Subros Limited (SUBROS) AI Stock Analysis

• Market Cap: ₹49.26B
• Dividend Yield: 0.3%
• Average Volume (3M): 35.60K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 1.30
• Revenue Growth: 8.91%
• EPS Growth: 24.72%
• Country: IN
• Employees: 3,688
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Auto - Parts
• EPS (TTM): 6.60
• Shares Outstanding: 65,235,750
• 10 Day Avg. Volume: 23,641
• 30 Day Avg. Volume: 35,600
• PEG Ratio: 0.46
• Price to Book (P/B): 3.41
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 65.54
• 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): 27.5
• Revenue Forecast (FY): ₹37.49B

• Rating: 60 Neutral
• Price Target: ₹793.00 ▼(-10.65% Downside)
• Action: Reiterated Date: 11/12/25
• Date: Action: Reiterated 11/12/25

Subros Limited's overall stock score is primarily driven by its strong financial performance, characterized by robust revenue and profit growth, efficient cost management, and a stable financial structure. However, the technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing weak momentum indicators. Additionally, the high P/E ratio suggests potential overvaluation, and the low dividend yield offers limited income potential. These factors collectively result in a moderate overall stock score.

Positive Factors

Revenue Growth

Sustained double-digit top-line growth reflects successful OEM engagements and product adoption across vehicle platforms. Over 2–6 months this trend supports order visibility, scale benefits and expands bargaining power with suppliers and OEMs, strengthening long-term revenue durability.

Balance Sheet Strength

Extremely low leverage and a strong equity base provide durable financial flexibility to fund capex, absorb demand shocks and pursue model wins without heavy refinancing. This conservative capital structure reduces insolvency risk and supports steady execution through cycles.

Cash Generation

Operating cash conversion above 1.0 and strong free cash flow growth indicate robust core cash generation. Reliable cash flows support reinvestment in manufacturing, product development and working capital, improving sustainability of margins and funding for strategic initiatives.

Negative Factors

OEM Concentration & Cyclicality

Heavy dependence on OEM production cycles and specific platform wins exposes revenue to automotive demand swings and OEM procurement decisions. Structural cyclicality means multi-quarter downturns or loss of a platform win can materially reduce volumes and underutilize capacity.

Commodity Cost Exposure

Margins remain sensitive to raw-material and commodity price volatility and contract pass-through timing. Structural lag in cost recovery or unfavorable contract terms can compress gross margins over several quarters, pressuring profitability despite operational efficiency gains.

Free Cash Flow Conversion

Only 38% of reported net income converted to free cash flow, indicating capital intensity or working capital use that limits cash available for dividends, buybacks or debt reduction. Improving conversion is necessary to strengthen long-term shareholder returns and financial optionality.

Subros Limited Business Overview & Revenue Model

Company Description

Subros Limited engages in the manufacture and sale of thermal products for automotive applications in India. The company offers compressors; automotive condensers; heating, ventilating, and air conditioning (AC) systems, such as heaters, evaporators, and blower units; tubes and hoses; bus ACs; driver cabin ACs for railway engines; commercial and residential ACs; transport refrigeration systems; truck cabin AC systems; and off-roader AC systems. It also exports its products. The company was incorporated in 1985 and is headquartered in New Delhi, India.

How the Company Makes Money

Subros generates revenue primarily through the sale of its automotive air conditioning systems and components to major automobile manufacturers. The company's revenue model is based on direct sales to OEMs (original equipment manufacturers) as well as the aftermarket supply of parts and systems. Key revenue streams include contracts for manufacturing and supplying complete air conditioning units, compressor systems, and other thermal management components. Significant partnerships with leading automotive brands enhance its market presence and contribute to consistent earnings. Additionally, the company may benefit from government incentives for electric vehicle components, further diversifying its revenue sources.

Subros Limited Financial Statement Overview

Summary

Subros Limited exhibits a strong financial performance across all verticals. The income statement shows robust revenue and profit growth, supported by efficient cost management. The balance sheet reflects a stable financial structure with low leverage and a solid equity base. Cash flow analysis indicates healthy cash generation, with scope for further enhancing free cash flow conversion. Overall, the company is well-positioned financially in the Auto - Parts industry, though continued focus on improving free cash flow conversion will be beneficial.

Income Statement

Subros Limited has demonstrated strong revenue growth with a 10.68% increase from 2024 to 2025 and a robust net profit margin of 4.44% in 2025. The gross profit margin has improved significantly, indicating efficient cost management. The EBIT margin of 18.70% and EBITDA margin of 10.13% for 2025 further highlight operational efficiency. This solid performance in profitability metrics suggests a strong financial health in the income statement.

Balance Sheet

The company's balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.037 in 2025, indicating low financial leverage. The equity ratio is strong at 58.88%, suggesting a solid asset base supported by equity. Return on Equity (ROE) is moderate at 13.76%, reflecting the company's ability to generate profits from its equity base. Overall, the balance sheet shows a sound capital structure and prudent financial management.

Cash Flow

The cash flow statement shows a positive trajectory in operating cash flows, with operating cash flow to net income ratio at 1.16, indicating strong cash generation relative to net income. The free cash flow growth rate is 25.64% from 2024 to 2025, highlighting improved cash management. The free cash flow to net income ratio of 0.38 suggests that a significant portion of net income is being converted into free cash flow, although there is room for improvement in enhancing free cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.36B	33.57B	30.61B	28.06B	22.35B	17.93B
Gross Profit	9.56B	9.56B	2.71B	6.56B	5.06B	4.48B
EBITDA	3.34B	3.43B	2.66B	1.85B	1.55B	1.61B
Net Income	1.56B	1.51B	976.19M	479.20M	324.92M	473.91M
Balance Sheet
Total Assets	0.00	18.59B	16.51B	15.43B	15.05B	14.49B
Cash, Cash Equivalents and Short-Term Investments	1.62B	1.62B	1.22B	1.08B	1.18B	1.19B
Total Debt	0.00	409.30M	345.77M	814.20M	683.78M	1.06B
Total Liabilities	-10.94B	7.64B	6.95B	6.76B	6.81B	6.54B
Stockholders Equity	10.94B	10.94B	9.56B	8.67B	8.24B	7.95B
Cash Flow
Free Cash Flow	0.00	569.00M	452.80M	82.90M	448.51M	1.45B
Operating Cash Flow	0.00	1.75B	1.65B	1.41B	1.51B	2.08B
Investing Cash Flow	0.00	-1.65B	-914.78M	-1.45B	-996.47M	-583.65M
Financing Cash Flow	0.00	-130.80M	-650.29M	37.00M	-526.35M	-1.07B

Subros Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 887.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUBROS, the sentiment is Negative. The current price of 887.5 is above the 20-day moving average (MA) of 803.39, above the 50-day MA of 822.35, and below the 200-day MA of 891.27, indicating a bearish trend. The MACD of -9.38 indicates Positive momentum. The RSI at 37.09 is Neutral, neither overbought nor oversold. The STOCH value of 21.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUBROS.

Subros Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRICOLLTD	71 Outperform	₹71.19B	34.50	―	0.32%	35.16%	14.52%
PGIL	66 Neutral	₹68.94B	26.95	―	0.77%	24.93%	20.57%
SANGAMIND	63 Neutral	₹22.49B	39.67	―	0.45%	13.88%	-0.56%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
REDTAPE	61 Neutral	₹64.21B	30.71	―	0.60%	7.29%	14.72%
SUBROS	60 Neutral	₹49.26B	31.75	―	0.30%	8.91%	24.72%
SEPC	53 Neutral	₹11.39B	26.09	―	―	8.69%	51.66%

Subros Limited Corporate Events

Subros Board Clears Gujarat Capacity Expansion and DENSO Nominee Director Changes

Subros Limited’s board has approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025 and ratified several board-level changes, including the resignation of DENSO Corporation’s nominee director Yusuke Hara, the appointment of Naohisa Kuriyama as the new nominee director, and the appointment of Tsunenobu Hori as his alternate director, all subject to shareholder approval via a postal ballot process. The board also cleared a capacity expansion plan at its Karsanpura plant in Gujarat, adding new local electric-compressor capacity and expanding local ICE-compressor production, a move that underscores Subros’s push to strengthen its position in both traditional and electric vehicle component segments and signals a strategic scaling-up of operations at a key manufacturing hub.

Subros Releases Investor Presentation on Q3 and Nine-Month FY 2025-26 Results

Subros Limited has submitted an investor presentation to the stock exchanges detailing its unaudited financial results for the third quarter and nine-month period ended 31 December 2025 for FY 2025-26. The disclosure, made under SEBI’s Listing Obligations and Disclosure Requirements, aims to update investors and stakeholders on the company’s interim financial performance and reinforce transparency in its market communications.

Subros Responds to Exchange After Surge in Trading Volumes

A sharp rise in trading volumes of Subros Limited shares has prompted the stock exchange to seek clarification from the company to ensure investors have up-to-date and relevant information. The company has submitted its response, a routine step aimed at safeguarding investor interests and maintaining market transparency amid unusual activity in its stock.

Subros Limited Secures Major Maintenance Contract with Indian Railways

Subros Limited has secured a significant order from Indian Railways for a Comprehensive Annual Maintenance Contract of Cab HVAC Units, valued at approximately Rs. 52.18 Crores, to be executed over three years. This contract marks an expansion into service contracts for Subros, complementing its existing supply of air-conditioning systems to Indian Railways, and brings the company’s total order booking for the railway segment this financial year to approximately Rs. 86.35 Crores.