Shares of Subros Ltd tanked nearly 10% on Tuesday, November 11, to trade at Rs 914.90 on the NSE after the company’s September quarter results revealed a sharp decline in profitability margins despite revenue growth. The stock emerged among the top losers on the exchange, slipping from its previous close of Rs 1,009.90.
The auto components major reported an 11.8% year-on-year (YoY) rise in net profit to Rs 40.7 crore in Q2 FY26, compared with Rs 36.4 crore in the same quarter last year. However, investors reacted negatively to the fall in operational efficiency, as the company’s EBITDA dropped 10.1% YoY to Rs 68.4 crore from Rs 76.1 crore, while the operating margin narrowed to 7.7% from 9.2% a year earlier.
Revenue for the quarter rose 6.2% YoY to Rs 879.8 crore, aided by higher production volumes and the commencement of new business lines in both passenger and commercial vehicle segments.
The company also flagged higher material costs and wage revisions as key reasons for the margin contraction. Rising commodity prices and salary adjustments impacted overall profitability, even as demand in the auto sector remained strong.
Subros further cautioned about slower growth in FY26, though it expects to outperform the industry average owing to its growing presence in EV, hybrid, and thermal management segments.
For the first half of FY26, total revenue stood at Rs 1,758 crore, up 7.3% YoY, while profit before tax rose 13.7% to Rs 108.9 crore.
As of the latest trade, Subros’ market capitalization stood at Rs 59,700 crore, with shares recording a day range between Rs 913.30 and Rs 970.00.
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