Quarter summary

• Achieved highest ever annual sales exceeding INR 2,000 crores and net profit of INR 166 crores in FY24, with robust Q4 performance.
• Successfully made a strategic entry into the 4-wheeler passenger car segment by securing initial orders from both European and Indian OEMs.

Rationale

• Achieved highest ever sales of INR 2,014.37 crores (+9.83% YoY) and net profit of INR 165.84 crores (+18.77% YoY) in FY24. Q4 FY24 sales grew strongly by 28.1% YoY to INR 554.7 crores, and PAT increased by 24.02% YoY to INR 47.1 crores.
• Maintained stable EBITDA margins at 13.6% in Q4 FY24 and ~13.3% for FY24, indicating effective cost management and pricing power with customer compensation for raw material costs.

Quarter summary

• Significant new business wins and platform additions for key OEM customers in the 2-wheeler segment, particularly the 100% LED order for Royal Enfield's new Classic 350 CC model.
• Strategic entry and development in the passenger car lighting segment, including initial project deliveries to Mercedes (Germany) and multiple plant approvals from significant domestic OEMs.

Rationale

• Revenue grew 21.86% YoY to INR 573.61 crores in Q1 FY25, significantly outpacing the 2-wheeler industry's 20% volume growth, driven by strong OEM performance.
• Net Profit (PAT) increased 35.02% YoY to INR 49.2 crores, demonstrating strong bottom-line execution and operating leverage.

Quarter summary

• Fiem Industries achieved its best-ever quarterly results, driven by strong execution and a resurgence in two-wheeler demand.
• Strategic inroads were made into the passenger car segment with new orders from Mahindra & Mahindra and continued projects with Mercedes.

Rationale

• The company reported its 'best ever Quarterly Results' for Q2 FY25, with sales growing by 20.08% YoY to Rs. 607.45 crores and H1 sales up 20.94% YoY to Rs. 1181.05 crores, demonstrating strong revenue trajectory.
• Profitability remained robust with Q2 FY25 PAT rising 18.9% YoY to Rs. 49.83 crores, and H1 PAT increasing 26.39% YoY to Rs. 99.03 crores. EBITDA margins were stable at 13.21% in Q2 FY25 and 13.47% in H1 FY25, within the guided 13-14% range.

Quarter summary

• Strategic entry and order wins in the 4-wheeler segment, particularly with Mahindra, establishing a foothold for future diversification.
• Significant investments in advanced electronic R&D and manufacturing capabilities to align with evolving automotive lighting technology across segments.

Rationale

• Fiem Industries reported strong revenue growth of 22.15% YoY in Q3 FY25 (INR 590.1 crores vs INR 483.11 crores), significantly outperforming the 2-wheeler industry's 10% growth in 9M FY25.
• EBITDA margin remained healthy at 13.2% (INR 77.88 crores) in Q3 FY25, only a slight dip from 13.35% in Q3 FY24, demonstrating resilience despite volume shifts.

Quarter summary

• The company inaugurated a new Innovation and R&D Centre, including an advanced EMC/EMI electronic validation laboratory, to bolster its technological capabilities, particularly in electronics for lighting.
• Fiem Industries successfully entered the 4-wheeler market with initial product deliveries to Mahindra & Mahindra and securing further orders from Mercedes, marking a significant step in business diversification.

Rationale

• FY25 revenue grew 19.39% YoY to INR 2,404.96 crores and PAT grew 23.09% YoY to INR 204.14 crores, significantly outperforming the 11% growth in the India 2-wheeler market.
• The company made substantial strategic investments, establishing a new Innovation and R&D Centre at Gurugram, including a state-of-the-art EMC/EMI laboratory (first in Indian lighting industry), with a total planned capex of approximately INR 400 crores over the next 3-4 years (INR 200 Cr regular + INR 200 Cr for 4-wheeler).

Quarter summary

• Successful entry and diversification into the four-wheeler segment with new development orders from Force Motors, expanding the addressable market.
• Significant investment in a state-of-the-art EMC/EMI electronic validation laboratory, strengthening technological capabilities and leadership in integrated automotive lighting and electronics.

Rationale

• Reported Q1 FY'26 sales growth of 13.16% YoY to Rs. 649.07 crore and PAT growth of 13.92% to Rs. 56.05 crore, demonstrating healthy top-line and bottom-line expansion.
• EBITDA margin remained strong at 13.46% in Q1 FY'26, despite a slight dip from 13.73% YoY, indicating robust operational performance.

Quarter summary

• The company introduced advanced animation and CAN-based system technology in 2-wheelers, marking a 'first time' in the industry (TVS Norton, Yamaha EV models).
• Fiem Industries made significant progress in the 4-wheeler segment, securing new business from Mahindra for flagship models and receiving RFQs from other major OEMs like Force Motors and Mercedes.

Rationale

• Record Q2 FY26 sales of INR711 crores (+17% YoY) and PAT of INR64 crores (+28.02% YoY) demonstrate exceptional financial performance and trajectory.
• EBITDA margin expanded to 13.93% in Q2 FY26 (from 13.21% YoY), with management confidently guiding for sustainable margins around 14% due to favorable product mix and operating leverage.