IMPAL - India Motor Part
📢 Recent Corporate Announcements
ICRA Limited has reaffirmed the credit ratings for India Motor Parts and Accessories Limited (IMPAL) as of March 9, 2026. The long-term rating for bank credits is maintained at [ICRA]AA with a Stable outlook, signifying high safety and low credit risk. The short-term rating remains at [ICRA]A1+, which is the highest rating for short-term instruments. This reaffirmation confirms the company's robust financial health and consistent ability to service its debt obligations.
- ICRA reaffirmed the long-term rating for bank credits at [ICRA]AA with a Stable outlook.
- The short-term rating for bank credits was reaffirmed at [ICRA]A1+, representing the highest safety level.
- The ratings indicate a very strong degree of safety regarding timely payment of financial obligations.
- The disclosure was made under Regulation 30 of the SEBI (LODR) Regulations, 2015.
India Motor Parts and Accessories Limited (IMPAL) has declared an interim dividend of ₹10 per equity share for FY 2025-26, representing a 100% payout on face value. The company reported a 9.1% YoY increase in revenue from operations to ₹230.99 crore for the quarter ended December 31, 2025. Net profit for the quarter grew 5.4% YoY to ₹17.18 crore, although it saw a sequential decline from ₹25.50 crore in Q2. The total dividend payout will involve an outflow of ₹12.48 crore.
- Declared an interim dividend of ₹10 per equity share (100% of face value) for FY 2025-26.
- Q3 FY26 Revenue from Operations grew 9.1% YoY to ₹230.99 crore from ₹211.67 crore.
- Net Profit for the quarter increased to ₹17.18 crore compared to ₹16.30 crore in Q3 FY25.
- Record date for dividend eligibility is fixed as January 29, 2026, with payment by February 20, 2026.
- 9-month PAT for FY26 stands at ₹63.09 crore, up from ₹59.74 crore in the previous year.
India Motor Parts and Accessories Limited (IMPAL) reported a steady Q3 FY26 with revenue from operations growing 9.1% year-on-year to ₹230.99 crore. Net profit for the quarter stood at ₹17.18 crore, a slight increase from ₹16.30 crore in the corresponding quarter last year. The board has declared an interim dividend of ₹10 per share (100%), with a record date of January 29, 2026. For the nine-month period, the company's PAT reached ₹63.09 crore compared to ₹59.74 crore in the previous year.
- Revenue from operations increased to ₹230.99 crore in Q3 FY26 from ₹211.67 crore in Q3 FY25
- Net profit (PAT) grew by 5.4% YoY to ₹17.18 crore for the quarter ended December 31, 2025
- Declared an interim dividend of ₹10 per equity share (100% of face value) involving a ₹12.48 crore payout
- Nine-month total income rose to ₹661.10 crore from ₹630.89 crore in the previous year
- Earnings per share (EPS) for the quarter improved to ₹13.77 from ₹13.06 YoY
India Motor Parts and Accessories Limited (IMPAL) has declared an interim dividend of Rs 10 per share (100% of face value) for FY 2025-26. The company reported a steady Q3 FY26 performance with revenue from operations growing 9.1% year-on-year to Rs 230.99 crore. Net profit for the quarter increased to Rs 17.18 crore from Rs 16.30 crore in the corresponding period last year. The dividend payout will involve a total outflow of Rs 12.48 crore, with the record date set for January 29, 2026.
- Declared an interim dividend of Rs 10 per equity share (100% of face value).
- Q3 FY26 Revenue from Operations increased to Rs 230.99 crore from Rs 211.67 crore YoY.
- Net Profit for the quarter rose to Rs 17.18 crore compared to Rs 16.30 crore in Q3 FY25.
- Record date for dividend eligibility is January 29, 2026, with payment by February 20, 2026.
- Nine-month EPS improved to Rs 50.56 from Rs 47.87 in the previous year.
India Motor Parts and Accessories Limited (IMPAL) reported a steady performance for Q3 FY26, with revenue from operations growing 9.1% YoY to ₹230.99 Cr. Net profit for the quarter stood at ₹17.18 Cr, a 5.4% increase compared to ₹16.30 Cr in the same period last year. The company has rewarded shareholders with an interim dividend of ₹10 per share (100% of face value). While sequential profit declined from ₹25.50 Cr in Q2, the nine-month performance remains strong with a total income of ₹661.10 Cr.
- Revenue from operations increased by 9.1% YoY to ₹230.99 Cr from ₹211.67 Cr.
- Net Profit (PAT) grew 5.4% YoY to ₹17.18 Cr, with an EPS of ₹13.77 for the quarter.
- Declared an interim dividend of ₹10 per equity share (100% on face value of ₹10).
- Nine-month PAT reached ₹63.09 Cr compared to ₹59.74 Cr in the previous year period.
- Record date for dividend payment is set for January 29, 2026, with payment by February 20, 2026.
India Motor Parts and Accessories Limited (IMPAL) has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that all dematerialization requests received during the quarter ended December 31, 2025, were processed within the stipulated time limits. The company's Registrar and Share Transfer Agent, Cameo Corporate Services Limited, verified that physical certificates were mutilated and cancelled. This is a standard administrative filing ensuring the integrity of the company's shareholding records.
- Compliance certificate issued for the quarter ended December 31, 2025.
- Confirmation that dematerialization requests were accepted or rejected within regulatory timelines.
- Physical security certificates were mutilated and cancelled after due verification by the depository participant.
- Registrar and Share Transfer Agent (RTA) for the process is Cameo Corporate Services Limited.
India Motor Parts and Accessories Limited (IMPAL) has announced the closure of its trading window for all designated persons starting January 1, 2026. This move is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's Q3 and nine-month financial results for the period ending December 31, 2025. The window will remain closed until 48 hours after the unaudited financial results are officially declared. This is a standard regulatory procedure for listed companies to prevent insider trading during the earnings preparation period.
- Trading window closure effective from January 1, 2026.
- Closure pertains to the unaudited financial results for the quarter and nine-months ending December 31, 2025.
- Trading window will reopen 48 hours after the announcement of the financial results.
- Notification issued in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015.
India Motor Parts and Accessories Limited (IMPAL) has responded to a clarification sought by the National Stock Exchange regarding its financial results for the quarter ended September 30, 2025. The exchange identified that the initial XBRL filing contained half-yearly figures instead of quarterly figures. The company clarified that the error was inadvertent, caused by incorrectly marking the reporting type as 'Half-Yearly.' A revised XBRL filing with the correct 'Quarterly' and 'Second Quarter' designations has been submitted to ensure compliance.
- NSE sought clarification on December 9, 2025, regarding discrepancies in XBRL financial results for the period ended Sept 30, 2025.
- The company inadvertently submitted the reporting type and quarter as 'Half-Yearly' instead of 'Quarterly'.
- IMPAL has filed a revised XBRL report to the Exchange to rectify the reporting tags.
- The correction is procedural in nature and pertains to Regulation 33 of SEBI (LODR) Regulations, 2015.
Financial Performance
Revenue Growth by Segment
The Commercial Vehicle (CV) spares segment is the primary driver, contributing approximately 60% of total sales as of 9M FY2025. Passenger Vehicles (PV), tractors, and other consumables make up the remaining 40%. Revenue grew by 6.6% YoY in 9M FY2025 to INR 600.6 Cr, compared to a modest 1.2% growth in 9M FY2024 (INR 562.4 Cr) and a high 18.5% growth in 9M FY2023 (INR 556.1 Cr).
Geographic Revenue Split
IMPAL operates a pan-India distribution network with over 85 branches and 23,000 dealers. While specific regional percentage splits are not disclosed, the company maintains a nationwide presence to mitigate regional economic downturns.
Profitability Margins
Operating margins have shown a slight downward trend due to intense competition and limited pricing flexibility: 8.1% in 9M FY2023, 7.5% in 9M FY2024, and 7.6% in 9M FY2025. Net profit for H1 FY2026 stood at INR 45.91 Cr, a 5.7% increase from INR 43.44 Cr in H1 FY2025.
EBITDA Margin
Operating margin (proxy for EBITDA in trading) was 7.6% in 9M FY2025. Core profitability is constrained by the trading nature of the business, where value addition is limited and pricing is often dictated by OES (Original Equipment Spares) competition.
Capital Expenditure
IMPAL follows an asset-light model with negligible capital expenditure. Capex is funded entirely through internal accruals, with no major planned expansion in fixed assets disclosed beyond routine branch maintenance.
Credit Rating & Borrowing
The company maintains a strong credit profile with a Long-term rating of [ICRA]AA (Stable) and a Short-term rating of [ICRA]A1+. It has undrawn working capital limits of INR 70.0 Cr and remains net debt negative, meaning it has no significant borrowing costs.
Operational Drivers
Raw Materials
As a distributor, IMPAL's primary 'raw material' is stock-in-trade, specifically: Brake systems, steering linkages, fasteners, power train components, engine parts, and lubricants. Purchase of stock-in-trade accounted for INR 331.05 Cr in H1 FY2026, representing approximately 83.7% of revenue from operations.
Import Sources
Products are primarily sourced domestically from Indian manufacturing plants of major auto component players, particularly those located in South India (Tamil Nadu) given the TSF Group's base.
Key Suppliers
Key suppliers include Brakes India Private Limited, Rane (Madras) Limited, Sundram Fasteners Limited, and ZF Commercial Vehicle Control Systems India Limited.
Capacity Expansion
Not applicable as a trading entity. However, the distribution reach expanded from 18,000 dealers in 2023 to over 23,000 dealers by December 2024, a 27.7% increase in network reach.
Raw Material Costs
Purchase of stock-in-trade was INR 667.30 Cr in FY2025. Costs are subject to commodity price pass-throughs from suppliers; for instance, 9M FY2024 saw lower realizations due to commodity price softening.
Manufacturing Efficiency
Not applicable. Efficiency is measured by distribution reach and inventory management rather than manufacturing throughput.
Logistics & Distribution
Distribution is handled through a massive network of 23,000 dealers. Logistics costs are embedded in 'Other expenses' and are a critical factor in maintaining the 7.6% operating margin.
Strategic Growth
Expected Growth Rate
6.60%
Growth Strategy
Growth is targeted through volume expansion across all segments (CV, PV, and Tractors) and increasing the dealer network, which recently grew to 23,000+. The company leverages its strong relationship with TSF Group companies to secure high-demand spares like brake systems and fasteners.
Products & Services
Brake systems, steering linkages, fasteners, power train components, engine parts, and lubricants for the automotive aftermarket.
Brand Portfolio
IMPAL (India Motor Parts and Accessories Limited) operates as a premier distributor for brands like Brakes India, Rane, and Sundram Fasteners.
New Products/Services
Increasing focus on consumables and tractor parts to reduce CV cyclicality. Expected revenue contribution from non-CV segments is targeted to grow beyond the current 40% share.
Market Expansion
Expansion of the dealer network from 18,000 to 23,000+ indicates aggressive penetration into Tier 2 and Tier 3 cities to capture the unorganized aftermarket share.
Market Share & Ranking
IMPAL is a leading organized player in the Indian automotive spares distribution market, though it faces stiff competition from OES and unorganized distributors.
Strategic Alliances
Strong operational ties with TSF Group (TVS Group faction). Sundaram Finance Holdings Limited holds a 20.0% stake, providing financial flexibility.
External Factors
Industry Trends
The industry is shifting toward alternative powertrains (EVs) and stricter regulatory norms like the vehicle scrappage policy. While the aftermarket for ICE (Internal Combustion Engine) vehicles will persist for 10-15 years, the company must pivot its product portfolio to include EV-specific components to remain relevant.
Competitive Landscape
Competition includes Original Equipment Spares (OES) channels of vehicle manufacturers and a large number of unorganized regional distributors.
Competitive Moat
Moat is built on a 70-year legacy, the TSF Group brand, and a massive 23,000+ dealer network. This network effect makes it difficult for new entrants to achieve similar scale and reach, though OES players remain a constant threat.
Macro Economic Sensitivity
Highly sensitive to economic cycles; CV aftermarket sales are directly linked to freight movement and industrial activity. A 1% drop in GDP often leads to a magnified impact on CV spare parts demand.
Consumer Behavior
Shift toward ride-sharing and increasing environmental awareness may reduce personal PV ownership, though it increases the utilization (and thus spare parts wear-and-tear) of commercial and fleet vehicles.
Geopolitical Risks
Indirect exposure through suppliers who may rely on imported raw materials (like specialized steel or rubber) for component manufacturing.
Regulatory & Governance
Industry Regulations
Subject to the Motor Vehicles Act and GST regulations. The vehicle scrappage policy is a key regulatory driver that could accelerate the replacement cycle of older CVs, initially hurting the aftermarket but eventually leading to a newer fleet requiring different spares.
Environmental Compliance
Indirectly exposed to climate-transition risks. Suppliers must comply with evolving emission norms and automotive regulatory changes, which could affect product availability.
Taxation Policy Impact
Effective tax rate was approximately 18.8% for H1 FY2026 (INR 10.67 Cr tax on INR 56.58 Cr PBT).
Legal Contingencies
No materially significant related party transactions or non-compliance instances reported. The company has a clean record with SEBI and Stock Exchanges.
Risk Analysis
Key Uncertainties
Cyclicality of the CV segment (60% revenue) and the long-term threat of EV transition are the primary uncertainties, with a potential impact of 10-15% on revenue during sharp economic downturns.
Geographic Concentration Risk
While pan-India, there is a historical strength in South India due to the TSF Group's roots. Over 90% of revenue is domestic.
Third Party Dependencies
Significant dependency on TSF Group companies for product supply. If a major supplier like Brakes India changed its distribution model, it could disrupt a significant portion of IMPAL's product line.
Technology Obsolescence Risk
Medium risk; traditional engine parts face obsolescence with the rise of EVs, but chassis, braking, and steering components remain relevant.
Credit & Counterparty Risk
Receivables stood at INR 81.17 Cr as of Sept 2025. The company manages credit risk through its extensive dealer network and prudent working capital management.