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    Fiem Industries Limited

    FIEMINDGood
    Automobile and Auto Components·13 Nov 2025
    Management Summary

    Fiem Industries reported a strong Q2 FY26, achieving its highest-ever quarterly sales and PAT, driven by robust demand from key OEM customers like TVS, Royal Enfield, and Yamaha. The company saw its revenue grow by 17.12% YoY to INR 711.42 crores and PAT by 28.02% YoY to INR 63.78 crores, with EBITDA margin expanding to 13.93%. Fiem continues to expand its product offerings in both 2-wheeler and 4-wheeler segments, including advanced LED lighting and new technologies like adaptive and ambient lighting, while maintaining a focus on in-house R&D and localization.

    Highlights

    8

    • Q2 FY26 Revenue at INR 711.42 crores, up 17.12% YoY.

    • Q2 FY26 PAT at INR 63.78 crores, up 28.02% YoY.

    • Q2 FY26 EBITDA margin at 13.93%, compared to 13.21% in Q2 FY25.

    • H1 FY26 Revenue at INR 1,360.49 crores, up 15.19% YoY.

    • H1 FY26 PAT at INR 119.84 crores, up 21.01% YoY.

    • LED as a percentage of total lighting stands at 63.92%.

    • Capex for Q2 FY26 was INR 21.28 crores, with H1 FY26 total capex at INR 37.81 crores.

    • Royal Enfield contributes 6% to sales, with an expected uptick going forward.

    What Changed2

    vs Q3 FY26

    Guidance items9 → 10 (+1)Risks discussed3 → 1 (-2)
    Key financials

    Metrics

    10

    Periods

    2

    Q2 FY26

    5
    • Revenue
      ₹711.42 Cr
      YoY+17.1%
    • EBITDA
      ₹99.1 Cr
    • EBITDA Margin
      13.9%
    • PAT
      ₹63.78 Cr
      YoY+28.0%
    • Capex
      ₹21.28 Cr

    H1 FY26

    5
    • Revenue
      ₹1,360.49 Cr
      YoY+15.2%
    • EBITDA
      ₹186.46 Cr
    • EBITDA Margin
      13.7%
    • PAT
      ₹119.84 Cr
      YoY+21.0%
    • Capex
      ₹37.81 Cr

    Guidance & targets

    10
    CategoryTargetPriority
    Profitability
    EBITDA Margin
    around 14%
    		Medium
    Market Share
    Royal Enfield Sales Contribution
    uptick from 6%
    		Medium
    Revenue
    Project Pipeline Revenue
    INR 1,000-1,200 crores
    		Medium
    Revenue
    H2 Performance
    better than H1
    		Low
    Business Planning
    4-wheeler Business Clarity
    clearer picture
    		High
    Revenue Growth
    Overall Revenue Growth
    15-20%
    		High
    Capex
    Total Capex
    INR 100 crores
    		High
    Headcount
    R&D Team Size
    more than 100
    		High
    Revenue Contribution
    Hero Revenue Contribution
    at least 10%
    		Low
    Volume
    2-wheeler Production
    highest production year
    		Medium

    Risks & concerns

    4
    RiskSeverity

    Supply chain disruption from Nexperia chip issues

    Management stated they use multiple sources for discrete electronic items and communicate with customers, so no production hold-ups are expected due to Nexperia issues. — Analyst downplayed

    low

    Areas of Evasion(3)

    • Specific revenue/realization numbers for new high-tech products (e.g., TVS Norton)
    • Exact timelines for Hero's revenue contribution reaching 10%
    • Detailed strategy for 4-wheeler lighting expansion (citing early stage)

    Q&A highlights

    3

    “So just to clarify, there is a damage of inventory of INR21 crores and to the fixed asset INR28 crores. So the P&L you are referring actually, this entry has to first debit the P&L account. And then because we have an insurance policy that is fully valid. So it is -- the entry is reversed and it is shown in the recoverable... No, there is no impact on EBITDA. There is no impact.”

    Clarifies that despite a significant fire incident, the financial impact was mitigated by insurance and did not affect EBITDA, which is crucial for margin analysis.

    asked by Vijay Pandey

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q2 FY26 Performance Driven by Key OEMs

    Fiem Industries delivered a robust Q2 FY26, achieving its highest-ever quarterly sales of INR 711.42 crores, marking a 17.12% year-on-year increase. Profit After Tax (PAT) also reached a record high of INR 63.78 crores, up 28.02% YoY. This strong performance was primarily fueled by significant demand from key OEM customers including TVS, Royal Enfield, and Yamaha, alongside new model launches such as the Hero Glamour X 125 and Xtreme models.

    02

    Margin Expansion and Operational Efficiency

    The company's EBITDA margin expanded to 13.93% in Q2 FY26, up from 13.21% in the corresponding previous quarter. Management attributed this improvement to a favorable product mix and the realization of operating leverage from increased sales volumes. Fiem aims to sustain margins around the 14% mark going forward⏳, supported by improved capacity utilization, which is now moving towards the 80s.

    03

    Strategic Expansion in 2-Wheeler and 4-Wheeler Lighting

    Fiem is actively expanding its product portfolio, particularly in advanced lighting solutions. New launches include projector headlamps and winker lamps for Hero Glamour X 125 and Xtreme models. In the 4-wheeler segment, Fiem secured new businesses from Mahindra for high-mounted stop lamps for Bolero and Scorpio, and side repeater lamps for Bolero series, building on existing supplies for Scorpio and Thar. The company is fully committed to entering all lamps of 4-wheelers, including front, rear, bigger, and smaller lamps.

    04

    Focus on Advanced LED Technologies and R&D

    The company is at the forefront of LED technology, with LED lighting constituting 63.92% of its total lighting business. Fiem is developing advanced animation and CAN-based system technology for headlamps and taillamps, notably for TVS Norton's new models for both global and Indian markets. An R&D team of over 100 people, primarily focused on electronics, is driving innovation, including the development of ambient and adaptive lighting solutions, with a proof-of-concept for ambient lighting already demonstrated to customers.

    05

    Positive Outlook and Capex Plans

    Fiem maintains a positive outlook, guiding for a 15% to 20% revenue growth for FY27, expecting to outperform the industry. The company plans a total capex of INR 100 crores for the current fiscal year (FY26), with INR 37.81 crores already spent in H1 and an additional INR 50-60 crores planned for H2. This investment aims to ensure optimal capacity for the next 24 months and support the company's growth momentum.

    06

    Mitigated Fire Incident Impact and Supply Chain Resilience

    Management clarified that a fire incident resulted in damage to inventory worth INR 21 crores and fixed assets worth INR 28 crores. However, due to a fully valid insurance policy, the financial impact was reversed and is shown as a recoverable asset, with no impact on EBITDA. Furthermore, Fiem addresses potential supply chain risks, such as chip shortages from Nexperia, by working with multiple sources for electronic components, ensuring no production hold-ups are expected.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.