Financial Performance Highlights

Q2 FY27 Performance:

  • Revenue: ₹2,189 crores, up 43% YoY and 19% sequentially
  • EBITDA: ₹257 crores, up 45% YoY and 22% sequentially
  • EBITDA Margin: 11.8%
  • PAT: ₹143 crores, up 69% YoY and 43% sequentially
  • PAT Margin: 6.5%

H1 FY27 Performance:

  • Revenue: ₹4,036 crores, up 38% YoY
  • EBITDA: ₹469 crores
  • EBITDA Margin: 11.6%
  • Normalized PAT: ₹243 crores (excluding ₹106 crores exceptional gain from Minda VAST consolidation in Q1)

Segment Performance

Revenue Mix (Q2):

  • Wiring Harness: 31%
  • Vehicle Access: 24%
  • Die Casting: 15%
  • Cluster and Other Products: 15%

Geographic Revenue (Q2):

  • India: 89%
  • Europe and North America: 6%
  • South Asia: 5%

EV Business Performance

  • EV product revenue grew 113% YoY
  • Contributes 10% to standalone revenue, 15% at group level
  • Represents 35% of order book value
  • Flash Electronics EV revenue grew 173% YoY, contributing 32% to its Q2 revenue

Operational Highlights

New Order Wins:

  • Secured multiple TFT instrument cluster orders with cumulative lifetime value exceeding ₹1,000 crores
  • Orders range from 5 to 12-inch displays across 2-wheeler, 3-wheeler, commercial vehicle, and passenger vehicle segments
  • Production commencement planned for FY28 onwards
  • Won multiple EV mobility orders, including 3.5 kilowatt charger from 3-wheeler OEM with production planned for Q1 FY28

Capacity Expansion:

  • 42 manufacturing plants currently operational
  • 6-7 new plants under construction, to commence operations in next 12-24 months
  • 8.2 lakh sqm land bank with 2.6 lakh sqm built-up space

Technology Initiatives:

  • Received Government of India ECMS approval for localization of display module assembly
  • Proposed greenfield TFT display module assembly facility in Pune/Chakan region
  • Investment of ₹200 crores in phases over 18 months
  • Expected to localize 70-80% of current TFT imports
  • Backward integration strategy to enhance competitiveness

Associate Company Performance (Flash Electronics)

Q2 FY27:

  • Revenue: ₹650 crores
  • EBITDA: ₹106 crores
  • EBITDA Margin: 16.4%
  • PAT: ₹54 crores
  • PAT Margin: 8.3%

H1 FY27:

  • Revenue: ₹1,183 crores
  • EBITDA: ₹188 crores
  • PAT: ₹89 crores

Cost Factors and Margins

  • Elevated commodity pricing affecting margins (4-5% impact in wiring harness)
  • Increased input costs (largely pass-through with recovery expected next quarter)
  • Revision in minimum wages across several states
  • Higher freight expenses due to market conditions

Credit Rating Upgrade

  • Improved from AA- to AA

Renewable Energy Initiative

  • Targeting 80-90% renewable power by 2035
  • Current renewable power contribution: 30-35%
  • Recent solar agreements expected to provide savings of ₹2-3 per unit

R&D Capabilities

  • 1,000 engineers with 340 patents (155 granted)
  • 2 advanced technology centers and 7 engineering centers
  • R&D expense approximately 3% of revenue
  • 30-35% of opex towards software-related technologies

Growth Strategy Pillars

1. Investment in existing businesses

2. Exports-led growth

3. Premiumization of existing products

4. New product launches

5. New customers and increased penetration in existing customers

6. Investment into R&D capability

Segment Outlook

  • 2-wheeler and 3-wheeler: 45-50% of revenue (expected to maintain)
  • Commercial vehicles: 20-25% of revenue
  • Passenger vehicles: 18-20% currently, expected to reach 25%+ in coming years

Order Book and SOP Timeline

  • Typical SOP commencement: 18-24 months from order receipt
  • Peak production: 2 years post-SOP
  • 40% business from platform replacement, 60% from new platforms