Financial Performance (Consolidated)

Quarterly Performance (Q4 FY26 vs Q4 FY25)

  • Revenue: ₹1,304 million (vs ₹1,062 million in Q4 FY25)
  • EBITDA: ₹110 million (vs ₹110 million in Q4 FY25)
  • Profit Before Tax: ₹54 million (vs ₹82 million in Q4 FY25)
  • Net Profit After Tax: ₹52 million (vs ₹46 million in Q4 FY25)
  • Diluted EPS (₹2 per share): ₹1.50 (vs ₹1.31 in Q4 FY25)

Annual Performance (FY26 vs FY25)

  • Revenue: ₹4,687 million (vs ₹3,766 million in FY25) - 24.5% YoY growth
  • EBITDA: ₹495 million (vs ₹374 million in FY25) - 32.4% YoY growth
  • Profit Before Tax: ₹277 million (vs ₹224 million in FY25)
  • Net Profit After Tax: ₹181 million (vs ₹144 million in FY25) - 26% YoY growth
  • Diluted EPS (₹2 per share): ₹5.18 (vs ₹4.12 in FY25)
  • EBITDA Margin: ~11% (vs ~10% in FY25)
  • Cash Flow from Operations: Increased ~2.7x to ₹600 million
  • Total Assets: ₹3,607 million (11.7% growth)
  • Net Worth: ₹1,569 million

All values are in ₹ million and consolidated. EPS is after considering stock split. Numbers are rounded off to their nearest digit.

Key Business Updates and Order Wins

Major Contract Awards

  • Stellantis Order: Remsons Automotive (UK) secured a ₹3,000 million, 7-year order from Stellantis N.V. for supply of control cables - described as one of the largest in company history. Deliveries to begin in FY27.
  • Lighting Design Order: BEE Lighting Ltd secured ₹120 million order from a Global Multinational OEM for design and development of exterior vehicle lighting.
  • Gear Shifter Order: Received business award from leading Commercial Vehicle Indian OEM for Gear Shifter with Push Pull Cables worth ₹600 million, to be executed over five years.
  • Hood Rods Order: Secured order for Hood Rods from a global OEM, adding new product to portfolio.

Capacity Expansion

  • 2nd Pune Plant: Inaugurated 30,000 sq. ft. state-of-the-art manufacturing facility in Chakan, Pune for locomotive and Defence applications.
  • NCR Expansion: Identified additional 20,000 sq. ft. property in National Capital Region to bolster manufacturing capacity.

Credit Rating Update

ICRA upgraded credit rating outlook: long-term improved from BBB to BBB+ and short-term from A3+ to A2, covering ₹868.2 million in facilities.

Management Discussion and Commentary

Performance Overview

FY26 was described as the company's strongest year on record across P&L, balance sheet and cash flow. Revenue growth of 24.5% YoY was noted as well above broader auto-components sector. The 11% EBITDA margin (excluding other income) represented a structural step-up from ~10% in FY25.

Growth Drivers

Four key factors driving above-industry growth:

1. Full-year consolidation of BEE Lighting (UK) acquisition (acquired October 2024)

2. New order book activation including Stellantis, Gear Shifter, and 10-year international pedal box programmes

3. Product-mix premiumisation shift toward sensors, lighting, and locomotives

4. Export tailwind from China+1 sourcing rotation among global OEMs

Margin Expansion Trajectory

EBITDA margin progressed from ~6% in FY19 to ~11% in FY26 due to:

  • Product-mix shift toward higher-IP categories
  • Operating leverage as revenue scaled ~2x over FY19-FY26
  • Higher export realization on UK and North American programmes
  • Inorganic strategy targeting margin-accretive assets
  • Tighter working capital and finance cost discipline

Management views 11-13% EBITDA margin as reasonable structural band over medium term.

Strategic Roadmap - FY27 and Beyond

Revenue Target

Company targets ₹9,000-10,000 million revenue by FY30, implying 24-29% CAGR from FY26 base of ₹4,687 million.

Strategic Priorities

  • Stellantis programme ramp-up commencing in FY27
  • Capex of ₹1,000 million over three years for plant upgrades in India and UK, focusing on EV-compatible parts, sensors and tyre mobility kits
  • Geographic diversification of manufacturing (India + UK + Brazil via licensing)
  • Customer diversification across Stellantis, Tata Motors, Hero, Maruti, and UK luxury/supercar OEMs
  • Selective M&A with manageable net debt providing funding capacity

Geopolitical & Raw Material Outlook for Q1 FY27

Export Geography

Disclosed export markets: UK, Europe, North America, Brazil, Mexico and SAARC. No material direct Middle East customer concentration.

Risk Channels

1. Freight & shipping: Red Sea/Strait of Hormuz disruption lifted freight rates, expected 100-200 bps margin pressure on exports priced ex-works

2. Raw material inflation: Materials consumed at 53% of revenue in FY26. Recent price increases: hot-rolled steel +11%, aluminium +27%, copper +28%. Every 5% input cost increase would compress EBITDA margin by ~265 bps, though international programmes have quarterly raw-material pass-through clauses with 1-2 quarter lag and ~40-60% dilution

3. Currency: Rupee at ~95-96/USD net positive for export realisations

Management Positioning

Hedging via foreign-currency-denominated order books with escalation clauses, disciplined inventory management (inventories up ~6% YoY despite 24% revenue growth), and geographic manufacturing spread provide structural insulation.

Q1 FY27 Outlook

Revenue growth expected to hold up on Stellantis ramp-up and BEE momentum. Margins may compress 100-200 bps versus FY26 average if Middle East tensions persist.

Chairman & Managing Director Statement

Krishna Kejriwal reported strong FY26 performance with 24% revenue growth to ₹4,687 million, EBITDA up 33% YoY to ₹495 million at 11% margin, and net PAT increase of 26% YoY to ₹181 million. Attributes performance to strategic focus on higher-value products, operational efficiencies, and stronger export realizations. Confirmed company is on track toward FY30 revenue aspiration of ₹9,000-10,000 million.

Company Background

Remsons Industries Ltd. is an automotive OEM components manufacturer with over 50 years experience, supplying to two, three and four-wheeler vehicles, commercial vehicles and off-highway vehicles across India and globally. Headquartered in Mumbai with facilities in Gurgaon, Pune, Pardi, Daman (India), and Stourport, Redditch (UK). Product expertise includes Control Cables, Gear Shifters, Pedal Boxes, Winches, Jacks, Sensors, Automotive Lights, and Tyre Mobility Kits.