Shares of Subros Limited rose as much as 10% on 28 October after the company announced a new business order worth approximately Rs 1,225 crore from Maruti Suzuki India. 

The contract involves supplying heating, ventilation and air conditioning (HVAC) assemblies for two vehicle models, strengthening Subros’ long-term business relationship with one of India’s largest carmakers. 

The order covers HVAC assemblies for Maruti Suzuki’s YM3 and YU0 models. According to the company’s regulatory filing, the contract is around Rs 1,225 crore over the models’ expected lifecycle of approximately seven years.

Supplies will begin according to the production schedules agreed with Maruti Suzuki. The company expects the order to strengthen its business presence in western India and support future growth.

Importantly, the Rs 1,225 crore represents the total value across the contract period, not revenue that will be earned in a single year.

Subros manufactures automotive air-conditioning systems and thermal management products, including compressors, condensers and heat exchangers. Its products serve passenger vehicles, commercial vehicles, buses, transport refrigeration and railways.

The company has also established the Subros Advanced Technologies and Innovation Centre in Noida to strengthen research and development. Its work will focus on areas such as electric vehicle thermal management, energy efficiency and new automotive technologies.

The Maruti Suzuki contract improves Subros’ long-term order visibility and reinforces its position in the automotive components industry. However, the actual financial benefit will depend on production volumes, execution costs and profit margins.

At 11:25 am, the shares of Subros were trading 1.33% higher at Rs 624.05 on NSE.

Tired of guessing stocks to trade in daily?
Tradz by EquityPandit empowers you with powerful tools like daily stock scans for Intraday, Swing & Investing, Market Predictions and much more.
Download the Tradz by EquityPandit app today and take control of your investments!