New Product Or Brand Launch
Expected: FY26HIGH confidence
What: EV charging platforms: Entry into EV segment
Spectrum Electrical Industries Ltd: Is It a Deep Value Opportunity?
AverageSteady Growth
As of , Spectrum Electrical Industries Ltd (Capital Goods - Electric General) has a deep value score of 42/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -28%.
Spectrum Electrical Industries Ltd Key Facts
- PE Ratio
- 53.0x
- Market Cap
- ₹1,968 Cr
- Value Score
- 42/100
- Margin of Safety
- -19%
- PAT Growth YoY
- +233%
- Revenue Growth YoY
- +76%
- OPM
- 15.0%
PE: Near TroughStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
🌐FII stake increased 1.6% this quarter
💰Trading 19% above estimated fair value
Earnings Acceleration Triggers
1. New Product Or Brand Launch
FY26HIGH
2. Geographical Expansion
FY26MEDIUM
Key Risks
1. Copper prices reached record territory above $13,300 per tonne in early 2026, im
HIGH2. Ongoing conflict impacts supply chains and input cost volatility for petrochemic
MEDIUMSector-Specific Signals
Gross Current Assets (GCA) Days220 days
Debt to Equity Ratio0.9x
Interest Coverage Ratio5.1x
Manufacturing Locations16 Nos.
Key Numbers
PAT Growth YoY
+233%
Stable
Revenue YoY
+76%
Stable
Operating Margin
15.0%
0 bps YoY
PE Ratio
53.0
PEG Ratio
1.18
Current Price
₹1,252
3Y PAT CAGR
+46%
Market Cap
2.0K Cr
Valuation
OvervaluedWhy Are Spectrum Electrical Industries Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Geographical Expansion
Expected: FY26MEDIUM confidence
What: Bangalore facility: 1 additional facility
What Are the Key Risks for Spectrum Electrical Industries Ltd?
Earnings deceleration risks from management commentary
Copper prices reached record territory above $13,300 per tonne in early 2026, im
HIGHTrigger: Copper prices reached record territory above $13,300 per tonne in early 2026, impacting PCB and wiring costs.
Management view: Increasing inventory of raw materials to mitigate shortages.
Monitor: commodity
Ongoing conflict impacts supply chains and input cost volatility for petrochemic
MEDIUMTrigger: Ongoing conflict impacts supply chains and input cost volatility for petrochemical derivatives.
Management view: Increased inventory carrying costs to mitigate risk of shortages from the Gulf.
Monitor: geopolitical
What Did Spectrum Electrical Industries Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹126.51 Cr
YoY +77.6%QoQ +5.6%
Revenue growth was driven by operational scaling and expansion into the EV and automobile sectors.
EBITDA
₹20.17 Cr
YoY +83.3%Margin 15.9%
EBITDA growth of 16.05% QoQ reflects improved operational efficiency despite rising total expenses.
PAT
₹10.21 Cr
YoY +282.4%QoQ +30.7%
PAT growth significantly outpaced revenue due to a 47% QoQ decrease in tax expenses and margin expansion.
Other Highlights
• EPS rose to ₹6.44 in Q3FY26 from ₹4.93 in Q2FY26.
• Utilized ₹29.34 Cr from QIP for working capital and capex.
• Acquired 100% stake in Alric Electric for ₹1.11 Cr.
What Sector Metrics Matter for Spectrum Electrical Industries Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Gross Current Assets (GCA) Days
220 days
Why: Operations are working capital intensive, typical for the electrical equipment industry.
Debt to Equity Ratio
0.9x
Why: Planned capex is being funded through a debt:equity ratio of 70:30.
Interest Coverage Ratio
5.1x
Why: Expected to remain in line with returns from capex partially negated by higher debt.
Manufacturing Locations
16 Nos.
Why: Expansion into new facilities including Bangalore and Nashik.
What Is Spectrum Electrical Industries Ltd's Management Guidance?
Forward-looking targets from management for FY26
OPM Guidance
14%
Capex Plan
₹120 Cr
Margin Outlook
Targeting operating profitability over 13-14%
Capex Plan
₹100-120 Cr
Expansion and new facility in Bangalore
Management Tone: BULLISH
How Fast Is Spectrum Electrical Industries Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +76% | +17% | Stable |
| PAT (Net Profit) | +233% | +46% | Stable |
| OPM | 15.0% | 0 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: Spectrum Electrical Industries Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Spectrum Electrical Industries Ltd's deep value score?
Spectrum Electrical Industries Ltd has a deep value score of 42/100 (rated Average). This score is calculated from three components
- Earnings Score: 24/40 — measures PAT growth momentum across quarters
- Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 22/25 — operational quality (margins, revenue growth, valuation)
Is Spectrum Electrical Industries Ltd fundamentally improving?
Spectrum Electrical Industries Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): +31%
- Previous Quarter PAT Growth (QoQ): +39%
- 2 Quarters Ago PAT Growth (QoQ): -59%
- PAT Acceleration: +44.7pp (profits are accelerating)
- 2 consecutive quarters of positive PAT growth
Why is Spectrum Electrical Industries Ltd underperforming despite good earnings?
Spectrum Electrical Industries Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -28%
- 6-Month Return vs Nifty 500: -9%
- 3-Month Return vs Nifty 500: +2%
- Yet average quarterly PAT growth is +4% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Spectrum Electrical Industries Ltd?
Spectrum Electrical Industries Ltd's earnings momentum is Steady — consistent growth.
- PAT QoQ progression: -59% → +39% → +31% (2Q ago → 1Q ago → latest)
- Acceleration: +44.7pp
- PAT YoY Growth: +233%
Is Spectrum Electrical Industries Ltd undervalued?
Spectrum Electrical Industries Ltd's valuation metrics
- Price-to-Earnings (PE): 52.8x
- Price-to-Book (PB): 9.1x
- PEG Ratio: 1.2x
- Margin of Safety: -62% (appears overvalued)
What are the revenue and margin trends for Spectrum Electrical Industries Ltd?
Spectrum Electrical Industries Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +6%
- Average Quarterly Revenue Growth: -2%
- Revenue Acceleration: +27.9pp
- Latest OPM Change: +2.2pp (margins expanding)
- Average OPM Change: +0.0pp
- Revenue YoY: +76%
What is Spectrum Electrical Industries Ltd's trailing twelve month (TTM) performance?
Spectrum Electrical Industries Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹38 Cr
- TTM PAT Growth: +100.0% YoY
- TTM Revenue: ₹497 Cr
- TTM Revenue Growth: +38.3% YoY
- TTM Operating Margin: 14.3%
What sector does Spectrum Electrical Industries Ltd belong to?
Spectrum Electrical Industries Ltd key facts
- Sector: Capital Goods - Electric General
- Market Cap: ₹2.0K Cr
- Rank in Capital Goods - Electric General: #1 by value score
- Overall rank among all deep value stocks: #14
Is Spectrum Electrical Industries Ltd a good deep value opportunity to study?
Spectrum Electrical Industries Ltd shows limited deep value signals currently — score is 42/100 (Average). Monitor for improvement.
- Value Score: 42/100 (Average)
- Earnings: Accelerating
- 1Y Underperformance: -28% vs Nifty 500
What is the bull and bear case for Spectrum Electrical Industries Ltd?
Research Signals (Bull Case)
- Earnings accelerating — profit growth speeding up
- 2 consecutive quarters of positive PAT growth
- Revenue growth also accelerating
- Operating margins expanding
Risk Factors (Bear Case)
- Appears overvalued despite underperformance
How does the Capital Goods - Electric General sector look for deep value?
Capital Goods - Electric General deep value sector overview
- 1 deep value stocks in this sector
- Average value score: 42/100
- Avg PAT acceleration: +44.7pp
- Top pick: Spectrum Electrical Industries Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Spectrum Electrical Industries Ltd?
Spectrum Electrical Industries Ltd has 2 key growth catalysts identified from recent earnings analysis
- New Product Or Brand Launch
- Geographical Expansion
What are the key risks in Spectrum Electrical Industries Ltd?
Spectrum Electrical Industries Ltd has 2 key risks worth monitoring
- Copper prices reached record territory above $13,300 per tonne in early 2026, im
- Ongoing conflict impacts supply chains and input cost volatility for petrochemic
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.