Company Overview

Fiem Industries Limited (BSE: 532768, NSE: FIEMIND) reported strong financial performance for FY 2025-26, achieving record results across key metrics. The company operates as a leading automotive lighting manufacturer with 9 manufacturing units across India and international subsidiaries in Italy and Japan.

Financial Performance Highlights

Standalone Results (FY 2025-26 vs FY 2024-25)

  • Revenue from Operations: Increased 16.04% to ₹2,790.65 crore (from ₹2,404.96 crore)
  • EBITDA: Record ₹393.34 crore with margin expansion to 14.09% (from ₹320.73 crore)
  • Profit After Tax: Grew 24.36% to ₹253.87 crore (from ₹204.14 crore)
  • EPS: ₹96.46 (from ₹77.56)
  • Total Assets: ₹170.05 crore (from ₹142.38 crore)
  • Total Equity: ₹121.50 crore (from ₹103.82 crore)

Consolidated Performance

  • Total Income: ₹281.56 crore
  • Profit Before Tax: ₹341.42 crore
  • Profit After Tax: ₹255.58 crore

Dividend Declaration

Board recommended final dividend of ₹40 per equity share (400%) for FY 2025-26, subject to shareholder approval at the 37th AGM scheduled for July 31, 2026. The dividend payout would involve cash outflow of ₹105.28 crore.

Operational and Business Developments

Market Position and Expansion

  • Automotive industry production grew 11.8% with two-wheeler production reaching record 26.7 million units
  • LED lighting contributed 63% of automotive lighting business (up from 59%)
  • Commenced supplies to Mahindra & Mahindra, expanding presence in passenger vehicle segment
  • Four-wheeler business gaining significant momentum with healthy order pipeline

Technology and Innovation

  • Commissioned state-of-the-art EMI/EMC Testing Laboratory at Gurugram R&D facility
  • Enhanced electronic design capabilities for advanced automotive lighting systems
  • Developed multiple new technologies including Adaptive Driving Beam, Matrix LED Headlamps, and Ambient Lighting systems

Sustainability Initiatives

  • Hosur plant meets 65% energy needs through open-access solar power, with additional 20% from wind energy
  • Renewable energy initiatives being implemented across all manufacturing locations
  • Targeting 50% renewable energy in total consumption within 5 years

Significant Events: Fire Incidents and Insurance Claims

Tapukara Plant (Unit-VIII) - August 23, 2025

  • Fire contained to First Floor, Ground Floor and Basement unaffected
  • Carrying value of damaged inventory: ₹210.59 crore (including GST reversals)
  • Carrying value of damaged PPE: ₹276.79 crore (including GST reversals)
  • Production resumed on undamaged floors from August 29, 2025
  • Reinstatement work in progress with BAS and 4-Wheeler production shifted to Rai Plant temporarily
  • Insurance claim of ₹82.30 crore filed on January 30, 2026, under assessment by insurer

Rai Plant (Unit-VII) - June 13, 2023

  • Reinstatement work completed during FY 2025-26
  • Carrying value of damaged inventory: ₹258.37 crore (recognized in FY24)
  • Carrying value of damaged PPE: ₹255.27 crore (recognized in FY24)
  • Received interim insurance payments totaling ₹50 crore (₹30 crore + ₹20 crore)
  • Final insurance assessment still in process

Corporate Governance and Management Changes

Board Composition

14 Directors including 7 Independent Directors and 2 Women Independent Directors

Key Management Changes

  • Mr. Vineet Sahni resigned as CEO & Director effective May 31, 2026
  • Mr. J.K. Jain redesignated as Executive Chairman (KMP) effective June 1, 2026
  • Mr. Rahul Jain redesignated as Managing Director effective June 1, 2026
  • Ms. Aanchal Jain redesignated as Joint Managing Director effective June 1, 2026

Committee Structure

  • Audit Committee: Mr. Pawan Kumar Jain (Chairman), Mr. Sanjiv Rai Mehra, Ms. Shobha Khatri
  • Nomination & Remuneration Committee: Ms. Shobha Khatri (Chairperson), Mr. Pradeep Bhagat, Mrs. Rita Arora
  • Risk Management Committee: Mr. Rajesh Sharma (Chairman), Mr. Rakesh Chand Jain, Mrs. Rita Arora
  • CSR Committee: Mr. Rahul Jain (Chairman), Mr. Kashi Ram Yadav, Mr. Rakesh Chand Jain

Subsidiaries and Joint Ventures

Wholly-owned Subsidiaries

1. Fiem Research and Technology S.r.l (Italy): Design services, PAT ₹77.09 lakh

2. Fiem Industries Japan Co., Ltd.: Design & R&D services, PAT ₹94.98 lakh

Joint Venture

Fiem Kyowa (HK) Mould Company Limited (50:50 JV): Mould development support, loss ₹1.41 lakh

Property, Plant and Equipment

  • Gross Block as of Mar 31, 2026: ₹107.04 crore (Mar 31, 2025: ₹95.56 crore)
  • Net Block as of Mar 31, 2026: ₹53.06 crore (Mar 31, 2025: ₹52.09 crore)
  • Additions during FY26: ₹111.18 crore
  • Disposals during FY26: ₹92.14 crore
  • Capital Work-in-Progress: ₹14.87 crore (Mar 31, 2025: ₹20.27 crore)
  • Property pledged as security: ₹151.35 crore (Mar 31, 2025: ₹180.85 crore)

Segment Reporting and Geographical Revenue

The company operates in two reportable segments:

1. Automotive Segment: Revenue of ₹2,779.81 crore (94.8% of total)

2. Other Segment (LED Luminaires): Revenue of ₹45.64 crore (1.6% of total)

Geographical Revenue:

  • India: ₹2,755.96 crore (94.1%)
  • Outside India: ₹58.15 crore (2.0%)

CSR Initiatives

  • Focus on Women Empowerment and Menstrual Hygiene Management
  • 13 Sanitary Pad Manufacturing Plants established across India
  • Eye care camps in Kutch region benefiting 1,700+ individuals
  • Setting up Skill & Training Centre in Delhi (target completion November 2027)
  • Total CSR expenditure: ₹4.62 crore (slightly above mandatory requirement)

Regulatory Compliance and Auditors

The company has complied with all applicable accounting standards (Ind AS) and regulatory requirements including SEBI Listing Regulations.

Auditor Details:

  • Statutory Auditors: M/s Anil S. Gupta & Associates, Chartered Accountants (appointed till 38th AGM in 2027)
  • Secretarial Auditor: M/s Ranjana Gupta & Associates, Company Secretaries
  • Cost Auditor: M/s Jay Narain & Co., Cost Accountants (remuneration ₹3.5 lakh for FY27)
  • Auditor's Remuneration: ₹1.14 crore

Shareholding Pattern (as of March 31, 2026)

  • Promoter Group: 54.52%
  • Public Shareholding: 45.48%
  • Institutional Holdings: 18.27% (Mutual Funds 9.71%, FPI 6.87%)
  • Dematerialized Holdings: 99.99%

Contingent Liabilities

  • Tax demands under dispute: ₹1.24 crore (Mar 31, 2025: ₹2.71 crore)
  • Vendor discounting scheme liability: ₹0.92 crore (Mar 31, 2025: ₹849.70 crore)
  • Capital commitments: ₹62.44 crore (Mar 31, 2025: ₹19.86 crore)

Forward-looking Statements

The document contains forward-looking statements subject to risks and uncertainties including market conditions, regulatory changes, and operational challenges. Readers are cautioned not to place undue reliance on these statements.