1. At a Glance – The AC Mafia Nobody Talks About
Subros is what happens when you quietly dominate an industry while investors are busy chasing AI chips and loss-making apps. With a ₹5,276 Cr market cap, Subros controls 42% of passenger car ACs and 54% of truck HVAC systems in India. Basically, if a vehicle in India has cold air, Subros is probably responsible.
The stock sits at ₹809, down 25.6% in 3 months, which tells you sentiment is colder than its compressors. Yet, Q3 FY26 PAT grew 22.4% YoY, sales jumped 15.4%, ROCE is a respectable 20%, and debt is basically pocket change at ₹24 Cr.
Valuation? 31.4x P/E, not cheap, not insane. The market is charging a premium for predictability, dominance, and Japanese engineering DNA. The real masala? A ₹1,280 Cr EV compressor order from Maruti Suzuki, a government-mandated truck AC rule from Oct 2025, and ₹270 Cr capex lined up like a buffet.
So the question isn’t “Is Subros good?”
It’s “How boring is too boring before it becomes beautiful?”
2. Introduction – The Silent Monopoly With a Screwdriver
Subros is not flashy. No viral founder interviews. No “disrupting mobility” nonsense. Just a 40-year-old Indo-Japanese JV that shows up every day, bolts ACs into vehicles, sends an invoice, and goes home.
Founded in 1985, Subros is backed by the Suri family (36.79%), Denso Corporation (20%), and Suzuki Motor Corporation (11.96%). Translation: governance discipline + tech access + assured customers.
This isn’t a company fighting for relevance. This is a company fighting boredom.
Passenger cars, trucks, railways, tractors, EVs, home ACs — if it needs cooling, Subros wants in.
And while investors complain
about “low growth”, Subros quietly compounds profits at 22% CAGR over 5 years, improves margins, reduces debt, and expands capacity ahead of regulation-led demand.
Is this exciting?
No.
Is this powerful?
Absolutely.
3. Business Model – WTF Do They Even Do?
Imagine being the default supplier in a country where temperatures touch 45°C and air-conditioning is no longer optional. That’s Subros.
They manufacture:
- Compressors
- Condensers
- Radiators
- Blowers
- HVAC systems
- EV thermal management solutions
And sell them to:
- Maruti Suzuki
- Tata Motors
- Mahindra
- Renault Nissan
- Indian Railways
- Haier, Voltas, Daikin
This is not a brand business.
This is a relationship + engineering + scale business.
OEMs don’t change AC suppliers casually. Tooling costs, validation cycles, warranty risks — once you’re in, you’re married. Subros is the spouse who never forgets anniversaries.
Now ask yourself:
How many auto ancillaries get EV orders, ICE orders, railway contracts, and regulatory tailwinds at the same time?
Exactly.
4. Financials Overview – Cold Numbers, Hot Margins
Financial Comparison Table (₹ Crores)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 948 | 821 | 880 | 15.4% | 7.7% |
| EBITDA | 81 | 76 | 68 | 6.6% | 19.1% |
| PAT | 35 | 33 | 41 | 22.4% | -14.6% |
| EPS (₹) | 5.33 | 5.05 | 6.25 | 5.5% | -14.7% |
Annualised EPS (Q3 rule)
Average of Q1, Q2,
