1. At a Glance
Welcome to Spectrum Electrical Industries Ltd — where an injection moulding shop from Jalgaon decided that building EV chargers, MRI machines, and AI software is the same thing. At a market cap of ₹1,800 crore and a stock price of ₹1,153 (down a spicy 35% in a year), the company’s spectrum truly extends from sockets to silicon.
With Q2FY26 results showing Revenue of ₹116 crore (up 41.4% YoY) and PAT of ₹7.93 crore (up 81.9% YoY), Spectrum’s numbers look juicier than a Diwali balance sheet bonus. Yet, at a P/E of 58.5x, you’re paying more than Honeywell prices for a company whose promoter still runs it like a Jalgaon family business.
OPM sits at 13.8%, ROE at 13.7%, and debt at ₹164 crore—enough to make the CFO slightly nervous but not yet clutching a stress ball. Promoters hold a strong 72.7% stake, foreign investors are creeping in (~4.3%), and the rest of us mortals hold 22%. The Street, however, is still asking — “MRI banega ya yeh bhi prototype rehega?”
2. Introduction – Jalgaon’s Marvel Factory
Imagine if your neighbourhood electrician suddenly decided to build Tesla chargers and X-ray machines. That’s Spectrum Electrical. Born in 1995, the company was originally into injection moulding and metal pressing for electrical components — the boring yet crucial screws and sockets behind your switchboards.
Fast-forward to FY24–FY25, and the same company now talks about EV charging stations, medical imaging devices, and AI automation software with the confidence of a TEDx speaker and the speed of a desi startup raising funds before lunch.
Revenue climbed to ₹443 crore in FY25 (up from ₹397 crore in FY24), and PAT to ₹30.8 crore, proving that diversification sometimes pays — especially when it’s dressed up in buzzwords like “digital enterprise,” “smart manufacturing,” and “AI-based analytics.”
Still, beneath the futuristic PowerPoint slides, Spectrum’s bread and butter remains metal stamping, injection moulding, and electroplating — the kind of work that smells of lubricant oil and industrial paint, not AI or MRI.
And yet, you can’t deny the ambition. Jalgaon’s finest now wants to compete with ABB, Schneider, and even GE Healthcare. Who says small towns can’t dream big?
3. Business Model – WTF Do They Even Do?
Spectrum’s business model is like a thali — everything from daal (electrical parts) to dessert (AI services) is in there.
Here’s the simplified menu:
- Products (83%): The real money-maker. Electrical components like EV chargers, modular switchboard panels, MCB bases and covers, auto and irrigation equipment, and more. Basically, if it carries current, Spectrum probably makes a part of it.
- Services (17%): The supporting cast — electroplating, injection moulding, stamping, and powder coating. Think of it as industrial makeup for metal parts.
The clientele list reads like the Avengers of Electrical Engineering — ABB, Legrand, Schneider, Anchor, L&T, and Jain Irrigation. But here’s the twist: top three customers contribute over 70% of revenue. Yes, that’s a lot of eggs in three baskets. One sneeze from ABB’s procurement team, and Jalgaon’s economy could catch a cold.
The company operates three manufacturing
plants across Maharashtra — Jalgaon, Nashik, and Pune. But expansion plans are on full throttle — new factories in Bangalore, a ₹100 crore MoU with the Maharashtra government, and a rooftop solar project because ESG ka zamana hai bhai!
Now, here’s where things get spicy. In 2024, Spectrum decided to enter medical device manufacturing through its WOS — Spectrum Healthcare. Not just syringes or gloves — full-blown MRI and X-ray systems. Partnerships are already inked with Fischer Medical Ventures and Time Medical International.
And if that wasn’t enough, they’ve also jumped into AI and low-code software with a new sub — Pristine IT Code Pvt Ltd. It’s like the company looked at its switchboards and thought, “Let’s automate this world too!”
4. Financials Overview
| Metric (₹ Cr) | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 116.06 | 82.09 | 84.55 | 41.4% | 37.3% |
| EBITDA | 14.76 | 8.10 | 11.60 | 82.2% | 27.2% |
| PAT | 7.93 | 4.36 | 6.09 | 81.9% | 30.2% |
| EPS (₹) | 5.05 | 2.79 | 3.90 | 81.9% | 29.5% |
Commentary: Spectrum’s financials look like a well-charged EV battery. Revenue up 41%, PAT up 82%, and EBITDA margin steady at 13%. That’s serious acceleration. The quarterly EPS of ₹5.05 implies an annualized ₹20.2 — matching the TTM EPS of ₹19.7.
But with a P/E of 58.5, the stock trades at luxury pricing — more iPhone Pro than JioPhone. Clearly, the Street believes Jalgaon will soon rival Silicon Valley.
5. Valuation Discussion – Fair Value Range Only
Let’s crunch the numbers like accountants in a chai break.
P/E Method:
- EPS (TTM): ₹19.7
- Industry PE: 34.8
- Current PE: 58.5
- Fair value = ₹19.7 × (34.8–40) = ₹685 – ₹788
EV/EBITDA Method:
- EV = ₹1,962 Cr
- EBITDA (TTM) = ₹67.4 Cr (approx 14% of ₹443 Cr)
- EV/EBITDA = 29.1x (ouch)
- Sector average = 18–22x → Fair EV = ₹1,214 – ₹1,482 Cr
- Fair price range ≈ ₹730 – ₹900
DCF (Simplified):
Assume cash flow growth of 20% for 5 years, discount at 12%, terminal growth 4% → Fair range ₹750 – ₹880.
📢 Educational Disclaimer:
This fair value range (₹700–₹900) is purely for educational purposes and not investment advice.
6. What’s Cooking – News, Triggers, Drama
2024–25 was a year of
