This article first appeared on GuruFocus .
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Revenue from Operations (Consolidated):INR156.4 crores, a growth of 34.1% year on year.
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EBITDA (Consolidated):INR12.4 crores, an increase of 33.3% year on year.
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Automotive Parts Business - New Orders:Secured lifetime orders worth INR131 crores, a growth of 51.8% year on year, with EV programs contributing nearly INR64 crores.
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Aftermarket Business Revenue:Increased by 30% year on year in Q1 FY27.
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Aftermarket Product Portfolio:Launched 345 new SKUs, expanding the total portfolio to 1,312 SKUs (up from 1,264 at the end of FY26).
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Aftermarket Distribution Network:Expanded to 155 distributors.
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Tooling Business Capacity Utilization:Currently stands at 84%.
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Tooling Business Orders:Received orders for 30 molds during the quarter, maintaining a pipeline of 124 molds.
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Industrial Product Business Revenue:Experienced moderation in Q1 FY27 due to seasonality, with approximately 30% of quarterly revenue generated from exports.
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Battery Business Revenue:Increased by 4 times year on year in Q1 FY27, primarily due to a lower base.
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Release Date: August 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Consolidated revenue grew 34.1% YoY to INR156.4 crores, with EBITDA up 33.3% YoY to INR12.4 crores, driven by higher production volumes and improved operating leverage.
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Secured lifetime orders worth INR131 crores in Q1, a 51.8% YoY increase, with EV programs contributing INR64 crores, strengthening long-term revenue visibility.
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Entered a technology partnership with Hutchinson, a global leader in automotive sealing systems, to offer advanced body sealing solutions in India, enhancing technology capabilities and market opportunities.
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Aftermarket business grew 30% YoY, with 345 new SKUs launched (total 1,312) and distribution network expanded to 155 distributors, targeting 10% revenue contribution.
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Tooling business maintains a healthy order pipeline with 124 molds and 84% capacity utilization, and the proposed demerger into Meraki Precision Tools is expected to enhance operational focus and agility.
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Battery business revenue increased 4x YoY in Q1, and the company aims to be net debt-free within three years, supported by INR100 crores from JV divestment.
Negative Points
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Raw material inflation impacted margins, with a 4% cost increase; only 2% was passed on to customers, and the balance is still under negotiation, expected to be resolved by Q2/Q3.
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Battery business continues to face challenges from raw material cost increases, pricing pressures, and shorter delivery timelines, with losses still a concern despite revenue growth.
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EBITDA margin expansion is limited by raw material cost pressures and the inability to fully pass on cost increases, with sustainable margins guided at 12-13%, lower than pre-COVID levels.
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Industrial products business saw moderation in sales in Q1 due to seasonal demand, though exports contributed 30% of its revenue.
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The company's historical revenue growth has been muted compared to the industry, as it missed out on electrical component growth, and management notes that pre-COVID margin levels are difficult to achieve.
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Geopolitical developments, commodity price volatility, and global supply chain dynamics remain watch items that could impact the operating environment.
Q & A Highlights
Q: What is the company's plan for operating profit margin, and what is the internal target? A: Abhishek Jain, MD & CEO, stated that raw material costs increased by approximately 4%, of which only 2% has been passed on to customers so far. The company is in discussions to pass on the remaining increase, with expectations to finalize by the end of Q2 or start of Q3 FY27. He noted that while margins improved due to better capacity utilization, the full benefit was offset by input cost inflation. For the long term, he indicated that a sustainable EBITDA margin of 12% to 13% is a realistic target for an automotive ancillary company with OEM customers.
Q: Can you provide details on the revenue expectations from the technology partnership with Hutchinson over the next three years? A: Abhishek Jain, MD & CEO, explained that the partnership focuses on developing advanced body sealing systems, primarily glass run channels, for the Indian market. The company is currently engaging with customers and developing new products. While no specific revenue numbers were provided, he stated that customers are excited about the solutions and that clarity on meaningful revenue conversion is expected by the end of the current fiscal year. The main competitors in this space are SFC, Anand Nishikawa, and Teoda Gosai.
Q: How is the company utilizing the proceeds from the divestment of the Japanese JV stake? A: Abhishek Jain, MD & CEO, detailed that the company received approximately INR 100 crores from the JV exit. After paying around INR 8 crores in taxes, the remaining amount will be allocated as follows: 25% will be retained for working capital requirements, and the rest will be used for strategic capital expenditures. The CapEx will be directed towards capability development in the EPDM product line, expansion of the tool room, and land acquisition near Shambhaji Nagar.
Q: What is the current status of the battery business, and when is it expected to break even? A: Abhishek Jain, MD & CEO, acknowledged that the battery business remains a cause of concern. While revenue grew 4 times year-on-year in Q1 FY27, this was due to a low base. The business is facing challenges from raw material cost increases, pricing pressures, and shorter delivery timelines. The company's focus is on minimizing losses by engaging with new customers, especially in the energy storage area. He expressed hope that things will start improving from Q2 onwards, but did not provide a specific timeline for break-even.
Q: What is the growth trajectory for the aftermarket business, and are there any constraints? A: Abhishek Jain, MD & CEO, stated that the aftermarket business grew 30% last year and is expected to continue growing at a similar rate. The company launched 345 new SKUs in Q1 FY27, expanding the portfolio to 1,312 SKUs, and expanded its distribution network to 155 distributors. To support growth, the company is focusing on product portfolio expansion, distribution network deepening, and establishing new warehouses, including one in the West. The business currently contributes around 6% to overall revenues, with a target of reaching 10%.
Q: Should the strong revenue growth momentum seen in Q1 FY27 be expected to sustain throughout the year? A: Abhishek Jain, MD & CEO, confirmed that the growth momentum is continuing, noting that Q2 is also seeing strong growth so far. He attributed the robust performance to higher customer production schedules, healthy demand across vehicle segments, and the ramp-up of new programs. The company secured lifetime orders worth INR 131 crores in Q1, a 51.8% increase year-on-year, with EV programs contributing nearly INR 64 crores.
Q: What is the company's plan for CapEx in FY27? A: Abhishek Jain, MD & CEO, outlined that CapEx for the year will be driven primarily by the EPDM business. One new production line will be operational in Q2, with investments in two additional lines planned for the financial year. The tooling business will also receive investment. He noted that the company has sufficient capacity in injection molding and plastic extrusion, but is growing effectively in the EPDM space.
Q: Why has the company's revenue growth been muted over the last several years compared to the industry, and what is the outlook? A: Abhishek Jain, MD & CEO, explained that the company primarily manufactures sealing systems and injection molded parts, categories that have not seen significant content changes. In contrast, the industry growth has been driven by increased electrical content and advanced features in vehicles, which the company did not benefit from. However, he noted that actions taken over the last 2-3 years are now yielding results, as evidenced by the 34% growth in Q1 FY27, and this momentum is expected to continue.
Q: What are the plans to reduce debt levels? A: Abhishek Jain, MD & CEO, stated that the company's target is to become net debt-free within the next three years. This will be supported by the proceeds from the JV divestment and improved operational performance.
Q: What is the current capacity utilization? A: Abhishek Jain, MD & CEO, reported that capacity utilization stood at 73% in Q1 FY27. The tooling business specifically has a higher utilization rate of 84%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
