Corrigendum Details

The company identified an inaccuracy in the "Customer Concentration" graph on page 12 of the original Investor Presentation. The corrected figures are:

  • FY24: % Revenue from Biggest Customer minus (sum of % Revenue from Next Four) revised from 70% to 72%
  • FY25: % Revenue from Biggest Customer minus (sum of % Revenue from Next Four) revised from 66% to 68%
  • FY26: % Revenue from Biggest Customer minus (sum of % Revenue from Next Four) revised from 49% to 58%

The revised Investor Presentation with these corrections has been enclosed with the filing.

Financial Performance Highlights

Q4FY26 Performance

  • Q4FY25 financials were unaudited though full year FY25 financials were audited

FY26 Performance

  • Revenue increased by more than 60% YoY, now exceeding ₹1000 crore
  • EBITDA increased by more than 75% YoY, now exceeding ₹200 crore
  • PAT increased by more than 100% YoY, now exceeding ₹100 crore
  • Return on Capital Employed (RoCE) improved to above 40%

Product Portfolio Updates

Current Market Products

  • ISG ECU: Broader Market Adoption stage
  • EFI ECU: Broader Market Adoption stage
  • ISG+EFI ECU: Early Growth stage
  • MCU: Early Growth stage
  • Magneto/Motor: Initial Introduction stage
  • Genset Controller: Sustaining Industry Position stage

Key FY26 Product Developments

  • Ramp up of ISG ECU for ICE3W with widespread penetration in domestic market; export to follow
  • Ramp-up of E3W MCU; Start of Production (SOP) and partial ramp-up of E2W MCU
  • Significant ramp-up of ISG+EFI ECU
  • Number of 2/3W produced with ISG in India: 8.4 million in FY26 vs 5.1 million in FY23
  • More than 80% of ISG volume growth in FY26 was due to SEDEMAC
  • 3 out of the top 4 2W OEMs in India now use SEDEMAC's sensorless ISG
  • Market launch and ramp up of EFI ECU for North America genset market with widespread adoption by the dominant market leader

Markets Under Development

Mobility Segment

  • Engine-powered Commercial Vehicles
  • Electric Light Commercial Vehicles

Industrial Segment

  • Power Tools

Development Stage Products

  • ACU: Initial Introduction stage, SOP likely in H2FY27
  • EFI ECU: Business Win stage, SOP likely over next 4-5 quarters
  • MCU: Initial Introduction stage, SOP likely in H2FY27
  • SLC Technology, MCU: Initial Introduction stage

Development Updates

  • First business win done with a small but established powertool maker for MCU with SLC

Capacity Expansion

Current Manufacturing Facilities

  • MF1: 40,000 sq ft (Main Plant)
  • MF2: 8,000 sq ft

New Facilities

  • MF3 Chakan, Pune: 120,000 sq ft, expected start of ECU shipments from Q2FY27
  • MF4 Chakan, Pune: 9,000 sq ft, expected start of Electric Machines shipments from Q3FY27
  • Shoolagiri Land (SIPCOT): ~13 acres for future shipments to customers with plants in South India

Risk Assessment Survey 2026

Summary of risk assessment survey made public on May 11, 2026. Overall Risk Score computed by assigning 0 to Low, 0.5 to Medium and 1 to High, then taking weighted average.

Key Risk Scores:

1. Significant negative impact due to demand drop from key customer(s): Score 0.37 (8 Low, 8 Medium, 3 High, 1 Have no clue)

2. Indian 2/3-wheeler market shrinkage: Score 0.14 (14 Low, 3 Medium, 1 High, 2 Have no clue)

3. Indian/Global genset market shrinkage: Score 0.03 (19 Low, 1 Medium, 0 High, 0 Have no clue)

4. Products for Indian 2/3-wheeler EV market not seen as compelling: Score 0.38 (7 Low, 7 Medium, 3 High, 3 Have no clue)

5. Slow down in penetration of ISG: Score 0.25 (11 Low, 8 Medium, 1 High, 0 Have no clue)

6. Competition making progress leading to erosion of competitive advantage: Score 0.26 (10 Low, 8 Medium, 1 High, 1 Have no clue)

7. R&D efforts not continually yielding innovative propositions: Score 0.34 (9 Low, 7 Medium, 3 High, 1 Have no clue)

8. On-time delivery under geo-political uncertainty: Score 0.25 (11 Low, 5 Medium, 2 High, 2 Have no clue)

9. Maintaining quality in new product introductions: Score 0.24 (13 Low, 3 Medium, 3 High, 1 Have no clue)

10. Key talent retention: Score 0.29 (9 Low, 9 Medium, 1 High, 1 Have no clue)

11. Margin erosion due to commodity price rise: Score 0.16 (13 Low, 6 Medium, 0 High, 1 Have no clue)

12. IP Infringement claims and oppositions to patent applications: Score 0.19 (11 Low, 4 Medium, 1 High, 4 Have no clue)

13. Delays in commissioning of new manufacturing facilities: Score 0.11 (15 Low, 4 Medium, 0 High, 1 Have no clue)

FY27 Outlook

Key Growth Drivers

  • SEDEMAC ISG ECU introduction on variants of 3 popular (top-10 2W) motorcycle models of 3 of top-4 OEMs
  • Wet magneto: SLC technology key
  • Two launches expected in Q1FY27 (production already underway for one)
  • Third launch expected in Q4FY27
  • Further ramp-up of E2W MCUs (SoP was in Q3FY26)
  • Ramp-up of ISG ECUs for export 3Ws (SoP was in Q4FY26)

Key Dampeners

  • Semiconductor supply chain tightening and commodity price inflation likely to increase some raw material costs
  • Mild EBITDA percentage pressure likely due to cost increases
  • Reports of strong El Nino in CY26 may negatively impact Indian monsoon and US hurricane season
  • Potential negative impact on India 2W market and US home-standby generator markets

Management Commentary

  • Described FY26 as "Very Strong" with sustained growth, profitability, and capital efficiency
  • FY27 outlook described as "Looking Good" with continued penetration of sensorless ISG in marquee motorcycle models
  • Some challenges acknowledged but no significant negatives visible
  • Risk mitigation evident with highest risk considered low-medium in assessment survey
  • Customer concentration decreasing with momentum towards further mitigation over mid-term
  • 2/3W EV relevance increasing with momentum towards further mitigation over mid-term
  • New plants expected to ease capacity utilization and provide readiness for growth