Ndr Auto Components Ltd (NSE: NDRAUTO) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Pranav Relan — Wholetime Director
Analysts:
Unidentified Participant
Rishab Barar — Analyst
Jatin Chawla — Analyst
Tanmay Jhaveri — Analyst
Hitesh Goel — Analyst
Saket Kapoor — Analyst
Samraat Jadhav — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the NDR Auto Components Limited Q1 FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on attached tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rishabh Bharar from CDR India. Thank you. And over to you, sir.
Rishab Barar — Analyst
Good day everyone and a warm welcome to all of you participating in the Q1FY26 earnings conference call of NDR Auto Components Limited. We have with us today on this call Mr. Pranav Rilan, Old Time Director. Mr. Vikram Krishan Rathi, CFO and Vice President. Mr. Rakesh Rustagi, GM Finance and Accounts and Mr. Rajat Bhandari, Executive Director and Company Secretary. Along with other members of the senior management team. 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 Q1 FY26 earnings presentation shared with you earlier.
We will start this call with opening remarks from the management following which we will have an interactive question and answer session. I now request Mr. Pranav Rilan to share some perspectives with you with regard to the operations and outlook for the business. Over to you, sir.
Pranav Relan — Wholetime Director
Good day everyone and a warm welcome to our Q1FY26 conference call. Let me start by quickly going through our financial performance for the quarter under review. Q1FY26 totally income stood at Rs. 185.81 crores. A growth of 7.97% EBITDA at 20.46 crores. A growth of 16.98% EBITDA margin at 11.01% and packed for Q1si T6 as it is 13.6 crore which is higher by 17.87% as compared to the corresponding quarter last year. Our continued progressive performance is driven by consistently increasing components of value addition and this section in our portfolio. Strong execution and enhanced operational efficiency. We are encouraged by our performance which was achieved despite unanticipated environmental challenges.
Nav, as you are aware, has deferred the production of Evodara. This resulted in a delay of our production dispatch produced too. Lower offtake by K2 added to some delays. In addition, our financial orders which we anticipated to commence in full swim this quarter are ramping up. We do all these abbreviations both and believe the situation will hopefully normalize by the second half of the current fiscal year. The Board of Director has approved the setting up of a metal frame and feed covers facility and Ananthur to cater to new business from Kia. The proposed facility will manufacture metal stains including seat stains as well as seat colors, mainly to use PVC fabric and leather stitched and pre fitted.
We will invest between 27.29 crores over the next two financial years. Production is expected to commence Q2 2026. This initiative helps us to further deepen our already strong relations with Kia. Our outlook remains firm. We expect our sensors and ambient lighting. To contribute meaningfully going forward. It’s something we believe will open up several new opportunities for us. All in all, we’re happy with the. Progress we made in the first quarter of the financial year. Our focus remains clear. We’re pushing hard on building innovative differentiated products that increase the value we add to every director. At the same time, we’re looking to deepen and expand engagements with OEM so that we stay ahead and keep building standard. We will now be happy to discuss any thoughts or questions you may have.
Questions and Answers:
operator
Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Jatin Chawla from RTL Investments. Please go ahead.
Jatin Chawla
Yeah, hi, good afternoon and thanks for the opportunity. My first question is on your results. So when I look at this quarter, your gross margins have improved almost like 200 basis points on a quarter on quarter basis and almost 400 basis points on a yy basis. So what is really driving this? You know, strong margin expansion.
Pranav Relan
So we’ve done some cost cutting activity that’s been driven. In addition to that, our model in. Terms of our gross margin has been favorable. So artificial leather hasn’t been sold as. Much as Kim as much as that is driving this margin expansion.
Jatin Chawla
Got it. Got it. And on the other expenses side, we have seen a significant increase there again from the previous quarter from 20 and a half crores to 23 crores. So what’s driving that?
Jatin Chawla
So we’ve had Kia has started production, our segments have started production and our. EBITDA has started production. But the ramp up hasn’t happened fully. So that is increasing other expenses.
Jatin Chawla
So would it be fair to assume that as these models kind of ramp up to their anticipated volumes at an EBITDA margin level, we should see some improvement.
Pranav Relan
We should be at a similar level.
Jatin Chawla
Okay, got it. On the second question on the Kia plant, the Anantpur plant. So you’ve mentioned in the annexure that this order you’re setting up frame 50,000 sets for a five seater car and seat cover 78,000 sets for a seven seater car. So you have two separate orders and one order is only for frames and one order is only for seat covers. That is how we should think about it.
Pranav Relan
So it’s a one vehicle. We’ve received the first two rows for this train. Now it’s a three year vehicle and we haven’t received an order for the third floor. And that’s why we get the five seater curve.
Jatin Chawla
So it’s one single model. It’s just that you have the trim water for all the three rows and frame order for just the first two rows.
Pranav Relan
Exactly.
Jatin Chawla
Got it. And with this 27 crore or 27.3 crore investment, what’s the sort of revenue potential that this plant will have? Got it. So this 8200 crores revenue potential you are saying for this one model that you have ordered already in hand.
Pranav Relan
Yes,
Jatin Chawla
got it. Got it. Any update on the total order book? Now I think you’ve been sharing this number on the past calls with this new order that has come in. How do you see your order book?
Pranav Relan
You can remove the Kia existing business, the sales and the Ebitara because the. Ramp up has started. In addition to that we’ve got a new Kia order. So over and above that. So our order book should be about. 300 to 350 crore.
Jatin Chawla
And this quarter on the revenue side for the company there has been a very sharp falling Maruti’s production volumes that I see from the March quarter to the June quarter. However for you the revenue decline is very small. So what is really driving this? You know, sharp outperformance compared to Maruti.
Pranav Relan
So all our new vehicles have started or started. So that has contributed to the increase in.
operator
Sorry sir, please go ahead. Management.
Pranav Relan
Has started so that is contributing. To the increase in revenue. In addition you can see the Marathi. Exports have done quite well. So that is to our increase in revenue.
Jatin Chawla
Thanks. I will go back to the queue.
operator
Thank you sir. Next question is from the line of Tanmay Javeri from Pinterest Capital. Please go ahead. Sorry to interrupt Mr. Javeri, your voice is not clear. Please use your handset. Yes, please go ahead.
Tanmay Jhaveri
So my question was the investment which you are making right now 27 crore. So why are we doing that under. A subsidiary and not in our main company?
Pranav Relan
So in order to get some benefits. We have set the setting up a new company.
Tanmay Jhaveri
And can you give revenue guidance for. This year and next year? Financial year. So revenue guidance. What revenue are we looking forward by this financial year?
Pranav Relan
So we don’t want to give a revenue guidance for the current financial year subject to how the market behaves and how the new order book plays out.
Tanmay Jhaveri
Okay, no worries. Thank you so much.
operator
Thank you. Next question is from the line of Hitesh Goel from Origin Capital. Please go ahead.
Hitesh Goel
Yeah, thanks for taking my session. My question is on the order book. So what is the updated order book now? I think last quarter you had given 1100, 1200 crores order book. So with this 100 crores is there addition in order book or. Because Cyrus is not doing that. Well we have subtracted that from our.
Pranav Relan
So 1,100 crores is a revenue potential. Expected in the two years. So if we remove the Kia tyros, the shade and the Ebitdara, the ramp ups are still happening. In addition to that this would be. Another 300 to 350 crores.
Hitesh Goel
So 3, 350 crores is coming from where? Because you said clia new order is 100 crores. Right.
Pranav Relan
So we’ve got Kia business, we’ve got the project. We’ve got the new Marathi business that. We’Ve worked with before. We’ve got the BIW business. So that is an additional 3 to 350.
Hitesh Goel
So Maruti in Maruti you’ve got additional business apart from the two EVs which was already part of the order book. Right.
Pranav Relan
So no, including One of the EV. Is about 300 to 250 crores.
Hitesh Goel
Okay. Okay. And basically the BIW project is starting from mil.
Pranav Relan
So we have a BIW project starting from Q3.
Hitesh Goel
And on the EBITDA side basically. Earlier. Targets on Maruti was very high. Right. But because of this rare earth metal shortage, do you think what is the target that Maruti is sharing now?
Pranav Relan
So Maruti’s share said they’re going to. Make 65,000 this year. If this is the target that they gave initially they will just make it the whole target in the second half of this.
Hitesh Goel
65,000 vehicles on exports, right?
Pranav Relan
Yes.
Hitesh Goel
Okay. And you set up this only for Kia. The plant capacity could be used too for other OEMs. In future.
Pranav Relan
Facilities.
Hitesh Goel
So there’s no. I mean is there a contract with Kia that it can be only used with Kia or you can use it for other OEMs in future making uses.
Jatin Chawla
For other OEM that is very close.
Pranav Relan
To the PR plant.
Hitesh Goel
Okay. Okay. Okay. Thank you.
operator
Thank you. Next question is from the line of Heman, an individual investor. Please go ahead.
Unidentified Participant
Wanted to ask something we had previously guided for the.
operator
Sorry to interrupt Mr. Heman. Your voice is not clear. It is breaking.
Unidentified Participant
Hello. Am I audible now?
operator
Yes, please go ahead.
Unidentified Participant
Thanks. Just wanted to ask you one thing. We had previously guided in one of our earlier calls that for FY26 we’ll be doing a revenue of 250 to 300 crores extra apart from the I mean FY25 numbers. So basically FY25 we have closed around 100 crores. So the ideal revenue according to our earlier guidance should be in the vicinity of 1000 crores. Okay, so sticking to the island or we are some sort of lowering it given the subject performance in the world.
Pranav Relan
So we don’t want to give a guidance for the current revenue. It’s subject to how the vehicles perform and how the market performs.
Unidentified Participant
So sir, given the subject performance in Q1. Sir, just wanted to ask you are we some sort of. I mean lowering it? I mean are we anti anticipating a further slowdown?
Pranav Relan
So it will be slightly lower than. What we had suggested. Exact numbers is something we don’t like to suggest.
Unidentified Participant
Can I expect it to be the. Lower end of the previous range?
Pranav Relan
So again we don’t want to give a guidance. It’s subject to how the market behaves and how the model behaves
Unidentified Participant
and should. The long term guidance of 21 crores.
Pranav Relan
Long term guidance is impact.
Unidentified Participant
Thank you.
operator
Thank you. Before we move to the next question, a reminder to the participants to ask a question. You may press star and one next question is from the line of Saket Kapoor from Kapoor and company. Please go ahead.
Saket Kapoor
No, sure sir, thank you for this opportunity. Hope I’m audible.
Pranav Relan
Sir.
operator
Yes, please go ahead.
Saket Kapoor
Firstly for the Capex part. Hello.
operator
Yes, please go ahead sir.
Saket Kapoor
Yeah, yeah, yeah, yeah. On the Capex front, sir, what have we outlined in terms of the Capex for the. For the current financial year.
Pranav Relan
It should be approximately 40 to 50.
Saket Kapoor
To 50 crores. And we have worked out our strategy of de risking the client concentration from especially from Maruti. So going ahead, what should be the revenue mix Maruti and X of Maruti for this financial year and the next year with the type of agreements which we have currently done.
Pranav Relan
Percentage mix I don’t have offline or offhand. I will share that.
Saket Kapoor
When we look at the PML part Q on Q basis we have seen the other expenses rising from say 20 crores 60 lakh to 23 crore. Whereas the commensurate revenue is lower. So what explains this Q1Q increase of other expenses by 8 to 10. 8 to 10%.
Pranav Relan
So we’ve actually had new projects. We’ve established them. We’ve added new capacities for the Kia. For the Shade and the Ebitara. And the ramp ups are still happening.
Saket Kapoor
Okay. So these costs are not absorbed. That is what the reason.
Pranav Relan
So our production has started. Capacity utilization isn’t what we expected it to be.
Saket Kapoor
Come again. I think your voice is not very clear.
Pranav Relan
Our production has started for our new projects. Our capacities are utilized the way it was expected.
Saket Kapoor
Right? Right. And when we look at our business setting up of our office, this is. This will be the. Rent agreement we. Are doing for the period. Or what exactly are we investing in this 11.25 crore.
Pranav Relan
We are looking to get buy a. New office in area city in Delhi. So that is what it looks for.
Saket Kapoor
Right, sir. And we are taking currently into the. Commentary from especially from Maruti and the decline in the production number for the month of July. Also what is the current program and the program schedule they have for the products which are being supplied by us. How will the schedule be there? Or are you also experiencing any downtrend or any revision in the offset?
Pranav Relan
So there is some sort of slowdown happening. Let’s see how the market plays out. Let’s see how the market plays out.
Saket Kapoor
Anyway, thank you and all the best.
Pranav Relan
Thank you.
operator
Thank you. Next question is from the line of Samrat Jadav from Prosperity Wealth Advisors. Please go ahead.
Samraat Jadhav
Hi, good afternoon and congratulations for a. Good set of numbers. I have three questions. Could you share some current and expected contribution from the Sunshade and Ambit lighting Segments over next 2 to 3 quarters this financial year.
Pranav Relan
So Sunshade has already started production. The number let’s see how the market plays out. Ambient lighting production is in Q2 or. Q3 of FY2.7 or sorry of FY28. So let’s see how that plays out.
Samraat Jadhav
Okay. And Sanchez.
Pranav Relan
Has just started. The order book was about 40 crores. So as the ramp up and the take rate increase it should play out like that.
Samraat Jadhav
Okay. And what is the expected revenue potential. From the new facility for K once fully operational?
Pranav Relan
About 8200 crores.
Samraat Jadhav
Great. And what proportion of Our margin expansion which happened came from premium content versus efficiency improvements.
Pranav Relan
So most of the margin expansion has. Happened because of efficiency improvements. Very little has happened. No.
Samraat Jadhav
Okay. Okay, thank you.
operator
Thank you. Next question is from the line of Jatin Chawla from RTL Investments. Please go ahead.
Jatin Chawla
Thanks for the opportunity. Again, just one comment before I ask the question. I think the quality of the audio today is, is poor. Very difficult to understand what you’re saying throughout the call. But yeah, let me still go ahead with the questions. So. You said that you know, Kia, Shed and Evitara have all started production and hence your revenue growth was better than, you know, what Maruti saw. So combine these three, what is the ballpark revenue number for the quarter?
Pranav Relan
So they’ve all probably started. It’s, it’s probably been about 10 crores at most.
Jatin Chawla
At most. And potentially they can be on a quarterly basis, what, 20, 25 crores?
Pranav Relan
No, I think the total order size between the three of them should have. Been about 2 to 250 crores. So they can potentially go to 40 to 50. Yeah,
Jatin Chawla
but Kia looks unlikely now, right. That the model is not doing well. So unlikely that that will hit the. Order book run date.
Pranav Relan
Well, let’s see how the model behaves. No comments on that.
Jatin Chawla
Sure, no worries. This Maruti, the comment that you made in the presentation about the production, that is just this quarter’s issue, right? For the full year you don’t see an issue. You’re still expecting them to do 65,000 units for the full year.
Pranav Relan
Yes, exactly.
Jatin Chawla
Got it. Any visibility you are seeing on the festive season schedules because for August, September now, festive season production would have started. So how are the two key OEMs talking about their festive season schedule?
Pranav Relan
So there is a slight slowdown happening at the moment. So let’s see how the market plays out.
Jatin Chawla
And there were some regulatory changes also that were expected this year. So when is that likely and what sort of content increase should happen because of that?
Pranav Relan
There are some regulatory changes that have started happening, but they will increase our. Content by a little bit, which should be maybe 5 to 10% of the same business.
Jatin Chawla
Thanks for the budget.
operator
Thank you participants. To ask a question, you may press star and 1. Ladies and gentlemen, anyone who wishes to ask a question may press Star and one on attached tone telephone. Next question is from the line of Hitesh Goel from Origin Capital. Please go ahead.
Hitesh Goel
Thanks. Thanks for taking my question again. Pranav, just a question on Toyota’s the Oranga plant plant that you have is the plant Expected to start on time. Which is FY28, which we had discussed. Which we told in the last phone call. And also can your share of business is your share of business. What will your share of business in that line?
Pranav Relan
So at the moment we are bidding. For new products and bookkeeping business. Also the expected timelines are FY29, not FY28.
Hitesh Goel
Okay, second half of FY29 or first half?
Pranav Relan
Second half of FY29.
Hitesh Goel
And I think what is the capacity of the plant?
Pranav Relan
So we’ve just acquired land right now. We are looking to get some new RFPs right now. So as and when that happens and. That converts into business, we let you know.
Hitesh Goel
Okay. Okay, thank you.
operator
Thank you. Next question is from the line of Hemant, an individual investor. Please go ahead.
Unidentified Participant
Thank you for providing me the opportunity. Again, I missed the initial, I mean the opening remarks. So you had mentioned that the slowdown in the current quarter, I.e. q1, it was primarily attributed to the deferment of the production of era. Okay, and what were the other reasons, sir? And when can we expect a turnaround?
Pranav Relan
And the shade has also started maybe in July, August. Let’s hope that second half of this. Year should be better.
Unidentified Participant
So we are again anticipating a subdued shooter, right, sir.
Pranav Relan
It comes down to how the market behaves.
Unidentified Participant
Okay, sir. Okay.
operator
Thank you management team. The audio sounding muffled. Can you please come little closer? Sir. Yes. Next question is from the line of Saket Kapoor from Kapoor and company. Please go ahead. Yeah.
Saket Kapoor
Sir, what kind of incremental revenue we are expecting from the new client engagement that we have done over the last one and a half or two years that will now start attributing. And also since Maruti is the largest revenue contributor, the other players like Kia and all, how are they and are. They also facing the same challenge in. The market or their volumes are very low in comparable to the size of Maruti. So what is their feedback and the products which we are manufacturing for them? How is their deliverables lined up in terms of the utilization capacity going there?
Pranav Relan
Sorry, can you. I will understand the question.
Saket Kapoor
Yes. My first question is what are the revenue growth which we are anticipating from the current year? How much is attributed to the new. Business that we have garnered over the last one and one and a half years where we have made investment. Now we will start getting the revenue from the new products.
Pranav Relan
So with our existing order book and. All the new businesses that we required, total revenue should be somewhere around 1100-1200 crores. So our existing order book and all. The new businesses we’ve acquired after the. Year top lines number should be around. 1100 to 1200 crores.
Saket Kapoor
Okay, 1100 to 1200 crores. Where we are usually in which.
Pranav Relan
That should be the number we should be achieving.
Saket Kapoor
Okay. My question was that for this year are we anticipating any increase increase in. Business share or the wallet share from the new customer engagement which we have done earlier? That is the question. And are the other smaller players also. Feeling the same heat as is the. Case with Maruti or it is the size of Maruti which is wherein they are unable to grow at the same pace and smaller players and other are making more indoors.
Pranav Relan
No, no. Our share is 15 only expanded our market share. So we’ve done quite well. The market has slowed down slightly. But that should also normalize in the next maybe one or two quarters.
Saket Kapoor
Right? Thank you sir.
operator
Thank you. Next question is from the line of Tanmay Javedi from Pinterest Capital. Please go ahead.
Tanmay Jhaveri
Hello sir. So I want to know the utilization. Rates of our current facilities.
Pranav Relan
It should be approximately 80 to 85%.
Tanmay Jhaveri
And what is the maximum limit that we can reach? Like is it 80, 85 is the max.
Pranav Relan
Okay, so we have some more room.
Tanmay Jhaveri
In our and for the new plant. That which you have set up. So what’s the rate for that and by when can we expect the peak manufacturing from that plant?
Pranav Relan
Certain that plant starts production in one year. So peak production should be in every. Two years from one year from SAP. So two years from now.
Tanmay Jhaveri
And I have one more question. So you mentioned that we are planning around 20 crores more capex in the next one or two years. Like each year 20, 20 crores. So today throw some colors on what. Capex we are doing. Like in what regards and how much revenue can we expect from that capex.
Pranav Relan
So we’re doing about 40 to 50 crores this year. That is for the project and all. The new programs that we’ve got. In addition to that we got land and Orangabad. So that is where the money is now.
Tanmay Jhaveri
Thank you so much sir.
operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question May press star and 1. As there are no further questions from the participants. I would now like to hand the conference over to the management for the closing comments.
Pranav Relan
Thank you for your time and participation. We continue to be optimistic about the. Opportunities before us and look forward to sharing these with you as we move forward. Should we need any input or clarification please write in to us on the Aura Investor Relations Partner CDR India.
operator
Thank you. Sir. On behalf of NDR Auto Components limited that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.