Fiem Industries posts record revenue and profit in FY26
Fiem Industries Limited delivered record financial results for FY26, with PAT rising 24.36% to INR253.87 crores and revenue increasing 16.04% to INR2,790.65 crores. The EBITDA margin improved to 14.09%, driven by operating leverage and a shift towards LED lighting, which now accounts for 63% of automotive lighting revenue. The Board recommended a final dividend of INR40 per share. For FY27, the company targets 15-20% revenue growth and projects four-wheeler revenue between INR100 crores and INR150 crores.
*this image is generated using AI for illustrative purposes only.
Fiem Industries Limited reported its strongest financial performance to date for the full year FY26, driven by robust growth in the two-wheeler industry and a strategic shift towards LED lighting. The company achieved a record profit after tax (PAT) of INR253.87 crores, marking an increase of 24.36% compared to INR204.14 crores in the previous year. Revenue from operations grew by 16.04% to INR2,790.65 crores from INR2,404.96 crores in FY25. The Board has recommended a final dividend of 400%, or INR40 per share, amounting to INR105.28 crores.
The earnings call, held on June 1, 2026, highlighted that the EBITDA margin reached a record 14.09%, up from 13.34% in the prior year, supported by operating leverage and integrated manufacturing models. For the fourth quarter of FY26, the company registered sales of INR744.35 crores, a growth of 17.44% year-on-year, with Q4 PAT rising 22.36% to INR70.59 crores. LED lighting now constitutes 63% of total automotive lighting revenue, up from 60% in previous years.
Financial Performance
| Metric | FY26 | FY25 | Growth |
|---|---|---|---|
| Net Sales (INR Crores) | 2,790.65 | 2,404.96 | 16.04% |
| EBITDA (INR Crores) | 393.34 | 320.73 | - |
| EBITDA Margin (%) | 14.09 | 13.34 | - |
| PAT (INR Crores) | 253.87 | 204.14 | 24.36% |
Operational Highlights
Management attributed the record performance to strong customer relationships and resilience in the business model amidst geopolitical tensions and cost pressures. The two-wheeler industry production volumes grew approximately 12% to an all-time high of 26.7 million units. Fiem expanded its presence with key OEMs, including TVS, Honda, and Royal Enfield, and secured approval for a new EV platform with Hero. The company also commenced fulfilling orders for Mahindra & Mahindra in the four-wheeler segment.
Future Outlook
Looking ahead to FY27, the company remains optimistic about maintaining a revenue growth rate of 15% to 20% and an EBITDA margin of around 14%. The four-wheeler business is projected to generate revenue between INR100 crores and INR150 crores in FY27, scaling up to INR200 crores to INR250 crores in FY27-28. Fiem plans to invest approximately INR200 crores in capex over the next two years, having spent INR108.31 crores in FY26. Additionally, the company is advancing its green power initiatives, with 65% of energy needs at its Hosur facility met through solar power.
Historical Stock Returns for Fiem Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.46% | -4.60% | +2.45% | -5.07% | +23.52% | +574.38% |
How will the planned INR200 crores capex over the next two years specifically impact production capacity for the growing four-wheeler segment?
What risks does Fiem Industries face if the two-wheeler industry growth rate decelerates from the current 12% levels?
Can the company sustain the 14% EBITDA margin target if raw material costs increase amidst ongoing geopolitical tensions?
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