Subros Starts Production at ₹150 Crore Kharkhoda Plant; Adds 4.5 Lakh Unit Capacity

Key numbers

Capacity Addition	4.5 LakhUnits Per Annum
Market Cap	₹3,908.6 CrAutomobile Parts
P/E TTM	23.5Sector PE 31.38
1-Year Return	-46.35%Stock Performance

Key highlights

• Commercial production of HVAC and Hose & Tubes began on October 28, 2026
• The new greenfield facility adds 4.5 lakh units per annum to existing capacity
• Total investment for the Kharkhoda project is approximately ₹150 crore
• Project financing was structured through a combination of internal accruals and debts
• Facility launch follows a major ₹1,225 crore order win from Maruti Suzuki on October 27, 2026

New Greenfield Facility Operational in Haryana

Subros Limited has achieved a significant operational milestone with the start of commercial production at its new greenfield plant located in Tehsil Kharkhoda, District Sonipat, Haryana. This facility is dedicated to the manufacturing of HVAC systems and Hose & Tubes, adding a substantial 4.5 lakh units per annum to the company's total production capacity. The commencement of operations on October 28, 2026, aligns with the company's strategy to locate manufacturing hubs near customer locations, thereby improving operational efficiency and response times for its primary automotive clients.

Strategic Investment and Project Financials

• Total project investment is estimated at approximately ₹150 crore.
• Financing for the greenfield expansion was managed through internal accruals and debt.
• The plant is designed to cater to increased customer demand for thermal management products.
• This facility strengthens the long-term growth trajectory following a ₹1,225 crore contract from Maruti Suzuki.
• The expansion reinforces leadership in sustainable manufacturing and future mobility solutions.

Leadership on Market Readiness

Subros Kharkhoda plant is a milestone towards the growing demand resulting revenue growth in the coming years. This expansion reinforces the Company’s readiness to meet evolving market demand of mobility and further solidifies its leadership in the thermal management products.

Market Context and Operational Performance

The operationalization of the Kharkhoda plant comes at a time when Subros is reporting steady financial growth. For the quarter ended June 30, 2026, the company posted an operating revenue of ₹1,032.11 crore, representing a 17.52% year-on-year increase. Despite a 1-year stock price decline of 46.35%, the company maintains a P/E ratio of 23.5, which remains lower than the industry average of 42.62.

This capacity addition follows other recent strategic moves, including the October 15 inauguration of the Subros Advanced Technologies & Innovation Centre in Noida and an earlier ₹265 crore board approval for electric compressor expansion in Gujarat.

What to watch next

• Board meeting scheduled for November 3, 2026, to approve Q2 FY27 financial results
• Revenue contribution from the Truck AC segment, with a target of ₹300 crore for FY 2026–27
• Execution of the ₹1,225 crore Maruti Suzuki HVAC assembly contract over a 7-year lifecycle
• Operational progress of the Karsanpura plant expansion for electric compressors in Gujarat

“The commercial operations at the new plant have commenced today i.e October 28, 2026 for HVAC and Hose & Tubes.”

Subros · financial snapshot

Share price	₹599.15
Market capitalisation	₹3,908.60 Cr
Revenue (annual)	₹3,755.52 Cr
Net profit (annual)	₹165.65 Cr
Revenue (latest quarter)	₹1,032.11 Cr-1.68% vs previous quarter
Net profit (latest quarter)	₹41.52 Cr-15.83% vs previous quarter
P/E (TTM)	23.5×Sector 31.38×
Promoter holding	36.79%0.00% QoQ
FII holding	32.7%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.