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1. At a Glance
Subros sold ₹1,032.11 crore of cooling in the June 2026 quarter, up 17.52% year-on-year — and Operating Profit went the other way, from ₹82.01 crore to ₹80.80 crore. PAT landed at ₹41.52 crore against ₹40.83 crore, a move of 1.69%, which in percentage terms is the corporate equivalent of shuffling one step to the left.
Management described the quarter as “eventful,” a word Indian corporates deploy when several things happened at once and none of them were scheduled. The list, per the concall: geopolitical tension, crude volatility, shipping disruption, forex swings — and then, closer to home, a state election, seasonal labour migration, and minimum-wage revisions of roughly 30–32% in Haryana and 26–28% in Uttar Pradesh, which management called “extraordinary” and unbudgeted.
Also in the quarter: a Technical Assistance Agreement signed with DENSO Corporation, Japan and Toyota Industries Corporation, Japan for local manufacture of electric compressors at Karsanpura, Gujarat. A DENSO nominee director changed. And truck AC revenue grew 77% year-on-year, on a base management attributes to the government’s cabin AC mandate for N2/N3 trucks.
For a company whose entire job is keeping things cool, the quarter ran warm on inputs. Material cost moved to 73.79% of net sales from 71.80%, and employee cost sat at 10.05%. EBITDA margin, per the investor presentation, went from 10.02% to 8.47%.
The full-year picture behind it: FY26 revenue ₹3,755.52 crore, PAT ₹165.65 crore.
2. Introduction
Subros was incorporated in 1985 as a joint venture — the Suri family of India, Denso Corporation of Japan, and Suzuki Motor Corporation of Japan, three parties who agreed on approximately one thing: Indians would eventually want their cars cold. Four decades later, the ownership arithmetic has barely twitched. The Suri family holds 36.79%, Denso 20%, Suzuki 11.96%. Shareholding pattern for the last twelve quarters shows promoter holding at 36.79% in every single column, which is either strategic conviction or the least eventful spreadsheet row in Indian capital markets.
The company makes and supplies auto air conditioning products to major automakers in passenger and commercial vehicles, with a technical collaboration with Denso. Per the investor presentation, it holds 41% share in passenger car AC and 41% in truck aircon/blower, and calls itself the largest air conditioning and thermal products company in India.
ICRA’s March 2026 report notes an equity infusion of ₹209.9 crore from Denso in December 2018, used for part repayment of debt and creditors. The balance sheet since then has been on a diet: borrowings of ₹404.42 crore in March 2017 are ₹30.01 crore in March 2026. Interest cost has fallen from ₹47.91 crore to ₹9.63 crore over the same stretch — the finance-cost line has effectively been shown the door and given a small farewell gift.
The recent chapter is capacity. ICRA notes a greenfield facility at Kharkhoda at an estimated ₹150 crore, planned operational by June-July 2026; the August concall placed construction at “advanced stage of completion” with start of production targeted in Q3 of the current fiscal, sized at roughly 4.75 lakh units in Phase 1 and the same again in Phase 2. At Karsanpura, ₹175 crore (75% debt-funded) goes toward a 400,000-unit electric compressor line commissioned by FY2028, and ₹90 crore from internal accruals adds 500,000 units of ICE compressor capacity within 24 months. In January 2026, the company disclosed a ₹1,280 crore, seven-year order for localised electric compressors, and a ₹52.18 crore three-year Cab HVAC maintenance order from Indian Railways.
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3. Business Model: WTF Do They Even Do?
Subros makes cold air and the machinery that produces it. Specifically: compressors, condensers, evaporators, hoses and tubes, radiators, blower units, and complete HVAC systems. It is a fully integrated thermal products manufacturer, which in practice means it does not simply bolt someone else’s cooling box into a car — it makes the box, the tubes going into the box, and the thing that spins inside the box.
The end markets are gloriously unrelated to one another except by temperature. Cars. Buses. Trucks. Tractors. Reefer units. Railway coaches. Home ACs. A single order book that spans a hatchback dashboard and an Indian Railways cab HVAC unit is a business built on the one physical principle that never goes out of fashion: heat must go somewhere else.
The customer list runs Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Renault Nissan, BHEL, Denso, Haier, Voltas, Havells and Daikin. Concentration is disclosed plainly by ICRA: sales to Maruti Suzuki accounted for 80–85% of revenues in FY2025 and H1 FY2026, including indirect sales. Management’s own Q1 revenue split puts ₹695 crore of AC products supplied to Maruti, ₹135 crore of ACM products, and ₹200 crore-plus from other customers. By end-market: passenger vehicles roughly ₹930 crore, others roughly ₹100 crore, of which trucks about ₹75 crore and buses about ₹12 crore.
Eight manufacturing plants sit across Noida, Manesar, Pune, Chennai, Karsanpura and Nalagarh, plus two technical centres and one tool engineering centre in Noida. ICRA notes the home AC segment has been significantly muted by the company owing to thin margins under fixed-price contracts — a rare instance of a manufacturer voluntarily turning down the chance to sell more air conditioners in India, which tells you
