Setco Automotive Limited (SETCO)
₹17.35 -1.25% last close, 16 Oct
Q2 FY27 results
📅 Next results: 23 Oct 2026 (board meeting)Setco Automotive Limited's board meets on 23 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q4 FY26, Setco Automotive's revenue was ₹251 Cr (+19.0% year on year, +27.5% on the previous quarter), and net profit ₹136 Cr (against a loss a year earlier); the operating margin was 9.2%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹251 | +19.0% | +27.5% |
| Operating profit | ₹23.0 | -43.4% | -20.4% |
| Net profit | ₹136 | from loss | from loss |
| EPS (₹) | 8.93 | from loss | from loss |
| Operating margin | 9.2% | — | — |
SETCO delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 71.45% of the SETCO shares traded on NSE were taken to delivery, against the stock's own 20-session average of 78.51%. That is close to its usual level. Turnover was only ₹13 lakh, so a handful of trades can move this figure. It closed at a price band (circuit) on 4 sessions in about the last 20.
Delivery in the last 5 sessions: 70.4% · 78.9% · 88.0% · 76.8% · 71.5%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Setco Automotive Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate from RTA MUFG Intime India Private Limited confirms that security certificates received for dematerialisation were duly processed, confirmed or rejected, and mutilated/cancelled within prescribed timelines. This is a recurring administrative filing confirming standard regulatory adherence.
- Compliance certificate submitted under Regulation 74(5) for the quarter ended September 30, 2026
- Certificate issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited on October 3, 2026
- Filing submitted to BSE and NSE on October 13, 2026
- Confirms securities dematerialised were listed and physical certificates were cancelled within prescribed timelines
Setco Automotive Limited has issued the notice for its 43rd Annual General Meeting (AGM) scheduled for September 30, 2026, alongside releasing its Annual Report for FY 2025-26. The company established September 23, 2026, as the cut-off date for e-voting eligibility. In the consolidated cash flow statement for FY26, operating cash flow stood at Rs 233.94 crore (up from Rs 89.24 crore in FY25), aided by working capital changes, while financing outflows reached Rs 218.28 crore primarily due to debt repayments and interest servicing.
- 43rd Annual General Meeting scheduled for September 30, 2026 at 2:30 p.m. IST
- E-voting cut-off date fixed as Wednesday, September 23, 2026
- Net cash flow from operating activities reported at Rs 23,394.11 lakhs for FY26 vs Rs 8,923.76 lakhs in FY25
- Repayment of term loans amounted to Rs 11,375.28 lakhs during FY26
- Year-end cash and cash equivalents doubled to Rs 4,028.41 lakhs as of March 31, 2026
Setco Automotive Limited has notified the exchanges regarding the closure of its Register of Members and Share Transfer Books from September 24, 2026, to September 30, 2026 (both days inclusive). This closure is for the purpose of conducting the company's 43rd Annual General Meeting (AGM). The AGM is scheduled to take place on Wednesday, September 30, 2026, at the company's registered office in Kalol, Gujarat.
- Book closure period scheduled from September 24, 2026 to September 30, 2026 (both days inclusive)
- 43rd Annual General Meeting (AGM) to be held on September 30, 2026
- AGM venue fixed at Registered Office in Alindra Village, Kalol, Panchmahal, Gujarat
Setco Automotive Limited has announced that its Board of Directors approved convening the company's 43rd Annual General Meeting (AGM) on Wednesday, September 30, 2026. The meeting will take place at the registered office in Kalol, Gujarat. Additionally, the Register of Members and Share Transfer Books will remain closed from September 24, 2026, to September 30, 2026 (both days inclusive) for AGM purposes.
- 43rd Annual General Meeting scheduled for Wednesday, September 30, 2026
- Book closure period set from September 24, 2026, to September 30, 2026 (both days inclusive)
- Board meeting commenced at 10:00 a.m. and concluded at 11:00 a.m. on September 4, 2026
Setco Automotive has submitted a Statement on Impact of Audit Qualifications for the financial year ended March 31, 2026. Statutory auditors Sharp & Tannan Associates issued a modified opinion based on qualifications from subsidiary WEW Holding Limited, where consolidated statements were not prepared under IFRS 10 for Setco Automotive (UK) Limited. For FY26, the company reported consolidated total income of Rs 816.74 crore (Rs 81,674 lakhs) and a net loss of Rs 4.28 crore (Rs 428 lakhs). Consolidated net worth stands significantly negative at -Rs 708.17 crore (-Rs 70,817 lakhs) alongside total liabilities of Rs 1,242.55 crore.
- Auditors issued a modified opinion due to non-preparation of IFRS 10 consolidated statements for subsidiary Setco Automotive (UK) Limited
- Consolidated FY26 Total Income stood at Rs 816.74 crore (Rs 81,674 lakhs) against Total Expenditure of Rs 792.21 crore
- Reported FY26 Consolidated Net Loss of Rs 4.28 crore (Rs 428 lakhs) with an EPS of -Rs 0.01
- Negative Consolidated Net Worth reported at -Rs 708.17 crore (-Rs 70,817 lakhs) against Total Liabilities of Rs 1,242.55 crore
- Management stated that the audit qualification has 'No Impact' on the reported figures
Setco Automotive reported its FY26 audited results and disclosed material corporate updates following its board meeting. The company completed the first closing of its phased divestment of subsidiary Setco Auto Systems Private Limited (SASPL) to RSB Transmissions for ~₹215 crore (~41% stake), with up to ₹255 crore expected for the remaining ~24% by August 2027, alongside ₹70 crore in non-compete consideration. Additionally, SAT granted an interim stay on the SEBI order that had restrained promoter directors for two years. The board also approved the re-appointment of promoter directors Harish Sheth, Udit Sheth, and Urja Shah for 3-year terms.
- Completed first closing of ~41% stake divestment in SASPL for ~₹215 crore (received ₹207.60 Cr on closing and ₹7.40 Cr in July 2026)
- Agreements provide for deferred consideration up to ₹71 crore and up to ₹255 crore for residual 24% stake by August 31, 2027
- Non-compete consideration agreed at ₹70 crore and capacity-reservation fee of ₹33 crore payable to LCPL
- SAT granted an interim stay on May 7, 2026, against the SEBI Quasi-Judicial Authority order dated Feb 5, 2026, subject to monetary penalties
- Board approved 3-year re-appointments for CMD Harish Sheth (effective Jan 1, 2027), VC Udit Sheth (effective May 1, 2026), and ED Urja Shah (effective Nov 11, 2026)
Setco Automotive has finalized the sale price for its majority stake divestment in Setco Auto Systems Private Limited (SASPL) at Rs 215 Cr, which is higher than the initial estimate of Rs 185 Cr. The company had already received Rs 207.6 Cr at the closing date in May 2026. On July 29, 2026, an additional Rs 7.4 Cr was released from a Rs 10 Cr holdback amount, while Rs 2.6 Cr was adjusted downwards for net debt and working capital reconciliations. This total consideration is highly material, representing approximately 72% of the company's current market capitalization.
- Final purchase consideration determined at Rs 215 Cr, exceeding the initial estimate of Rs 185 Cr
- Rs 7.4 Cr cash inflow received on July 29, 2026, following the release of holdback funds
- Rs 207.6 Cr already received by the company as of the transaction closing date on May 28, 2026
- Rs 2.6 Cr adjusted downwards from the holdback amount due to final working capital and debt audits
- Total consideration of Rs 215 Cr represents ~72% of the current market cap of Rs 298 Cr
Setco Automotive has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, for the period ended June 30, 2026. The certificate, issued by its registrar MUFG Intime India Private Limited, confirms that physical share certificates received for dematerialization were processed, cancelled, and the names of depositories were updated in the register of members. This is a standard administrative filing required for all listed entities to ensure the integrity of electronic shareholding records. The company remains in a challenging financial position with a TTM PAT of Rs -162 Cr and significant finance costs.
- Compliance certificate issued for the quarter ended June 30, 2026
- Registrar MUFG Intime India Private Limited confirmed processing of all demat requests within prescribed timelines
- Physical certificates were mutilated and cancelled after due verification by the depository participant
- TTM revenue stands at Rs 765 Cr against a TTM PAT loss of Rs 162 Cr
Setco Engineering Private Limited, a promoter of Setco Automotive, has announced the release of 32,283,970 pledged shares, representing 24.17% of the company's total share capital. The release occurred on July 03, 2026, following the settlement or restructuring of NCDs issued by Setco Auto Systems Pvt. Ltd. This significantly reduces the promoter's encumbered stake from 40.38% to 16.21% of the total share capital. The shares were previously held as collateral by Vistra ITCL (India) Limited for India Resurgence Fund.
- 32,283,970 equity shares released from pledge, representing 24.17% of the total share capital.
- Promoter's encumbered holding decreased from 40.38% to 16.21% post-event.
- The release was executed on July 03, 2026, by Vistra ITCL (India) Limited as Debenture Trustee.
- Total promoter holding in the company remains unchanged at 47.89% (64,063,845 shares).
- The release pertains to NCDs issued by the subsidiary, Setco Auto Systems Pvt. Ltd.
Setco Automotive Limited has appointed Ms. Aditi Pai as Company Secretary and Compliance Officer, effective July 13, 2026. Ms. Pai is an Associate member of ICSI with 5 years of experience in corporate secretarial and regulatory compliance. This is a routine administrative appointment to fulfill statutory requirements under SEBI (LODR) Regulations. The company currently faces financial pressure with a TTM net loss of Rs 162 Cr and a negative ROCE of 2.2%.
- Appointment of Ms. Aditi Pai effective from July 13, 2026
- Appointee brings 5 years of experience in corporate secretarial and legal functions
- Ms. Pai is an Associate member of ICSI with Membership No. A64790
Setco Engineering Private Limited, a promoter entity of Setco Automotive, has released 17,50,000 pledged equity shares on June 30, 2026. This represents 1.31% of the company's total share capital. The release was triggered by the settlement or adjustment of Non-Convertible Debentures (NCDs) issued by Setco Auto Systems Pvt. Ltd. Following this transaction, the total encumbered promoter holding has decreased from 41.69% to 40.38%, though a significant portion of the promoter's 47.89% stake remains pledged.
- 17,50,000 equity shares released from pledge on June 30, 2026
- 1.31% of the total share capital freed from encumbrance
- Promoter encumbered stake reduced from 41.69% to 40.38%
- Shares released by Vistra ITCL (India) Limited acting as Debenture Trustee for India Resurgence Fund
Setco Automotive Limited has shifted its registered office within the local limits of Kalol, Panchmahal, Gujarat. The change was approved by the Board on March 28, 2026, and became effective from May 26, 2026. This is a purely administrative update with no change in the jurisdiction of the Registrar of Companies. The company remains in a challenging financial position with a TTM PAT of -₹162 Cr and high finance costs of ₹217.41 Cr.
- Registered office shifted within the local limits of Kalol, Panchmahal, Gujarat, effective May 26, 2026.
- Board of Directors approved the relocation during their meeting held on March 28, 2026.
- No change in the jurisdiction of the Registrar of Companies (ROC) associated with this move.
- Company reported a TTM revenue of ₹765 Cr but continues to be loss-making with a TTM PAT of -₹162 Cr.
Setco Automotive has announced the closure of its trading window starting July 1, 2026, in compliance with SEBI (Prohibition of Insider Trading) Regulations. This is a standard procedure ahead of the declaration of the unaudited financial results for the quarter ended June 30, 2026. The window will remain closed for all directors and designated persons until 48 hours after the results are made public. Investors should note the company's challenging financial position, with a TTM loss of ₹162 Cr and high finance costs of ₹217.41 Cr.
- Trading window closure begins on July 1, 2026, for the Q1 FY27 earnings period.
- Window to remain closed until 48 hours after the announcement of standalone and consolidated results.
- Company reported a TTM revenue of ₹765 Cr but remains loss-making with a TTM PAT of ₹-162 Cr.
- Finance costs of ₹217.41 Cr continue to significantly impact the bottom line.
- Promoter holding remains stable at 59.25% as of March 2026.
Setco Automotive Limited has informed the exchanges regarding a delay in submitting its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The company missed the regulatory deadline of May 30, 2026, citing the need for additional time to finalize financial statements and complete audit procedures. Management stated that the delay is necessary to incorporate financial adjustments and ensure compliance with accounting standards. While the company claims the delay is unintentional, such lapses in reporting timelines often raise concerns regarding internal controls and financial health.
- Delayed submission of Audited Standalone and Consolidated Financial Results for the fiscal year ended March 31, 2026.
- Missed the SEBI-mandated 60-day deadline for filing annual audited results following the end of the financial year.
- Reason cited includes additional time required for audit review and incorporation of specific financial adjustments.
- Company has not provided a specific revised date for the board meeting or the release of the financial results.
Promoters of Setco Automotive Limited have filed their annual declaration under SEBI Takeover Regulations for the financial year ended March 31, 2026. The disclosure, led by major promoter Setco Engineering Pvt. Ltd. (holding 47.89%), confirms that no new encumbrances or pledges were created on their shares during the year, other than those already disclosed. This filing covers approximately 59.25% of the company's total share capital held by the promoter group. Such declarations are standard regulatory requirements to ensure transparency regarding promoter share commitments.
- Setco Engineering Pvt. Ltd. remains the largest promoter entity with 6,40,63,845 shares (47.89% stake).
- Individual promoters including Harish Sheth (2.17%), Udit Sheth (2.07%), and Urja Shah (3.20%) declared zero new encumbrances.
- The declaration is compliant with Regulation 31(4) and 31(5) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
- A total of seven promoter entities/individuals submitted declarations covering their respective holdings.
Financial Performance
Revenue Growth by Segment
Consolidated revenue from operations grew 12.2% YoY to INR 718.6 Cr in FY25, up from INR 640.7 Cr. The Aftermarket segment was a primary driver, growing 31% YoY and contributing 15.6% of total revenue. Standalone revenue was minimal at INR 2.73 Cr following the transfer of the clutch business to its subsidiary.
Geographic Revenue Split
International operations are key drivers: North American (SANAI) sales grew 6% YoY with 12% EBITDA margins. European (SAUL) sales grew 2% YoY, though EBITDA remained negative. The company also operates in the Middle East via Setco MEA DMCC.
Profitability Margins
The company reported a consolidated Net Loss of INR 126.33 Cr in FY25, a slight improvement of 4.95% from a loss of INR 132.58 Cr in FY24. Profitability is severely impacted by high finance costs of INR 217.41 Cr, which increased 21% YoY, exceeding the operating profit.
EBITDA Margin
Consolidated EBITDA grew 50.7% YoY to INR 109.2 Cr in FY25, up from INR 72.5 Cr. The EBITDA margin improved to approximately 15.2% from 11.3% in the previous year, driven by higher-margin aftermarket sales and export growth.
Capital Expenditure
Not explicitly disclosed in absolute INR Cr for the current period, but the company is investing in 'State-of-the-Art' manufacturing and R&D capabilities in the UK and India to support new product ranges.
Credit Rating & Borrowing
The company was assigned an [ICRA]D rating in June 2021 due to irregularities in servicing bank debt. While the rating was withdrawn in December 2021 after debt was transferred to the SASPL subsidiary, liquidity remains stretched with consolidated finance costs at INR 217.41 Cr.
Operational Drivers
Raw Materials
Specific raw materials include iron castings (sourced from subsidiary Lava Cast), steel, and friction materials for clutch manufacturing. Castings represent a significant portion of the input for the clutch and flywheel lines.
Import Sources
Sourced domestically in India (via Lava Cast Pvt Ltd) and internationally to support manufacturing hubs in the UK and North America.
Key Suppliers
Lava Cast Private Limited (subsidiary) is a primary supplier of castings. Other third-party vendors for steel and friction components are utilized but not named.
Capacity Expansion
Current capacity is not stated in units, but the company is expanding its 'Setco Allied Products' line to include flywheels, bearings, brakes, and lubricants to utilize existing distribution channels.
Raw Material Costs
Not disclosed as a specific percentage of revenue, but the company is implementing proactive cost-reduction steps in its European operations to offset negative EBITDA.
Manufacturing Efficiency
The company utilizes 'State-of-the-Art' facilities and an R&D hub in the UK (SAUL) to improve product life and performance, specifically for the LIPE brand.
Logistics & Distribution
The company uses a global distribution network with hubs in the UK, USA, and Dubai to serve the European, North American, and Middle Eastern markets.
Strategic Growth
Expected Growth Rate
7-9%
Growth Strategy
The company is transitioning to an aftermarket-focused enterprise to reduce OEM dependency. Strategy includes launching 'Setco Allied Products' (bearings, brakes, lubricants), expanding the LIPE brand in Europe, and developing a new range of clutches for the North American market to augment existing business.
Products & Services
Clutches for M&HCV and LCV, flywheels, bearings, brakes, lubricants, and oil.
Brand Portfolio
LIPE, Setco, Setco Allied Products.
New Products/Services
Launched 'Setco Allied Products' including flywheels, bearings, brakes, and lubricants to complement the core clutch portfolio.
Market Expansion
Targeting the North American market with a new range of clutches and the European market through new distributor setups under the SAUL subsidiary.
Strategic Alliances
Maintains six global subsidiaries including Setco Auto Systems Pvt Ltd (SASPL) and Lava Cast Pvt Ltd.
External Factors
Industry Trends
The industry is shifting toward organized spare parts and preventive maintenance. Vehicle parc expansion and the increasing average age of vehicles are driving a 31% growth in the company's aftermarket segment.
Competitive Landscape
Competes with global and domestic clutch manufacturers in the OEM and IAM segments.
Competitive Moat
Moat is built on 40+ years of excellence, the established 'LIPE' brand, and a dominant position in the Indian M&HCV clutch market. Sustainability is supported by a shift to the less cyclical aftermarket.
Macro Economic Sensitivity
Highly sensitive to infrastructure spending and GDP growth, which drive M&HCV demand. The Indian auto component industry's 7-9% growth forecast for FY26 is a key benchmark.
Consumer Behavior
Shift toward higher-quality, branded spare parts in the organized aftermarket to ensure vehicle uptime in the commercial sector.
Geopolitical Risks
Exposure to trade barriers and economic uncertainty in European and North American markets where subsidiaries operate.
Regulatory & Governance
Industry Regulations
Complies with the Companies Act 2013 and SEBI Listing Regulations. Operations are subject to automotive safety and manufacturing standards in India, the UK, and the USA.
Taxation Policy Impact
Consolidated tax provision was a credit of INR 2.85 Cr in FY25 compared to a credit of INR 6.23 Cr in FY24.
Legal Contingencies
The company has extended the redemption date for NCDs worth INR 574.50 Cr multiple times, with the latest extension to December 1, 2025, following agreements with debenture holders and trustees.
Risk Analysis
Key Uncertainties
Liquidity risk is the primary uncertainty, evidenced by the [ICRA]D rating and the need to extend NCD redemptions. Potential impact is a 100% disruption of credit facilities if defaults occur.
Geographic Concentration Risk
While global, the majority of revenue (approx. 90% based on SASPL sales) is tied to the Indian market and its subsidiary SASPL.
Third Party Dependencies
Dependent on the recovery of the M&HCV industry and the performance of its material unlisted subsidiary, Setco Auto Systems Private Limited.
Technology Obsolescence Risk
Risk of shift toward electric commercial vehicles; mitigated by R&D focus on new product ranges and allied products.
Credit & Counterparty Risk
Stretched financial profile and irregularities in servicing bank debt obligations as noted by credit rating agencies.
