Remsons Ind — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Remsons Industries delivered strong Q3 FY26 results, with revenue growing 20% YoY to INR123 crores, supported by new order wins and strategic diversification. The company is progressing with its 'Remsons 2.0' transformation, targeting 13-14% EBITDA margins and INR900-1,000 crore revenue by FY29/FY30. While acknowledging potential regulatory impacts and early-stage international ventures, management expressed confidence in its growth strategy and disciplined capital allocation.

Highlights

  • Q3 FY26 Revenue from operations grew 20% YoY to INR123 crores, reflecting strong underlying demand.

  • 9M FY26 Revenue grew 25% YoY to INR338 crores, indicating sustained growth momentum.

  • Received a INR60 crore order from a leading Indian commercial vehicle OEM, providing long-term revenue visibility over 5 years starting Q1 FY27.

  • Targeting EBITDA margins of 13-14% over the next 2-3 years, driven by product mix changes and value-added offerings.

  • Net debt-to-equity ratio stands at a comfortable 0.63x, with a commitment to maintain it between 0.6x-0.8x.

Concerns

  • Potential ABS regulation, if implemented, could impact consolidated revenue by 8%, though already factored into projections.

  • Brazil partnership is in early stages, with actual deliveries expected in 1-1.5 years and no immediate quantification of opportunity size.

Key financials

2 periods

Headline

  • Revenue from Operations
    ₹123 Cr
    YoY +20%
  • EBITDA Margin
    12%
  • PAT Margin
    4%

9M

  • Revenue
    ₹338 Cr
    YoY +25%
  • EBITDA Margin
    11%
  • PAT Margin
    4%

What they filed

Q1 FY27: revenue up 20.2%, net profit down 32.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue91 103 106 100 116 +27%123 +20%130 +23%120 +20%
EBITDA8 12 11 11 13 +78%15 +18%11 +0%10 −1%
Net profit3 5 7 5 6 +92%6 +28%4 −32%3 −33%
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

₹500 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹60 Cr

Execution

Scheduled to commence Q1 FY27 and will be executed over a five-year period.

Pipeline

other

Pipeline for next 2-3 years

The company has a current order book of INR500 crores and a pipeline of INR800-900 crores for the next 2-3 years, with a recent INR60 crore win for the CV segment.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹26 Cr
    • NCR land for capacity augmentation ₹3 Cr
    I think we've done about INR15 crores to INR19 crores so far. ... A little more. We have just about one and a half months to go, but I think the one and a half months will take at least INR5 crores to INR7 crores of more of Capex. ... So that will not be a very large Capex. It will be somewhere close to about INR3 crores to INR4 crores.
  • Debt 0.6× EBITDA
    Our net debt-to-equity remains comfortable at 0.63x and we remain committed to operating within this leverage going forward.

Guidance & targets

Revenue

  • Revenue Target Revenue · FY29/FY30 · High confidence INR900-1,000 crore
    With exports contributing 33% of Q3 sales, we remain well positioned to deliver a 20% plus CAGR, as well as progress towards our INR900 crore to INR1,000 crore revenue target by FY 2029.

    — Rahul Kejriwal

  • Consolidated Revenue Revenue · FY27 · High confidence INR520-570 crores
    Somewhere between INR520 crores to INR570 crores, somewhere between that.

    — Rahul Kejriwal

  • Stellantis Order Revenue Revenue · FY27 · High confidence INR15-20 crores
    Yes. So this will commence from FY of this financial year and we see about maybe INR15 crores to INR20 crores of it materializing in this financial year.

    — Rahul Kejriwal

  • Stellantis Order Annual Run Rate Revenue · next year (FY27) · High confidence INR40-50 crores
    No, so this is on a half-yearly basis. So going forward, next year it will be about a INR40 crores to INR50 crores annual run rate.

    — Rahul Kejriwal

  • Railway Segment Revenue Revenue · this year (FY27) · High confidence INR25-35 crores
    For the railway segment, we should be talking anywhere between INR25 crores to INR35 crores this year.

    — Rahul Kejriwal

  • Railway Segment Revenue Revenue · next three to four years · High confidence INR150 crores
    Yes. We're seeing at least over the next three to four years, this touching itself about INR150 crores of revenue.

    — Rahul Kejriwal

Profitability

  • EBITDA Margin Profitability · next two or three years · High confidence 13-14%
    With these drivers in place, we are confident of steadfastly improving profitability and expanding EBITDA margins to a 13% to 14% range while maintaining our focus on long-term sustainable value creation.

    — Rahul Kejriwal

  • EBITDA Margin Profitability · FY27 · High confidence 11-12%
    Okay. And the margin would be steadily improving, like it won't go to 14%, but 11% and 12% it should go by next year?

    — Rahul Kejriwal

Capex

  • Capex Capex · FY27 · High confidence INR20 crores plus
    We are still formulating that, but it should be close to anywhere INR20 crores plus.

    — Rahul Kejriwal

Product Mix

  • Legacy vs New Business Mix Product Mix · by FY29/FY30 · High confidence 60% legacy, 40% new
    So I think 60% would still be the legacy business and 40% would be the new business.

    — Rahul Kejriwal

Debt

  • Net Debt-to-Equity Ratio Debt · going forward · High confidence 0.6-0.8
    We intend to keep our debt-equity ratio to between 0.6 and 0.8 going forward.

    — Rahul Kejriwal

What to watch in Q4 FY26

Brazil Partnership Opportunity Quantification

in about three months (Q4 FY26 / Q1 FY27)
Current No numbers at the moment
Target Quantified revenue potential

Why it matters

Provides clarity on the financial contribution and potential of a new international market entry.

Maybe after about three months I should be able to put some numbers.

Risks & concerns

  • Potential ABS Regulation Impact

    medium

    If implemented, ABS regulation could lead to an 8% impact on consolidated revenue, though management states it's already factored into projections.

    Analyst acknowledged

  • Early Stage of Brazil Partnership

    low

    The Brazil partnership is in the market study phase, with actual deliveries and revenue generation expected 1-1.5 years out, and no immediate quantification of opportunity size.

    Management acknowledged

  • European Auto Industry Slowdown

    low

    While the European auto industry faces challenges, Remsons' sales are largely diversified outside Europe (US, Mexico, Canada), mitigating direct impact.

    Analyst downplayed

Q&A highlights

7 direct
Stellantis Order Revenue Ramp-up Direct
Yes. So this will commence from FY of this financial year and we see about maybe INR15 crores to INR20 crores of it materializing in this financial year. ... No, so this is on a half-yearly basis. So going forward, next year it will be about a INR40 crores to INR50 crores annual run rate.

Provides specific revenue expectations and ramp-up timeline for a significant new multi-year contract.

Asked by Disha

Long-term EBITDA Margin Targets Direct
Yes. So like I said, we will see an overall we want to see an EBITDA of about 13% to 14%. Now that will be a journey over the next two or three years because although we are changing the product mix, it's not going to be so drastically changing every year.

Clarifies the company's long-term profitability target and the strategic shift towards higher-margin products.

Asked by Disha

Capex for INR900-1,000 crore Revenue Target Direct
So as far as the INR900 crore to INR1,000 crore revenue is there, we've already put up bulletins saying that, you know, INR100 crore of investment would be required in there and we maintain that, which also includes inorganic acquisitions on our way to achieve that journey.

Outlines the capital expenditure and M&A strategy required to achieve ambitious long-term revenue targets.

Asked by Shyam Sampat

Brazil Partnership Outlook Partial
So right now we are studying the markets. We are quoting for programs which will be, delivered within Brazil. Right now so it will be not at a very, very some superlatively high margins, but at least it will bring us inroads into the market which is virgin for us at this point of time. So it will -- however, it would take about a year, year and a half before we see some actual deliveries happening into that market.

Indicates early-stage market entry into a new geography with potential, but no immediate financial quantification.

Asked by Disha

Impact of ABS Regulation Direct
On the consolidated revenue, about you could say 8% will get affected. ... No, we have already factored in that in our approach, and our projections are made with as if that's already been implemented.

Addresses a potential regulatory risk and management's proactive stance in factoring it into their plans.

Asked by Chirag Shah

Railway Segment New Product Development Direct
Yes. So we're already working on air brake components, then we're working on slack adjusters and we're working on air reservoirs in the pipeline as of now. ... So by the time it goes into production, it could be six to eight months by the time we see them going into production.

Details specific new products and their development timelines within the emerging railway vertical.

Asked by Rohit Ohri

ICE vs EV Market Share Outlook Direct
So the ICE engines is predominantly going to be the largest market share over the next 10 years also. The EV engines are going to be maybe over the next 10 years, it could be between 20% to 25% of the market share as far as the passenger cars are concerned. On the two-wheeler side also, we don't see a bigger than a 30% inroads into the EV engines over the next five to six years at least.

Provides management's long-term view on the automotive market transition and Remsons' product agnosticism.

Asked by Anukool

Acquisition Strategy and Funding Direct
We are open right now, which will give us the best value for product and gives us a position globally with that product. We are putting aside about INR50 crores to INR70 crores for that acquisition. ... No, we are evaluating all options at this point of time. Maybe part equity, part debt.

Outlines the company's M&A strategy, budget, and flexible funding approach for future growth.

Asked by Runit Kapoor

3 min read 6 chapters

Detailed narrative

Robust Q3 FY26 Performance and Strategic Growth

Remsons Industries reported a strong Q3 FY26 with revenue from operations growing 20% year-on-year to INR123 crores, and 9M FY26 revenue increasing by 25% to INR338 crores. This performance is driven by a favorable demand upcycle in the Indian auto ancillary sector, supported by steady OEM production and increasing component content per vehicle. The company is actively transforming into a technology-oriented mobility solutions provider, expanding its capabilities across the complete mobility value chain.

Significant Order Wins and Capacity Expansion

The company secured a notable INR60 crore order from a leading Indian commercial vehicle OEM for gear shifters and push-pull cables, scheduled for execution over five years starting Q1 FY27, providing strong long-term revenue visibility. To support future growth, Remsons has identified an additional 20,000 sq ft of land in the NCR region and plans another 20,000 sq ft in Pune, totaling 40,000 sq ft for capacity augmentation. The current order book stands at INR500 crores, with a pipeline of INR800-900 crores for the next 2-3 years.

Long-Term Financial Targets and Margin Improvement

Remsons aims to achieve a revenue target of INR900-1,000 crore by FY29/FY30, projecting a 20%+ CAGR. This growth is expected to be fueled by a product mix shifting towards higher-margin offerings, with 60% from legacy businesses and 40% from new ventures. The company targets expanding its EBITDA margins to 13-14% over the next two to three years, up from 12% in Q3 FY26 and 11% in 9M FY26. For FY27, consolidated revenue is guided at INR520-570 crores with EBITDA margins of 11-12%.

Diversification into Railways and Global Markets

The company's newly commissioned 30,000 sq ft locomotive manufacturing facility at Chakan is progressing as planned, marking a significant expansion into railway applications. Remsons is developing new railway products, including air brake components, slack adjusters, and air reservoirs, with production expected 6-8 months after ongoing audits. This segment is projected to contribute INR25-35 crores in FY27 and INR150 crores over the next 3-4 years. Globally, Remsons is executing a INR12 crore BEE Lighting order from a German OEM via its UK facility and exploring the Brazilian market through a technical license agreement.

Disciplined Capital Allocation and Acquisition Strategy

Remsons maintains a strong and disciplined balance sheet, with a net debt-to-equity ratio of 0.63x, committed to staying within a 0.6x-0.8x range. Capex for FY26 is estimated at INR20-26 crores (INR15-19 crores YTD plus INR5-7 crores remaining), with FY27 projected at INR20 crores plus. The company is actively evaluating potential acquisitions with a budget of INR50-70 crores, considering a mix of equity and debt for funding, to further enhance its product portfolio and global positioning.

Positive Impact of India-US Tariff Reduction

The recent India-US agreement to reduce tariffs on select auto components from 50% to 18% is viewed as a significant positive for Remsons. This reduction is expected to materially improve price competitiveness, enhance margin potential, and strengthen India's position as a preferred sourcing destination for global OEMs. While existing US contracts were unaffected, new inquiries previously on hold due to tariffs are now anticipated to flow, providing a boost to future export growth, particularly in control cables where China is a key competitor.

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