DIWALI SERIES DETAILED ANALYSIS FRONTIER SPRINGS LTD
ABOUT FRONTIER SPRINGS LTD COMPANY
- Founded: 1981
- Headquarters: Kanpur, Uttar Pradesh
- Core business: Manufacture of hot coiled compression springs, air springs, and forged components for railways, wagons, and locomotives.
- IRIS certification.
- ISO 14001: 2015
- Facilities: 2 manufacturing plants + fully equipped lab.
FINANCIAL HIGHLIGHTS
- Market Cap: 1735 Cr.
- P/E: 40.9
- ROCE: 41.8%
- ROE: 32.5%
- OPM: 23.6%
- Sales Growth: 59.3%
- PEG Ratio: 0.62
- PLEDHER: 0.00%
- Profit Growth: 134%
- OTR Profit VAR: 111%
COMPANY EVOLUTION
| YEAR | MILESTONE |
| 1968: |
Began with leaf springs for trucks.
|
| 1981: |
Incorporated as Frontier Springs Ltd.
|
| 1991: |
Shifted to hot coiled springs for railways.
|
| 2011: |
Entered forging business.
|
| 2022: |
Started air springs (with Germany).
|
| 2024: |
Installed 6-tonne hammer to boost forging capacity.
|
MAJOR CLIENTS
- Chittaranjan Locomotive Works (CLW)
- Banaras Locomotive Works (BLW)
- Matiala Locomotive Works, Frointer-Alloy Steel Ltd
Q1 FY26 HIGHLIGHTS
-
Metric Q1 FY26 Q1 FY25 YoY Growth Revenue: 75.34 Cr. 50.75 Cr. +48% EBITDA: 20.42 Cr. 9.75 Cr. +109% PAT: 14.74 Cr. 6.98 Cr. +111% EBITDA Margin: 27.10% 19% +790 bps
- Strong revenue and profit growth supported by high demand, improved margin.
BUSINESS SEGMENTS
- SPRINGS DIVISION: Maintain business (since 1991)
- Coil springs for railways
- FORGING DIVISION: Established in 2011
- Makes bolts like anti-roll bars, coupling
- Uses 1T, 3T, and 6T hammers
- AIR SPRING DIVISION: Growth driver (since 2022)
- Used in LHB coaches
- Successfully ramped up
- Expansion by FY26
BALANCE SHEET
| Particulars | Mar2022 | Mar2023 | Mar2024 | Mar2025 |
| Reserves: | 63 | 71 | 85 | 120 |
| Borrowings: | 3 | 5 | 4 | 6 |
| Debtor Days: | 74 | 50 | 60 | 64 |
| ROE: | 15.00% | 17% | 21% | 42% |
Result
| Particulars | Sep2024 | Dec2024 | Mar2025 | Jun2025 |
| Sales | 52 | 58 | 70 | 75 |
| OPM | 20% | 21% | 24% | 27% |
| Net Profit | 7 | 9 | 12 | 15 |
| EPS (RS) | 10.51 | 22.17 | 29.61 | 34.43 |
If you're interested, I'll share more information. Join the Telegram group – check it out here:
Disclaimer
Disclaimer: Content shared on or through our digital media channels are for information and education purposes only and should not be treated as investment or trading advice. Please do your own analysis or take independent professional financial advice before making any investments based on your own personal circumstances. Investment in securities are subject to market risks, please carry out your due diligence before investing. And last but not the least, past performance is not indicative of future returns.
If you're interested, I'll share more information. Join the Telegram group – check it out here: