Subros Expands EV Thermal Systems Business as Hybrid and CNG Revenue Share Reaches 25%

Subros said thermal systems associated with electric vehicles, hybrids and CNG-powered vehicles now account for nearly 25% of its overall business revenue, highlighting the growing contribution of next-generation mobility technologies to the company’s operations. The company indicated that the increasing adoption of electrified mobility platforms is expanding opportunities for advanced thermal management solutions across multiple vehicle categories in the Indian automotive market.

The company reported revenue from operations of Rs 3,755 crore during FY26, representing a year-on-year increase of 11.52%. Profit after tax rose 10.22% to Rs 165 crore during the fiscal year. In the March quarter, revenue climbed 15.55% year-on-year to Rs 1,049.76 crore, while quarterly profit after tax stood at Rs 49.69 crore. Management stated that demand for advanced thermal systems continues to strengthen alongside evolving vehicle technologies and regulatory developments.

Subros Highlights Growing Demand for Advanced Thermal Systems

During the post-results analyst interaction, management explained that the ongoing transition toward hybrid and electric mobility is significantly increasing the complexity and scope of thermal management systems required in vehicles. According to the company, thermal architectures in electric and hybrid vehicles are substantially more sophisticated than those used in conventional internal combustion engine platforms because of battery cooling requirements and advanced energy management functions.

The company noted that thermal supply opportunities per vehicle are expected to rise considerably as electrified vehicles gain market penetration. Management stated that electric and hybrid vehicles require additional cooling modules, battery thermal control systems and energy-efficient compressor technologies, creating higher value opportunities compared to conventional automotive thermal applications.

Estimated Thermal Content Growth in Electric Vehicles

The management further stated that electric compressors and integrated cooling systems are expected to become increasingly important as vehicle electrification expands across passenger and commercial mobility segments. The company believes that rising thermal complexity will support long-term growth opportunities for suppliers with localisation and engineering capabilities.

ICE Vehicles Continue to Remain Relevant in India

India will continue to see strong relevance for internal combustion engine vehicles over the medium term, according to the company. Management clarified that while electrification is accelerating, ICE-based vehicles are unlikely to disappear completely from the market in the foreseeable future. As a result, Subros said it is continuing investments in thermal efficiency technologies aimed at improving fuel economy and reducing system weight for conventional vehicle platforms.

The company added that several thermal technologies currently under development are being designed to remain adaptable across multiple propulsion formats, including hybrids, plug-in hybrids and range-extender electric vehicles. This approach is intended to ensure flexibility for future automotive programmes while supporting varying customer powertrain strategies.

Subros Expands E-Compressor Localisation Strategy

As part of its long-term future mobility roadmap, Subros is increasing investments in electric compressor manufacturing and localisation capabilities. The company stated that its upcoming e-compressor project is expected to support future electric vehicle and hybrid programmes, with localisation levels eventually targeted at around 70%.

The company has allocated approximately Rs 175 crore for the e-compressor initiative. Management said the facility is expected to become operational during FY28 in line with customer programme schedules. At peak scale, the company expects annual revenue visibility of nearly Rs 250 crore from the e-compressor business. It also disclosed that one recently secured order linked to the project carries an estimated programme life of around seven years.

Regulations and Premiumisation Support Conventional Business Growth

Beyond electrification-related opportunities, the company said it is also benefiting from regulatory changes and premiumisation trends in conventional vehicle segments. Truck air-conditioning demand recorded strong growth following mandatory air-conditioning regulations introduced for certain commercial vehicle categories. According to the company, truck AC sales increased 168% during the March quarter and rose 111% during FY26.

Management added that localisation initiatives, operational efficiency improvements and technology-focused investments will remain key priorities despite uncertainties related to commodity prices, foreign exchange movements and geopolitical developments affecting global supply chains. The company said it remains focused on balancing investments across electrification technologies and conventional mobility applications while strengthening long-term competitiveness.

Frequently Asked Questions

How much revenue does Subros generate from EV, hybrid and CNG thermal systems?
Subros said thermal systems linked to electric vehicles, hybrid vehicles and CNG-powered vehicles currently contribute around 25% of the company’s total revenue. The company stated that growing electrification and advanced thermal management requirements are increasing demand for its products. Electric and hybrid vehicles require more complex cooling and energy management systems compared to conventional internal combustion engine vehicles. Subros expects thermal content per vehicle to rise significantly as EV penetration expands across passenger and commercial mobility segments in India.

What is Subros investing in for future EV growth?
Subros is investing around Rs 175 crore in its upcoming e-compressor manufacturing initiative aimed at supporting future electric and hybrid vehicle programmes. The facility is expected to become operational during FY28 and will target localisation levels of nearly 70% over time. The company expects annual revenue visibility of around Rs 250 crore from the e-compressor business at peak scale. Subros also said its thermal technologies are being developed to remain adaptable across multiple propulsion systems, including hybrids and range-extender electric vehicles.