This small-cap Auto Ancillary Stock, engaged in manufacturing springs and components primarily for the railway and engineering sectors, serving major government and private sector clients, is in focus after the company expects 116 percent net profit growth in FY27.
With a market capitalization of Rs. 1,622.47 crores, the share of Frontier Springs Limited has reached an intraday high of Rs. 4,180 per equity share, rising nearly 5.97 percent from its previous day’s close price of Rs. 3,944.55. Since then, the stock has retreated and is currently trading at Rs. 4,114.45 per equity share.
Guidance
For FY26, the company has raised its revenue guidance to Rs. 375 crore, up from Rs. 350 crore in the previous concall. Looking ahead, the management targets Rs. 500 crore in revenue for FY27, which is 116 percent growth compared to FY25 revenue.
On profitability, the company expects to sustain EBITDA margins in the range of 21–22 percent. With a growing focus on value-added products, management is optimistic about improving margins further to 23–24 percent in the coming years.
Capex
For FY26, the company has planned a total capex of Rs. 15 crore. This will be allocated across key areas, such as Rs. 5–6 crore for coil spring capacity, Rs. 4–5 crore for air spring development, and Rs. 2–3 crore for forging enhancements.
Beyond FY26, no major capex is expected to achieve the Rs. 500 crore revenue target. The company anticipates only maintenance capex of Rs. 2–3 crore in the following years.
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Order Book
As of April 1, 2025, the company’s order book stood at Rs. 150 crore. By the end of May, it increased to Rs. 200–250 crore, boosted by a fresh Rs. 100 crore order from the Rail Coach Factory (RCF) and the Modern Coach Factory (MCF). An additional Rs. 50 crore order is expected by the end of June, where the company currently holds L1 status.
The company sees a steady flow of tenders from Indian Railways and maintains a strong pipeline, with Rs. 100–150 crore in tenders consistently under evaluation. This ensures robust execution momentum and revenue visibility over the coming quarters. Frontier Springs Limited is a leading Indian manufacturer specializing in hot wound springs and related products for transportation, industrial, and government applications.
The company was established in 1981 and initially focused on producing leaf springs and laminated bearing springs for automobiles and railways, later expanding into coil springs for wagons, locomotives, and carriages as the railway sector modernised.
Frontier Springs Limited serves leading clients in the railway and engineering sectors. Its key customers include Chittaranjan, Banaras, and Patiala Locomotive Works. The company also supplies to BHEL, Indian Railways, Frontier Alloy Steels, and Integral Coach Factory. Major private sector clients include Texmaco Rail, Titagarh, and Rail Coach Factory, highlighting its strong industry presence.
Coming into financial highlights, Frontier Springs Limited’s revenue has increased from Rs. 44 crore in Q4 FY24 to Rs. 70 crore in Q4 FY25, which has grown by 59.09 percent. The net profit has also grown by 140 percent, from Rs. 5 crore in Q4 FY24 to Rs. 12 crore in Q4 FY25.
Frontier Springs Limited’s revenue and net profit have grown at a CAGR of 40.10 percent and 63.55 percent, respectively, over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at 41.8 percent and 32.5 percent, respectively. Frontier Springs Limited has an earnings per share (EPS) of Rs. 88, and its debt-to-equity ratio is 0.05x.
Written By Nikhil Naik
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