Synopsis: Subros Ltd jumped sharply after the company secured a significant contract worth Rs 1,280 crore from Maruti Suzuki for supplying electric compressors for Maruti’s EVs and hybrids over the next seven years.
The shares of this leading auto ancillary company, engaged in the business of manufacturing and supplying auto air conditioning products for all major automakers in the passenger and commercial vehicle space, are in focus after it secured a large order from Maruti Suzuki. In this article, we will dive more into the details of it.
With a market capitalisation of Rs 5,369 crore, the shares of Subros Ltd reached a day high of Rs 854.25 per share, up 10.4 percent from its previous day’s closing price of Rs 773.85 per share. Over the past five years, the stock has delivered a robust 139 percent return, outperforming NIFTY 50’s return of 85 percent.
About the order
Subros Limited, through a stock exchange filing, announced that it has secured a significant new order worth around Rs 1,280 crore from Maruti Suzuki India (MSIL) for supplying locally made electric compressors to the company.
The order comprises compressors that will be utilized in MSIL’s electric vehicles and hybrid vehicle programs, thus opening the door for Subros to the very promising electric mobility sector. The contract will be executed over an estimated seven-year period, starting from the respective start of production of the vehicle models. The order has been awarded under the existing basic purchase agreement with MSIL and is classified as a domestic order.
The new order award further strengthens Subros’ long-standing relationship with Maruti Suzuki and strengthens the company’s position as a leading supplier of automotive thermal systems in India. The firm is going to localize the electric compressor technology with the help of DENSO Corporation and Toyota Industries Corporation, Japan, getting technical support from them, thus enhancing its capabilities in the technology of advanced EV components.
Financials
Subros Ltd has reported an operating revenue of Rs 880 crore in Q2 FY26, representing a 6 percent growth compared to Rs 828 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew slightly by 0.23 percent from Rs 878 crore.
Regarding its profitability, the company reported a net profit of Rs 41 crore in Q2 FY26, representing a 14 percent growth compared to Rs 36 crore in Q2 FY25. However, on a quarter-on-quarter basis, it remained largely flat at Rs 41 crore.
Subros Limited is the leading manufacturer of thermal products for automotive applications in India, in technical collaboration with DENSO Corporat only integrated manufacturing unit in India for Auto Air Conditioning systems and Thermal Products. It was founded in 1985 as a joint venture with the Suri family of India, DENSO Corporation & Suzuki Motor Corporation, Japan.
Subros Limited manufactures compressors, condensers, heat exchangers, and all connecting elements required to complete the AC loop for trucks, refrigeration transport, and railways. The company holds a dominant market share across its segments, which is a share of 42 percent in Passenger car AC and a 44 percent share in Truck Aircon/Blower.
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