Spectrum Electrical Industries Limited (SPECTRUM) AI Stock Analysis

• Market Cap: ₹21.34B
• Dividend Yield: N/A
• Average Volume (3M): 278.00
• Price to Earnings (P/E): 47.6
• Beta (1Y): -0.06
• 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: ₹1,387.00 ▲(15.97% 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

Sustained 22.7% top-line growth indicates durable demand for Spectrum's electrical products across residential, commercial, and industrial channels. Over 2-6 months this supports scale benefits, distributor relationships, and backlog visibility, strengthening long-term market penetration and revenue predictability.

Margin Improvement

Improved gross and net margins show better cost control and pricing power in core product lines. Higher margins enhance ability to fund R&D and service contracts, support sustainable profitability, and provide a cushion against raw material or input cost swings over the medium term.

Return on Equity & Capitalization

ROE of 13.5% with a 42.8% equity ratio signals improved capital efficiency and moderate capitalization. This combination supports long-term shareholder value creation and gives management flexibility to pursue targeted investments without fully relying on external financing.

Negative Factors

Cash Generation

Material negative operating and free cash flow despite reported profits indicates weak cash conversion from operations. Over months this can strain liquidity, constrain reinvestment in production or R&D, and force reliance on external financing or working-capital measures to sustain growth.

Elevated Leverage

A D/E above 1.0 marks elevated financial leverage that raises interest and refinancing risk. Combined with negative cash flow, this reduces financial flexibility, increases sensitivity to margins or demand shocks, and could limit the company's ability to fund strategic projects without raising costly capital.

Operational Efficiency Limits

Mid-teens EBITDA and low double-digit EBIT margins indicate the business still has operational efficiency gaps versus stronger peers. Over the medium term, improving overhead, manufacturing productivity, or mix will be necessary to convert revenue growth into durable higher profits and cash generation.

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	₹14.70B	16.63	―	―	34.48%	40.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HPL	60 Neutral	₹20.54B	33.68	―	0.24%	6.08%	49.44%
HIRECT	58 Neutral	₹24.75B	49.83	―	0.13%	35.05%	99.65%
SALZERELEC	58 Neutral	₹10.79B	24.44	―	0.36%	21.51%	-17.75%
SUNDRMBRAK	55 Neutral	₹2.24B	-54.31	―	0.22%	4.26%	-121.56%
SPECTRUM	54 Neutral	₹21.34B	47.55	―	―	21.51%	28.36%

Spectrum Electrical Industries Limited Corporate Events

Spectrum Electrical Completes 100% Acquisition of Alric Electric

Spectrum Electrical Industries Limited has completed the acquisition of a 100% equity stake in Alric Electric Private Limited, purchasing 10,000 shares from existing shareholders for Rs. 1.11 crore. The deal, finalized on 6 March 2026 through a share transfer under Companies Act provisions, converts Alric Electric into a wholly owned subsidiary and signals Spectrum’s intent to expand its footprint and consolidate capabilities within the electrical industry ecosystem.

The acquisition follows board approval granted in early February 2026 and aligns with disclosure norms under SEBI’s listing regulations, underscoring Spectrum’s compliance-driven approach to corporate transactions. By fully absorbing Alric Electric, Spectrum could leverage operational synergies, broaden its product or service offerings and strengthen its competitive positioning, with potential medium-term benefits for customers and other stakeholders as integration progresses.

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.