This article first appeared on GuruFocus .
Release Date: June 01, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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FIEM Industries Ltd ( BOM:532768 ) reported a record year with strong revenue growth of 16% and profit after tax increasing by 24% for FY26.
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The company achieved an all-time high EBITDA margin of 14.09%, supported by operating leverage and integrated manufacturing models.
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FIEM Industries Ltd ( BOM:532768 ) has expanded its customer base, securing new business with major clients like TVS, Honda, Royal Enfield, Suzuki, Yamaha, and Hero, particularly in the electric vehicle segment.
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The company is investing in green energy, with 65% of its Hosur facility's energy needs met through solar power and plans to expand renewable energy use across all plants.
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FIEM Industries Ltd ( BOM:532768 ) is well-positioned for future growth with a strong order book and robust customer pipeline, particularly in the four-wheeler segment with clients like Mahindra and Mahindra.
Negative Points
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The company experienced an increase in receivables, attributed to discontinuing bill discounting with major customers like TVS, which could impact cash flow management.
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There is a noted increase in other expenses and employee costs, which may affect profitability if not managed effectively.
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The four-wheeler business, while promising, is still in its early stages and may take time to significantly impact overall revenue.
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The resignation of CEO Mr. Vineet Sani could lead to transitional challenges, although the company has stated that the transition has been smooth.
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The company faces challenges from geopolitical tensions, currency fluctuations, and cost pressures, which could impact future performance.
Q & A Highlights
Q: This year, the receivable amount has jumped up. Are we liable to get that money back from our customers? A: Arvind Chauhan, Company Secretary: There is an increase in the number of debtors, but there is no change in the payment terms. We used to discount the bills from our major customers like TVS. Now, with good cash flows, we have discontinued bill discounting, which is the only difference in the numbers.
Q: The other expenses and employee costs have increased compared to revenue. Are we front-loading any CapEx? A: O.P. Gupta, CFO: The employee cost as a percentage of sales is similar to last year. The increase is due to recent labor cost notifications. Regarding CapEx, we have a projected CapEx of 200 crores over the next two years, covering both two-wheeler and four-wheeler initiatives.
Q: Can you provide an update on the RFQs and the four-wheeler business pipeline? A: We have converted 70% of the RFQs into business, which are currently under development. Our current four-wheeler business could be in the range of 100 to 150 crores for the current year, with expectations to grow to 200 to 250 crores in FY27-28.
Q: What is the strategy for the four-wheeler segment following the resignation of Mr. Vineet Sani? A: The leadership responsibilities have been assumed by Rahul Jain, Managing Director, and Rajesh Sharma, Joint Managing Director. They will continue to drive the company's growth agenda, particularly in expanding the four-wheeler business. A detailed strategy will be presented soon.
Q: Given the commodity inflation and supply chain disruptions, where do you see the margins in the coming financial year? A: We expect to maintain our current margin guidance of 14% EBITDA. Price escalations are passed on to customers, albeit with a lag, ensuring stability in our margins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
