Setco’s FY25 Success lays foundation for Sustainable Growth and Global Expansion

Setco Automotive Limited, one of India’s largest manufacturers of medium and heavy commercial vehicle (MHCV) clutches and a key supplier to leading OEMs, reported its highest-ever quarterly and full-year sales and EBITDA for FY2024–25. The record performance, driven by strong customer demand, operational excellence, and continued product innovation, marks a significant milestone in the company’s turnaround journey.

Q4 FY25: ₹200 Crore mark breached

For the quarter ended March 31, 2025, Setco Automotive posted revenue from operations of ₹210.6 crore, up 19.0% year-on-year (₹177.0 crore in Q4 FY24). This is the first time the company has crossed the ₹200 crore mark in a single quarter. EBITDA grew sharply by 84.0% to ₹40.6 crore (vs. ₹22.01 crore in Q4 FY24), backed by a favourable sales mix, improved efficiencies across subsidiaries including LAVA Cast, and strong cost discipline. EBITDA margin expanded by 680 basis points to 19.3%.

Strong Annual Growth in Revenue, Profitability and Exports

Setco’s consolidated revenue from operations for FY25 stood at ₹718.6 crore, registering a 12.2% increase over the previous year. EBITDA for the year rose to ₹109.2 crore, a growth of 50.7% from ₹72.5 crore in FY24, with an improved margin of 15.2%. Growth was driven by higher volumes in export, IAM (Independent Aftermarket), and OES (Original Equipment Spares) segments.

Strategic Highlights: Business Expansion, Turnaround in Subsidiaries

• LAVA Cast, Setco’s foundry division, achieved a significant turnaround. It posted positive full-year EBITDA with a Q4 margin of 11%, its best since 2019. The plant also recorded its highest quarterly/yearly tonnage, with exports to the US market commencing – expected to further boost margins. Quality improvements brought annual rejection rates below 5%.
• The company launched new clutch variants in the North American market, receiving strong customer response. Tractor clutch supplies also began in Q4 FY25, opening up a new revenue stream.
• New product introductions such as Clutch Release Bearings (CRBs) and Central Support Bearings (CSBs) reinforced Setco’s product diversification and positioning in the MHCV component segment.

Setco also rolled out its mechanic- and retailer-facing rewards program ‘Drive Rewards’ through the Setco Connect mobile app, onboarding over 20,000 users to date.

Recognition & Milestones

• Awarded the NVB Excellence Award by Tata Motors at its annual supplier conference.
• Recognised by SEEM (Society of Energy Engineers and Managers) for energy management at the UKD plant.
• Achieved highest-ever exports from India, with further growth anticipated.

Driving the Vision Forward

Harish Sheth, Chairman & Managing Director, Setco Automotive Ltd., said: “This has been a landmark quarter and year for us, delivering the highest-ever sales and EBITDA in our company’s history. Crossing ₹200 crore in quarterly revenue is a testament to the growing demand for our products and the trust placed in us by our customers. Our performance is the result of focused execution, operational discipline, and strategic product expansion.”

He added: “With the successful launch of new components and the turnaround of LAVA Cast, we’re now in a stronger position to accelerate our growth trajectory. We are focused on capturing new opportunities, driving sustainable profitability, and delivering long-term value for all stakeholders.”