Shriram Pistons & Rings Ltd Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Congratulations, sir, on -- for putting reporting good set of numbers for the quarter. I have a couple of questions. First question is on our revenue growth on a stand-alone basis. So if I look at the underlying industry volume because very tepid -- against that, we have done good double-digit revenue growth on a stand-alone basis.

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Is this better?

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Yes, sir. So my first question was on stand-alone revenue growth, which we have reported against the average industry volume growth that we have given in our presentation. So what led to this outperformance versus underlying industry growth? And what is your expectation for, say, FY26 against our industry volume growth expectation? How should our revenue growth be on a stand-alone basis?

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Understood, sir. Would you also call we have gained some market share in the pistons business in this quarter or so over last one year?

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Understood, sir. My second question is on our exports business. So, as I understand, roughly 10% of our exports also goes to North America as a region. So I just want to understand, one, is there any duty impact on our exports today to any particular geography? What was that impact in the quarter which has gone by? And what is your expectation for the export business overall in terms of growth for the coming year?

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Okay, sir. Understood. I referred to the FY25 exports mix that is given on presentation, slide 16, where North America is roughly 10% of our export mix. That was the number I was referring to. But understood. We continue to remain.

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Understood, sir. My next question is on our subsidiaries that we have now announced. It is very good to see the ramp-up in our -- all the three subsidiaries that we have. Can you highlight in terms of utilizations or absolute revenue size for these subsidiaries, where are we today as of Q1? And in the EV motors business, I understand we had a facility which was supposed to start from this current financial year. So where are we in terms of our capacity ramp-up plans for that EV motors business as well?

Question: Viraj Kacharia - Securities Investment Mgmt Pvt Ltd - Analyst : Just a couple of questions. First is on the EV product offering. If you can just give some more historical perspective, how we've kind of gone about acquiring the technology, both in terms of motors and controllers, so that is one. And just to extend that, traditionally, we've been present more in hub motors kind of offering, but I think we are also in the process of launching mid-drive motors as well. So can you just give some more perspective how we've gone about acquiring the tech? And just to add to that, what is the kind of presence we have currently in terms of -- any color you can give in terms of end-segment application and CV, LCV, PV, or two-wheelers and similarly in terms of the customer concentration or profile? And third is, if you look at the space, right, we've seen a very high rate of change in technology, especially in motors, right? So then, how are we going about competing in the marketplace when the end offering itself is seeing a lot of changes in terms of tech? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 04, 2025 / 10:30AM, SHIE.NS - Q1 2026 Shriram Pistons & Rings Ltd Earnings Call

Question: Viraj Kacharia - Securities Investment Mgmt Pvt Ltd - Analyst : Just two questions. Can you give some more deeper perspective given the kind of spread we would have in terms of different tech -- different product offerings in motor and motor controllers, what is the kind of similarity or differences you see in terms of manufacturing setup? Why I'm asking this is typically, say, if I look at core products of piston -- piston rings or other engine valves, we have a very defined benchmarks in terms of what kind of a minimum threshold we would want to see either in terms of returns or margins before adding any capacity. But here, given there is so much variability and the rate of change is high, how -- what is the kind of similarity or difference you see in terms of manufacturing setup between different offerings? So that is one. And second is, again, if you can give some more deeper perspective in terms of the mix in terms of end segments, whether it be LCV, PV or two-wheeler and similarly in terms of customer offering.

Question: Viraj Kacharia - Securities Investment Mgmt Pvt Ltd - Analyst : And in terms of customer concentration, say, top 5, top 10 customers, how would that be.

Question: Viraj Kacharia - Securities Investment Mgmt Pvt Ltd - Analyst : Okay. Just one last question on this, and I have a few questions on other parts of the business. One trend also you're seeing is OEs going for more integrated offerings, sort of be it three -in-one or five-in-one kind of offering where you just don't have a motor or MCU, but you have other drive part value chains also embedded in one system. From your interaction, is that a limitation for us? Or if I have to look at.

Question: Viraj Kacharia - Securities Investment Mgmt Pvt Ltd - Analyst : Okay. Just a few more questions on the Precision Engineered products -- business. Can you give some perspective, how is the -- where is the product more concentrated in terms of application? Is it more -- if I look at the business profile of two subsidiaries, is it more towards fuel injection or the engine applications? Or is it more towards the transmission or the driveline? Any color you can give in that sense, it will help understand.

Question: Viraj Kacharia - Securities Investment Mgmt Pvt Ltd - Analyst : Okay. So to put it differently and if I look at product applications, where do you see most complexity and how are we positioned in that space? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 04, 2025 / 10:30AM, SHIE.NS - Q1 2026 Shriram Pistons & Rings Ltd Earnings Call

Question: Viraj Kacharia - Securities Investment Mgmt Pvt Ltd - Analyst : Okay, just last question and I'll come back in queue. If I look at the subsidiaries side, can you explain what drives the high margins? Because if you look at other players like Kingfa and others, they make mid-teens kind of margins, even though they are being global players. So just trying to understand the margin drivers for the subsidiary.

Question: Viraj Kacharia - Securities Investment Mgmt Pvt Ltd - Analyst : So would it be right to say that the non-auto business.

Question: Pradyumna Choudhary - JM Financial Family Office - Analyst : Congratulations on a good set of numbers. I just had two, three questions. First one, sorry, I missed -- I got disconnected at the time of when you spoke about tariffs. So can you just tell how much of our revenue is coming from US and what would be the impact of the tariffs on our business? That's one. Second is, how do we -- like, of course, we've been outperforming the industry growth due to the factors you mentioned. Is there some sense on how we expect this growth to continue going forward? Like can we sustain such outperformance and what could be the drivers for the same? And lastly, as some of our other acquired entities scale up in business, do we expect our consol profitability to come down a bit from our current levels, these three. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 04, 2025 / 10:30AM, SHIE.NS - Q1 2026 Shriram Pistons & Rings Ltd Earnings Call

Question: Pradyumna Choudhary - JM Financial Family Office - Analyst : Understood. And how do we expect the growth going forward? Can we continue the kind of outperformance we've been doing?

Question: Abhishek Kumar Jain - Alpha Capital - Analyst : Congrats for strong set of numbers. Sir, my question on the cash and the balance sheet -- company was looking for some acquisition as well. So if you can throw some more light on these parts?

Question: Abhishek Kumar Jain - Alpha Capital - Analyst : So you are looking at the opportunity in the auto or the non-auto side, sir? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 04, 2025 / 10:30AM, SHIE.NS - Q1 2026 Shriram Pistons & Rings Ltd Earnings Call

Question: Abhishek Kumar Jain - Alpha Capital - Analyst : Okay. And what would be the size, sir?

Question: Abhishek Kumar Jain - Alpha Capital - Analyst : What would be the size of that particular acquisition?

Question: Abhishek Kumar Jain - Alpha Capital - Analyst : Okay. And in AMFI side, so do you supply motors in CV only or will you enter into the two-wheeler and four-wheeler space as well? And how much is that current capacity and what would be the incremental earnings once these -- new plant will start from the September onwards?

Question: Abhishek Kumar Jain - Alpha Capital - Analyst : So once this plant -- will it start from September onwards? So what would be the peak revenue if the plant started at 100% capacity utilization?

Question: Nandan Pradhan - Emkay Global Financial Services Ltd - Analyst : Congratulations on the great set of numbers, just one small clarification from my end. So I think during our Q4 call, we had mentioned that the Coimbatore plant should start by end of Q4, and now I think it was slightly pushed back to October. So if you could shed some light on what has caused the delay and.

Question: Nandan Pradhan - Emkay Global Financial Services Ltd - Analyst : Yes. Is this better?

Question: Nandan Pradhan - Emkay Global Financial Services Ltd - Analyst : So we had initially called out that the plant would start by end of Q4 and now it has been pushed to October. So one is why has this delay been caused? And the second is, once the plant ramp-ups, how long do you think it would take for it to reach its full capacity or optimal utilization?

Question: Nandan Pradhan - Emkay Global Financial Services Ltd - Analyst : And just a small follow-up. Do you expect any one-off during this transition where you halt operations at the old plant and everything gets shifted to the new Coimbatore plant? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 04, 2025 / 10:30AM, SHIE.NS - Q1 2026 Shriram Pistons & Rings Ltd Earnings Call

Question: Divyansh Gupta - Latent Advisors PMS - Analyst : Sir, a couple of questions. So you had mentioned that (technical difficulty) .

Question: Divyansh Gupta - Latent Advisors PMS - Analyst : Can you hear me?