The automotive parts sector has been exhibiting sturdy progress, pushed by growing home demand and rising export alternatives. Buyers are conserving an in depth eye on firms delivering each innovation and constant monetary efficiency, as these gamers stand to learn from increasing automobile manufacturing and world provide chain participation. Sturdy quarterly outcomes and strategic partnerships have additional highlighted alternatives on this area.
Based in 1987, SJS Enterprises Restricted is a number one supplier of aesthetic and useful options primarily catering to the automotive and shopper equipment industries. The corporate manufactures a variety of merchandise together with decals, 3D lux badges, overlays, aluminium badges, chrome-plated components, and optical plastics.
With a robust concentrate on in-house capabilities, SJS operates superior services in Bangalore and Pune protecting design, tooling, printing, moulding, and electroplating processes. The corporate has a market capitalization of Rs. 5,619.90 crore, with its present market value at Rs. 1,759.
SJS Enterprises serves over 220 buyer places and operates in 22 international locations, with a workforce of roughly 2,300 staff. The corporate’s portfolio contains greater than 12,200 SKUs as of FY25, and it has 4 operational manufacturing services in Bangalore, Pune (2), and Manesar, with an extra facility below building in Hosur.
Progress has been significantly robust within the two-wheeler phase, which noticed a 44.3 % year-on-year enlargement. Home quarterly enterprise elevated 24.0 % YoY, whereas exports surged 40.9 % YoY.
The corporate has additionally strengthened its technological capabilities by way of strategic collaborations. SJS signed a memorandum of understanding with BOE Varitronix, Hong Kong, to fabricate automotive shows in India.
The association contains know-how switch for meeting and optical bonding of show screens, in addition to localization of canopy glass and backlight models for the four-wheeler phase, to be formalized by way of a Technical Help Settlement or a three way partnership. SJS counts main automotive manufacturers like FIAT, Honda, TVS, Hyundai, Brembo, Revolt, Bajaj, Mahindra, and Volkswagen amongst its purchasers.
The corporate is specializing in growing new applied sciences and superior merchandise, together with Optical Cowl Glass, Illuminated Logos, In-Moulded Digital (IME) components, and different next-generation options, whereas enhancing innovation and increasing product purposes throughout industries. Key prospects are being strengthened by way of mega accounts and cross-selling of current merchandise, alongside efforts to amass new purchasers.
On the export entrance, the corporate goals to deepen its presence in current markets, enter new geographies with emphasis on ASEAN, and strengthen its gross sales groups in Turkey, Brazil, Argentina, Colombia, and South Korea. Capability enlargement is progressing nicely, with a brand new chrome plating and portray plant at SJS Decoplast anticipated in Q3FY26, a greenfield plant for Optical Cowl Glass and show enterprise at Hosur, and ongoing enlargement at SJS Bangalore to help vital new enterprise alternatives.
On the steering entrance, SJS expects to proceed its robust monetary efficiency and outperform trade progress by greater than 2.5 instances, pushed by premiumisation, enlargement of mega OEM accounts, and growing exports. Breakthroughs with new massive OEMs are anticipated to contribute considerably to enterprise progress, whereas the present order e-book slated for execution in FY26 already accounts for over 90 % of the corporate’s forecasted income. The corporate additionally goals to take care of a sturdy margin profile by balancing greater progress with profitability.
Financially, SJS has delivered robust progress in Q2FY26 in contrast with the identical quarter final yr. Gross sales elevated from Rs. 193 crore to Rs. 242 crore, reflecting a 25.4 % rise. Working revenue rose from Rs. 50 crore to Rs. 68 crore, up 36.0 %, whereas working margins improved from 26 % to twenty-eight %. Revenue earlier than tax grew 48.7 % from Rs. 39 crore to Rs. 58 crore, and internet revenue jumped 48.3 % from Rs. 29 crore to Rs. 43 crore. Earnings per share elevated from Rs. 9.34 to Rs. 13.71, marking a 46.8 % improve.
Pricol Restricted, established in 1975 and headquartered in Coimbatore, is a number one supplier of automotive know-how and precision engineered merchandise. The corporate has grown to grow to be a trusted accomplice to main automotive OEMs worldwide by persistently pushing innovation in product design and course of know-how. Pricol operates by way of three key verticals: Driver Data and Related Car Options (DICVS), Actuation, Management and Fluid Administration System (ACFMS), and Precision Merchandise. The corporate’s market capitalization stands at Rs. 7,166.02 crore, with the present share value at Rs. 587.95.
Pricol employs over 470 product and course of engineers and maintains a presence in 16 international locations by way of direct OEM provides. Its manufacturing footprint contains 14 crops, together with subsidiaries, in India, UAE, Indonesia, Singapore, and Japan. The corporate’s product choices span a variety of automotive options. In DICVS, it supplies e-cockpits, LCD and TFT clusters, hybrid clusters, heads-up shows, telematics methods, reed-type gas degree sensors, and battery administration methods. ACFMS choices embrace electrical oil and coolant pumps, disc brake methods, gas pump modules, cabin tilt methods, and digital purge valves. The Precision Merchandise phase covers dashboards, radiators, grills, roof racks, garnish and adorning parts, windshields, gas tanks, and different inside and exterior fittings.
Pricol caters to a big selection of worldwide automotive manufacturers, together with BMW, Bajaj, Harley Davidson, Hero, Honda, Kawasaki, KTM, Piaggio, Royal Enfield, Suzuki, Triumph, TVS, Yamaha, Hyundai, Kia, Mahindra, Maruti Suzuki, and Toyota. The corporate has maintained its buyer centric strategy and technological edge, permitting it to develop its market attain whereas supporting innovation in automobile parts.
The administration famous three key points together with the uncommon earth magnet scarcity which has largely subsided and was nicely managed. The administration famous that Q3 will naturally be weaker than Q2 as typical for the auto trade and a brand new, bigger problem has emerged with Nexperia halting manufacturing of 80 to 90 automotive semiconductor components, affecting OEMs and Tier-1s like Pricol. This scarcity, mixed with smooth demand, will influence the quarter, although gross sales usually are not anticipated to drop considerably. Different parts have been sourced and validated, so income could solely be delayed by two to a few weeks, not misplaced. The administration mentioned, “We’re unlikely to exceed our inner targets this quarter (Q3FY26) and can in all probability meet them or be brief by 4 to 5 %.”
The administration mentioned the corporate will make investments round INR 250 to 300 crores in CAPEX this yr, beginning a brand new cycle pushed by acquisitions, new enterprise alternatives, and know-how expansions in switches, SPM, and disc brakes, together with land purchases for progress, with comparable CAPEX deliberate for subsequent yr.
On the monetary entrance, Pricol posted robust year-on-year progress in Q2FY26. Gross sales surged from Rs. 669 crore to Rs. 1,007 crore, a rise of fifty.5 %. Working revenue elevated from Rs. 77 crore to Rs. 118 crore, a 53.2 % rise, whereas working margins remained regular at 12 %. Revenue earlier than tax rose from Rs. 60 crore to Rs. 85 crore, up 41.7 %, and internet revenue elevated from Rs. 45 crore to Rs. 64 crore, marking a 42.2 % bounce. Earnings per share improved from Rs. 3.70 to Rs. 5.25, a 41.9 % improve.
-Manan Gangwar
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