Auto Ancillary Stock Jumps 9% After Reporting Net Profit Growth of 299% QoQ

Synopsis: The shares of the one of the leading auto ancillary company jumped 9% after Q3FY26 results showed a strong recovery, with net profit up 299% QoQ and 82% YoY, driven by higher sales and sharp EBITDA growth.

The shares of this key player in the automotive ancillary manufacturing company, which provides a wide array of original equipment (OEM) parts like struts, dampers, front forks, rear cushions, and gas springs are in focus after it rose by 9% today following net profit growth of 299% QoQ.

With a market capitalisation of Rs. 529 cr, the shares of Munjal Showa Ltd were currently trading at Rs. 132.50 per share, increasing 9% in today’s market session, making a high of Rs. 135, up from its previous close of Rs. 123.45 per share. The stock has delivered a negative return of 3% over the past year, up by 7% year-to-date, 3% up over the last six months, and increasing 10% in the past month.

Q3 Results 

QoQ performance

Munjal Showa delivered a strong sequential recovery in Q3FY26. Sales rose 5% to Rs. 350 crore from Rs. 333 crore. Operating performance improved sharply, with EBITDA jumping from Rs. 3.13 crore to Rs. 12.3 crore, a robust 293% increase, indicating significant margin expansion. Net profit surged from Rs. 2.73 crore to Rs. 10.9 crore, registering an impressive 299% QoQ growth. Consequently, EPS increased from Rs. 0.68 to Rs. 2.73, also reflecting a 301% rise, highlighting strong operational leverage.

YoY performance

On a year-on-year basis, the company reported steady topline growth, with sales increasing from Rs. 319 crore to Rs. 350 crore, up by 10%. EBITDA improved from Rs. 7.74 crore to Rs. 12.3 crore, marking a healthy 59% growth. Net profit rose from Rs. 5.98 crore to Rs. 10.9 crore, translating into a 82% increase. EPS also grew in line with earnings, rising from Rs. 1.50 to Rs. 2.73, representing an 82% growth.

Total expenses for the nine months ended December 31, 2025 increased by Rs. 3.23 crore due to separation costs paid to employees opting for the Voluntary Retirement Scheme (VRS).

Similarly, total expenses for the nine months ended December 31, 2024 were higher due to one-time provisions amounting to Rs. 10.93 crore, which included separation costs related to employees opting for VRS.

Munjal Showa Ltd is one of the leading automotive ancillary manufacturers and a key part of the Hero Group. In technical and financial collaboration with Japan’s Showa Corporation, the company specialises in high-quality struts and shock absorbers for two-wheelers and four-wheelers. 

With over three decades of experience, it supplies a wide range of OEM suspension components to major automotive brands including Maruti Suzuki, Honda, Hero Motocorp, Yamaha, and emerging electric vehicle manufacturers.

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