This article first appeared on GuruFocus .
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Revenue:INR 769.9 crore in Q1 FY27, up 18.62% from INR 649.07 crore in Q1 FY26.
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EBITDA:INR 104.06 crore, with an EBITDA margin of 13.52%, compared to INR 87.36 crore and a 13.46% margin in the prior-year quarter.
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Net Profit (PAT):INR 65.19 crore, up 16.31% from INR 56.05 crore in Q1 FY26.
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LED Lighting Share:63% of total automotive lighting during the quarter.
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Capital Expenditure:INR 41.15 crore in Q1 FY27.
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Release Date: August 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record Q1 for Indian two-wheeler industry with 7.25 million units, supporting strong demand for FIEM Industries Ltd ( BOM:532768 )'s products.
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Sales grew 18.6% year-over-year to INR 770 crores, with EBITDA margin stable at 13.5%.
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PBS business achieved 1 million cumulative sales and launched a new model for export to the UK.
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Hero MotoCorp is a fast-growing customer, with plans to supply all Vida lamps for its new Andhra Pradesh plant from next quarter.
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EV segment growth (now 9% of two-wheeler volumes) is boosting LED-intensive lighting content, with new supply agreements for Ather, River, and Royal Enfield EV models.
Negative Points
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Four-wheeler business revenue contribution remains minimal at 2.5%, with guidance pushed out by two quarters due to longer-than-expected customer conversion cycles.
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Raw material costs increased significantly in Q1, with a lag in passing on to customers, impacting margins.
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Employee costs rose sharply due to minimum wage hikes in Haryana, with similar increases expected in other states.
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Yamaha business was flat year-over-year due to lower export volumes and slower sales of certain models like R15 and Aerox.
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LED penetration in lighting has stagnated at 63% over the past seven quarters, with growth expected only gradually over the next 24-30 months.
Q & A Highlights
Q: What is the company's margin and revenue guidance for FY27, and how will input cost pressures be managed? A: The company maintains its guidance of 15%-20% top-line growth and an EBITDA margin of around 14% for the full year. While Q1 saw cost increases from employee wages and raw materials, management expects to pass on the raw material cost increases to customers with a lag, allowing them to recover the margin over the next few quarters and achieve the 14% target for the year.
Q: The four-wheeler revenue guidance was previously INR 100-150 crore for FY27. Why has this been downgraded, and what are the challenges in scaling this segment? A: Management acknowledged that the four-wheeler business target has been pushed out by roughly two quarters, with meaningful revenue now expected to spill into FY28. The delay is attributed to the longer-than-expected conversion cycle for new customer onboarding and order finalization in the four-wheeler segment. They view this as a long-term 10-year journey and remain committed, but expect FY27 four-wheeler revenue to remain around 2.5% of total sales.
Q: Can you provide an update on the LED lighting share and the transition from halogen to LED over the next few years? A: LED share remained stable at 63% of automotive lighting revenue in Q1. While the share has stagnated recently due to strong sales of entry-level models with halogen lamps, management expects the trend to shift decisively towards LED as new models and EVs, which are LED-intensive, gain traction. They project LED share to move towards 70% over the next 24-30 months, with the broader market expected to be 90-95% LED by 2030.
Q: What is the status of the new product initiatives like Light Control Modules (LCM) and hands-off detection systems? A: The company has completed Proof of Concepts (POCs) for hands-off detection systems and is presenting them to customers. They are also working closely with two or three customers on Light Control Modules (LCM), which consolidate individual lamp electronics. These initiatives are in the early development and customer feedback stage, with mass production dependent on customer RFQs and vehicle-level integration timelines.
Q: Can you provide an update on the business with key customers like Hero, Ather, and Royal Enfield in the EV space? A: The company is seeing strong growth in the EV segment. They commenced supplies for Ather's new model 'Konark' as the sole lighting supplier, and also started supplying for River's new RX02 model and Royal Enfield's EV 'Flying Fleet' model. Hero's Vida EV platform is a fast-growing business, and from next quarter, Fiem will supply all Vida lamps for Hero's new Andhra Pradesh plant from its Hosur facility.
Q: What is the company's CapEx plan for FY27, and where is it being directed? A: The company targets a CapEx of around INR 100 crore for FY27, similar to the previous year. A large proportion of this investment is directed towards the Hosur facilities in South India to meet the significant capacity requirements for EV customers like TVS and other OEMs, with a smaller portion allocated to other locations.
Q: Can you explain the sharp increase in employee costs in Q1 and its impact on the coming quarters? A: The increase is primarily due to annual increments and a significant minimum wage hike, particularly in Haryana where two of the company's factories are located. The Haryana wage revision was a substantial increase, and other states are following suit. Management confirmed that the employee cost run-rate seen in Q1 will remain at similar levels for the next three quarters.
Q: What is the current status of the development work with Mercedes-Benz, and when can we expect actual orders? A: Prototype samples for Mercedes-Benz have been submitted for their testing and evaluation. This process typically takes one and a half to two years for vehicle-level validation. Only after this testing phase is complete will Mercedes issue the actual RFQ for mass production, indicating that revenue from this partnership is still a few years away.
Q: How is the company's wallet share with Honda (HMSI) evolving, especially with their new model launches? A: Management stated that the overall wallet share with HMSI remains the same or better and is in line with customer requirements. They are working closely with HMSI on several new models that are in the pipeline, including those with LED lamps that are under development or at the RFQ stage. They remain hopeful of maintaining their wallet share in these new models.
Q: What is the company's capital allocation policy given the strong cash position and no debt? A: The company has a strong balance sheet with around INR 250 crore in cash and no debt. Management is evaluating multiple organic and inorganic opportunities, including potential CapEx for the four-wheeler business and opportunities in electronics. They prefer to use internal accruals for growth but are open to raising debt if a significant opportunity requires it.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
