Key Financial Figures
- Q2 FY27 Revenue: INR 247.86 crore
- Q2 FY27 EBITDA: INR 27.47 crore
- Q2 FY27 EBITDA Margin: 11.08%
- Q2 FY27 PAT: INR 19.78 crore
- Consolidated Order Book: INR 1,190 crore (INR 1,150 crore from NDR Auto standalone + INR 40 crore from NDR Hayashi JV)
- Capacity Utilization: Approximately 90% across plants
Order Book Details
The significant order book increase of approximately INR 500 crore was driven primarily by large order wins from Maruti Suzuki and Suzuki two-wheeler, with some new business from Toyota. The management confirmed that the INR 1,150 crore standalone order book translates to annual revenue potential of INR 1,150 crore at peak execution, with most execution expected in FY29 and FY30.
Joint Venture Announcement
NDR Auto announced a new joint venture with DYA, a Korean automotive systems company, where NDR will hold 51% stake. The total investment in the JV will be INR 62.96 crore. The JV will focus on manufacturing full seat assemblies (including foams) for Hyundai-Kia, targeting business worth INR 800-1,000 crore to be executed in FY31. The JV is expected to start production in FY31, with order procurement expected by middle of next year.
Expansion Plans and Capex
The Board approved brownfield expansion of Gujarat and Kharkhoda facilities to manufacture seat frames, trim, and other auto components. Total projected capex includes INR 60 crore for announced projects and approximately INR 60 crore for the JV, plus regular annual capex. The company is working towards achieving its vision of INR 3,000 crore revenue by FY30 through both organic (INR 2,000 crore) and inorganic (INR 1,000 crore from JV) growth.
Operational Highlights
- The company does not currently export any products, focusing solely on Indian market
- Raw material price increases are mostly passed through to customers with no lag
- Other expenses increased due to minimum wage increases in Haryana and accounting treatment of NDR South operations
- Share of profit from associates increased to INR 5.2 crore due to profitability at TSIL (Toyo Seats) and reduced losses at NHI
- CWIP balance of INR 39 crore includes projects for Seat Belt Reminder System and other operational capex
Management Commentary and Outlook
Management expects sustainable EBITDA margins around 11-11.5% going forward. H2 FY27 should see similar to slightly improved performance compared to H1, depending on model mix ramp-up. New models from NDR South are starting at year-end, with seat belt reminder and other products starting early next year. The company remains optimistic about growth opportunities through both organic and inorganic initiatives.
Q&A Session Key Points
- The JV will have slightly lower margins than standalone business but significant top-line contribution
- NDR will continue supplying seat covers and frames to the JV from its standalone entity
- Content per vehicle for the JV is estimated between INR 50,000-80,000 with target volumes of 1-1.5 lakh units
- The company is also working on opportunities in commercial vehicles and two-wheelers
- Current order book is predominantly from passenger vehicle segment