NDR Auto Components Limited , a leading auto component manufacturer, has reported strong financial performance for the second quarter of fiscal year 2026, along with signing two significant technology license agreements to enhance its product portfolio.

Financial Highlights

NDR Auto Components delivered impressive results for Q2 FY26, showcasing substantial growth across key financial metrics:

The company's performance demonstrates resilience and growth in a competitive market environment. The EBITDA margin for Q2 FY26 stood at 11.24%, indicating improved operational efficiency.

Key Financial Indicators (Q2 FY26 vs Q2 FY25)

The company has shown consistent growth across all major financial parameters, with notable improvements in operating profit and net profit margins.

Strategic Technology Agreements

NDR Auto Components has signed two Technology License Agreements (TLAs) to expand its product portfolio and enhance its technological capabilities:

1. Seat Belt Reminder (SBR) Sensor Agreement with Fujikura Ltd:

   • Investment: ₹7.43 crore
   • Expected Annual Revenue: ₹30-40 crore
   • Application: Front and rear seats in vehicles
   • Technology: Integrated into seat design for enhanced safety

2. Physical Latches for Car Seats Agreement with Fisher Dynamics:

   • Investment: ₹17.43 crore
   • Expected Annual Revenue: ₹30-40 crore
   • Application: Rear seat locking mechanism for increased boot space and passenger safety

These agreements are expected to contribute significantly to the company's future growth and technological advancement in the auto components sector.

Management Commentary

Pranav Relan, Whole-Time Director of NDR Auto Components, commented on the results, stating, "Our financial and operating performance have been steady in the backdrop of slow pickup for some of the models we cater to. The challenges and supply chain bottlenecks have considerably eased, and this, combined with the reduction in the GST rate announced by the government, gives us optimism and confidence for the remainder of the current year and going forward."

Future Outlook

The company maintains its target of achieving ₹3,000 crore revenue by FY30, with an expected Return on Capital (ROC) of 25%. The recent technology agreements and strong financial performance position NDR Auto Components well for future growth in the evolving automotive components market.

NDR Auto Components continues to focus on enhancing its product portfolio and improving operational efficiencies to maintain its growth trajectory in the competitive auto components industry.

NDR Auto Components Limited (NDR Auto) has reported a robust performance for the second quarter of the fiscal year, with revenue reaching 2 billion rupees, marking a significant year-over-year growth of approximately 15% from 1.7 billion rupees in the same period last year.

Financial Highlights

The company's financial results for Q2 showcase its strong market position and operational efficiency:

Quarterly Performance

NDR Auto's revenue growth reflects positively on the company's ability to capitalize on market opportunities and maintain its competitive edge in the auto components sector. The 15% year-over-year increase suggests a healthy demand for the company's products and potentially improved market share.

Industry Outlook

The auto components industry in India has been showing signs of recovery, and NDR Auto's performance aligns with this trend. The growth may be attributed to factors such as increased vehicle production, rising demand for aftermarket parts, and possibly the company's strategic initiatives.

Company Developments

While specific details about the drivers of this growth were not provided, it's worth noting that NDR Auto has recently approved projects for manufacturing seat belt reminder systems and seating latches, which may contribute to future revenue streams.

Looking Ahead

As NDR Auto continues to invest in new technologies and expand its product offerings, investors and industry observers will be watching closely to see if this growth trajectory can be maintained in the coming quarters.

The company's ability to sustain this growth rate will likely depend on various factors, including overall automotive sector performance, consumer demand, and the successful implementation of its expansion plans.

Note: All figures are in Indian rupees. Crore = 10 million.