Spectrum Electrical Industries Limited (SPECTRUM) AI Stock Analysis

• Market Cap: ₹20.42B
• Dividend Yield: N/A
• Average Volume (3M): 278.00
• Price to Earnings (P/E): 79.2
• Beta (1Y): 0.26
• 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: ₹1,349.00 ▲(12.79% Upside)

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 & Margin Improvement

Sustained revenue growth and rising gross and net margins show durable demand and better cost management across product lines. This trend supports reinvestment in R&D and capacity, improving competitive positioning and resilience across residential, commercial and industrial end-markets.

Diversified Revenue Streams & Partnerships

Multiple income streams—wholesalers/distributors, end-user sales, engineering services and construction partnerships—reduce single-market exposure. Services and project partnerships create stickier, higher-margin revenue and steady project pipelines that underpin medium-term stability and growth.

Improved Return on Equity

Higher ROE indicates more effective use of shareholders' capital, reflecting operational improvements. A moderate equity ratio provides a capital buffer; together these support sustainable earnings retention and funding for strategic investments without immediate dilution.

Negative Factors

Negative Cash Generation

Persistent negative operating and free cash flows despite reported profits signal weak cash conversion and working-capital strain. Over months this can force external financing, constrain capex or R&D, and weaken the company's ability to fund growth or absorb demand shocks without raising costs.

Elevated Leverage

Higher leverage raises fixed interest obligations and reduces financial flexibility. Over a multi-month horizon, elevated debt levels limit capacity to invest, heighten refinancing and interest-rate risks, and make the business more vulnerable to cyclical downturns in construction and industrial demand.

Modest Operating Efficiency

While margins improved, mid-teens EBITDA and sub-12% EBIT suggest limited operational cushions versus peers. Sustained improvement is needed to absorb higher leverage and fund growth; otherwise margin constraints could curtail reinvestment, competitiveness and long-term profitability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 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	₹13.23B	18.37	―	―	34.48%	40.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SALZERELEC	61 Neutral	₹9.70B	17.42	―	0.36%	21.51%	-17.75%
HPL	60 Neutral	₹20.99B	21.89	―	0.24%	6.08%	49.44%
HIRECT	58 Neutral	₹21.36B	44.92	―	0.13%	35.05%	99.65%
SUNDRMBRAK	55 Neutral	₹2.21B	-158.60	―	0.22%	4.26%	-121.56%
SPECTRUM	54 Neutral	₹20.42B	79.19	―	―	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.

Spectrum Electrical Industries Limited Publishes Postal Ballot Notice

Spectrum Electrical Industries Limited has announced the publication of a newspaper advertisement regarding a Postal Ballot Notice, in compliance with SEBI regulations. This announcement, published in ‘The Times of India’ and ‘Divya Marathi,’ reflects the company’s adherence to regulatory requirements and its commitment to transparency with stakeholders.

Spectrum Electrical Industries Limited Releases Financial Results for September 2025

Spectrum Electrical Industries Limited announced the approval of its unaudited standalone and consolidated financial results for the quarter and half-year ending September 30, 2025. The financial results, reviewed by SHARP AARTH & CO LLP, will be made available on the company’s website and published in newspapers. This announcement highlights the company’s commitment to transparency and regulatory compliance, potentially impacting its market positioning and stakeholder confidence.