SUBROS
Micro CapSubros Limited
Industrials
Established in 1985, Subros is India's largest Air Conditioning & Thermal Products company. A JV with Indian Promoters (36.79%), Denso (20%), Suzuki (11.96%), and Public (31.25%). Manufactures thermal products for auto (Car, Bus, Truck, Tractor, Reefer, Railways) and non-auto (Home AC) segments. Operates 8 plants, a Technical Centre, and a Tool Engineering Centre.
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.
Investable fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 42/100margin compression · Rev +16% YoY · PAT +7% YoY · +11% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,050 Cr | +15.6% | +10.8% |
| EBITDA | ₹92 Cr | -1.1% | +13.6% |
| Operating margin | 9.0% | -100 bps | +0 bps |
| PAT | ₹49 Cr | +6.5% | +40.0% |
| PAT margin | 4.7% | -40 bps | +98 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Subros reported highest ever 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. Q4 EBITDA grew 0.84% YoY but 14.77% QoQ. Full-year EBITDA grew 5.77% YoY. PBT and PAT also showed growth, but Q4 YoY EBITDA growth was minimal despite revenue.
While revenue growth is strong, Q4 FY26 EBITDA growth YoY was negligible (0.84%) despite 15.55% revenue growth, indicating significant margin pressure from material costs and product mix. Full-year EBITDA growth also lagged revenue. Management attributes this to adverse commodity/currency movement and product mix changes, partially offset by cost optimization. Sustained margin pressure could impact profitability.
PV Segment Thermal Business Growth
PV Segment Thermal business growth is 19% (Q4 FY26 vs Q4 FY25).
New Business Awards
New business awarded for future programs from various customers, including electric compressor, HVAC & HX for forthcoming platforms and railway segment.
Green Mobility
To realize business opportunities in Green Mobility i.e. EV, SHEV, CNG etc.
Business Expansion in CV Segment
Company growth aligned to industry growth in all segments, with specific focus on CV Segment (Bus, rail, Truck, Tractor).
Kharkhoda Plant
Greenfield project for new capacities and product of electric Compressor & FDC Capacity Expansion.
Karsanpura Plant Expansion
Expansion for new capacities and product of electric Compressor & FDC Capacity Expansion. SOP of Fronx started from Karsanpura plant in Q4.
Karsanpura Plant Expansion (Future)
Expansion for localization of Electric Compressor and New capacity of FDC Compressor, target SOP in 2027-28.
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 EBITDA and PBT growth in FY26.
Positive MTM on Currency
Other Income is higher due to positive MTM on currency reinstatement in Q4 FY26.
High Material Cost
High material cost due to adverse commodity/currency movement and product mix change impacted EBITDA.
Employee Cost Increase
Employee Cost is higher due to annual salary/wage revision.
One-time Gratuity Impact
One time impact of Rs. 8.08 Cr on account of gratuity & leave encashment under new labour code in FY26.
Forward Looking Statements
Presentation might contain forward looking statements which involve a number of risks, uncertainties and other factors that could cause actual results to differ materially.
Commodity/Currency Volatility
Adverse commodity/Currency movement continues to impact material costs and margins.
Product Mix Changes
Product Mix change has an adverse impact on material costs and margins.
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.
The company provides both YoY and QoQ comparisons for Q4, and full-year YoY. YoY is crucial for assessing annual performance and seasonal trends, while QoQ highlights sequential momentum, execution, and immediate operational efficiency changes, especially relevant for a manufacturing business with new project SOPs.
Revenue from Operation (FY26)
Rs. 3755.52 Cr, up 11.52% YoY.
Revenue from Operation (Q4 FY26)
Rs. 1049.76 Cr, up 15.55% YoY and 10.77% QoQ.
EBITDA (FY26)
Rs. 362.93 Cr, up 5.77% YoY. EBITDA % to Net Sales 9.70% (FY26) vs 10.22% (FY25).
EBITDA (Q4 FY26)
Rs. 100.07 Cr, up 0.84% YoY and 14.77% QoQ. EBITDA % to Net Sales 9.57% (Q4 FY26) vs 10.96% (Q4 FY25).
Technology Upgrade
Technology upgrade to meet regulatory changes (BSVI, RDE, CAFÉ etc.).
Cost Optimization
Cost Optimization by improvement in Operational Efficiencies.
Human Skill Development
Human Skill development and Organization structure to meet Future requirement.
ESG Goals
ESG goals to meet future sustainability and social requirements.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 9.57% (Q4 FY26), 9.70% (FY26) | Watch for stabilization or improvement in EBITDA margin, given persistent material cost pressures. |
| New Project SOPs | Fronx SOP started in Q4 FY26, 1 new project in pipeline for Q1 FY24 (likely Q1 FY27 based on document date), EV business awarded in 2022-23 in development. Karsanpura FDC Compressor SOP target 2027-28. | Monitor successful commissioning and ramp-up of new projects, especially EV and FDC compressor capacities, and their contribution to revenue and profitability. |
| Material Cost % to Net Sales | 74.14% (Q4 FY26), 73.12% (FY26) | Track trends in material cost as a percentage of sales, indicating effectiveness of cost optimization and hedging strategies against commodity/currency volatility. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
45NeutralSMA20 -7.3% / mo
Technical chart
SUBROSweekly · 3Y+10.8%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 47. Wait for confirmation.
- SMA20 falling (~7.9% over last month) — short-term momentum negative.
- RSI(14) at 47 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 38% off 52W high · 17% 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, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 36.0%.
- Growth contributes 22/25 to the score.
Main drags
- Valuation is weaker at 10/30; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
- Quality is weaker at 9/20; verify the latest quarterly trend.
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.
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.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
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 85th percentile of the scored universe and 84th percentile within Industrials. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 84th pctile, median 68 · Micro: 74th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead 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.
Trust positives
- ▸Promoter pledge is zero.
- ▸9 years of positive FCF.
- ▸Debt/equity is 0.02.
- ▸8/8 recent 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.
Intrinsic value
Fundamentals
Valuation
- P/E
- 27.70
- P/B
- 3.82
- EV/EBITDA
- 10.66
- Market Cap
- 4756.00Cr
Profitability
- ROE
- 14.70%
- ROCE
- 19.80%
- ROA
- 7.78%
- Dividend Y
- 0.36%
Growth (CAGR)
- Revenue 5Y
- 16.00%
- EPS 5Y
- 29.00%
- Revenue 3Y
- 10.00%
- EPS 3Y
- 54.00%
Balance Sheet
- Debt/Equity
- 0.02
- Interest Coverage
- 32.40×
- Altman Z
- 6.48
- Book Value
- 191.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 9/5
- OCF
- 105.00 Cr
- EPS TTM
- 25.39
Shareholding
- Promoter Hold
- 36.79%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 18%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.