Ndr Auto Components Limited

NDR Auto Components reported a robust financial performance for Q1 FY26. The total income for the quarter stood at ₹185.81 crore, marking a significant year-on-year growth of 7.97%. This growth translated into a 16.98% increase in EBITDA, reaching ₹20.46 crore, with EBITDA margins expanding to 11.01%. Net profit (PAT) also saw a healthy rise of 17.87% compared to the corresponding quarter last year, totaling ₹13.6 crore, driven by consistent value addition and enhanced operational efficiencies.

Despite the strong financial results, the company faced operational challenges, including the deferral of Maruti Suzuki's e-Vitara production, which impacted dispatch schedules. Additionally, lower uptake by KIA contributed to some delays. The ramp-up of sunshade orders, while progressing, has not yet reached full anticipated levels. These factors, coupled with unanticipated environmental challenges, led to a slight slowdown in Q1, though management expects normalization in the second half of the fiscal year.

The Board of Directors approved a significant investment of ₹27.29 crore over the next two financial years for a new metal frames and seat covers facility in Anantpur. This facility, aimed at catering to new business from KIA, is expected to commence production in Q2 2026 and has a peak revenue potential of ₹80-100 crore. For the current financial year (FY26), the company plans a CAPEX of approximately ₹40-50 crore, primarily allocated to the seat insert project, new programs, and land acquisition in Aurangabad.

The company's updated order book, including new KIA orders and additional business, is estimated to be between ₹300-350 crore. This figure is in addition to the previously discussed revenue potential of ₹1,100-1,200 crore expected over the next two years from existing orders and new acquisitions. Management reaffirmed its long-term revenue guidance of ₹3,000 crore by FY26, indicating confidence in future growth despite short-term market fluctuations and production deferrals.

Gross margins showed significant improvement, increasing by approximately 200 basis points quarter-on-quarter and 400 basis points year-on-year. This expansion was primarily driven by effective cost-cutting activities and a favorable model mix, particularly with less artificial leather sales compared to fabric. However, other expenses increased from ₹20.5 crore to ₹23 crore, attributed to the ramp-up costs of new projects like KIA, sunshades, and e-Vitara, which are not yet fully absorbed by corresponding revenue.

Several new projects are underway, with ambient lighting production expected to commence in Q2 or Q3 of FY28. The BIW (Body-in-White) project is slated to start in Q3 of the current fiscal year. The timeline for the Toyota Aurangabad plant has been revised, with expected operations now in FY29, a year later than previously anticipated. The new plant for which investment was approved is expected to start production in one year, reaching peak production two years from its SOP.