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    Ndr Auto Components Q4 FY26 earnings call

    NDRAUTO
    Automobile and Auto Components·18 May 2026
    Management Summary

    NDR Auto Components reported a strong Q4 and full-year FY26, marked by record-high EBITDA margins and a significant increase in its order book, primarily from Maruti Suzuki. The company is progressing with its capex plans for new product lines and aims for a sustainable 11.50% EBITDA margin. However, the Hayashi JV faced a two-month production delay due to operational issues, and new product launches are expected to incur initial startup costs.

    Highlights

    5

    • Total income for Q4 FY26 grew 19% Y-on-Y to INR229.89 crore.

    • EBITDA for Q4 FY26 increased 25% Y-on-Y to INR27.36 crore, achieving a record 11.90% EBITDA margin.

    • Full-year FY26 total income reached INR825.45 crore (15% growth) and PAT improved 16% to INR61.94 crore.

    • Order book reached an all-time high of INR650 crore, primarily driven by new models from Maruti Suzuki.

    • ROCE employed stood strong at 36.22% as of March 31, 2026.

    Concerns

    2

    • Production for the Hayashi JV was delayed by two months due to operational issues.

    • Initial startup costs for new product offerings are expected to impact margins temporarily.

    What Changed1

    vs Q1 FY27

    Guidance items10 → 5 (-5)
    Key financials

    Metrics

    7

    Periods

    2

    Q4 FY26

    4
    • Total Income
      ₹229.89 Cr
      YoY+19%
    • EBITDA
      ₹27.36 Cr
      YoY+25%
    • EBITDA Margin
      11.9%
    • PAT
      ₹18.45 Cr

    FY26

    3
    • Total Income
      ₹825.45 Cr
      YoY+15%
    • PAT
      ₹61.94 Cr
      YoY+16%
    • ROCE
      36.2%

    Order Book

    high confidence

    Total Value

    ₹ 650 crores

    as of 2026-03-31

    quantified
    44.4% QoQ

    Inflow this qtr

    ₹ 200 crores

    Execution

    multiple programs that will get executed over the course of the next 3 years.

    Composition

    Maruti Suzuki(client type)
    ₹ 200 crores
    New models from Maruti Suzuki(product)
    Ambient lighting(product)

    Cancellations / Deferrals

    • other:eVitara removed from order book as production has started.
    • deferred:Hayashi JV production delayed by two months due to operational issues.

    "The order book provides strong medium-term revenue visibility and underlines OEM confidence in the company's capabilities."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹150 crores

    Liquidity

    Liquidity disclosed

    Positive operating cash flow of INR37.12 crore. Free cash flow reduced due to payments for Delhi office (INR12 crore), support to subsidiaries (INR6 crore), and increase in MSME vendor payments.

    Guidance & targets

    5
    CategoryTargetPriority
    Revenue
    Revenue Target
    INR3,000 crore
    		High
    Revenue
    Bharat Seats Revenue Target
    INR3,500 crore
    		Medium
    Revenue
    Ambient Lighting Orders Revenue
    INR10-20 crore
    		Medium
    Revenue
    Order Book Contribution to Revenue
    INR650 crore
    		High
    Margin
    EBITDA Margin
    11.50%
    		High

    What to watch in Q1 FY27

    4

    Hayashi JV production start

    next quarter
    CurrentDelayed to June 2026
    TargetProduction commenced as planned

    Why it matters

    Timely commencement of JV production is crucial for new revenue streams and partnership success.

    Pranav, new annual plan for the Hayashi JV like earlier, I think it was scheduled to start production in April. But in this quarter's presentation, it is mentioned that it will start in June. So, can you like give some color on what led to this delay sort of, like is it the capex was delayed or... It is basically because of some operational issues that we have delayed it by two months.

    Risks & concerns

    3
    RiskSeverity

    Operational issues delaying Hayashi JV production

    Hayashi JV production start delayed by two months from April to June 2026 due to operational issues. — Management acknowledged

    medium

    Initial startup costs for new product lines impacting margins

    New product offerings will incur startup costs, potentially affecting margins in the short term. — Management acknowledged

    medium

    Geopolitical issues and supply chain disruptions

    Analyst raised concerns about geopolitical issues, oil prices, and supply chain, but management stated the company is not facing any issues. — Analyst downplayed

    low

    Q&A highlights

    8

    “So, we have got new models from Maruti Suzuki which has led to an increase in our order book. We have also removed the eVitara from our existing order book because they have started production. ... They are all new models that we have bid for and won business for.”

    Clarifies the source of the increased order book and the nature of new product wins (Maruti Suzuki, ambient lighting).

    asked by Anubhav Mukherjee

    2 min read5 chapters

    Detailed Narrative

    01

    Q4 & FY26 Financial Performance Highlights

    NDR Auto Components reported a robust Q4 FY26, with total income growing 19% year-on-year to INR229.89 crore. EBITDA saw a 25% year-on-year increase, reaching INR27.36 crore, and achieving the highest-ever EBITDA margin of 11.90%. For the full financial year 2025-26, total income stood at INR825.45 crore, marking a 15% growth, while PAT improved 16% to INR61.94 crore. The company's ROCE employed remained strong at 36.22% as of March 31, 2026.

    02

    Record Order Book and Growth Drivers

    The company's order book reached an all-time high of INR650 crore as of March 31, 2026, up from INR450 crore in Q3 FY26. This significant increase of INR200 crore was entirely driven by new models from Maruti Suzuki, including new business for ambient lighting. Management noted that these new orders provide strong medium-term revenue visibility and reflect continued OEM confidence in NDR Auto's capabilities. The company is actively working to expand its content per vehicle and introduce value-added products.

    03

    Capex and New Product Development

    NDR Auto has planned a total capex of INR150 crore for various new product lines, including seat inserts, ambient lighting, shades, seat latches, and seat belt reminder systems. Additionally, INR30-40 crore in capex is planned for new order execution, over and above the existing project capex. The company has already spent approximately INR102 crore on project expansion, with facilities expected to commence operations by June and July. Investments are being made in a phased manner, aligning with business acquisition.

    04

    Strategic Outlook and Long-term Targets

    The company aims to achieve a revenue target of INR3,000 crore by FY30 for NDR Auto, with INR500 crore expected from existing customers and products, and the remaining INR1,000 crore from new business. Management expressed confidence in sustaining the 11.50% EBITDA margin going forward⏳, despite initial startup costs for new products. For its investee company, Bharat Seats, a revenue guidance of INR3,500 crore by FY30 was provided, benefiting from premiumization and new order book growth.

    05

    Operational Updates and Challenges

    Production for the Hayashi JV, initially scheduled for April, has been delayed by two months to June 2026 due to operational issues. The company has transferred its sunshade business to the 50-50 Hayashi JV. While free cash flow saw a reduction due to payments for the Delhi office (INR12 crore), support to subsidiaries (INR6 crore), and increased MSME vendor payments, operating cash flow remained positive at INR37.12 crore. Management stated that the company is not facing any issues related to geopolitical vagaries or supply chain disruption🌐s.

    This is an AI-generated summary of a publicly available earnings call transcript.