Suprajit Engineering Expects 12–14% Ebitda Margin In FY26
The automotive component manufacturer is focusing on a de-risking strategy while expanding its product portfolio for future growth.
Suprajit Engineering Ltd. is targeting an Ebitda margin of 12% to 14% in the current financial year and is expected to maintain it at the same level in the next fiscal as well, according to Executive Chairperson Ajith Rai.
"We will grow double digit and our Ebitda margins will be 12% to 14%, I mean going forward, without SCS (stahlschmidt cable systems) this year and probably next year, even with the SCS," he said during a conversation with NDTV Profit on Tuesday.
The automotive component manufacturer is focusing on a de-risking strategy while expanding its product portfolio for future growth, according to Rai. "We are adding new products with electronics, the braking and the actuation divisions. If each one of these divisions is not Rs 500 crore in the next five years, it won't be a great business for us,” the top executive highlighted.
He expects the company to be in the top 5% of businesses in the automotive component manufacturing segment.
A key focus of the discussion was Suprajit's acquisition of SCS, a two-part transaction involving entities in Europe, China and Canada. The first part, completed in July 2024, saw Suprajit take over a loss-making entity from an insolvency administrator. The second part, finalised in May 2025, brought the China and Canada operations under its umbrella.
Rai admitted that integrating SCS has been a “journey”, with efforts to streamline operations in Germany and Hungary underway. It has also streamlined operations in Morocco. “We have said that by Q4, SCS entities would be Ebitda positive.”
The executive chairperson highlighted the advantage of its Morocco facility, which benefits from low US tariffs. India’s potential trade deal with the US is also expected to aid the company in the future. “Our positioning in terms of ability to deliver for the US, Europe and China, by being local with local teams, that is our real story,” he said.
The top executive also acknowledged the tough global environment, citing issues like the west Asia turmoil and the Russia-Ukraine war.
"With some of these acquisitions that we have done, we have been able to give a model that would make doing business with us much easier and less expensive compared to a lot of our competition. That's our USP in global business,” he noted.
