Banco Products (India) Limited has announced a major expansion by its wholly owned subsidiary NRB Holding B.V., with the opening of a new warehouse facility in Italy. The development marks a significant step in the company's growth strategy for the European automotive aftermarket.

New Warehouse Facility Details

The new facility specifications demonstrate NRB's commitment to expanding its operational capacity:

Company Background and Market Position

NRB operates as a leading supplier of engine cooling and air conditioning parts for the automotive aftermarket. The company maintains an extensive product portfolio of approximately 15,000 references, which continues to grow rapidly. This expansion follows the recent opening of an 18,613 square meter warehouse in Chitila, Romania, indicating a broader European expansion strategy.

Strategic Benefits and Operational Improvements

The Quarrata facility is strategically positioned close to Prato, where NRB Italy's current warehouse operates. This proximity will enable the company to better manage inventory and streamline order fulfillment processes. The new location aims to facilitate enhanced service delivery to partners in local markets while supporting future growth expectations.

The facility will also house a local technical center dedicated to customer training programs, strengthening NRB's customer support capabilities in the region.

Sustainability and Supply Chain Optimization

NRB's commitment to sustainability is reflected in the strategic positioning of the new warehouse. The facility is designed to serve customers in surrounding countries, potentially reducing transport distances and creating a more effective local supply chain network. This approach aligns with modern logistics efficiency standards while supporting environmental objectives.

Transition and Operations

The company expects no disruptions to regular operations during the transition period. The planned Q1 2026 opening timeline allows for systematic integration of the new facility into existing operations while maintaining service continuity for current customers.

The expansion aims to meet growing customer demand, with the new warehouse expanding capacity by 9,000 sq meters compared to the current facility. This strategic move underscores Banco Products' commitment to strengthening its presence in the European market and enhancing its ability to serve customers efficiently.

Banco Products (India) Limited has announced robust financial results for the second quarter of fiscal year 2025-26, showcasing significant growth in both standalone and consolidated performance.

Standalone Performance

For the quarter ended September 30, 2025, Banco Products reported a standalone net profit of Rs. 10,377.00 lakhs. The company's total income from operations for the quarter stood at Rs. 39,664.00 lakhs, compared to Rs. 31,238.00 lakhs in the previous quarter and Rs. 28,824.00 lakhs in the same quarter last year, indicating a strong year-over-year growth.

Consolidated Results

On a consolidated basis, the company's performance was even more impressive. The consolidated net profit for the quarter reached Rs. 10,952.00 lakhs. Total income from operations on a consolidated basis was reported at Rs. 1,09,672.00 lakhs for the quarter, up from Rs. 98,385.00 lakhs in the previous quarter and Rs. 91,179.00 lakhs in the corresponding quarter of the previous year.

Financial Highlights

Dividend Declaration

The Board of Directors has declared an interim dividend of Rs. 7.00 per equity share, representing a 350% dividend on the face value of Rs. 2.00 per share for the financial year 2025-26. The record date for this dividend has been set as November 19, 2025, with the payment scheduled on or after November 27, 2025.

Operational Performance

The company's strong financial results reflect its robust operational performance. Banco Products, primarily engaged in the Automobile Ancillary business, has shown resilience and growth despite challenging market conditions. The significant increase in total income, both on a standalone and consolidated basis, indicates growing demand for the company's products and effective market strategies.

Balance Sheet Strength

As of September 30, 2025, Banco Products maintained a strong balance sheet position. The standalone balance sheet showed total assets of Rs. 1,15,119.00 lakhs, up from Rs. 1,07,764.00 lakhs as of March 31, 2025. The company's equity position also strengthened, with total equity rising to Rs. 1,03,627.00 lakhs from Rs. 85,060.00 lakhs at the end of the previous fiscal year.

Cash Flow and Liquidity

The company demonstrated strong cash flow management. The standalone cash and cash equivalents stood at Rs. 9,899.00 lakhs as of September 30, 2025, a significant increase from Rs. 1,643.00 lakhs at the end of the previous fiscal year. This improvement in liquidity positions the company well for future growth and investments.

Banco Products (India) Limited's Q2 results for FY2025-26 reflect a company on a strong growth trajectory, with improved profitability, solid operational performance, and a healthy balance sheet. The declaration of a substantial interim dividend further underscores the management's confidence in the company's financial health and its commitment to delivering value to shareholders.