Subros Secures ₹1,225 Crore HVAC Assembly Order from Maruti Suzuki India

Key numbers

Market Cap	₹3,994 CrSmall Cap
P/E Ratio	24.01Sector: 30.73
RSI	24.11Oversold Zone
Order from	Maruti Suzuki India Limited (MSIL)
Execution period	Approximately seven years, commencing from respective start of production as per customer milestone
Deal value	₹1,225 Cr
Share of market cap	30.7%
Share of annual revenue	31.3%

Key highlights

• New business award valued at approximately ₹1,225 crore over a seven-year period
• Order involves the supply of HVAC assemblies for YM3 and YU0 vehicle models
• Contract value represents roughly 31.3% of the company's TTM operating revenue
• Strategic win strengthens Subros' presence and business growth in the western region
• Reinforces a long-standing partnership with anchor client Maruti Suzuki India Limited

Maruti Suzuki Anchor Order Bolsters Order Book

Subros Limited has solidified its top-tier supplier status with Maruti Suzuki India Limited (MSIL) by securing a new business award for HVAC assemblies. The contract, valued at approximately ₹1,225 crore, is spread across the total life cycle of specific vehicle models for about seven years. This award is financially significant, representing nearly 30.7% of the company's current market capitalization of ₹3,994.39 crore and 31.3% of its trailing twelve-month revenue.

The agreement operates under the existing Basic Purchase Agreement with MSIL, ensuring a stable revenue stream as the company navigates a period where its stock has seen a 44% decline over the past year.

Technical Scope and Regional Strategy

• The scope involves the supply of YM3 and YU0 HVAC Assembly units to MSIL
• Execution period is approximately seven years from the start of production
• The award is designated for a domestic entity and will be executed at arm's length
• Strategic focus on enhancing the company's manufacturing presence in the western region
• Strengthens Subros' position as an integrated manufacturer for Auto AC systems

Contextualizing the High-Value Supply Chain Move

This ₹1,225 crore win follows a similar large-scale award in January 2026, when Subros secured a ₹1,280 crore contract from MSIL for electric compressors targeting EV and hybrid programs. While the company's recent quarterly performance showed a 15.8% decline in net profit, these long-term contracts provide critical visibility. Subros is currently scaling its infrastructure, with a new greenfield plant in Kharkhoda, Haryana, expected to begin commercial production in Q3 FY27.

This expansion, coupled with targets to reach ₹300 crore in Truck AC sales for FY 2026-27, aligns with the company's broader objective of diversifying its thermal product applications across passenger and commercial segments.

What to watch next

• Q2 FY27 financial results announcement scheduled for November 6, 2026
• Commercial Start of Production at the new Kharkhoda plant in Haryana by Q3 FY27
• Progress toward achieving the ₹300 crore revenue target in the Truck AC segment for FY27

Subros · financial snapshot

Share price	₹612.3
Market capitalisation	₹3,994.39 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)	24.01×Sector 30.73×
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.