The performance was achieved despite headwinds from elevated commodity prices, supply chain disruptions, and macroeconomic uncertainties. The company noted a one-quarter time lag in passing through commodity cost increases to customers, which temporarily impacted margins.
Finance costs were higher due to debt raised to fund the acquisition of the automotive interiors and lighting businesses. These costs are expected to be temporary and normalize as the related debt is repaid.
Net debt stood at approximately ₹550 crores as of June 30, 2026.
Strategic and Operational Highlights
Market Outlook: Management cited "phenomenal growth" in the two-wheeler and passenger car markets post "GST 2.0 reforms" and expects this momentum to continue for these segments, as well as for commercial vehicles and tractors, throughout FY27.
Legacy Business (Pistons & Rings):
Successfully completed the acquisition of the piston manufacturing plant and machinery from Sunbeam Lightweighting Solutions Limited, strengthening manufacturing capacity.
Continue to win new programs for hybrid and flex-fuel applications from customers.
The business is ready with products compliant up to E85 ethanol blending, involving different coatings and pricing.
Positioned to benefit from CAFE norms with new, higher-realization products under testing and validation.
Exports were affected by geopolitical tensions in Europe, the US, the Middle East (Egypt, Turkey), but the company managed to deliver 2-3% better export results last year despite challenges.
Acquisitions & Diversification:
Integration of the acquired automotive interiors and lighting businesses (Antolin) is progressing well.
The auto interiors business has won important new customer programs post-acquisition.
Margins for the interiors business have improved significantly from 7-8% to "early teens" (low double-digits) due to cost-structure improvements and synergies.
The company aims to further improve these margins.
Powertrain-agnostic businesses (Interiors, Lighting, Plastics, EV Motors) now contribute over 35% of consolidated total income.
Nearly 60% of the overall business is positioned to remain relatively insulated from the impact of EV penetration.
Other Businesses:
Electric Motor and Controller Business (EMFi): Continuously exceeding targets. Sales doubled in the previous year after commissioning a new facility in Coimbatore in December 2025. The company is a full-system supplier (motors and controllers) for 2W, passenger cars, trucks, and buses, with products in various validation stages.
High Precision Injection Molded Components (Takahata): Witnessed significant growth during the quarter. A Phase 4 expansion is underway, with revenue generation expected by early FY28. The business also supplies non-auto components (medical, sports, music) which are low-volume but good-margin.
Capacity Expansion: Steady progress on group-wide capacity expansion programs across all business verticals (Plastics, Motors, Interiors, Legacy) to support customer programs and future growth. Investments are ongoing and capacity is described as a "dynamic number."
M&A Strategy: The company is actively working on new acquisitions. The evaluation is based on strategic parameters (technology, growth, markets) rather than a strict size threshold. The management is confident in its ability to service acquisitions, with a current net debt-to-equity of ~0.2x and an internal upper limit that is not expected to exceed 1x.
ESG & Awards:
Achieved a CDP B rating for climate and water.
Obtained TUV certified sustainability assurance and certifications for ISO 14064, 50001, 46001, 17029, and 27001.
Awarded an EcoVadis bronze medal (top 35 percentile globally), Dun & Bradstreet's highest ESG rating of 2 in India, and a CII award for corporate sustainability.
Received TISAX certification for cybersecurity.
Q&A Session Key Points
Technology Access: The company has full access to all global technologies from its licensing agreement (TLA) with Antolin Global, including electrochromic sun visors, HMI-integrated cockpits, and emotional lighting, and is working on introducing them in India.
Export Drivers: Aside from market recovery, the closure of Eaton's engine valve plant in the US is seen as a potential opportunity, though it primarily affects the valve segment, not pistons.
Standalone vs. Industry Growth: The company's standalone revenue growth of ~12% was explained as being better than the industry's manufacturing growth rate of 12-14% (not wholesale sales), with the mix shifting towards smaller vehicles post-GST 2.0.
Margin Reconciliation: The sequential decline in EBITDA margins despite stable gross margins in the standalone business was attributed to product mix, volume impacts, and the annual wage hike that typically occurs on April 1st.
Fundraise: The recently approved fundraise will be used for a mix of acquisitions, debt repayment, and ongoing business investments. Funds are fungable, and the company has a strong balance sheet.
