Suprajit Engineering turns SCS division profitable after year-long fix
The company reported a 17% rise in annual revenue and confirmed its Stahlschmidt Cable Systems division is now EBITDA positive.
What's new
- Stahlschmidt Cable Systems division is now EBITDA positive after a year of restructuring.
- Consolidated revenue grew 17% in FY26, with EBITDA expanding 19-20%.
- Management targets double-digit revenue growth and plans ₹200 cr in capex for FY27.
Why this matters
The turnaround of the SCS division removes a significant drag on the company's consolidated performance. With the restructuring complete, the focus shifts to whether the company can hit its margin targets while deploying ₹200 crore in capital expenditure.
What we're watching
- Execution of the ₹200 cr capex plan in the current fiscal year.
- Sustained margin performance from the newly profitable SCS unit.
- Ability to maintain double-digit revenue growth amid broader auto-sector shifts.
The full read
Suprajit Engineering has completed the restructuring of its Stahlschmidt Cable Systems division, which turned EBITDA positive in the fourth quarter. This milestone follows a year of operational changes. For the full year ended March, the company grew consolidated revenue by 17%, while EBITDA expanded by 19-20%. Management now looks ahead with a target of double-digit revenue growth for the current financial year. They expect EBITDA margins to land between 12% and 13.5%. To support this growth, the company plans to deploy ₹200 crore in capital expenditure. Shareholders will receive a dividend of ₹3.50 per share. The successful turnaround of SCS is the primary driver of this outlook, as the company moves past the heavy lifting of its restructuring phase. The next test is whether the business can maintain these margins while scaling its capital base.
Questions answered
- What is the status of the Stahlschmidt Cable Systems division?
- The division is now EBITDA positive as of the fourth quarter, marking the end of a year-long restructuring process.
- How did the company perform in the last financial year?
- Consolidated revenue rose 17% for the year ended March, while EBITDA expanded by 19-20%.
- What is the dividend payout for shareholders?
- The company announced a dividend of ₹3.50 per share.
- What are the financial targets for the current year?
- Management expects double-digit revenue growth and an EBITDA margin between 12% and 13.5%.
- How much capital expenditure is planned for FY27?
- The company plans to spend ₹200 crore on capital expenditure.