SPR Auto Technologies Q2 FY27 Earnings Call: Revenue Jumps 61%, Guides 9-14% Growth Post-Antolin (SHRIPISTON)

SPR Auto Technologies Ltd held its Q2 FY27 earnings call on October 30, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Broad-Based Growth, Margin Compression From External Factors

• Q2 FY27 consolidated total income grew 61% YoY to Rs.16,746 million — EBITDA grew 29% to Rs.3,004 million; H1 FY27 total income stood at Rs.31,738 million (+56%) with EBITDA of Rs.5,831 million (+28%).
• Standalone total income grew 17% YoY to Rs.10,500 million in Q2 FY27 — growth came from all businesses, including the recently acquired three entities of Antolin India.
• Q2 FY27 consolidated EBITDA margin was 17.9% — temporarily affected by elevated commodity prices, elevated direct material costs (tools, oils), sales mix change, and minimum wage revision.
• Standalone EBITDA margin was 19.9% (~20%) in Q2 FY27 — management pushed back on the analyst's ~18% (ex-other income) framing as a "new normal," attributing the 1-2% decline primarily to mix.
• Elevated finance costs of Rs.234 million in Q2 FY27 (Rs.486 million in H1 FY27) funded the Antolin India acquisition; excluding this, PBT grew 23% in Q2 FY27 and 22% in H1 FY27.
• Industry tailwind — PVs, CVs, 2Ws and 3Ws all recorded highest-ever Q2 sales, with weighted average industry production growing over 17% in Q2 FY27, supported by GST 2.0 reforms, resilient consumption and improved financing.

Powertrain-Agnostic Mix Deepens; Incremental Wins Ahead

• Powertrain-agnostic products now contribute more than 35% of consolidated revenue — nearly 60% of the business is relatively insulated from powertrain technology shifts.
• Management guided to a total CAGR of ~7-8% over FY 2027-2028 and FY 2028-2029 from the FY 2026-2027 base, and said the recent ~17-20% growth rate will not continue over that period.
• Post-March 2027 (FY 2027-2028 onwards, once Antolin is fully consolidated) — management aims to outgrow end markets: if end markets grow at 7%, company growth "has to be far better than 7%", potentially 9%-14% depending on business wins and product mix.
• Expects mature-year incremental business wins of over Rs.1,000 crore across all businesses (period unspecified), over and above an existing regular business base of ~Rs.6,000 crore it expects to maintain (period unspecified); specific program wins not disclosed, citing close tracking by competition.
• ICE demand persists — management reiterated the market is expected to grow at ~7-8% CAGR (period unspecified), with more ICE engines still required in 2030 and 2032; CNG, FCNG and other powertrains seen as further drivers.
• Standalone business maintained steady ~17% growth in H1 FY 2026-2027 — broadly in line with the market's weighted average growth of ~17%.

Pass-Through Lag Masks Commodity Recovery; Wage Headwind Absorbed

• RM impacts are covered 100% through back-to-back customer arrangements — with a pass-through lag of roughly one quarter (one to three months); a significant part of the Q2 margin impact is timing-related.
• Standalone gross margin fell from ~60% (±50bps) historically to ~55-56% over recent quarters (FY 2026-2027) — management said the split between business mix and commodity time-lag is "very difficult to calculate," but commodities are more or less fully recovered.
• Employee cost increase is fully absorbed in Q2 FY 2026-2027 — drivers were revised minimum wages in Haryana under the minimum wages act (with consequent effect across Rajasthan, UP and other places), plus PF and gratuity regulation impacts; gratuity is a one-time but sizable charge given the large workforce.
• Q3 FY 2026-2027 commodity trajectory hinges on the war situation — aluminum prices have started declining on Middle East supply chain normalization, but prices of oils, direct materials, and tools/dies continue rising due to the war.
• Cost initiatives underway — plant debottlenecking, productivity improvements, affordable automation and digitization, supply-base streamlining, backward integration, and inventory/logistics optimization; a new renewable PPA with Sunsure for the Patreli and Nimrana facilities is expected to support energy cost optimization.
• Management declined to confirm a fixed RM basket split — the analyst's ~50% aluminum / ~20-25% steel & copper assumption was not endorsed; the mix varies month to month with sales mix.

Capex Ahead of the Market; QIP Funds Debt Paydown

• Capex is being deployed "ahead of the market" for FY 2026-2027 across all segments — expansions at Pitampur, Ghaziabad, the TGPL facility, a completed expansion at Patredi, precision injection molding capacity, a complete new plant next to the existing Imrana plant, and interiors capex across multiple Antolin product lines.
• Management declined to quantify FY 2026-2027 capex in Rs. crore — the plan "keeps on changing" with another 3-4 investment decisions pending; characterized as "very sizable."
• Rs.10,000 million QIP completed end of August (FY 2026-2027) — with strong participation from marquee domestic and global institutions; most existing debt has been closed following the QIP, and management hopes Q3 FY 2026-2027 results will show a lower interest component.
• Capacity utilization at 75-80% in Q2 FY 2026-2027 against OE market growth of ~30-35% (FY 2026-2027) — management prioritized retaining market share (confirmed retained) and balancing volumes across aftermarket, exports and OEMs; direct OEM export commitments cannot be re-allocated, limiting mix flexibility.
• No debt or equity raise is planned at this stage — future acquisition funding will depend on deals tied up, supported by a strong balance sheet and healthy cash balance; management is actively evaluating more acquisitions.

Speakerless Headliners, ABS-Driven Plastics and Lighting Momentum

• Speakerless acoustic headliner PAC secured — nominated by multiple customers for future programs, including all electric vehicles; proof-of-concepts delivered to at least 2-3 customers; realization uplift of 15-18% vs conventional headliners in small cars, rising to close to 30-40% in larger vehicles (period unspecified).
• ABS mandate in two-wheelers is driving precision plastics orders — a regulatory change mandating ABS is driving demand for braking components that integrate with the ECU; the company has already won this business from customers.
• Nimrana precision plastics facility to serve ABS requirements — supplies expected to start by April (Q1 FY 2027-2028); customers have set an April deadline to introduce ABS to most of their two-wheeler end customers.
• Antolin synergies "perfectly on track" — management confirmed the synergies between SPR's plastics business and Antolin's business, discussed at the time of the acquisition, are on track; Antolin interiors and lighting delivered strong operational and financial performance alongside new customer wins.
• Lighting is growing faster than all other businesses in the interiors segment in H1 FY 2026-2027 — at acquisition, Lighting contributed ~20% of the overall interiors business; management did not confirm the analyst's mid-teens ambient lighting adoption assumption.
• EV motors and controllers scaling through the new Coimbatore facility — high-precision injection molded components gaining from applications such as ABS systems for two-wheelers, with capacity expansion in Neemrana and Noida.

EV Penetration, Defense Optionality and Adjacency Discipline

• EV penetration expected to reach 15-16% by 2030 — from ~9-10% currently (FY 2026-2027) across all segments of the market; with ~7-8% expected industry growth, this implies ~24% cumulative volume increase over the next 3 years (through FY 2029-2030), so ICE engine demand persists.
• All OEMs — including Mahindra and Tata — are investing across multiple powertrains (CNG, biofuels, diesel, gasoline); SPR will move as customers move and is already working on programs slated for 2029-30.
• Defense focus is on army applications, not aerospace — management sees "great possibility" in defense but noted aerospace requires approvals and tests entailing "anywhere between 3 to 5 years of gestation period" to regularize products; SPR already supplies Shaktimaan trucks, various other defense applications, and the vehicle factory in Abdi.
• Defense sizing is modest — management does not expect defense to make a "huge dent" in the business given limited volumes, but will be present supplying to the country's defense requirements.
• CEO clarified a recent media article was misquoted — he never said the company is entering thermal management imminently ("not that tomorrow morning I'm getting into thermal management"); thermal management and mechatronics are "in our radar" but management has never said it is getting into these areas directly.
• Outlook — management is confident of sustaining growth momentum despite a dynamic near-term global environment; most capacity expansions are backed by firm business orders from all customers, including aftermarket and export customers.