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Auto air-conditioning maker Subros Ltd reported a 5% year-on-year rise in net profit to ₹34.7 crore for the December quarter of FY26, even as higher costs weighed on margins.
Revenue from operations grew 15.4% YoY to ₹947.6 crore, compared with ₹820.9 crore in the year-ago period, aided by steady demand from OEM customers.
On the cost side, total expenses climbed to ₹900.7 crore in Q3FY26, up from ₹780 crore a year earlier, largely tracking the rise in revenue.
Raw material consumption remained the
largest cost head at ₹697 crore, while employee benefit expenses increased to ₹89.8 crore on account of wage revisions and higher headcount. Other expenses stood at ₹84.6 crore, with finance costs largely stable at ₹2.8 crore, and depreciation and amortisation expenses at ₹31.6 crore for the quarter.
As a result, EBITDA rose 5.2% YoY to ₹81.5 crore, but the EBITDA margin declined to 8.6% from 9.4% a year ago, indicating limited operating leverage amid cost inflation.
For the nine months ended December, Subros reported total expenses of ₹2,575 crore against revenue of ₹2,706 crore, with margins remaining under pressure despite volume-led growth.
Alongside its quarterly numbers, the company in its exchange filing also pointed out changes in board composition following a revision in DENSO Corporation’s nomination, with Yusuke Hara resigning as nominee director effective January 30, 2026, and the board approving the appointment of Naohisa Kuriyama as DENSO’s nominee director, subject to shareholder approval.
Consequently, Dr Yasuhiro Iida vacated the office as alternate director, and the board approved the appointment of Tsunenobu Hori as alternate director to Kuriyama, also subject to shareholder approval.
The board also approved a capacity expansion plan at its Karsanpura manufacturing facility in Gujarat, in addition to a new local electric compressor line and the expansion of local ICE compressor capacity at the Ahmedabad district plant.
LIVE Updates on Q3 results here
