Subros Ltd., a small-cap thermal product manufacturer based in Uttar Pradesh, India, has witnessed a sharp stock rally, surging 45% in just seven sessions. The momentum comes on the back of a government mandate requiring factory-fitted AC cabins in all new medium- and heavy-duty trucks starting June 8, 2025.
Subros Ltd., a prominent automotive air-conditioning solutions company based in Uttar Pradesh, has seen its stock price skyrocket over the past week, climbing 45% in just seven trading sessions. On Tuesday, Subros shares jumped 10%, hitting a record high of ₹1,083.20, as investors cheered the potential windfall from a new government mandate.
Founded in 1985 as a joint venture between the Suri family of India, DENSO Corporation, and Suzuki Motor Corporation, Subros Ltd. is India’s only integrated manufacturer of auto air-conditioning systems and related thermal products. The company holds over 40% of the passenger vehicle market and commands a 54% share in the commercial vehicle segment.
The sharp rally follows the implementation of a new regulation effective from 8 June 2025, which mandates all new medium- and heavy-duty trucks sold in India to be equipped with factory-fitted air-conditioned cabins. This move aims to enhance road safety by improving driver comfort and reducing fatigue.
Truck manufacturers such as Tata Motors and Ashok Leyland have already begun rolling out compliant models, raising prices by 1%–2.5% to account for the added AC system costs. The policy has significantly expanded Subros’ addressable market, estimated to create a ₹400–450 crore opportunity by FY26, according to analysts.
Beyond automotive air conditioning, Subros is also expanding its footprint into the home AC segment and railways, while the rising demand for electric vehicles is expected to act as another catalyst for growth.
Despite a temporary slowdown in truck sales—falling from 320,244 units in FY24 to 307,491 in FY25 due to general election-related construction lulls—experts anticipate a rebound in the coming quarters driven by renewed infrastructure push.
Subros’ multibagger journey is notable. From just ₹50 per share in 2014, its stock has grown by 1,954% to over ₹1,027 as of June 18, 2025. An investment of ₹1 lakh a decade ago would now be worth ₹20.54 lakh. The company has delivered gains in seven out of the last ten years, including stellar returns of 140% in CY14 and 81% in CY23.
With a stronghold in thermal solutions, expanding verticals, and favourable regulatory winds, Subros appears well-positioned for continued growth. However, experts advise cautious optimism given the pace of recent gains and potential for near-term consolidation.
