💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment (seat frames and trims). Total income grew 18.5% YoY to INR 717.1 Cr in FY25 from INR 605.15 Cr in FY24. H1 FY26 total income reached INR 386.58 Cr, representing an 11.19% growth compared to H1 FY25.

Geographic Revenue Split

Primarily domestic (India), with a high concentration of revenue linked to Maruti Suzuki India Limited (MSIL) operations in the Indian market. Specific regional % splits are not disclosed.

Profitability Margins

Net Profit Margin (NPM) improved from 6.4% in FY24 to 7.43% in FY25. For H1 FY26, NPM stood at 7.36% compared to 6.75% in H1 FY25. Operating Profit Margin (EBIT) increased by 14.02% YoY to 8.83% in FY25.

EBITDA Margin

EBITDA margin expanded from 9.88% in FY24 to 10.83% in FY25. In Q2 FY26, margins further improved to 11.24% (up from 10.64% in Q2 FY25) due to operating leverage and in-sourcing of components.

Capital Expenditure

Planned capex of ~INR 40 Cr in FY2026 for general operations. Additionally, INR 22 Cr is being invested in a wholly-owned subsidiary for seat fabric, and INR 33.3 Cr is committed as an equity component for a 50:50 JV with Hayashi Telempu (Japan).

Credit Rating & Borrowing

Assigned [ICRA]A+ (Stable) and [ICRA]A1+ ratings. The company maintains a negative net debt position with cash/bank balances of INR 60-65 Cr as of March 2025 and a low Debt-Equity ratio of 0.13.

⚙️ Operational Drivers

Raw Materials

Seat frames, seat trims, and fabric inserts. Cost of materials consumed accounted for 73.93% of total income in H1 FY26, an improvement from 77.01% in H1 FY25.

Import Sources

Not specifically disclosed, though the company is moving toward in-house production of previously bought-out components to improve margins.

Capacity Expansion

Setting up a new subsidiary for seat insert fabric (INR 22 Cr investment) with revenues expected from FY2027. A JV for interior products (dash mirrors, ambient lighting) involves an INR 82 Cr total project cost through FY2028.

Raw Material Costs

Raw material costs were 73.93% of revenue in H1 FY26. The company utilizes a raw material pass-on clause with customers to mitigate price volatility and protect margins.

Manufacturing Efficiency

ROCE improved from 18.38% in FY24 to 21.26% in FY25. Excluding non-productive land and surplus cash, ROCE reached 32.29% in FY25, reflecting high capital efficiency.

📈 Strategic Growth

Expected Growth Rate

11.19%

Growth Strategy

Growth is driven by product diversification (BIW, seat fabric, ambient lighting), in-sourcing components to capture higher value-add, and expanding the share of business with MSIL for new models like eVITARA.

Products & Services

Passenger car seat frames, seat trims, Body in White (BIW) components for Jimny and Victoris, dash mirrors, ambient lighting, NVH floor carpets, and rear shades.

Brand Portfolio

NDR Auto Components Limited.

New Products/Services

BIW for Victoris (INR 40 Cr annual revenue potential) and new products from the Hayashi Telempu JV (dash mirrors, ambient lighting) expected to support medium-term growth.

Market Expansion

Expanding into the EV segment via components for the eVITARA and increasing the product basket per vehicle through the new JV and subsidiary.

Strategic Alliances

50:50 Joint Venture with Hayashi Telempu, Japan, to manufacture interior automotive components.

🌍 External Factors

Industry Trends

The industry is shifting toward premiumization and EVs (eVITARA). NDR is positioning itself by adding high-value interior components and BIW parts to its portfolio to capture higher content per vehicle.

Competitive Landscape

Competes with other automotive seating and component manufacturers; maintains advantage through proximity to MSIL and integrated manufacturing.

Competitive Moat

Moat is built on a healthy Share of Business (SOB) with MSIL and long-standing promoter experience. Sustainability is driven by deep integration into the OEM's supply chain and JV partnerships with global players like Hayashi Telempu.

Macro Economic Sensitivity

Directly dependent on the Indian automotive industry growth; sensitive to GST rate changes on automobiles and festive demand cycles.

Consumer Behavior

Shift toward SUVs and Utility Vehicles (UVs) where NDR already provides seat frames and trims, benefiting from the higher value of these segments.

Geopolitical Risks

Potential impact from global supply chain disruptions affecting automotive electronics or raw materials required by primary OEMs like MSIL.

⚖️ Regulatory & Governance

Industry Regulations

Subject to automotive safety and quality standards; product recalls or warranty costs are identified as key social/operational risks.

Taxation Policy Impact

Effective tax rate not explicitly stated, but financial statements are prepared in accordance with Indian corporate laws.

Legal Contingencies

No specific pending court case values provided; company confirms no GDRs/ADRs or convertible instruments are outstanding.

⚠️ Risk Analysis

Key Uncertainties

Customer concentration risk (MSIL) and potential for product recalls which could harm reputation and cause financial setbacks.

Geographic Concentration Risk

High concentration in India, specifically near OEM manufacturing hubs like Gurugram/Haryana.

Third Party Dependencies

High dependency on MSIL's market performance and volume growth for revenue stability.

Technology Obsolescence Risk

Risk of shift in seating technology or materials; mitigated by the new JV with Hayashi Telempu for advanced interior products.

Credit & Counterparty Risk

Debtors turnover increased to 46.24 days in FY25 from 35.86 days, suggesting a slight slowdown in collections despite revenue growth.