1. At a Glance
₹11,785 Cr market cap. ₹2,675 stock price. ROCE at a juicy 25.7%. ROE sitting comfortably at 23.2%. Q3 FY26 revenue clocked ₹1,023 Cr with PAT of ₹126 Cr. EPS for the quarter? ₹27.92. Annualised? Hold your horses—we’ll do that properly later.
Shriram Pistons & Rings Ltd is what happens when a company quietly compounds for decades and then wakes up one fine morning saying, “Boss, ab EV bhi kar lenge.” Pistons, rings, engine valves—sounds like a mechanical engineering viva question from 2004. But the numbers say otherwise. Sales grew 20.7% YoY this quarter, profit up ~18%, operating margins steady at ~20%, and the company is casually acquiring Grupo Antolin India for ₹16,700 mn like it’s grocery shopping.
Stock has delivered ~48% CAGR over five years. Debt-to-equity? Just 0.20. Interest coverage? 21.5x. Dividend yield may be tiny, but the balance sheet looks like it drinks green juice every morning.
Question is: is this still a humble piston company… or a disguised auto-tech platform in mid-metamorphosis?
2. Introduction
Shriram Pistons is the kind of company your CA uncle loves. No drama. No Twitter hype. No “AI-powered piston” nonsense. Just consistent execution, OEM trust, and margins that refuse to die even when ICE engines are declared “dead” every second Diwali.
Founded decades ago, SPRL built its reputation supplying pistons, rings, pins, and valves to almost every serious OEM in India—Maruti, Tata, Hero, Cummins, John Deere—you name it. Add aftermarket dominance under the USHA brand and exports to 45+ countries, and you get a business that doesn’t panic easily.
What’s changed recently is ambition. EV motors. Controllers. Precision engineering. Die casting. Plastic assemblies. Battery systems. Hydrogen-ready components. And then—boom—Grupo Antolin India acquisition, instantly adding interior systems heft.
So while the market still files this under “Auto Ancillary – Boring,” management seems busy rewriting the label to “Auto Systems & Technology Platform.” Are they early? Are they late? Or are they doing the most Indian thing possible—hedging every future at once?
3. Business Model – WTF Do They Even Do?
At its core, SPRL makes mission-critical engine components. Pistons and rings are not optional
accessories. If they fail, your engine becomes a very expensive paperweight. That’s why OEM relationships here are sticky, qualification cycles are long, and pricing wars are limited.
Revenue mix in FY25:
- OEMs: 52%
- Aftermarket: 26%
- Exports: 17%
- Non-auto: 5%
OEM gives scale, aftermarket gives margins, exports give optionality. Classic balanced thali.
Geographically, 85% domestic, 15% exports. Europe used to dominate exports but has cooled; South America and Middle East are stepping up. Translation: SPRL follows engines wherever regulations haven’t murdered them yet.
Now the twist. Through subsidiaries like SPR EMF Innovations, SPR Takahata, TGPEL, and Karna Intertech, the company has quietly assembled a toolkit for EV motors, controllers, precision molds, battery systems, and complex assemblies. This isn’t a pivot; it’s a parallel highway being built while the old road still prints cash.
So yes, pistons today. But the future portfolio is clearly more… electrically charged.
4. Financials Overview
Quarterly Performance Table (₹ Cr)
| Metric | Latest Qtr (Dec FY26) | YoY Qtr (Dec FY25) | Prev Qtr (Sep FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,023 | 848 | 1,016 | 20.6% | 0.7% |
| EBITDA | 206 | 170 | 207 | 21.2% | -0.5% |
| PAT | 126 | 121 | 142 | 4.1% | -11.3% |
| EPS (₹) | 27.92 | 27.20 | 31.76 | 2.6% | -12.1% |
Margins are boringly stable at ~20%. PAT dipped QoQ due to lower other income and higher interest, not operational stress.
EPS Annualisation Rule (Q3):
Average of Q1, Q2, Q3 EPS × 4
= (30.35 + 31.76 + 27.92) / 3 × 4 ≈ ₹120
CMP ₹2,675 → recalculated P/E ≈ 22.3x.
Industry PE ~28x. SPRL is not cheap-cheap, but not
