Key Financial Performance (Q1 FY27)

Consolidated Financials:

  • Revenue: ₹1,223 crore, representing 32.6% year-on-year growth
  • EBITDA: ₹113 crore, up 34% YoY from ₹85 crore in Q1 FY26
  • EBITDA Margin: 9.2% (in line with Q1 FY26 despite external headwinds)
  • Profit After Tax (including share of associates): ₹51 crore, up 41.2% YoY from ₹36 crore
  • PAT Margin: 4.2%, up 30 bps YoY
  • Effective Tax Rate: 20.3%

Segment Performance:

  • Manufacturing Business Revenue: ₹1,160 crore, up 36.8% YoY
  • LED Lighting Contribution: 63% of total revenue (up from 61% in Q1 FY26)

Operational Highlights

Order Book & Customer Wins:

  • Total Order Book: ₹2,500 crore with approximately 90% LED lighting composition
  • Key Product Launches:
  • Passenger Vehicles: Tata Motors Tiago (head lamps), Volkswagen Taigun (rear lamps)
  • Two-Wheelers: Suzuki Motors Burgman Street (front turning signal lamps)
  • Commercial Vehicles: Force Motors Traveller 2 (head lamps)

Segment Revenue Mix:

  • Passenger Vehicles: 64%
  • Two & Three-Wheelers: 31%
  • Commercial Vehicles & Others: 5%

Product Revenue Mix:

  • Front Lighting: 68%
  • Rear Lighting: 23%
  • Other Products: 9%

Customer Growth:

  • Maruti Suzuki: 43% YoY growth
  • Tata Motors: 68% YoY growth
  • TVS Motors: Healthy business growth

Capacity Expansion & Capex

Current Projects:

  • Bengaluru plant expansion for Maruti and Toyota upcoming models: Expected commissioning in Q4 FY27
  • Brownfield projects at Sanand and Bawal locations to support new order wins

Capex Guidance:

  • FY27 Capex: Revised upward to ₹200-250 crore (from previous guidance of ₹100-150 crore) due to new business wins
  • Maintenance Capex: ₹40-50 crore
  • FY28 Capex: Tentative guidance of ₹150-200 crore (subject to business wins)

Financial Position

Debt Position:

  • Net Long-term Debt as of June 30, 2026: ₹209 crore

Margin Pressures & Recovery

Cost Impact:

  • Commodity and other costs had approximately 120-130 bps net impact on margins in Q1 FY27
  • 150 bps margin reduction in Q1 primarily due to delayed recoveries from OEMs on commodity price increases
  • Recovery mechanisms: Currently quarterly or six-monthly amendments (not monthly as hoped)

Business Outlook & Guidance

Industry Context:

  • Indian auto industry production: 93.5 lakh units, up 22% YoY
  • Passenger Vehicle production: 14.5 lakh units, up 17% YoY
  • Two-Wheeler production: 72.5 lakh units, up 23% YoY
  • Three-Wheeler production: 3.5 lakh units, up 39% YoY
  • Commercial Vehicle production: 3 lakh units, up 15% YoY

Company Guidance:

  • Full Year FY27 EBITDA Margin: 10.5-11% (expected improvement from Q1 levels)
  • Q2 FY27 Margin: Expected above 10% as Q1 realizations materialize
  • Long-term Growth: 15-20% CAGR expected over next 3-5 years
  • Revenue Target: ₹9,000 crore+ by FY30-31 from current base of ₹4,500-5,000 crore
  • Long-term Margin Target: 13%+ EBITDA

Order Book Implementation:

  • Approximately 60% of ₹2,500 crore order book (₹1,500 crore) expected to start production in FY28

Technology & Market Development

LED Penetration:

  • Current content per vehicle: ₹15,000-20,000 on average (up to ₹30,000 for premium models)
  • Expected increase: 50% over next 4-5 years to ₹22,000-25,000 per vehicle
  • Future technologies: Dynamic lighting, laser lighting, comfort lighting, deeper ADAS integration

Localization Strategy:

  • Current focus on electronics localization (LED modules, SMT, bare PCB, connectors)
  • SMT: 100% localized
  • Bare PCB: Current 40-50% localization, expected to reach 70-80% in 2-3 years
  • Connectors: Current 24% localization, expected to reach 40-50%
  • Expected margin benefit: 70-90 bps from localization efforts over 2-3 years

Customer & Market Strategy

Wallet Share Development:

  • Maruti Suzuki: Expected to increase from less than 30% to 35-40%
  • HMSI: Tail lamps wallet share expected to increase 2-3 times in FY28
  • Mahindra & Mahindra: Maintaining 40-50% wallet share of lighting requirements

Growth Focus Areas:

  • TVS Motors: Expected to be significant growth driver
  • Suzuki Motorcycle India Private Limited (SMIPL): Expected growth driver
  • Commercial Vehicle and tractor segment traction

Additional Business Lines

Mould Business:

  • FY26 Revenue: ₹180-185 crore
  • FY27 Target: ₹250-300 crore
  • Majority expected in H2 (Q3/Q4)

HVAC Business:

  • Current Revenue: ₹18-20 crore annualized (Honda customer)
  • Peak Potential: ₹35-40 crore for current customer
  • Limited near-term expansion plans

Management Participants

  • Mr. Deepak Jain: Chairman and Managing Director
  • Mr. Anmol Jain: Joint Managing Director
  • Mr. Sanjay Mehta: Group Chief Financial Officer
  • Mr. Ravi Teltia: Chief Financial Officer
  • Mr. Naval Khanna: Corporate Head, Taxation
  • Ms. Surabhi Chandna: Group Head of Investor Relations and Value Creation