Subros Limited (SUBROS) AI Stock Analysis

• Market Cap: ₹43.65B
• Dividend Yield: 0.3%
• Average Volume (3M): 35.60K
• Price to Earnings (P/E): 40.6
• Beta (1Y): 1.37
• 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): 24.45
• Revenue Forecast (FY): ₹37.44B

• Rating: 60 Neutral
• Price Target: ₹703.00 ▼(-20.79% 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 & margin improvement

Sustained revenue growth with expanding gross and EBIT margins indicates durable operational leverage and improved cost control. Over 2-6 months this supports stronger earnings quality, better negotiation power with OEMs, and a firmer base for reinvestment into product development and capacity.

Very low financial leverage

Extremely low debt levels and a strong equity ratio provide financial flexibility for capex, localization or M&A without pressure from interest costs. This capital strength reduces bankruptcy risk and supports long-term investments to defend market share in auto components.

Improving cash generation

Operating cash flow above reported net income and strong year-over-year FCF growth reflect high quality earnings and improving cash conversion. This durable cash generation underpins funding for working capital, R&D and selective investment without increasing leverage.

Negative Factors

OEM concentration & cyclicality

Heavy dependence on OEM contracts ties revenue to automotive production cycles and platform decisions. That structural customer concentration can cause persistent volatility in orders, pricing pressure from large OEMs, and limit visibility across multi-month horizons.

Suboptimal FCF conversion ratio

While free cash flow is growing, conversion of accounting profits into free cash remains modest. Over time this restricts available cash for sustained capex, tooling or shareholder returns and requires management focus on working capital and capex efficiency to strengthen resilience.

Modest net profit margin

A single-digit net margin provides limited buffer against commodity swings, price concessions to OEMs or cyclical downturns. Persistently modest margins constrain capacity to fund R&D, absorb cost inflation, and may slow expansion compared with higher-margin peers in component supply chains.

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 makes money mainly by selling automotive thermal management systems and components to vehicle manufacturers (OEMs). Its core revenue stream is the supply of complete or partial vehicle air-conditioning solutions (including key AC components and assemblies) that are fitted into new vehicles during production, with revenues generally linked to OEM production volumes, model/platform wins, and the mix of vehicles using its systems. A second major stream is the sale of engine cooling and heat-exchanger products (e.g., radiators, condensers, evaporators and related assemblies), again largely to OEMs as part of their bill of materials for new vehicles. The company may also generate revenue from the aftermarket/servicing channel (replacement parts and service support for AC and cooling components) where applicable, though a segment split is not provided here (null). Earnings are influenced by long-term supply relationships and technical collaborations with automotive OEMs and industry partners, localization/manufacturing scale, and pass-through or management of raw-material and commodity cost movements under customer contracts; specific contract terms and named partnerships beyond public disclosures are not provided here (null).

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	34.88B	33.57B	30.61B	28.06B	22.35B	17.93B
Gross Profit	9.63B	9.56B	2.71B	6.56B	5.06B	4.48B
EBITDA	3.39B	3.43B	2.66B	1.85B	1.55B	1.61B
Net Income	1.61B	1.51B	976.19M	479.20M	324.92M	473.91M
Balance Sheet
Total Assets	20.01B	18.59B	16.51B	15.43B	15.05B	14.49B
Cash, Cash Equivalents and Short-Term Investments	1.75B	1.62B	1.22B	1.08B	1.18B	1.19B
Total Debt	805.60M	409.30M	345.77M	814.20M	683.78M	1.06B
Total Liabilities	8.42B	7.64B	6.95B	6.76B	6.81B	6.54B
Stockholders Equity	11.58B	10.94B	9.56B	8.67B	8.24B	7.95B
Cash Flow
Free Cash Flow	-587.70M	569.00M	452.80M	82.90M	448.51M	1.45B
Operating Cash Flow	-110.00M	1.75B	1.65B	1.41B	1.51B	2.08B
Investing Cash Flow	-259.40M	-1.65B	-914.78M	-1.45B	-996.47M	-583.65M
Financing Cash Flow	182.90M	-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: Positive
• STOCH: Positive

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 752.11, above the 50-day MA of 792.47, and below the 200-day MA of 890.97, indicating a bearish trend. The MACD of -35.74 indicates Positive momentum. The RSI at 27.51 is Positive, neither overbought nor oversold. The STOCH value of 10.64 is Positive, 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	₹64.19B	31.66	―	0.32%	35.16%	14.52%
PGIL	66 Neutral	₹66.94B	34.81	―	0.77%	24.93%	20.57%
SANGAMIND	63 Neutral	₹21.71B	25.56	―	0.45%	13.88%	-0.56%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
REDTAPE	61 Neutral	₹62.99B	16.39	―	0.60%	7.29%	14.72%
SUBROS	60 Neutral	₹43.65B	40.65	―	0.30%	8.91%	24.72%
SEPC	54 Neutral	₹7.98B	31.63	―	―	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.