FIEMIND - Fiem Industries

📊 NSE: FIEMIND 🏢 Auto Ancillaries 📅 Last Updated: 12/13/2025 22:05

💰 Financial Performance

Revenue Growth by Segment

The Automotive Segment revenue grew 15.47% YoY in H1 FY26, reaching INR 1,370.58 Cr compared to INR 1,186.98 Cr in H1 FY25. The Others Segment grew 22.52% YoY to INR 2.54 Cr from INR 2.07 Cr. Total standalone sales for Q2 FY26 grew 17.12% YoY to INR 711.42 Cr.

Geographic Revenue Split

Not disclosed in available documents; however, operations are primarily centered in India with registered offices in New Delhi and manufacturing units in Hosur and Gurugram.

Profitability Margins

Standalone Profit After Tax (PAT) for H1 FY26 was INR 121.44 Cr. Net profit margins are supported by a shift toward LED products, which now constitute 63.92% of total lighting sales, up from previous periods.

EBITDA Margin

EBITDA margin for Q2 FY26 improved to 13.93% (INR 99.1 Cr) from 13.21% (INR 80.27 Cr) in Q2 FY25, representing a 72 bps YoY increase driven by operating leverage and a favorable product mix.

Capital Expenditure

Total Capital Employed in the Automotive Segment stood at INR 831.53 Cr as of September 30, 2025. Standalone Capital Work-in-Progress was INR 9.32 Cr, down from INR 20.27 Cr in March 2025, indicating recent commissioning of assets.

Credit Rating & Borrowing

Finance costs for H1 FY26 were INR 0.74 Cr, a slight decrease from INR 0.77 Cr YoY. The low finance cost relative to a revenue of INR 1,367.92 Cr suggests a very low debt-to-equity ratio and efficient borrowing costs.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include electronic components for LED lighting and plastic resins for automotive parts; these are critical as LED lighting now represents 63.92% of the lighting segment's revenue.

Capacity Expansion

The company is currently operating with a 'heavy order book.' While specific unit capacity is not listed, Property, Plant, and Equipment (PPE) is valued at INR 502.65 Cr as of September 30, 2025.

Raw Material Costs

Raw material costs are a primary driver of the 13.93% EBITDA margin; management noted that margins are highly sensitive to the product mix between conventional and LED lighting.

Manufacturing Efficiency

Operating leverage is 'kicking in' due to increased sales volumes, which improved EBITDA margins by 72 bps YoY in Q2 FY26.

📈 Strategic Growth

Expected Growth Rate

15-18%

Growth Strategy

Growth is driven by increasing the share of high-margin LED lighting (currently 63.92% of lighting sales), leveraging a heavy order book, and improving operational efficiency through higher capacity utilization and operating leverage.

Products & Services

Automotive lighting (Headlamps, Tail lamps, Signaling lamps), Rear-view mirrors, and Plastic molded parts.

Brand Portfolio

FIEM

New Products/Services

Continued transition and expansion in the LED lighting portfolio for automotive OEMs, which is expected to continue contributing to the 17.12% sales growth rate.

Market Expansion

Management is currently in a business planning process to be finalized by the end of the financial year to define future market expansion and technology roadmaps.

Strategic Alliances

The company has joint ventures, though specific partner names for current active JVs were not detailed in the provided snippets; an investment in a JV company was written off previously (INR 0.33 Cr).

🌍 External Factors

Industry Trends

The industry is shifting rapidly toward LED lighting and high-end electronics in vehicles. FIEM is positioned as a leader with 63.92% of its lighting revenue already converted to LED.

Competitive Landscape

Competes with other Tier-1 automotive component manufacturers in the lighting and mirror segments.

Competitive Moat

Moat is built on long-standing OEM relationships and technological expertise in LED lighting. This is sustainable due to high switching costs for OEMs and the technical precision required for automotive lighting standards.