Fiem Industries Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, detailing its adherence to environmental, social, and governance (ESG) principles. The filing, submitted to BSE Ltd. and National Stock Exchange of India Ltd., covers the period from April 1, 2025, to March 31, 2026. The company reported the consumption of 22,924 GJ of renewable energy (solar) during the year, a significant increase from zero in the previous financial year, as part of its initiative to scale up renewable energy usage.

Operational and Financial Overview

The company operates primarily in the manufacturing of automotive parts and components, which accounted for 94.26% of its turnover. Its major product lines include automotive lights, signaling equipment, rearview mirrors, and plastic moulded parts. Fiem Industries serves 24 states nationally and 14 countries internationally, with exports contributing 1.85% to the total turnover. The paid-up capital of the company stands at ₹263,196,600.

Workforce Diversity and Safety

Fiem Industries reported a total workforce of 10,791, comprising 1,371 employees and 9,420 workers. The company achieved a female representation of over 40% in its total workforce, meeting its target for gender diversity. The Board of Directors includes four female members out of 14, representing 28.57%.

The company recorded a Lost Time Injury Frequency Rate (LTIFR) of 0.00 for employees and 0.176 for workers. It reported four total recordable work-related injuries for workers during the year, with no fatalities. Following fire incidents at its Rai and Tapukara factories, the company engaged external risk management agencies and is incurring substantial capital expenditure on fire safety infrastructure modernization.

Environmental Performance

The company’s total energy consumption for the year was 323,508.60 GJ, with energy intensity per rupee of turnover recorded at 0.000011496 GJ. Water consumption stood at 31,438.58 kilolitres, and water discharge was 26,021 kilolitres. Total greenhouse gas emissions (Scope 1 and Scope 2) were 54,609.38 MtCO2e. The company generated 4,540.19 metric tonnes of waste, of which 45.40 metric tonnes were hazardous.

Stakeholder Engagement and Governance

Fiem Industries received 34 shareholder complaints during the year, all of which were resolved, with none pending at the close of the year. The company has established grievance redressal mechanisms for various stakeholders, including communities, investors, employees, and customers. It maintains policies on anti-bribery, anti-corruption, and human rights, which are available on its website.

The company’s Corporate Social Responsibility (CSR) initiatives focused on healthcare and women’s empowerment, benefiting approximately 45,728 persons through projects such as the Sanitary Pad Project and Eye Operation Camps. The Board of Directors, led by Mr. J.K. Jain, Chairman & Managing Director, oversees the implementation of business responsibility policies.

Fiem Industries has released its Annual Report for FY 2025-26, revealing a landmark year of financial performance alongside significant corporate governance changes. The company delivered its highest-ever revenue, profitability and operating margins, underpinned by strong demand from leading OEM customers and a continued shift toward LED-based lighting solutions. The Board of Directors has recommended a final dividend of Rs 40 per equity share (400% of face value) for FY 2025-26, subject to shareholder approval at the 37th Annual General Meeting scheduled for July 31, 2026, via video conferencing at 10:30 a.m. The record date for dividend entitlement is July 24, 2026, with payment on or before August 14, 2026.

Record Financial Performance in FY 2025-26

Fiem Industries delivered its strongest financial results since inception, driven by robust execution, continued customer confidence and sustained investments in technology. The following table summarises the key standalone and consolidated financial highlights:

LED lighting accounted for 63% of total automotive lighting sales in FY 2025-26, up from 59% in the previous year, reflecting growing customer preference for advanced lighting technologies. India's real GDP grew by 7.7% during FY 2025-26 according to provisional estimates, while the Indian two-wheeler industry surpassed its pre-pandemic peak with record production of around 26.7 million units, registering 11.8% growth. The company also commenced supplies to Mahindra & Mahindra during the year, marking a significant milestone in its four-wheeler segment expansion.

Subsidiary Performance

The company consolidates two wholly-owned subsidiaries and one joint venture. Their financial highlights are as follows:

Innovation, Technology & Sustainability

During the year, Fiem Industries commissioned a state-of-the-art Electromagnetic Interference (EMI) and Electromagnetic Compatibility (EMC) Testing Laboratory at its R&D–Electronics, Innovation Centre and Corporate Office in Gurugram. This facility enhances in-house capability to design, validate and test advanced automotive lighting electronics. On the sustainability front, the company initiated its green energy transition with rooftop solar and open-access renewable energy projects across manufacturing facilities. At its Hosur plant, approximately 65% of energy requirements are now met through open-access solar power, with an additional 20% expected through wind energy. Total R&D expenditure for FY 2025-26 stood at Rs 5,258.16 lakh, comprising capital expenditure of Rs 1,215.81 lakh and revenue expenditure of Rs 4,042.35 lakh.

AGM Agenda: Leadership Restructuring & Remuneration

The 37th AGM will consider several key resolutions, including the re-appointment of Mr. Rahul Jain and Ms. Aanchal Jain as Directors retiring by rotation. Significant leadership restructuring has been proposed effective June 1, 2026, with Mr. Jagjeevan Kumar Jain re-designated as Executive Chairman, Mr. Rahul Jain as Managing Director, and Ms. Aanchal Jain as Joint Managing Director. The Board has also approved revised monthly remuneration for Whole-time Directors, effective April 1, 2026:

Mr. Vineet Sahni, CEO & Whole-time Director, resigned from the directorship effective May 31, 2026, citing personal reasons. The AGM will also ratify the remuneration of M/s Jay Narain & Co., Cost Accountants, appointed as Cost Auditor for FY 2026-27 at Rs 3.50 lakh plus out-of-pocket expenses. Remote e-voting will be open from July 27, 2026 at 10:00 AM to July 30, 2026 at 5:00 PM, with July 24, 2026 as the cut-off date.

Fire Incidents & Insurance Claims

The company disclosed two fire incidents in its annual report. A fire at Unit-VII, Rai Plant on June 13, 2023 resulted in significant damage; reinstatement has been completed and insurance assessment is in final stages. During FY 2024-25, the company received Rs 50 crore as interim payments from the insurer. A second fire occurred at Unit-VIII, Tapukara Plant on August 23, 2025, primarily restricted to the first floor. Production was resumed on undamaged floors by August 29, 2025. An estimated insurance claim of Rs 82.30 crore has been filed with the insurer on January 30, 2026.

CSR Initiatives

Fiem Industries spent Rs 4,61,60,473 on CSR activities during FY 2025-26, against an obligation of Rs 4,60,37,601, resulting in an excess spend of Rs 1,22,872. The company's flagship CSR initiative remains Menstrual Hygiene Management (MHM), with 13 Sanitary Pad Manufacturing Plants established across India. Eye care camps in the Kutch region benefited more than 1,700 individuals during the year. A Skill & Training Centre project in Delhi, started in December 2024, is targeted for completion by November 2027.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE737H01014/90fc1bb1-affe-423c-bbd9-bf9bc4b42c74.pdf