Ndr Auto Components Limited — Q3 FY26 earnings call

Call held 5 Feb 2026

Management summary

NDR Auto Components reported a strong Q3 FY26 with 19% YoY revenue growth and healthy EBITDA margins of 11.18%. The nine-month performance also showed robust growth, despite a minor impact on PAT from new labor codes. The company's order book stands at INR 450 crore, providing good revenue visibility, and management is actively pursuing new business and customer diversification while maintaining a focus on cost competitiveness.

Highlights

  • Q3 FY26 total income stood at INR 208.99 crore, registering a growth of 19% year-on-year.

  • EBITDA for Q3 FY26 was INR 23.37 crore with EBITDA margins at 11.18%.

  • 9M FY26 total income stood at INR 595.56 crore, a growth of 14%.

  • Order book as of December 31st, 2025, stood at INR 450 crore, providing strong medium-term revenue visibility.

  • Capacity utilization is 80-85% across all plants, with no current constraint to growth.

Concerns

  • PAT for 9 months FY26 was impacted by INR 0.65 crore due to the New Labour Codes.

  • No new order wins were reported in the last quarter, with management stating an update would come next quarter.

  • QoQ margins were flat/compressed due to Q3 being a quarter with many shutdowns, leading to higher expenses.

Key financials

2 periods

Q3 FY26

  • Total Income
    ₹208.99 Cr
    YoY +19%
  • EBITDA
    ₹23.37 Cr
  • EBITDA Margin
    11.2%
  • PAT
    ₹15.19 Cr

9M FY26

  • Total Income
    ₹595.56 Cr
    YoY +14%
  • EBITDA
    ₹66.41 Cr
  • EBITDA Margin
    11.2%
  • PAT
    ₹43.64 Cr

What they filed

Q1 FY27: revenue up 21.1%, net profit up 36.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue174 175 192 185 200 +15%208 +19%229 +19%224 +21%
EBITDA17 19 21 20 22 +29%22 +16%26 +24%25 +25%
Net profit11 11 13 11 14 +27%12 +9%16 +23%15 +36%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹450 Cr

as of 2025-12-31 quantified

Execution

The INR 450 crore will come gradually over the next two to two and a half or three years.

Order book provides strong medium-term revenue visibility, with new projects expected to ramp up gradually over 2-3 years. No new orders were won this quarter.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed
    • Establishment of backend infrastructure for new product offerings (Seat Inserts, Seat Trims and Frames, Ambient Lighting, Sun Shades, Seat Latches and Seat Belt Reminders)
    • Ambient light and sunshade part (NDR Hayashi Automotive JV) ₹80.49 Cr
    Our capex plan towards the establishment of backend infrastructure for our new product offerings, namely Seat Inserts, Seat Trims and Frames, Ambient Lighting, Sun Shades, Seat Latches and Seat Belt Reminders, remains on track.
  • M&A Hayashi Joint venture · Integrated

    Focus on assembly of ambient lighting and mounting in cars, with electronic capability.

    And my second question is that this JV with Hayashi that you have and you are focusing on ambient lighting. Can you share some colour on what aspect will this JV be focusing on? Will it be actually manufacturing LED lights or will be focusing on how the light is mounted in the interior of the cars, if you can give some colour on that?

Guidance & targets

Top Line Vision

  • Bharat Seats Top Line Top Line Vision · next four to five years · High confidence INR 3,000 crore to INR 3,500 crore
    The estimation should be about INR 3,000 crore to INR 3,500 crore in the next four to five years.

    — Pranav Relan

Revenue

  • Revenue from new projects (INR 450 crore order book) Revenue · next two to two and a half or three years · High confidence INR 450 crore
    The INR 450 crore will come gradually over the next two to two and a half or three years.

    — Pranav Relan

Asset Turnover

  • Asset turnover for new capex Asset Turnover · High confidence 3 to 4
    The asset turnover should be about 3 to 4.

    — Pranav Relan

Margin Profile

  • Margin profile Margin Profile · long-term, medium-term to long-term · High confidence similar to current portfolio (6% to 7%)
    Yes, it should be similar to our current portfolio.

    — Pranav Relan

What to watch in Q4 FY26

New order wins

next quarter
Current No new orders in Q3 FY26
Target Update on new order wins

Why it matters

Indicates future revenue growth potential and market traction.

There have been no new orders in the last quarter. We should update this by next quarter.

Risks & concerns

  • Impact of New Labour Codes on PAT

    low

    PAT for 9 months FY26 was impacted by INR 0.65 crore due to the New Labour Codes.

    Management acknowledged

  • Quarter-on-quarter margin compression due to seasonal shutdowns

    low

    Q3 tends to have many shutdowns, leading to higher expenses and making YoY a better indicator than QoQ for margins.

    Management downplayed

Q&A highlights

8 direct
New order wins and order book status Direct
We are currently quoting for a lot of business. There have been no new orders in the last quarter. We should update this by next quarter.

Reveals a lack of new order wins in the reported quarter, indicating a need for investors to watch for updates next quarter.

Asked by Jatin Chawla

Revenue growth lag compared to Maruti's production Direct
We do not want to talk about specific models, but there is a new model that Maruti's launched which has resulted in a second model not growing as much.

Explains a specific reason for NDR's revenue growth lagging Maruti's production, highlighting dependency on specific models.

Asked by Jatin Chawla

Revenue opportunity and timeline from new project expansions Direct
It is about INR 450 crore that should come from there. ... The INR 450 crore will come gradually over the next two to two and a half or three years. ... Mostly towards the end of the year.

Provides specific revenue potential and a timeline for new projects, crucial for future growth projections.

Asked by Vijay

Diversification of OEMs and new customer acquisition Direct
We are continuously working on expanding customers. We have got Maruti, we have got Toyota, we have got Kia, and we are working on adding a few more.

Indicates strategic efforts to reduce reliance on a single OEM and expand market reach.

Asked by Revant Mehta

Impact of OEM volume fluctuations on operating margins Direct
There should not be a significant impact in our margins. It should not be more than 0.5% or 1% compared to the volume going up or down.

Reassures investors about margin stability even with potential OEM volume changes, suggesting pricing power or cost control.

Asked by Revant Mehta

Capacity utilization and constraints to growth Direct
Current capacity utilizations are about 80% to 85% across all our plants. ... As soon as we get new business, we are open to expanding capacities. ... No constraint.

Confirms healthy capacity utilization but also flexibility to expand, indicating readiness for new business without immediate bottlenecks.

Asked by Sahil Sharma

Focus and electronic capability of the Hayashi JV for ambient lighting Direct
It will not focus on LED lights; it will focus on the assembly of the ambient lighting and the mounting in the car. ... It will have some electronic capability.

Clarifies the specific scope and technological aspect of the JV, differentiating it from LED manufacturing.

Asked by Anubhav

QoQ margin compression and the impact of Q3 shutdowns Direct
Q-on-Q is not the best indicator for our margins. Y-on-Y is the best indicator as Q3 tends to be a quarter which has many shutdowns. So, our expenses tend to be higher there.

Explains the reason for flat/compressed QoQ margins, attributing it to seasonal shutdowns and guiding investors to use YoY comparisons.

Asked by Saket Kapoor

2 min read 5 chapters

Detailed narrative

Q3 and 9M FY26 Financial Performance

NDR Auto Components reported a total income of INR 208.99 crore for Q3 FY26, marking a 19% year-on-year growth. EBITDA for the quarter stood at INR 23.37 crore, with margins of 11.18%, and PAT was INR 15.19 crore. For the nine months ended December 2025, total income reached INR 595.56 crore, a 14% growth, with EBITDA at INR 66.41 crore (11.15% margin). The 9M PAT of INR 43.64 crore was slightly impacted by INR 0.65 crore due to new Labour Codes.

Order Book and Revenue Visibility

The company's order book as of December 31, 2025, was INR 450 crore, providing strong medium-term revenue visibility. This INR 450 crore is expected to convert into sales gradually over the next two to three years, with production from new projects primarily starting towards the end of FY27. Management noted no new order wins in the last quarter but expects to provide an update next quarter.

Strategic Expansion and OEM Diversification

NDR Auto Components is actively working on expanding its customer base beyond Maruti, including Kia and Toyota, and is pursuing more OEMs. The company is also continuously looking for new joint ventures and acquisitions to further its growth. The current capacity utilization stands at 80-85% across all plants, with management indicating readiness to expand capacities as new business is secured, posing no immediate constraint to growth.

Capex and New Product Offerings

The capex plan for backend infrastructure for new product offerings like Seat Inserts, Seat Trims and Frames, Ambient Lighting, Sun Shades, Seat Latches, and Seat Belt Reminders is on track. A specific capex of INR 80.49 crore has been approved for the NDR Hayashi Automotive JV, focusing on the assembly and mounting of ambient lighting in cars, which will include electronic capabilities. Timelines for this JV's revenue ramp-up will be shared later in the year.

Margin Profile and Cost Competitiveness

Management expects margins to remain similar to the current portfolio, in the range of 6% to 7%, even with premiumization efforts. They clarified that quarter-on-quarter margin fluctuations, such as the flat performance in Q3, are often due to seasonal shutdowns and higher expenses, making year-on-year comparisons more indicative. The company's USP against competitors like Lear Corporation is its cost competitiveness, aiming to target cheaper product segments.

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