Bonus Share: Auto Ancillary Stock Jumps 12% After Board to Consider Bonus Issue

Synopsis:-  The stock surged up to 12% after the board scheduled a January 22, 2026, meeting to consider bonus shares. Strong railway demand, visibility of 5–10 years, expansion from 6,000–7,000 new coaches, replacement of 15,000 ageing units, and improving operating margins supported positive investor sentiment.

The shares of the leading manufacturer of essential safety equipment gained up to 12% in today’s trading session after the company’s board of directors scheduled a meeting to consider and recommend the issue of bonus shares.

With a market capitalisation of Rs 1,715.22 crore, the shares of Frontier Springs Ltd were trading at Rs 4,355.00 per share, increasing around 7 percent as compared to the previous closing price of Rs 4,074.55 apiece.

Board meeting

The shares of Frontier Springs Ltd have seen positive movement after the Board of Directors of Frontier Springs Limited is scheduled a meeting on Thursday, January 22, 2026, to consider and recommend the issue of Bonus Shares to the Shareholders of the Company.

Financials

Over the last one year, Frontier Springs Ltd has delivered strong growth in revenue. Sales increased from  Rs 52 crore in Q2FY25 to  Rs 83 crore in Q2FY26, reflecting rising demand and improved scale of operations. This consistent top-line expansion indicates healthy order inflows and better capacity utilisation during the period.

Profitability improved sharply alongside revenue growth. Operating profit doubled from  Rs 11 crore to  Rs 22 crore over the same period, while operating margins expanded from 20% to 27%. Net profit also rose from  Rs 7 crore to  Rs 16 crore, highlighting strong operating leverage, efficient cost control, and sustained margin improvement.

The revenue mix in Q2 was well balanced across segments. Air Springs and Coil Springs contributed roughly  Rs 35 crore each, reflecting steady OEM and replacement demand. The Forging segment added about  Rs 16–17 crore, supporting overall volumes. This diversified mix, backed by automotive demand, provides healthy order visibility and reduces dependence on any single product line.

Management highlighted strong demand across all product lines, with air springs driving profitability and coil springs benefiting from steady railway orders. Railways remain a key long-term growth driver, with demand visibility for 5–10 years, supported by production of 6,000–7,000 new coaches and replacement of nearly 15,000 ageing ICF coaches over the next three years.

Management reiterated FY26 gross revenue guidance of  Rs 375 crore, while acknowledging potential upside to  Rs 400 crore but maintaining a conservative stance. For FY27,  Rs 500 crore revenue is already visible, with incremental products offering further upside. Longer term, management aims to cross  Rs 1,000 crore within five years, supported by new product additions and projects under board-level discussion.

Frontier Springs Ltd is a leading manufacturer of springs and suspension systems, primarily serving Indian Railways. The company specialises in air springs, coil springs and forgings, supported by strong in-house manufacturing, long-term railway demand visibility, and consistent execution across OEM and replacement segments.

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