S.J.S. Enterprises Limited Q3 FY25 Earnings Call Summary

Summary

S.J.S. Enterprises Limited - Q3 FY 2025-26 Earnings Call Summary Thursday, January 29, 2026, 10:30 AM IST

Event Participants

Executives 4 Devanshi Dhruva (Head – Investor Relations), K.A. Joseph (Managing Director & Promoter), Mahendra Naredi (Group CFO), Sanjay Thapar (Group CEO & Executive Director)

Analysts 8 Aditya Khetan (SMIFS Institutional Equities), Amit Hiranandani (PhillipCapital), Chintan Shah (JM Financial), Ganeshram (Unifi Capital), Hitesh Goel (Aurigin Capital), Jyoti Singh (Arihant Capital), Khush Nahar (Electrum PMS), Lokesh Manik (Vallum Capital), Nitin Agrawal (JM Financial), Piyush Parag (Elara Securities), Prolin Nandu (Edelweiss), Vineet Bothra (IIFL Capital)

Financials & KPIs

Geographic & Segment Commentary

• Automotive (2W & PV): This segment remains the primary growth engine, with PVs contributing 42.3% and 2W 38.8% of revenue. SJS saw strong content increases in new Mahindra and Tata launches, outperforming industry growth by 2.5x-3x through premiumization.
• Consumer Durables: Contributed ~19% of consolidated revenue, growing 7.5% YoY. Management is focused on ramping up global supply for Whirlpool and adding new customers like Urban Company.
• Exports: Recorded highest-ever quarterly revenue, growing 146.2% YoY. Growth is fueled by the Stellantis global contract and a new sales representative in Germany to target Western European OEMs.

Company-Specific & Strategic Commentary

• Display Systems Entry: Signed a Technology License Agreement (TLA) with BOE Varitronix to manufacture automotive display systems and cover glass. This vertical is expected to increase PV kit value by 5x-8x, with trial production in FY27 and sales in FY28.
• Capacity Expansion: Investing ₹100 crores in SJS Decoplast (Pune) for a new chrome plating plant and ₹45 crores in Bangalore. Both facilities are nearing commissioning in Q4 FY26 to support volume growth.
• ESG Initiatives: Launched the “Pink Line” production initiative for women empowerment and secured 2MW of wind power. 80% of the Group’s energy needs will now be met via renewable sources.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Display Strategy & BOE Partnership

• Question: What is the specific value-add in the display segment and the timeline for revenue? (Prolin Nandu)
• Answer: SJS will perform optical bonding (integrating cover glass, TFT screen, and backlight unit) and manufacture the cover glass itself. Trials occur in FY27 with revenue in FY28. The partnership with BOE provides global technical expertise and buying efficiency (Sanjay Thapar).

Inorganic Growth & M&A

• Question: How will the ₹203 crore cash surplus be utilized for acquisitions? (Ganeshram)
• Answer: M&A is a core pillar for market access. SJS is evaluating targets that offer new customer channels to cross-sell its 14 existing technologies. The goal is to conclude a transaction within the next year (Sanjay Thapar).

Export Momentum

• Question: Is the export growth sustainable given global macro volatility? (Lokesh Manik)
• Answer: Yes, exports are driven by new technology parts (badging) validated over a year, making them difficult to disrupt. SJS is currently adding more plants for Stellantis and targeting German OEMs (Sanjay Thapar).

Margin Sustainability

• Question: Why maintain a 28-29% margin guidance when currently hitting 30%? (Aditya Khetan)
• Answer: Management prefers a conservative stance to ensure promises are honored. While operating leverage and new gen products (23% of sales) support 30%, upcoming capex for displays may have different margin profiles (Sanjay Thapar, Mahendra Naredi).

Key Takeaway

S.J.S. Enterprises delivered a landmark Q3 FY26, achieving its highest-ever quarterly revenue of ₹243.53 crores and a record adjusted EBITDA margin of 30.5%. The automotive business significantly outperformed the broader industry, growing at 46% YoY compared to the industry’s 15.7%, driven by aggressive premiumization and the successful ramp-up of the Stellantis export contract. Strategically, the company has pivoted toward high-value automotive display systems through a partnership with BOE Varitronix, which is expected to multiply kit values by 5x-8x starting in FY28. With ₹203.01 crores in net cash, the company remains positioned for inorganic expansion while simultaneously funding organic capex in Pune and Bangalore. Management maintains a bullish outlook, targeting continued 2.5x industry outperformance and an export contribution of 15% by FY28, while closely monitoring the margin impact of new facility commissioning.