NDR Auto Components Limited ($NDRAUTO)

Ladies and gentlemen, good day. and welcome to the NTR O2 Q4 FY '26 Earnings Conference Call. [Operator Instructions] I now hand the conference over to Mr. Gavin Desa from CDR India. Thank you, and over to you, sir.

Good day, everyone, and welcome to all of you participating on this Q4 and FY '26 Earnings Call for India auto components. We have to have with us today Mr. Pranav Wella, Whole-Time Director; Mr. Vikram Kishnarati, CFO and Vice President, Mr. Rakesh stage GM, Finance and Accounts; and Mr. Rajat Bhandari, Executive Director and Company Secretary. Before we begin, I would like to mention that some statements made in today's discussion may be forward-looking in nature and are subject to risks and uncertainties. A statement in this regard is available in the presentation on the exchanges and shared with you earlier. We will start the call with opening remarks from the management following which we will have an interactive Q&A session. And now invite Stephane to share some perspectives with you with regard to the operations and the outlook for the business. Over to you, Pala.

Good day, everyone, and a warm welcome to our Q4 FY '26 Earnings Conference Call. Thank you for joining us today. We are encouraged by our progress on the quarter and year under review. I expect me take you through a snapshot. For Q4 FY '26, our total income stood at INR 229.89 crores a growth of 19% Y-o-Y. EBITDA for the quarter was INR 27.36 crores, a growth of 25% year-on-year with EBITDA margins at 11.9%. These I add are the highest EBITDA margins per NBR auto past INR 18.45 crores. For the full year, total income stood at INR 825. 45 crores a growth of 15%. EBITDA was INR 93.57 crores with margins of 11.34%, PAT improved 16% to INR 61.94 crores for the full year. Our ROC or ROC employed already continued to be strong standing at 36.22% as of March 31, 2026, not consisting the ROU surplus cash landing Credco and Orama, which we will utilize towards the expansion of our operations. Sales volume to all our partner OEMs continues to improve, reflective of both recognization of our capabilities and a good demand environment. As you are aware, there are also a large number of new models being planned, and we are optimistic of having the opportunity to cater to many of these launches. Our order book as on 31st March 2026 to INR 650 crores, which also is the highest in the history of India auto components. It provides a strong medium-term revenue visibility and underlines the confidence OEMs continue to place our capability. I am happy to inform you of our progress in our nonseating space with the signing of arising lighting and believe this is a promo. Our CapEx plan towards the establishment of back-end infrastructure for our new product offers, namely seat and search ambient lighting CHC classes and ketamine system remains very flat. We continue to focus on expanding the content of the tile offer and bringing to the market disruptive and lead product cost, the demand in landing states. On our part, we are very prepared to leverage the significant opportunities we foresee. We have adequate land and visible pension 26-acre anaband9 incidence, which would help reduce our cost growth setting up expanding capacity. We will now be happy to take the questions.

[Operator Instructions] We will take the first question from the line of Anubhav from resin Capital.

One of the sequential increase in order book from like INR 450 crores at the end of Q3, it INR 650 crores now a key arise on that. So can you give some color on what type of new orders have we won? I just like for new models of our existing volume or have we added some qualitative like description. So we've got new models from a ratio [indiscernible] ?

So we've got some new models from RBS, which has led to an increase in our order book. We've also removed the EBITDA from our existing order book because we started production.

And lowering that we have received from multisite for the -- is it like a product development or like some kind of like order in [indiscernible]?

So they are all new models at benefit business [indiscernible]

hello number Yes. Somehow the admin line is not really us. oil is very often. So my next question is like lyso slight digital tartaproduction for the new Gaolan of the JV. So it seems like be of a quarter. So is this because of patronat have led to this?

Sorry, can you repeat that again?

On of the new annual plan for the Haske earlier, I think it was cut start production -- but in this quarter, the prosecution is mentioned that is the start of June. So can you like give some color on what mistake -- is it the for or yes?

So it's basically because of some operational results that we've beaten by 2 months.

We will take the next question from the line of Jatin Chawla from RTL Investments.

Congratulations on a good result, delivering 20% growth despite the fact that 1 of our key models is taking some challenges. My first question is on the other expenses. There is a big pickup on a quarter-on-quarter basis from like INR 21 crores to INR 24 crores. Any one-offs there? Or this is just all kind of maybe year-end that is there?

So there's an increase in project and marketing expansion, including R&D expenses as we like to increase.

Got it. And on the gross margin side, again, there is 100 bps Q-o-Q improvement. Any one-off there? Or this is just normal product mix?

That's the module product mix. In addition, we've also got some icons from our vendors that have led to it.

Sorry, discount from vendors. This is for volume discount or because commodities are normally still going up -- but -- so do you see this kind of gross margin holding up? Or given the fact that commodities are now going up, there will be some pressure on gross margins?

So gross margin should be similar and all our commodities tend to be index. So there shouldn't be too much difference in our gross margin.

Got it. So this 11.5% EBITDA margin that we have this quarter without including other income and all is something that is sustainable going forward?

Yes, that is the same.

Got it. Got it. This order book increased from INR 450 crores to INR 650 crores. The entire INR 200 crores is from Maruti? Or is there other orders from any other client as well?

So the entire INR 200 crores from piece.

Got it. With this now, we broadly have visibility of revenue going to like INR 1,500 crores but in order to meet the INR 3,000 crore target and given how the auto industry works where you need to kind of get orders like at least 18 to 24 months in advance, we will need another INR 1,500 crores or so of orders in the next 2, 2.5 years. So how is the visibility on that looking? And how confident are you of getting there?

So INR 500 crores we want to do from existing customers and existing products. Housing Cerus is something I think will have to give us some more time on. We'll get back to you by the end of the year. We'll try to give you update slowly.

We will take the next question from the line of Ramil from Electron PMS.

Congratulations on a good set of numbers. So firstly, just to understand for the new products that we are working on the INR 150 crore total CapEx that we will do in the various product lines. Just wanted to understand in terms of visibility, what kind of orders we have already got? Or what is the visibility on that because orders need to come a little earlier than when the plant comes. So how is the thought process on that?

So keep that the miners to still see latch and just see the import we already have orders for that. We just transferring the business to that. It starts 2027 January and sustain that up. For the Hasijointventure we turn to the shale business and we met to ambient lighting other.

Okay. I actually unmanned lighting and shades orders we have.

Yes. So we've got a new -- we've been broken into artifact.

Okay. And also then on the margin side. So as you mentioned to the previous participant that broadly the margins will sustain. But when these new products also come and probably the utilization start increasing in a year or 2, broadly, where does this margin kind of -- if you can give some color on the margin range where we can reach moving ahead?

So let's stick to the current margin for the moment because there desistart-up cost that's going to come.

Okay. And 1 thing, just on the balance sheet. So I think we had a negative operating cash flow. So any specific reason? Or probably it gets normalized in this year?

So we've paid about INR 2 crores for our value office, and we also paid science to support our subsidiaries. And then we've also had an increase in MSME vendors that have led to a reduced in cash.

Okay. So going ahead, think it should normalize.

It could normally yes.

Okay. And just lastly, to understand on the new OEM discussions. So how -- where are we placed? And what kind of discussions are ongoing for new OEMs or new customers there? Are we in some advanced discussions there?

So when something can work, then I think we'll share that with you. I think the banks tattoo forward.

We will take the next question from the line of Grid DiatromiSi Centric Private Limited.

I have 2 questions. The first question to Mr. Relais how do you see NDR auto expanding its own in India's auto component industry over the next few quarters? -- especially when EV adoption and changing safety standards, what new product lines or partnerships are on the table that will help the company grow beyond the current OEM base -- that's my first question. I'll ask my second question after.

so we're continuously working on expanding products and customers when something can work and we share that with you.

Okay. My second question to Mr. Rathi is looking ahead, how will you balance investments in Puget expansion and technological updates with maintaining financial discipline, what long-term cost saving measures are being built now to protect margins if raw material prices rise further?

We have met the cost versus the cost per se for each product and each component. So we monitor we enter the cost increase to increase with opportunity improvement and bite price increase with the customer.

We will take the next question from the line of Manish Gupta from Equinox Investment Advisers.

Does the premiumization that's happening in the industry lead to higher content for our execution it remains the same for us?

So it is going through a premiumization phase. If you can see the difference, there's a lot of artificial level as coming in pharmacies are coming in ventilated site convenience that will lead to a significant premiumizatio.

All right, sir. And sir, what would be the, let's say, a factor of mization wet, 2, if you could give some color on that?

See, we don't have a number on that. It goes order to model, but it should increase by about maybe 40%, 50% in the next 5 years.

And my second question is, sir, since Marutis facing very strong competition from other OEMs. So are we in active discussions with other OEMs for diversification and risk containment profile?

So we're continuously looking to diversify our customer.

All right. And finally, sir, a question about our industry company -- so you had set a INR 3,000 crore revenue target for financial 30 and Marais come out with pretty good results in Q4. So does that guidance remain unchanged? Or is there any upward division to that?

So parties maybe you can take a INR 3,500 corona FY '30.

Okay. And sir, Bharat is also benefiting from prenationmove? Or how does that work there?

So that will benefit from premiumization, and that will also benefit from our existing new orders increasing.

Thank you very much. the next question from the line of Saket Kapoor from Kapoor Company.

Yes, sir, firstly, as we have a closing order book of INR 650 crores. So sir, does this outline 2 programs that will run for different year? Or is it only a onetime order booking that is being there?

Sorry, can you repeat that again? I didn't understand.

Sir, in the auto space, we have been of the view that there are programs that we run with OEM for several years. So with the type of order booking and especially the additions that we have got from Maruti Suzuki, this order book is pertaining to be executable as a onetime or this is a program for the coming 4 to 5 years. How should 1 look into it?

So there are multiple programs that will get executed over the course of the next 3 years.

Okay. So then what is the significance of this INR 650 crore closing order book in what context should we look into -- that was my question.

So you can add back to our current revenue. That is what would be our revenue by the end of the date. By the end of [indiscernible] .

No, sir, if you could just clarify something more my -- what I'm trying to make sense is that whenever an order book is being posted, there is an executable period for the same. And then there are repeat orders that happened on the basis of order given post Marty gave you a component business order after approval for INR 50 crores hypothetically, that will run for 8 years down the line. So over a period of time, this is a INR 400 crore revenue profile for the company. So that is what my question is, what should we read into the INR 650 crores number in terms of execution and the program running for how many years?

So our current revenue is about INR 850 crores. This order book will add another INR 650 crores to our revenue. And then those programs will last for another 7 to 8 years.

7 to 8 years?

Yes.

Okay. My next question is pertaining to the CapEx that we have Envigo the current financial year. Last year, I found that in the cash flow, we have done CapEx closer to INR 74 crores. And the previous year was closer to INR 48 crores. So what should this year translate into?

So this year, we're going to do all the projects. And apart from that, we should be doing another INR 30 crores to INR 40 crores of CapEx.

INR 30 crores to INR 40 crores because in the project expansion update in the Slide #7, under the product line, seed, trims and frames and NBA-like carpet and sunset, we are expected -- or I think so we have already spent around INR 102 crores. So this amount is already there in the capital work in progress, the facilities which will be commenced by June and July?

So the seat insert support, we've done most of the CapEx to these payment for India Auto South. We've also done most -- also for the seat largest remind you, we're still doing some of the CapEx. In addition to that, we're going to do another INR 40 crores to INR 50 crores to execute on new order book.

Okay. So the project expansion update, which what we have mentioned in the slide, we will have another INR 40 crores, INR 50 crores that will get covered out even separately. -- quality is covered in the INR 150 crore CapEx that we have mentioned here.

That's going to be over and above that for our existing order book.

Okay. And sir, what should be the asset turnover ratio, especially for the ambient light segment? And what portion of revenue we will be booking from this product line for this current year?

So the ambient lighting asset turnover should be anything between 3 and 4. It's a small order to start with, so it should be not too many for at the moment.

Your voice is maple come again, please, please speak closer to the mic.

The 2 ambient lighting orders that we've got are relatively small orders. The top line should be anything between INR 10 crores and INR 20 crores for both. And this will scale up post our further product impairments with the OEM. And we'll see further revenue profile going ahead that you will share later.

Lastly, in terms in the context of the current retries of the geopolitical issues, the oil prices, then the issues with the route navigation how is auto industry currently poised with the supply side situations in the component industry the trends, which have been that there is some issues with the spares and all how is our company poised to face this challenge. And if you could just give us some setup of how are we insulated from the current vagaries of the business environment.

So the demand seems to be intact at the moment. But in terms of supply issues, our company is not facing any assets.

We will take the next question from the line of Ankush Nahar from Electron BMS.

a's couple of questions. First, a bookkeeping question, I think our employee expense is up 33% for the financial year. So any one-offs over there? Or is it a new run rate considering the CapEx that we're doing. Secondly, since you have transferred the until business to the JV. So how much was the revenue as of now that we were generating from Sasha. And also, what is the percentage stake in the JV that we have with last 1 Yes. Please go ahead, yes.

So the employee expenses have increased epoetin to grow our business at some manathat we have to hire. The shale business that we transit to the is about INR 20 crores and the shareholding of the expenses of 50-50.

Sir, on the Toyota expansion article, I think today, they have released a commentary of expanding in Aurangabad. So are we directly benefiting from this and want to our plan in order to be a part of the growth of the [indiscernible] ?

So we currently acquired land in Orapa for the Totexpansion. We also did our joint with Hashi for the pod expansion and we also want to replicate our seed business over there. That all is under current bidding process right now.

So one, I think the bidding through then we plan for CapEx in terms of plans, et cetera.

Yes.

Okay. And sir, lastly, on the JV side, so I think we have spent, I think, the highest amount in terms of absolute figures, INR 80 crores on the JV and today, we are sitting on a comparative order book of INR 10 crores to INR 20 crores and maybe some share adding that will be INR 40 crores. So in terms of utilization of such a big CapEx, are we facing any issues in getting new orders or is the time which has been taken a bit longer because of reason?

So INR 80 crores is the total project cost that we approve is currently spent invested about INR 10 crores, INR 15 crores each, which is about INR 50 crores in it. So witness people investing as soon as we get some business.

Okay. So it will be more of a phase expansion rather than 1 stop.

Yes.

We will take the next question from the line of Ashok Shah from Aclara Invesco Pam Office.

Sir, you just talked about the ship industry being premiumized. So what percentage of the business will go to Balasiand what will be the NDA business?

So we've divided the processes very clearly, parities and receive phone and NDI cover in the span.

So this business over the 2030, what will be size of the total 4-wheeler industry?

I don't have that number off time, but I can share that with you.

Okay. And secondly, sir, as a company, Suji had quota around 70% in the group holding and you -- so do you plan to increase the holdings and take it to 75%?

Sorry, this is regarding reset, the shareholder?

Yes, Byron sheet, I'm talking about...

So NDR orders 28%, our 17%, another 30% and that's the rest of the public, there is no change in shareholder That's...

No, I'm talking about the NDR increasing holdings by 3%, 4% because creeping acquisition is available to India?

So I don't think we can cross the 74% threshold on that.

So 75% is allow 75% as a promoter? Not more...

Yes. We got 73% at the moment, 74%.

And sir, for all the expansion, what will be CapEx required for both the companies?

I don't want the parasite number at the moment, but NBR also we've given the project update. And in addition to that, give us another INR 30 crores to INR 40 crores.

Okay. And sir, lastly, sir, it's possible, sir, you organize on call for pari also. It will be much beneficial to all the investors. Thank you, sir.

We will take the next question from the line of Anubhav from resin Capital.

Kind for the follow-up opportunity, and I etesupplying, I think, some volume-wide parts to January -- so are we looking to like increase like sheet metal parts and Watford -- what is your focus on that?

So we're working towards increasing our BIW content, and this is also working towards increasing our alright and shades.

And this INR 200 crore order book, you mentioned that it's entirely from a incremental, so is it that like we are gaining market share within Mataresome other tenders. Could you give some color on that? And what is help driving that.

Yes. So we have increased -- with the new order book, we are likely to increase market share in Baby.

And what has been driving that? Is it like some specific vendor we share and we are mining from that? Or is it more driven by our capability?

Our performance, cost quality and delivery is in good and yes, there is someone else who has been losing some share.

We will take the next question from the line of Dia from Sapphire Capital.

So any revenue guidance and EBITDA margin for FY '27.

So we don't give annual guidance. We've given a 5-year long-term plan guidance.

Okay. No pain. So can you provide the revenue mix for exits?

Yes, sure. I don't have that off time, but I have to share that with you.

We will take the next question from the line of Saket Kapur from Kapur Com.

In continuation to the previous participants, we did revenue of around 80 for the fiscal year. So what should the trajectory likely be going at since now we have confirmed order book and we have the imprint of the product profile also. So what should we look forward in terms of the trajectory that we need -- we are likely to transcend for the current financial year. And secondly, if we can be providing the revenue mix between the products that we cater to, how much it goes to the case part, what is the other -- that mix, if you can provide in the presentation going ahead and if you have the numbers now? that would suffice.

so we can provide the product within the next presentation. I don't have that number at the moment, but we can share that later with you. And in terms of the revenue guidance, the top 10 as about INR 850 crores, we've got an order book of another INR 650 crores. So you can add that, that should be our guidance still FY '30.

Okay. Sir, I was just trying to make a sense the journey that we have done over the last from a revenue of -- if I exclude the other income from INR 713 crore to INR 822 crore, that growth trajectory, we will gain momentum on it? Or that is what the likelihood should be.

No, there should be -- the EBITDA would come in with full year and then we've got 3 more projects coming next year.

So that should increase next. Right. I hope I'm not in a good sent can you repeat it once again?

So we've got EBITDA, which will come next full year, and then we've got 3 more projects starting next year. So I think we should likely have a similar revenue growth.

Okay. That is for the next year, I was more pertaining to the current year that the trajectory that we had transcend from '25 to transcend from '25 to '26 that will gain momentum because of this execution of the current order book that is very likelihood for this year also.

Yes, there should be some growth next year. We don't have exact numbers to [indiscernible]

For this year, I'm asking a not next year. or '26, '27.

Yes. So for next year, we don't want to share our current guidance because these programs can lay and how ramp-up happen.

Okay. First, we hope that our barite also request ages, maybe openly or some bit of that conversation between participants and for management can be communicated to a platform for Barasi also. That would surprise a lot of questions.

We will take the next question from the line of Ankush Nahar from Electrum BMS.

So just 1 clarification that we have by 2030, that is only for India of right and not including balance sheets.

Yes, that is for India.

As there are no further questions from the participants, I now hand the conference back to the management for closing comments.

Thank you for your time and participation. We continue to be optimistic about the opportunities for us and look forward to sharing these with you are move forward. Should you need any import or clarifications, please write in to our investor relation partner, CDR India. Thank you.

Thank you, members of the management. On behalf of NDR A2, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.