This Is The Reason Why We Think Subros Limited's (NSE:SUBROS) CEO Might Be Underpaid

Key Insights

• Subros to hold its Annual General Meeting on 17th of September
• CEO Parmod Duggal's total compensation includes salary of ₹15.2m
• The overall pay is 58% below the industry average
• Subros' total shareholder return over the past three years was 148% while its EPS grew by 56% over the past three years

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The solid performance at Subros Limited (NSE:SUBROS) has been impressive and shareholders will probably be pleased to know that CEO Parmod Duggal has delivered. At the upcoming AGM on 17th of September, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

View our latest analysis for Subros

Comparing Subros Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Subros Limited has a market capitalization of ₹61b, and reported total annual CEO compensation of ₹16m for the year to March 2025. We note that's an increase of 20% above last year. Notably, the salary which is ₹15.2m, represents most of the total compensation being paid.

In comparison with other companies in the Indian Auto Components industry with market capitalizations ranging from ₹35b to ₹141b, the reported median CEO total compensation was ₹37m. Accordingly, Subros pays its CEO under the industry median.

On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Subros is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Subros Limited's Growth

Subros Limited has seen its earnings per share (EPS) increase by 56% a year over the past three years. It achieved revenue growth of 7.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Subros Limited Been A Good Investment?

We think that the total shareholder return of 148%, over three years, would leave most Subros Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Parmod receives almost all of their compensation through a salary. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which can't be ignored) in Subros we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.