Igarashi motors India Limited has announced the reaffirmation of its credit ratings by CARE Ratings for bank facilities worth Rs. 169.65 crores. The rating communication was received on March 30, 2026, and subsequently disclosed to stock exchanges in compliance with SEBI listing regulations.

Credit Rating Details

CARE Ratings has reaffirmed the company's credit ratings across multiple facility categories. The rating agency maintained its positive assessment of the company's creditworthiness while enhancing the quantum of long-term bank facilities.

Rating Significance

The CARE A+ rating with stable outlook indicates strong credit quality and low credit risk for long-term facilities. The CARE A1+ rating for short-term facilities reflects the highest degree of safety regarding timely payment of financial obligations. The stable outlook suggests that the rating is unlikely to change over the medium term.

Facility Enhancement

A notable development in the rating exercise was the enhancement of long-term bank facilities from Rs. 22.55 crores to Rs. 41.65 crores. This increase of approximately Rs. 19.10 crores demonstrates the company's improved credit capacity and CARE Ratings' confidence in its financial strength.

Regulatory Compliance

The company communicated this development to both BSE and NSE on March 31, 2026, fulfilling its obligations under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The rating event occurred on March 30, 2026 at 13:02 hours IST, as officially recorded by the company.

Company Profile

Igarashi Motors India Limited operates from its registered office and manufacturing facility located in MEPZ-SEZ, Tambaram, Chennai. The company maintains active listings on both major Indian stock exchanges with stock codes 517380 on BSE and IGARASHI on NSE.

Igarashi motors India Limited announced its unaudited financial results for the third quarter ended December 31, 2025, revealing a challenging period marked by declining profitability despite stable revenue performance. The Chennai-based automotive components manufacturer reported results that were approved by the Board of Directors at their meeting held on February 11, 2026.

Financial Performance Overview

The company's financial performance for Q3FY26 showed mixed results with revenue stability but significant profit decline. Total income for the quarter reached Rs 21,617.68 lakhs compared to Rs 21,117.46 lakhs in the corresponding quarter of the previous year.

Segment-wise Performance

The company operates in two primary segments: automotive and non-automotive components. The automotive segment remained the dominant contributor to revenue, while the non-automotive segment showed a decline in contribution.

The automotive segment demonstrated strong growth with revenue increasing by 9.17% year-on-year, contributing approximately 90% of total revenue. However, the non-automotive segment experienced a significant decline of 33.64%, impacting overall performance.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, Igarashi Motors faced more pronounced challenges with both revenue and profitability declining compared to the previous year.

Cost Structure and Expenses

The company's expense structure showed increases in several key areas, contributing to margin pressure. Employee benefit expenses rose to Rs 2,201.55 lakhs in Q3FY26 from Rs 1,919.77 lakhs in Q3FY25, representing a 14.68% increase. This increase was partly attributed to the implementation of New Labour Codes, which resulted in an incremental impact of Rs 71.95 lakhs during the quarter.

Finance costs decreased significantly to Rs 208.92 lakhs from Rs 382.95 lakhs in the previous year, indicating improved debt management. Depreciation and amortization expenses increased to Rs 1,416.67 lakhs from Rs 1,312.15 lakhs, reflecting continued capital investments.

Earnings Per Share and Capital Structure

The company maintained its paid-up equity share capital at Rs 3,147.50 lakhs with a face value of Rs 10 per share. Basic and diluted earnings per share for Q3FY26 stood at Rs 1.11, down from Rs 1.64 in the corresponding quarter of the previous year. The company's reserves stood at Rs 43,407.62 lakhs as of March 31, 2025.

Regulatory Compliance and Board Approval

The financial results were prepared in accordance with Indian Accounting Standard 34 and were subject to limited review by statutory auditors B S R & Co. LLP. The audit committee reviewed the results at its meeting held on February 11, 2026, and the Board of Directors approved them on the same date. The auditor's report was unqualified, confirming the accuracy of the financial statements.

The results were submitted to BSE Limited and National Stock Exchange of India Limited under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has arranged for publication of the unaudited financial results in newspapers and made them available on the company's website at www.igarashimotors.com .