Subros Limited, India’s leading automotive thermal products manufacturer, is intensifying its focus on green mobility as it targets an increase in the share of revenue from hybrid, electric, and CNG vehicle components from 20% to 25% of net sales in FY26. This strategic shift is underpinned by confirmed orders for upcoming electric vehicle launches, including the Mahindra BEV line, Maruti Suzuki e-Vitara (set to debut in September), and Tata Motors’ growing presence in both ICE and EV commercial vehicle markets.
The company’s robust financial performance in Q4 FY25 highlights this momentum. Subros reported record net sales of ₹908.46 crore—a five-quarter high—and a 51.8% year-on-year jump in profit after tax to ₹46.20 crore. Operating profit reached ₹92.76 crore, with an operating margin of 10.21%, reflecting improved profitability and operational efficiency.
Subros aims to drive higher content value per vehicle as electric and hybrid vehicles require more advanced thermal management solutions, particularly battery cooling systems. Industry analysts note that strong hybrid and EV models will include battery cooling elements within the engine cooling module, and the HVAC system will be used for both battery and cabin cooling. The hose and pipe requirements in EVs double to eight (four for battery cooling and four for cabin cooling) compared to four in traditional ICE vehicles, further boosting Subros’ content per vehicle.
To meet rising demand, Subros is expanding its manufacturing footprint with a new greenfield plant in Kharkhoda, Haryana, backed by a capital expenditure of ₹1.5 billion for FY26. This facility will add significant capacity for air-conditioning system components, with production slated to begin in Q1 FY27. The company’s total capex is set to rise from ₹1.2 billion in FY25 to ₹2.3 billion in FY26, reflecting its aggressive growth strategy.
Subros is also positioned to benefit from new regulations mandating air conditioning in truck cabins from October 2025. The company has secured orders worth ₹1.5 billion for mandatory truck AC systems for N2 and N3 category trucks, with deliveries expected to ramp up from October 2025. Subros aims to capture a 50% share of this segment as the truck AC market is projected to grow by 50–60% in FY26.
With a 40% market share in automotive air conditioning systems, strong partnerships with major OEMs like Maruti Suzuki and Tata Motors, and a technology alliance with Denso Japan, Subros is well-placed to lead India’s transition to sustainable, high-tech automotive solutions. The company’s long-term goal is to raise the green mobility share of revenue to 40%, supported by ongoing product innovation, export opportunities, and expansion into high-margin segments like railway air-conditioning.
Subros’ latest results and strategic initiatives underscore its commitment to driving growth in India’s evolving automotive landscape while delivering enhanced value to stakeholders and supporting the country’s green mobility ambitions.
