Subros Limited (SUBROS) AI Stock Analysis

• Market Cap: ₹54.81B
• Dividend Yield: 0.3%
• Average Volume (3M): 35.60K
• Price to Earnings (P/E): 34.1
• Beta (1Y): 1.04
• Revenue Growth: 8.91%
• EPS Growth: 24.72%
• Country: IN
• Employees: 3,688
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Auto - Parts
• EPS (TTM): 6.25
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹944.00 ▲(12.35% Upside)

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

Consistent revenue growth indicates expanding market presence and product demand, strengthening long-term business prospects.

Financial Structure

Low financial leverage enhances financial stability and flexibility, allowing for strategic investments and growth opportunities.

Profitability

Strong profitability margins demonstrate effective cost management and operational efficiency, supporting sustainable earnings growth.

Negative Factors

Free Cash Flow Conversion

Limited free cash flow conversion may constrain the ability to reinvest in growth initiatives or return capital to shareholders.

Valuation Concerns

High valuation multiples may limit upside potential and increase vulnerability to market corrections, impacting investor sentiment.

Dividend Yield

A low dividend yield may deter income-focused investors, potentially impacting stock attractiveness and demand in the market.

Subros Limited Business Overview & Revenue Model

Company Description

Subros Limited (SUBROS) is a leading manufacturer and supplier of thermal management solutions in India, primarily serving the automotive industry. Established in 1985, the company specializes in the design and production of air conditioning systems, refrigeration systems, and various related components for passenger vehicles, commercial vehicles, and off-road vehicles. Subros operates in collaboration with global automotive players and is recognized for its commitment to innovation and quality in its product offerings.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Neutral
• Last Price: 840.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Neutral. The current price of 840.25 is below the 20-day moving average (MA) of 857.86, below the 50-day MA of 957.17, and above the 200-day MA of 832.67, indicating a neutral trend. The MACD of -23.24 indicates Negative momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 40.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹79.41B	41.73	―	0.30%	35.16%	14.52%
PGIL	66 Neutral	₹74.88B	28.13	―	0.77%	24.93%	20.57%
SANGAMIND	64 Neutral	₹21.60B	58.01	―	0.46%	13.88%	-0.56%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SUBROS	60 Neutral	₹54.81B	34.15	―	0.30%	8.91%	24.72%
REDTAPE	58 Neutral	₹68.27B	37.79	―	0.61%	7.29%	14.72%
SEPC	53 Neutral	₹16.17B	44.43	―	―	8.69%	51.66%

Subros Limited Corporate Events

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.

Subros Limited Releases Investor Call Recording on Financial Results

Subros Limited has announced the availability of an audio recording from its recent Investor Conference Call, where the unaudited financial results for the quarter and half-year ending September 30, 2025, were discussed. This move reflects the company’s commitment to transparency and communication with its stakeholders, potentially impacting its market perception positively.