 Cr from sale of old facility; adjusted PAT ₹50.25 Cr (+45.2% YoY).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue | ₹261 Cr | +24.5% | yoy · Q1FY27 |
| EBITDA | ₹79.96 Cr | +36.2% | yoy · Q1FY27 |
| EBITDA Margin | 30% | +239 bps | yoy · Q1FY27 |
| PAT (Reported) | ₹74.42 Cr | +115% | yoy · Q1FY27 · includes one-time gain of ₹24.17 Cr on sale of old facility |
| Adjusted PAT (excl. one-time gain) | ₹50.25 Cr | +45.2% | yoy · Q1FY27 |
| Exports Revenue | ₹25.58 Cr | +83.2% | yoy · Q1FY27 |
| Cash Flow from Operations | ₹80.9 Cr | point_in_time · Q1FY27 · Q1FY27 | |
| Free Cash Flow | ₹83.8 Cr | point_in_time · Q1FY27 · Q1FY27 | |
| Net Cash Position | ₹328.77 Cr | point_in_time · as of Jun 30, 2026 · Jun 30, 2026 | |
| Annualized ROCE | 37.2% | point_in_time · Q1FY27 | |
| Annualized ROE | 20.3% | point_in_time · Q1FY27 | |
| Passenger Vehicle segment revenue growth | 45.4% | +45.4% | yoy · Q1FY27 |
| Two-Wheeler segment revenue growth | 19.5% | +19.5% | yoy · Q1FY27 |
Guidance
Management expects to outperform the underlying automotive industry by 1.5x to 2x in FY27 and targets export contribution of 14-15% of consolidated revenue by FY28.
What management committed to
- SJS expects to outperform the underlying automotive industry by 1.5x to 2x in FY27. — 1.5x to 2x, FY27
- SJS is committed to achieving export contribution of 14%-15% of consolidated revenue by FY28. — 14%-15%, FY28
- Commercial supplies from the new [cover glass and display] facility to start in Q2 of FY28. — Q2FY28
- Management aims to double sales at [SJS Decoplast] in the next 3 to 4 years. — double, next 3-4 years
- SJS expects to maintain full-year EBITDA margin in the range of 27%-28% for FY27. — 27%-28%, FY27
- SJS aspires to capture at least 10% of the [cover glass and display] market in India by 2030. — at least 10%, FY30
Key themes
Premiumisation-led outperformance and capacity expansion
How the narrative shifted
- Premiumisation & Content per Vehicle: Structural premiumisation and rising content per vehicle are driving higher value addition per unit, benefiting SJS's product portfolio.
- Industry Outperformance Track Record: SJS has outperformed the underlying auto industry for 27 consecutive quarters, led by customer deepening and product innovation.
- Export Growth Trajectory: Exports surged 83% YoY, with a target to reach 14-15% of revenue by FY28, leveraging global OEM relationships and new capacities.
- Capacity Expansion to Capture Demand: New Decoplast plant and parent plant expansions provide the bandwidth to secure large, high-margin orders from OEMs and exports.
- Cover Glass & Display Diversification: The new cover glass business with BOE exclusivity for four-wheelers opens a large addressable market and tech-enabled revenue stream.
- Margin Resilience Amidst Commodity Pressure: Management attributes stable 30% margin to pass-through mechanisms, richer mix, exports, and operational efficiency despite commodity headwinds.
- Cross-selling & Customer Deepening: Cross-selling opportunities in chrome plating and new product lines with existing customers like Hero MotoCorp and Tata Motors drive incremental growth.
- Walter Pack Non-Compete Expiry Optionality: Non-compete with Walter Pack Spain expires Jan 2027, potentially allowing direct exports to premium European OEMs like BMW and Mercedes.
Operational commentary
- Board approved setting up wholly-owned subsidiary for cover glass & display business; equipment on order, commercial sales expected from Q2FY28.
- New SJS Decoplast facility in Pune commenced commercial operations, adding ₹200-250 Cr revenue potential; overall Decoplast sales targeted to double in 3-4 years.
- Export revenue grew 83.2% YoY, contributing 9.8% of revenue; management targets 14-15% by FY28.
- New orders won from Mahindra & Mahindra, Tata Motors, TVS, Autoliv, Royal Enfield, Skoda, John Deere, Hero MotoCorp; cross-selling momentum evident.
- Walter Pack India became 100% subsidiary; non-compete with Walter Pack Spain expires January 2027, opening potential direct exports to premium European OEMs.
- In-house R&D Centre received DSIR recognition from Government of India, validating technology-led product development capabilities.
- New generation products contributed ~24% of consolidated revenue, reflecting mix shift toward higher-value, technology-driven solutions.
- Cover glass & display business: exclusivity with BOE for four-wheeler displays; management aspires to capture at least 10% market share by 2030.
- Management maintains FY27 EBITDA margin guidance of 27-28% despite commodity headwinds; Q1 margin of 30% aided by richer mix and exports.
Analyst Q&A
Q. Impact of higher input costs on profitability and timeline for pass-through to customers?
We have robust pass-through agreements; recovery is already visible with a lag of 1-2 quarters. Gross margin actually improved QoQ by 0.1%, and we maintained overall profitability thanks to richer mix and exports.
Q. When will exports and Walter Pack revenue start ramping up from the recent flat run-rate?
Large multi-technology export projects are in advanced discussions; we are on track for 14-15% export share by FY28. Walter Pack new business ramp depends on customer launch decisions, but development is progressing.
Q. Can you update on commercial agreements and ramp-up timelines for the cover glass business?
Production samples are being tested by OEMs through BOE; firm orders are expected after plant installation and PPAP runs. Supplies from India will start from Q2FY28 as previously guided.
Q. Does Pricol's tie-up with BOE for two-wheeler displays pose a competitive threat to SJS?
SJS has exclusivity with BOE for four-wheeler displays. Pricol's agreement is only for two-wheelers. We may potentially supply cover glass to two-wheelers in the future as well.
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