NDR Auto Components held a virtual one-on-one analyst and investor meeting on August 24, 2026 at 11:00 am with Choice Institutional Equities. The session provided stakeholders direct access to management for discussions.

Meeting details

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting was conducted as scheduled without cancellation or postponement.

NDR Auto Components Limited reported a consolidated net profit of ₹164.03 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 20.6% increase from ₹135.96 crore in the corresponding period last year. Revenue from operations grew 19.56% to ₹2,214.53 crore, driven by robust demand from key OEM partners including Maruti Suzuki, Toyota, and Kia. The company’s Board of Directors approved the unaudited financial results on August 10, 2026, and published them under Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The strong top-line growth was accompanied by an improvement in operational efficiency, with EBITDA rising to ₹264.45 crore from ₹204.56 crore in Q1FY26. This translated into an expanded EBITDA margin of 11.88%, up from 11.01% in the previous year. Standalone net profit also surged to ₹147.22 crore, compared to ₹111.84 crore in Q1FY26. The company remains debt-free, funding all capital expenditures through internal accruals, and recorded a Return on Capital Employed (ROCE) of 35.34% as of June 30, 2026.

Strategic Expansions and Order Book

Management highlighted significant strategic developments during the analyst conference call held on August 11, 2026. The new plant in Ananthapur, operated by subsidiary NDR Auto Components South Private Limited, is expected to commence sales in Q2FY27. This facility has an annual capacity of 0.17 million pieces for seat trims and frames. The Board had previously authorized an ₹8 crore investment in this subsidiary through a rights issue of 80 lakh equity shares to optimize capacity. Management clarified that initial debt taken for NDR South has been converted into equity.

Additionally, the joint venture NDR Hayashi Automotive India Private Limited has begun operations in Bengaluru, focusing on high-margin interior components such as sunshades and ambient lighting. While the sunshade business has started, ambient lighting contributions are expected from 2028. As of June 30, 2026, the company maintained a healthy order book of ₹650 crore, providing sustained visibility into future quarters. Management noted that most orders are for seat frames and covers, with smaller portions for ambient lighting and other new products.

Regulatory and Legal Matters

Statutory auditors S.R. Batliboi & Co. LLP issued a limited review report with no qualifications but included an emphasis of matter regarding an income tax search under Section 132 of the Income Tax Act, 1961. The company faces demand orders totaling ₹502.20 lakh (excluding penalties) for assessment years 2020-21 to 2024-25. While the Commissioner of Income Tax (Appeals) reduced the demand to ₹366.89 lakh for most years, appeals remain pending for assessment year 2022-23, which includes a total demand of ₹134 lakh.

What the Numbers Show

The simultaneous expansion into high-margin interior components like ambient lighting and sunshades, coupled with the inauguration of the South India plant, underscores management’s strategy to deepen OEM relationships and increase content per vehicle. The improvement in EBITDA margin from 11.01% to 11.88% despite a challenging macro environment highlights effective cost management and operational efficiencies. With a healthy order book of ₹650 crore and zero debt, the company is well-positioned to capitalize on the recovery in passenger vehicle demand. Management indicated that future capex would be approximately ₹40 crore to ₹50 crore annually over the next couple of years, aiming for an asset turnover of approximately 4x on the combined capex across different plants.