We roll forward our TP on Jun-19E and value Subros at Rs 318 (20x Jun-19E EPS) vs Rs 295 earlier. Subros 1QFY18 numbers were marked by better operational performance. The trajectory of revenue growth (at Rs 4.2bn, +29% YoY) was encouraging, driven by strong increase in PV sales and incremental revenue from new business verticals like bus/truck ACs and radiators. EBITDA margin came in higher at 10.7% (+45bps YoY) led by lower employee expenses (-90bps YoY). APAT at Rs 114mn (+12% QoQ) was boosted by fall in interest cost (-16% QoQ).