Samkrg Pistons - Samkrg Pistons

📊 BSE: 520075 🏢 Auto Components & Equipments 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Overall revenue remained flat at INR 245 Cr in FY25 compared to INR 246 Cr in FY24. The aftermarket segment showed healthy growth of 22% YoY, while the OEM segment declined by 6% due to sluggish offtake from domestic 2W manufacturers.

Geographic Revenue Split

Domestic sales account for approximately 83% of total revenue, while exports contributed 17% (INR 41.65 Cr) in FY24, driven by product quality in international markets.

Profitability Margins

Net Profit Margin significantly declined from 5.11% in FY24 to 2.40% in FY25. Operating Profit Margin also dropped from 8.12% to 7.07% according to management data, primarily due to increased employee costs and VRS settlements.

EBITDA Margin

Operating profitability (EBITDA margin) was reported at 12.7% in FY25, down from 13.3% in FY24. The decline occurred despite improved gross margins because of a steep increase in employee costs and salary hikes pending since COVID-19.

Capital Expenditure

The company has planned capital expenditure of INR 10-15 Cr over the medium term to fund capacity maintenance and potential expansion into new product lines.

Credit Rating & Borrowing

Crisil reaffirmed 'Crisil BBB+/Stable' for long-term and 'Crisil A2' for short-term facilities. The total rated bank loan facilities were enhanced to INR 83.85 Cr from INR 68.85 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include aluminum, silica, and steel, which are essential for manufacturing pistons, piston rings, and gudgeon pins.

Capacity Expansion

Current capacity is not specified in units, but the company operates a main plant in Hyderabad and two units in Srikakulam. Expansion is focused on new products like valves and connecting rods.

Raw Material Costs

Raw material costs are subject to high volatility; the company manages this through annual pricing contracts with OEMs that allow for cost pass-through with a 3-6 month lag.

Manufacturing Efficiency

The company is upgrading technologies to comply with BS6 and Euro emission norms to maintain competitiveness in domestic and export markets.

Logistics & Distribution

The company operates through a strong network of dealers and distributors across India to service the replacement market, which accounts for 33% of revenue.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be driven by expanding the product portfolio to include valves and connecting rods, increasing presence in the 4W segment, and targeting higher export volumes. The company is also in the initial stages of developing EV engine parts in collaboration with existing clients.

Products & Services

Pistons, piston rings, gudgeon pins, auto shafts, valves, and connecting rods.

Brand Portfolio

SAMKRG

New Products/Services

Introduction of valves and connecting rods to diversify the product basket beyond traditional piston assemblies.

Market Expansion

Targeting expansion in the Indian domestic aftermarket and global export markets to reduce reliance on domestic OEMs.

Market Share & Ranking

Established position in the domestic 2W pistons and piston-rings market; specific percentage ranking not disclosed.

Strategic Alliances

Collaborating with existing OEM clientele for the development of EV-related engine parts.

🌍 External Factors

Industry Trends

The industry is shifting toward BS6/Euro norms and Electric Vehicles. While the 2W segment currently shows robust demand, the long-term trend is disrupting traditional engine component manufacturing.

Competitive Landscape

Faces intense competition from established players in the 4W segment and pricing pressure from dominant 2W OEMs.

Competitive Moat

Moat is built on 20+ years of promoter experience and long-standing 'sticky' relationships with major OEMs like Bajaj and TVS. Sustainability is challenged by the technological shift to EVs.

Macro Economic Sensitivity

Growth is closely tied to the performance of the Indian automobile industry and the health of the rural economy, which drives 2W demand.

Consumer Behavior

Shifts in consumer preference toward EVs and changes in emission/safety regulations are primary drivers of demand volatility.

Geopolitical Risks

Geopolitical instability in key export markets is identified as a risk that could disrupt demand uncertainty.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by stringent environmental standards, including BS6 and Euro emission norms for auto components.

Environmental Compliance

Compliant with norms prescribed by the Telangana State and Andhra Pradesh Pollution Control Boards.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the lack of EV-related products in the current portfolio, which could impact business performance over the medium term as the industry evolves.