SHRIPISTON - Shriram Pistons

📊 NSE: SHRIPISTON 🏢 Auto Ancillaries 📅 Last Updated: 12/14/2025 13:19

💰 Financial Performance

Revenue Growth by Segment

Consolidated total income grew 14.9% YoY to INR 20,344 Million in H1 FY26. Standalone total income increased 9.4% YoY to INR 17,601 Million. Subsidiary revenue showed significant momentum, growing 74% in Q2 FY26 compared to the previous year, driven by new business wins and EV segment scaling.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains export customers and international operations through subsidiaries like Takahata and TGPEL.

Profitability Margins

Standalone PAT margin stood at 15.0% (INR 2,637 Million) in H1 FY26, up from 14.9% in H1 FY25. Consolidated PAT margin was 13.6% (INR 2,770 Million). Historical standalone PAT margins have improved from 5.5% in FY21 to 15.2% in FY25.

EBITDA Margin

Standalone EBITDA margin was 23.3% (INR 4,104 Million) in H1 FY26, a slight decrease from 23.4% in H1 FY25. Consolidated EBITDA margin was 22.5% (INR 4,570 Million). The company aims to maintain margins across all segments, ensuring acquisitions do not dilute overall EBITDA targets.

Capital Expenditure

Regular capex is maintained in line with depreciation (INR 86.5 Cr in FY25) for existing businesses. Surplus cash is strategically allocated for M&A opportunities and nonlinear growth initiatives, such as the Antolin India acquisition.

Credit Rating & Borrowing

The company is net-debt free with a low debt-equity ratio. Standalone total borrowings as of H1 FY26 were INR 368.7 Cr (INR 62.5 Cr non-current and INR 306.2 Cr current). Finance costs were INR 12.3 Cr in H1 FY26, down from INR 13.2 Cr YoY.

⚙️ Operational Drivers

Raw Materials

Not specifically named in documents, though products like pistons, rings, and engine valves typically require specialized alloys and steel. Antolin products include headliners and sunvisors involving fabrics and plastics.

Capacity Expansion

The company maintains a high asset turn of over 4x in its new subsidiary businesses. Investments in the EV motor plant are scaled based on growth requirements, currently manufacturing motors from 250W upwards.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but management noted that cost structures for acquired entities (like Antolin) will be relooked at to align with SPRL's localized, high-efficiency model.

Manufacturing Efficiency

The company utilizes state-of-the-art, modern operational setups. Standalone EBITDA margins have been consistently maintained above 23% despite market volatility, indicating high operational efficiency.

📈 Strategic Growth

Expected Growth Rate

8-10%

Growth Strategy

SPRL aims to outgrow the end market (growing at 3-4%) by more than double through new business wins in subsidiaries and scaling the EV motor business. The acquisition of Antolin India provides market leadership in roofliners. The company leverages its low debt-equity to pursue M&A for nonlinear growth while maintaining a 4x asset turn in new ventures.

Products & Services

Pistons, piston rings, engine valves, EV motors (250W and above), headliners, sunvisors, and plastic automotive parts.

Brand Portfolio

SPR, Shriram Pistons & Rings.

New Products/Services

EV motors (targeting INR 100 Cr+ revenue in 2-3 years from INR 26 Cr in FY25) and the integration of Antolin's headliner and sunvisor portfolio.

Market Expansion

Focusing on consolidating the Antolin acquisition and expanding the EV motor business. The company is also looking at further M&A opportunities to leverage its low debt position.

Market Share & Ranking

Market leader in roofliners and sunvisors in India (via Antolin acquisition). Significant player with high market share in pistons, rings, and engine valves.

Strategic Alliances

Maintains a JV with Krishna Maruti to service Maruti Suzuki. Strategic partnerships exist with Riken Corporation and KS Kolbenschmidt GmbH.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward EVs (where SPRL is investing in motors) and premiumization in interiors (headliners). While the general market grows at 3-4%, SPRL is positioning itself in high-growth niches to grow at 2x the market rate.

Competitive Landscape

Competitors in the interior segment include Supreme Industries and IAC. In core engine parts, the company competes with both domestic and international players.

Competitive Moat

Moat is built on market leadership in core components, high ROCE (27% in FY25), and deep-rooted OEM relationships. The ability to localize global cost structures provides a sustainable cost advantage over international competitors.

Macro Economic Sensitivity

Highly sensitive to the Indian auto industry growth, which is currently muted at 3-4%. Revenue is also sensitive to GST policy announcements affecting aftermarket and OEM timing.

Consumer Behavior

Muted domestic demand and consumer hesitation due to regulatory/tax uncertainty (GST) impacted short-term volumes in Q2 FY26.

Geopolitical Risks

Geopolitical situations are cited as a factor creating 'challenging market conditions' in the auto industry during H1 FY26.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to GST regulations and automotive manufacturing standards. The company monitors GST council announcements closely as they impact sales timing.

Environmental Compliance

Received the 'Significant Achievement in Environment Management' award from industry bodies in 2025.

Taxation Policy Impact

Effective tax rate was approximately 25.5% in H1 FY26 (INR 90.4 Cr tax on INR 354.1 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Muted growth in domestic end markets (3-4% growth) and geopolitical uncertainties could impact consolidated growth targets. Integration risk of the Antolin acquisition regarding cost-structure realignment.

Geographic Concentration Risk

Not disclosed, but heavily tied to the Indian automotive production volumes (17.2 million units in H1 FY26).

Third Party Dependencies

Dependency on OEMs like Maruti Suzuki for a high percentage of market share in specific segments.

Technology Obsolescence Risk

Mitigated by diversification into EV motors and non-engine components like headliners to offset potential long-term declines in internal combustion engine (ICE) components.