Subros sees 11.5% revenue growth driven by EV and hybrid thermal demand

Subros, a leading automotive thermal management supplier, reported an 11.52% year-on-year rise in revenue from operations to Rs 3,755 crore for FY26. Profit after tax increased by 10.22% to Rs 165 crore. In the March quarter, revenue rose 15.55% year-on-year to Rs 1,049.76 crore, with quarterly profit after tax at Rs 49.69 crore.

Key Highlights

• Subros reported FY26 revenue of Rs 3,755 crore, up 11.52 percent year on year
• Thermal systems for EVs hybrids and CNG vehicles now contribute 25 percent of total revenue
• Thermal content per electric vehicle is 2.5 to 3 times higher than in conventional vehicles
• Subros invests Rs 175 crore in e-compressor project with 70 percent localisation target
• Truck AC sales rose 168 percent in the March quarter after new regulatory norms

EV and Hybrid Technologies Drive Revenue

Thermal systems for electric vehicles, hybrids, and CNG-powered vehicles now contribute about 25% of Subros’s total revenue. The company highlighted that rising electrification, hybridization, and advanced battery-cooling needs are increasing the thermal content required per vehicle. Subros management stated that the transition to hybrid and electric mobility is expanding the scope of thermal management systems in vehicles.

According to Subros, electric and hybrid vehicles need more complex thermal architectures than conventional internal combustion engine (ICE) vehicles. Battery cooling and advanced energy management are key factors. The company said that thermal management content per electric vehicle could be 2.5 to 3 times higher than in conventional vehicles. Electric compressors alone could see value up to four times greater than traditional compressor systems.

Continued Focus on ICE and New Investments

Subros noted that ICE vehicles will remain important in the Indian market in the medium term. The company continues to invest in thermal efficiency improvements for ICE vehicles alongside its EV technology developments. Subros is working on lighter and more energy-efficient thermal systems to improve fuel efficiency in conventional vehicles.

The company said its new thermal technologies are designed to be adaptable across multiple propulsion formats, including hybrids, plug-in hybrids, and range-extender electric vehicles. Subros management stated that upcoming products will be agnostic to powertrain type.

Expansion in Electric Compressor Manufacturing

As part of its future mobility strategy, Subros is increasing investments in electric compressor manufacturing and localization. The company has allocated about Rs 175 crore for its e-compressor project, which is expected to become operational in FY '28. Localization targets for the project are set to reach around 70%.

Subros expects annual revenue visibility of about Rs 250 crore from the e-compressor business at peak scale. The total program life for one recently secured order is estimated at around seven years.

Growth in Conventional Segments and Outlook

Alongside electrification-linked opportunities, Subros continues to benefit from regulatory changes and premiumization in traditional mobility segments. Truck air conditioning sales grew 168% in the March quarter and 111% in FY26, following the introduction of mandatory AC norms in some commercial vehicle categories.

Looking ahead, Subros remains focused on localization, technology-driven growth, and operational efficiency. The company continues to monitor challenges such as commodity price fluctuations, foreign exchange movements, and global supply chain uncertainties.

Also Read: Endurance Technologies achieves record FY26 performance on strong India and Europe growth

CarBike 360 Says

Subros’ strong revenue growth highlights how rapidly the shift toward electrification is reshaping the auto component landscape. With EVs and hybrids demanding more advanced thermal management, the company is well-positioned to capitalize on this transition. As automakers accelerate electrification plans, suppliers like Subros could see sustained momentum in both innovation and long-term business growth.