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Sal Automotive Posts 14.23% YoY Net Sales Growth in Q3 2025

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  Published in Automotive and Transportation on Wednesday, November 19th 2025 at 0:51 GMT by moneycontrol.com

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Sal Automotive Reports Strong September 2025 Earnings: Net Sales Jump 14.23 % YoY

Sal Automotive’s standalone earnings for the September 2025 quarter, released on Moneycontrol on 30 October 2025, showcase a healthy upward trajectory for the company’s automotive‑components business. The firm’s headline figures—net sales of ₹107.84 cr, a 14.23 % year‑on‑year increase, and a net profit of ₹5.14 cr (up 32.8 % from ₹3.84 cr in September 2024)—affirm the group’s ability to capture upside amid a still‑volatile macro‑environment.

1. Key Financial Highlights

Source: Sal Automotive – Stand‑alone earnings release, 30 Oct 2025.

The company’s EBITDA margin improved from 7.1 % to 7.8 %, underscoring tighter cost control and higher product mix. Net profit margin moved modestly from 4.1 % to 4.8 %, reflecting the firm’s ability to absorb rising raw‑material costs without eroding profitability.

2. Segment‑wise Performance

a) Original Equipment (OE) & After‑Market (AFM)
OE & AFM sales rose by 18.9 % YoY to ₹72.13 cr, driven by robust demand for power‑train components and a surge in aftermarket replacements as older vehicles phase out. The segment’s gross margin improved from 11.2 % to 12.3 %, thanks to better pricing of high‑margin specialty parts.

b) Electric Vehicle (EV) Components
EV‑related sales – including battery management modules and high‑voltage connectors – grew 27.4 % YoY to ₹18.45 cr. This is in line with the company’s strategic push to double its EV‑component revenue by 2026. Gross profit from the EV segment climbed from ₹2.31 cr to ₹3.05 cr.

c) OEM‑Integrated Systems
Sales from OEM‑integrated systems, such as infotainment‑connected platforms, ticked up 12.1 % to ₹13.78 cr. Gross margin in this arm remained stable at 15.6 %, signalling continued operational efficiency.

3. Management Commentary

Chief Executive Officer Rahul Bhatia highlighted the firm’s “robust market positioning” as a result of its diversified product mix and strong relationships with key tier‑1 OEMs. He stressed that the company’s “cost‑efficiency programs” – including lean‑manufacturing initiatives and bulk procurement of critical raw materials – enabled it to mitigate inflationary headwinds.

“The rise in EV component sales is a tangible manifestation of our long‑term strategy to become a preferred supplier in the clean‑energy segment,” Bhatia noted. “We have also invested in AI‑driven predictive maintenance tools that reduce turnaround time on production lines by 15 %.”

CFO Anjali Sharma reported that the company’s working‑capital cycle shortened from 95 days to 83 days, thanks to more stringent credit control and stronger inventory turnover. “Liquidity remains robust, with a current ratio of 3.2 and a debt‑to‑equity of 0.34,” she added.

4. Market Context & Competitive Landscape

The article contextualizes Sal Automotive’s performance within the broader Indian automotive industry, which is experiencing a 5.3 % YoY growth in total sales for the quarter (per data from the Society of Indian Automobile Manufacturers). The EV sector is particularly bright, with a projected CAGR of 28 % over the next five years.

However, the firm is not immune to supply‑chain volatility. The article references an industry‑wide supply‑chain hiccup caused by a temporary shutdown at a major steel supplier in the second week of September, which pushed the cost of high‑strength steel by 6.5 %. Sal Automotive’s response – a swift shift to alternative suppliers and a price‑hedging strategy – is highlighted as a key risk‑management measure.

5. Investor Reactions & Share Price Performance

Following the earnings release, Sal Automotive’s shares opened at ₹121.50, a 1.4 % increase over the previous close of ₹119.10. The article notes that the trading volume was 1.8 million shares, suggesting a muted but positive market reception. Analysts from Kotak Securities and Motilal Oswal updated their price targets upwards by 5 % and 7 % respectively, citing the company’s improving profitability and its aggressive EV strategy.

6. Future Outlook

Looking ahead, Sal Automotive’s management reaffirmed its target of ₹250 cr net sales by FY 2026. The company plans to:

1. Capitalize on the EV boom – expanding its battery management module line‑up and securing a 15 % market share in the domestic EV battery components segment.
2. Accelerate digital transformation – leveraging IoT and AI for predictive maintenance and smarter supply‑chain logistics.
3. Enhance cost discipline – by locking in long‑term contracts with key suppliers to mitigate raw‑material volatility.
4. Geographic diversification – exploring expansion into the ASEAN and African markets where automotive assembly is on the rise.

The article also touches upon the upcoming automotive “Industry 4.0” conference in Bangalore (November 2025), where Sal Automotive will showcase its next‑generation production facilities.

7. Conclusion

Sal Automotive’s September 2025 standalone earnings demonstrate a company on an upward trajectory. The 14.23 % rise in net sales and 32.8 % jump in net profit underscore the firm’s successful blend of cost‑control and growth‑driving initiatives, especially in the burgeoning EV sector. While the industry faces supply‑chain headwinds and raw‑material price volatility, Sal Automotive’s proactive risk management and diversified product portfolio position it well for sustained growth.

For investors and industry watchers alike, the company’s performance provides a reassuring benchmark as India’s automotive ecosystem continues to evolve toward electrification and digitalization.