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SPR reported a strong Q4, with consolidated revenue/EBITDA growth accelerating ~47/27% YoY to Rs14.6/Rs2.7bn. EBITDAM dipped by ~288/171bps YoY/QoQ to 18.4%. This was due to rising share of subsidiaries, which (C-S) contributed ~34.5% of consol revenue (vs 15.5/13.5% in Q3FY26/Q4FY25), with EBITDAM of ~12% (vs ~17/15% in Q3FY26/Q4FY25), owing to the Antolin acquisition (derived revenue/EBITDA of ~3.3/0.3bn, with EBITDAM of ~10%). The management reiterated confidence on sustaining industry-beating growth on the back of capacity additions, technology-led acquisitions, and diversified product portfolio – around 60% of revenue being powertrain-agnostic across interiors, lighting, precision plastics, and aftermarket, thus cushioning EV risk. The mgmt targets EBITDA margin of all subsidiaries (current margin at ~20% for TGPEL/Takahata and ~10% for Antolin) to be akin to the EBITDA margin of the SA entity (~21% in FY26) over the next 3Y. The mgmt has proposed QIP of Rs10bn, entirely for funding organic and inorganic expansion, with focus on technology-led expansion. SPR aims for capex of ~Rs2bn over the next 2-3Y to support future growth programs, including Takahata’s new Neemrana facility, the TGPEL capacity expansion at Noida, and phase-3 expansion at SEL Pithampur plant. We continue to favor SPR within auto ancillaries, given its dominance among core segments, even as it is transitioning into a multi-product, multi-domain player. (Refer to Growth firing across verticals; valuation comfort high). We maintain BUY and TP of Rs4,850, at 25x FY28E PER. SPR trades at 23x FY28E PER. We build in FY26-28E revenue/EBITDA/EPS CAGR of ~27/24/21%.

Revenue growth accelerates to 47% YoY, mainly led by the Antolin acquisition Consol revenue grew ~47% YoY to Rs14.6bn, with consol EBITDA up ~27% YoY to Rs2.7bn; EBITDAM dipped to 18.4% (171bps lower QoQ), majorly led by increasing share of subsidiaries (~34.5% revenue share in Q4FY26 vs 15.5/13.5% in Q3FY26/Q4FY25). Consol adjusted PAT rose ~8% YoY to Rs1.6bn. SA revenue also grew at ~12% YoY, with EBITDA up ~9% YoY and EBITDAM higher by 109bps QoQ at 21.7%. SA adj PAT fell 2.5% YoY to Rs1.4bn largely due to higher finance cost.

Earnings call KTAs

1) The mgmt reiterated confidence on sustaining industry-beating growth, led by capacity adds, technology-led acquisitions, and diversified product portfolio – around 60% of revenue being powertrain-agnostic across interiors, lighting, precision plastics, and aftermarket, cushioning EV risk.

2) It targets EBITDA margin of all subsidiaries (current margin at ~20% for TGPEL/Takahata and ~10% for Antolin) to be akin to the margin of the SA entity (~21% in FY26) over the next 3Y.

3) The mgmt highlighted that OEM customers are actively developing hybrid platforms, with SPR already engaged across these programs.

4) Mandatory ABS implementation in 2Ws is emerging as a positive demand driver for high-precision plastic molded components.

5) SPR plans capex of ~Rs2bn over the next 2-3Y which would support future programs ahead, incl Takahata’s new Neemrana facility, TGPEL’s capacity expansion at Noida, and phase-3 expansion at SEL Pithampur plant.

6) The mgmt proposed QIP of Rs10bn, aimed at funding organic and inorganic expansion, with focus on technology-led expansion.

7) It sees component insourcing for Antolin through TGPEL/Takahata as a key margin-accretive synergy lever.

8) Commodity costs are a passthrough (a one-quarter lag) which helps sustain margins.

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