IFB Industries Limited has expanded its international presence through the formation of a new subsidiary in Switzerland. The company informed stock exchanges on December 12, 2025, about this strategic development under Regulation 30 of SEBI listing obligations.

Subsidiary Formation Details

Global Automotive Appliances Pte. Ltd. (GAAL), a wholly-owned subsidiary of IFB Industries Limited, has established Schmid Automotive Appliances GmbH as its wholly-owned subsidiary in Switzerland on December 10, 2025. The parent company received intimation of this formation on December 12, 2025, and has duly informed the Asian Development Bank and Reserve Bank of India about this development.

Business Objectives and Strategic Purpose

Schmid Automotive Appliances GmbH has been incorporated as a step-down subsidiary of GAAL to carry out specialized engineering activities. The subsidiary will focus on design and drawing services, planning and development of machine tools, and fine blanking tool development to augment the engineering capabilities of the parent company.

The subsidiary operates in the automotive and appliances industry, aligning with IFB Industries' core business segments. As a newly incorporated entity, Schmid Automotive Appliances GmbH is yet to commence business operations and currently reports no turnover.

Regulatory Compliance and Disclosure

The formation does not fall within related party transactions, and no promoter or group companies have any interest in the newly established entity. The subsidiary formation does not require specific governmental or regulatory approvals beyond standard incorporation procedures. IFB Industries has fulfilled all disclosure requirements under SEBI regulations and informed relevant banking authorities about this international expansion.

This strategic move represents IFB Industries' continued focus on strengthening its engineering capabilities through international subsidiaries, particularly in specialized manufacturing and tool development sectors.

IFB Industries , a leading home appliance manufacturer, has reported a robust performance for the second quarter of fiscal year 2026, with significant revenue growth and margin improvement initiatives underway.

Financial Highlights

IFB Industries achieved a quarterly revenue of Rs. 1,327.00 crores, marking an 11.5% increase from Rs. 1,189.00 crores in the previous year. The company's Profit Before Depreciation, Interest, and Tax (PBDIT) saw a substantial 30% year-on-year growth, reaching Rs. 102.50 crores, which represents 7.7% of revenue, up from 6.6% in the previous year.

Profit After Tax (PAT) also showed impressive growth, rising to Rs. 50.00 crores (3.8% of revenue) from Rs. 33.00 crores (2.77% of revenue) in the same quarter last year.

Half-Year Performance

For the first half of FY 2026, IFB Industries reported:

Cost Optimization Initiatives

The company is implementing several cost reduction and efficiency improvement measures:

1. Material Cost Reduction: IFB is targeting annualized savings of Rs. 200.00 crores, with Rs. 14.00 crores already realized in the first half and an additional Rs. 60.00-70.00 crores expected in the second half of the fiscal year.

2. External Expertise: IFB is collaborating with Alvarez & Marsal on cost optimization projects and has engaged McKinsey for e-commerce and marketing cost optimization.

3. Logistics Cost Optimization: The company is working on a project targeting a 10% reduction in logistics costs, which currently stand at approximately Rs. 154.00 crores.

4. Scheme Payout Efficiency: IFB has reversed Rs. 28.00 crores from dealers who did not achieve their volume targets, as part of efforts to improve scheme payout efficiency.

Business Expansion and Product Development

IFB's home appliances division is expanding its product portfolio:

• Entering the refrigerator and air conditioner markets
• Production of BLDC motors for washing machines and air conditioners is underway
• Expanding capacity in the stamping business, with plans for new facilities in Gujarat and near Manesar

Management Outlook

The management expressed confidence in gaining market share and achieving double-digit margins through various cost reduction and efficiency improvement measures. They are focusing on enhancing counter-level extraction and expanding market share across individual product categories.

Conclusion

IFB Industries' strong Q2 performance, coupled with its strategic initiatives in cost optimization and product expansion, positions the company for sustained growth. The management's focus on efficiency and market share gains suggests a positive outlook for the coming quarters, despite challenges in certain markets and the need for improved marketing strategies.