Spectrum Electrical Industries Limited (SPECTRUM) AI Stock Analysis

• Market Cap: ₹22.76B
• Dividend Yield: N/A
• Average Volume (3M): 278.00
• Price to Earnings (P/E): 88.3
• Beta (1Y): -0.12
• Revenue Growth: 21.51%
• EPS Growth: 28.36%
• Country: IN
• Employees: 1,319
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 6.44
• Shares Outstanding: 15,713,840
• 10 Day Avg. Volume: 510
• 30 Day Avg. Volume: 278
• PEG Ratio: 3.86
• Price to Book (P/B): 16.58
• Price to Sales (P/S): 8.19
• P/FCF Ratio: -36.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹1,478.00 ▲(23.58% Upside)
• Action: Reiterated Date: 01/17/26
• Date: Action: Reiterated 01/17/26

The score is held back primarily by negative operating/free cash flow and elevated leverage despite strong revenue and margin improvement. Technical indicators also point to weak momentum with the stock below key moving averages and a negative MACD. A high P/E further pressures the score due to demanding valuation.

Positive Factors

Revenue Growth

SPECTRUM's 22.7% top-line growth reflects expanding demand and successful market penetration across segments. Durable revenue expansion supports scale economics, funds reinvestment in products and distribution, and underpins medium-term earnings sustainability if growth execution continues.

Margin Improvement

Rising gross and net margins (and a 15% EBITDA margin) indicate improved pricing power and cost control. Sustained margin expansion enhances cash generation potential per unit of revenue and provides a buffer against commodity or input cost swings over the coming months.

Diversified Business Model & Partnerships

Multiple revenue streams (product sales, engineering services) and construction/contractor partnerships reduce customer concentration and cyclical exposure. This breadth supports steadier order flow, cross-selling, and resilience across residential, commercial and industrial markets over a multi-month horizon.

Negative Factors

Negative Operating & Free Cash Flow

Material negative operating and free cash flows despite reported profits point to working-capital stress or heavy capex. This undermines internal funding for growth, elevates reliance on external financing, and creates sustained liquidity risk if not corrected within several quarters.

Elevated Leverage

A debt-to-equity ratio above 1.0 signals higher financial leverage and interest exposure. Elevated indebtedness limits strategic flexibility, increases refinancing and interest-rate sensitivity, and magnifies downside if cash generation remains weak over the medium term.

Room for Operational Efficiency Improvement

While margins improved, mid-teens EBITDA and sub-12% EBIT indicate operational efficiency gaps versus best-in-class peers. Without further productivity gains or margin expansion, revenue growth may not fully translate into durable free cash flow or higher returns on invested capital.

Spectrum Electrical Industries Limited Business Overview & Revenue Model

Company Description

Spectrum Electrical Industries Limited designs, manufactures, and sells electrical, automobile, and irrigation components in India. The company provides distribution boards, AC boxes, modular electric board panels, mini MCB bases and covers, tools, moulds, electric bulb holders, auto and irrigation equipment, lamp angle holders, EV chargers, control panel, metal junction boxes, electrical safety devices, and other electrical components. It also offers surface coating services; metallic stamping services; plastics molding services; molds, dies, and tooling products; and end to end solutions. Spectrum Electrical Industries Limited was incorporated in 2008 and is based in Mumbai, India.

How the Company Makes Money

SPECTRUM generates revenue through multiple key streams, primarily by selling its electrical products directly to wholesalers, distributors, and end-users in various sectors. The company also earns income from providing specialized engineering services, including system design and installation support, tailored to client needs. Significant partnerships with construction firms and electrical contractors enhance SPECTRUM's market reach and facilitate large-scale projects, contributing to consistent revenue growth. Additionally, SPECTRUM invests in research and development to create innovative solutions, which allows the company to maintain a competitive edge and attract new clients, further bolstering its financial performance.

Spectrum Electrical Industries Limited Financial Statement Overview

Summary

Strong revenue growth (+22.7% from 2024 to 2025) and improved profitability (gross margin 25.9%, net margin 6.6%) are positives. However, higher leverage (debt-to-equity 1.12) and especially weak cash generation (negative operating cash flow and free cash flow in 2025) materially increase financial risk and reduce the score.

Income Statement

Spectrum Electrical Industries Limited has demonstrated strong revenue growth with a 22.7% increase from 2024 to 2025. The gross profit margin improved to 25.9% in 2025, indicating efficient cost management. Net profit margin also increased to 6.6%, reflecting enhanced profitability. However, the EBIT margin of 11.7% and EBITDA margin of 15.0% suggest room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio increased to 1.12 in 2025, indicating higher leverage, which could pose financial risks. However, the return on equity improved to 13.5%, showcasing better utilization of equity. The equity ratio of 42.8% suggests a moderate level of financial stability, though the increase in total debt warrants caution.

Cash Flow

The cash flow situation is concerning, with negative operating cash flow of -263.1 million and free cash flow of -875.0 million in 2025. The operating cash flow to net income ratio is negative, indicating cash flow challenges despite profitability. The free cash flow to net income ratio is also negative, highlighting potential liquidity issues.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.86B	3.14B	2.53B	2.51B
Gross Profit	999.04M	777.40M	721.16M	582.83M
EBITDA	578.57M	465.58M	278.62M	260.32M
Net Income	256.09M	194.18M	84.50M	76.51M
Balance Sheet
Total Assets	4.45B	3.18B	2.53B	2.18B
Cash, Cash Equivalents and Short-Term Investments	45.02M	118.08M	86.51M	147.47M
Total Debt	2.14B	943.68M	1.03B	786.82M
Total Liabilities	2.54B	1.53B	1.65B	1.34B
Stockholders Equity	1.90B	1.65B	878.15M	833.88M
Cash Flow
Free Cash Flow	-875.01M	-146.76M	-120.94M	-11.71M
Operating Cash Flow	-263.11M	41.73M	18.52M	210.93M
Investing Cash Flow	-527.63M	-378.22M	-91.52M	-227.78M
Financing Cash Flow	717.68M	368.06M	136.94M	-45.60M

Spectrum Electrical Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDOTECH	68 Neutral	₹16.77B	18.67	―	―	34.48%	40.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HPL	60 Neutral	₹21.85B	22.46	―	0.24%	6.08%	49.44%
HIRECT	58 Neutral	₹24.38B	48.24	―	0.13%	35.05%	99.65%
SALZERELEC	58 Neutral	₹11.64B	22.02	―	0.36%	21.51%	-17.75%
SUNDRMBRAK	55 Neutral	₹2.38B	-66.63	―	0.22%	4.26%	-121.56%
SPECTRUM	54 Neutral	₹22.76B	88.28	―	―	21.51%	28.36%

Spectrum Electrical Industries Limited Corporate Events

Spectrum Electrical Industries’ CRISIL Ratings Upgraded as Bank Facilities Raised to Rs.250 Crore

Spectrum Electrical Industries Limited has had its aggregate rated bank facilities increased from Rs.150 crore to Rs.250 crore by CRISIL Ratings Limited, signalling expanded borrowing capacity to support its business requirements. Concurrently, CRISIL upgraded the company’s long-term rating to CRISIL BBB+/Stable from CRISIL BBB/Positive and its short-term rating to CRISIL A2 from CRISIL A3+, indicating an improved assessment of its credit profile and timely debt-servicing capability, which may enhance the firm’s access to bank funding and potentially lower its financing costs.

Spectrum Electrical Files SEBI Regulation 74(5) Compliance Certificate, Reports No Demat Requests in Q3 FY26

Spectrum Electrical Industries Limited has submitted to NSE and BSE a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, issued by its registrar and share transfer agent, Bigshare Services Pvt. Ltd. The registrar has confirmed that no dematerialisation requests for Spectrum’s equity shares were received during the period from 1 October 2025 to 31 December 2025, underscoring the company’s ongoing adherence to securities market regulations and providing transparency to investors on share transfer and depository activity in the latest quarter.