Suprajit Engg. Q1 FY27 Earnings Call — Analysis (NSE: SUPRAJIT)
Suprajit Q1 FY27 consolidated revenue rose 24% YoY to ₹1,070 Cr and operational EBITDA jumped 57% YoY to ₹129 Cr, led by the GCM restructuring, while India cable and lighting margins were dented by pending raw-material and wage pass-through.
Result quality: strong — Margin expansion. Management sentiment: neutral.
The take
Q1FY27 Consolidated revenue ₹1,070 Cr ( +24% YoY ) . New guidance — FY27 fy27 consolidated revenue growth double digits .
Results
Consolidated revenue ₹1,070 Cr (+24% YoY) and consolidated operational EBITDA ₹129 Cr (+57% YoY); standalone revenue ₹470 Cr (+20% YoY) but standalone operational EBITDA ₹60 Cr (-0.3% YoY); GCM revenue +27-28% with EBITDA margin 12.6% vs 5.8%, ICM margin 13% vs 15%, PLE margin 6.7%, and SED revenue +48% with EBITDA +100%.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated revenue | ₹1,070 Cr | +24% | yoy · Q1FY27 · as against ₹863 Cr in Q1FY26 |
| Consolidated operational EBITDA | ₹129 Cr | +57% | yoy · Q1FY27 · as against ₹82 Cr in Q1FY26 |
| Standalone revenue | ₹470 Cr | +20% | yoy · Q1FY27 · as against ₹390 Cr in Q1FY26 |
| Standalone operational EBITDA | ₹60 Cr | -0.3% | yoy · Q1FY27 · as against ₹61 Cr in Q1FY26 |
| Total debt | ₹776 Cr | point_in_time · Jun-26 · as on June 2026 | |
| Surplus cash | ₹243 Cr | point_in_time · Jun-26 · invested in mutual funds and bonds as on June 2026 | |
| GCM revenue growth | 27-28% | +27-28% | yoy · Q1FY27 · Global Cables and Mechatronics, formerly SCD |
| GCM operational EBITDA margin | 12.6% | +5.8% to 12.6% | yoy · Q1FY27 · vs 5.8% in Q1FY26 |
| ICM revenue growth | 21% | +21% | yoy · Q1FY27 · India Cables and Mechatronics, formerly DCD |
| ICM EBITDA growth | 4.2% | +4.2% | yoy · Q1FY27 |
| ICM operational EBITDA margin | 13% | −15% to 13% | yoy · Q1FY27 · vs almost 15% in Q1FY26 |
| PLE revenue growth | 5.4% | +5.4% | yoy · Q1FY27 · Phoenix Lighting and Electricals, formerly PLD |
| PLE EBITDA growth | -45% | -45% | yoy · Q1FY27 |
| PLE operational EBITDA margin | 6.7% | -2.8pp | yoy · Q1FY27 · margin down 2.8 percentage points to 6.7% |
| SED revenue growth | 48% | +48% | yoy · Q1FY27 · Sensors, Electronics, Displays division |
| SED EBITDA growth | 100% | +100% | yoy · Q1FY27 |
| SED operational EBITDA margin | close to double digits | none · Q1FY27 · margins close to double digits |
Guidance
FY27 guidance reiterated from the 25 May 2026 press release: consolidated double-digit growth with operational EBITDA margin of 12-13.5%; GCM double-digit growth with 10-12% EBITDA margin; India cables around ~15%, PLE around ~12%, and SED around ~10%.
What management committed to
- Suprajit reiterates FY27 consolidated revenue will grow in double digits YoY. — double digits, FY27
- Suprajit reiterates FY27 consolidated operational EBITDA margin of 12% to 13.5%. — 12% to 13.5%, FY27
Key themes
GCM restructuring payoff and India margin pass-through
Operational commentary
- GCM restructuring completed; leaner global operations and cost-improvement projects drove EBITDA margin from 5.8% to 12.6% YoY.
- GCM new-business ramp underway: projects launching in China with one of the largest Chinese OEMs and in India for a large U.S. OEM building a resilient supply chain; business wins recorded across India, Mexico, and China.
- Three disclosed large GCM contracts: largest EV cable contract at USD 5M annualized and USD 37M lifetime; European luxury OEM at USD 2M annualized and USD 12M lifetime; Japanese OEM at USD 1.2M annualized and USD 6M lifetime, to be supplied from Matamoros, China, and potentially Morocco.
- ICM braking products scaling: CBS revenue +110% YoY and brake shoes/pads +80% YoY on a small base.
- ICM margin pressure attributed to elevated raw-material costs and NCR labour migration/wage inflation; customer pass-through discussions underway, with some OEMs agreeing and others still pending.
- PLE margin pressure from delayed aftermarket price increases; new prices are now effective and recovery is expected in Q2/Q3; Trifa Middle East demand remains soft.
- PLE ramp with a large U.S. retailer underway after significant additional business award; store count expected to triple or grow 4x next year.
- SED strong quarter driven by digital clusters and electronic throttle grips; about six new launches underway in the next two months.
- SED capacity expansion on a war footing; plant relocation to larger leased premises within about six months and rebuild of current plant into a larger multi-story electronics facility.
- Rare-earth-free throttle developed after rare-earth curbs; Mahindra Last Mile Mobility ramp-up completed and further business won.
- STC R&D building on track for Q3 completion; ABS and sunroof cable projects progressing; three telematics/connected-cluster/PCU projects won this quarter.
- Actuation products developed and final approvals underway; advanced actuation projects with a leading EV OEM and Indian seating companies may take 2-3 years to market.
Analyst Q&A
Q. Was there any one-off or FX element in the GCM margin this quarter?
No material one-off in GCM operational results; the improvement came from restructuring making operations tight and lean, cost-improvement projects, and 20%-plus top-line growth dropping into gross margins.
Q. Will management share SCS revenue contribution and EBITDA margin separately for Q1?
No; SCS is now combined into GCM because separate disclosure has no meaning after restructuring and was only to show progress until SCS turned EBITDA positive.
Q. How is Suprajit positioned for the growth phase of EVs?
Suprajit is EV-agnostic rather than drivetrain-focused: it supplies braking, clusters, actuators, and cables to practically all EV players in India, and content per vehicle is increasing 3-5x versus the core cable product.
Q. What is the revenue number for the LED retrofitting business in FY26 and is it profitable?
No separate revenue number is disclosed because it is not significant; profitability was confirmed with high localization and a drop-in LED solution.
Q. Can we assume India standalone margins will be similar to last year once pass-through happens?
Yes, almost similar, plus/minus 50 basis points; material-cost pass-through is not being questioned, but wage inflation pass-through is the real debate.
Q. What is the median price per unit realization and can content per vehicle improve 25-30% over three to five years?
Management would not give a median price because the range spans ₹6 cables to ₹7,000 clusters, and said it cannot put a target on content per vehicle without more internal work.
Research and educational content only. Not investment advice.