ICE Not Going Away, Points Out Subros

Subros has indicated that internal combustion engine (ICE) vehicles will continue to remain relevant in India’s evolving vehicle market, even as the company expands its presence in electric and hybrid vehicle thermal management systems. The company intends to keep investing in ICE technologies.

“The ICE engine will remain. It is not going to be wiped off completely,” the company said while outlining its future technology and investment direction following its FY26 results.

The automotive thermal management supplier reported revenue from operations of Rs 3,755 crore for FY26, up 11.52% year-on-year, while profit after tax rose 10.22% to Rs 165 crore. In the March quarter, revenue increased 15.55% year-on-year to Rs 1,049.76 crore, with quarterly profit after tax at Rs 49.69 crore.

Subros said thermal systems linked to electric vehicles, hybrids and CNG-powered vehicles now contribute around 25% of its overall revenue, reflecting the increasing role of alternative powertrains in its business mix.

At the same time, the company indicated that ICE platforms will continue to remain relevant, prompting continued investments in fuel-efficiency-oriented thermal technologies.

“We are investing to upgrade our products to make more efficient thermal solutions for ICE cars with lower fuel consumption and lighter-weight products,” the company said.

Alongside ICE-focused technologies, Subros said it is seeing a sharp increase in thermal management requirements in electric and hybrid vehicles, particularly due to battery cooling and advanced energy management systems.

“In electric cars or hybrid cars, penetration is going to increase rapidly. Our product alignment is to provide thermal solutions for these cars, which will increase the scope of thermal supply per car because the system is much more complex, including the battery cooling as well,” the company noted.

According to the management, thermal management content per vehicle in EVs could rise substantially compared to conventional ICE vehicles. The company said content per vehicle in electric vehicles could be around 2.5 to 3 times higher than traditional applications, while electric compressors alone could see value multiplication of up to four times compared to conventional compressor systems.

As part of its future mobility strategy, Subros is investing around Rs 175 crore in an electric compressor project aligned with upcoming vehicle programmes. The company said the initiative has annual revenue visibility of around Rs 250 crore at peak scale, with localisation levels expected to eventually reach around 70%.

The company also said technologies currently under development are intended to remain adaptable across multiple propulsion formats, including hybrids, plug-in hybrids and range-extender electric vehicles.

“These technologies, whatever we are going to launch or that are currently in the pipeline, will be agnostic to any powertrain,” the management said.

The company also highlighted opportunities emerging from regulatory and premiumisation trends across the industry. Truck AC sales grew 168% during the March quarter and 111% during FY26 following the implementation of mandatory air-conditioning norms in certain commercial vehicle categories.