Fiem Industries Ltd

Financial Performance

• Q1 FY27 revenue 769.9 crores; YoY growth 18.62%
• EBITDA margin 13.5% in Q1; margins stable
• LED penetration in auto lighting revenue ~63%
• Industry 2-wheeler volume 7.25 million; ~22.8% YoY growth

Operating / Segment Update

• EVs account for >9% of Q1 2-wheeler volume
• Ather Konarc, River RX02, Royal Enfield Flying Flea supplies started
• TVS capacity expands to 8.3 million by year-end (from 6.8)
• Hero Vida capacity grows from 15k to 45k units/month
• Hosur capacity expansion at Kelamangalam and Thally Road
• 4-wheeler revenue contribution ~2.5%; 4-wheeler target pushed to FY28
• LED share expected to reach ~70% in 24–30 months

Balance Sheet and Cash Flow

• Cash & cash equivalents ~INR 280 crores; debt effectively nil
• Strong internal accruals; capex/acquisition options; debt funding not planned now

Projects and Capex

• FY27 capex target ~INR 100 crores; majority towards Hosur EV capacity
• Part of capex allocated to Tapukara; rest to Hosur
• Mercedes prototyping underway; RFQ/RFI after testing for mass production
• Ather model Konarc: Fiem to be sole supplier

Guidance and Outlook

• Revenue growth guidance: 15% to 20% for FY27
• EBITDA margin guidance: around 14%
• Capex guidance: ~INR 100 crores for the year
• 4-wheeler revenue timing: FY28; 4-wheeler ~2.5% of revenue

Q&A Highlights

• Margin trajectory: raw-material cost pass-through with lag; full-year margin ~14%
• 4-wheeler target revised; remains ~2.5% of revenue; materialization in FY28
• Ather: Konarc sole supplier; Mercedes prototype progressing; RFQ for mass production
• Wallet share: top-4 customers stable; 100+ models with customers; hub-motor discussions paused with Gogoro
• LED penetration rising; industry-wide shift toward LED; target ~70% LED share in 24–30 months

Acquisition details

• Acquirer: HDFC Mutual Fund schemes; not part of promoter/promoter group.
• Target: FIEM INDUSTRIES LIMITED.
• Pre-transaction holding: 18,59,492 shares (7.07%).
• Acquired: 6,21,878 shares (2.36% of total share capital).
• Date of acquisition: August 13, 2026.
• Post-transaction holding: 24,81,370 shares (9.43%).
• Mode: Open Market.
• Equity share capital before/after: Rs 26,31,96,600 comprising 2,63,19,660 shares.
• Stock exchanges: listed on BSE and NSE.

Business Overview

• FIEM manufactures automotive lighting, signalling equipment, and rear-view mirrors in India.
• Core focus on two-wheeler and four-wheeler segments; in-house R&D and global design centers.
• Nine manufacturing facilities across India; subsidiaries in Japan and Italy; HK moulds JV.

Operational Highlights

• IPIS with LED displays approved for manufacture by Indian Railways RDSO.
• FY26 consolidated revenue INR 27,921 mn; EBITDA INR 3,959 mn; PAT INR 2,556 mn.
• EBITDA margin 14.18%; PAT margin 9.15% in FY26.
• Q1FY27 revenue INR 7,699 mn; EBITDA INR 1,039 mn; PAT INR 649 mn.
• Nine manufacturing facilities across India; top clients include TVS, Honda, Yamaha, Suzuki, Royal Enfield.
• Total assets 17,005 mn; total equity 12,150 mn as of 31.03.2026.
• No borrowings; lease liabilities 605 non-current and 50 current.
• Cash and cash equivalents INR 2,794 mn as of 31.03.2026.

Capital Structure & Liquidity

• No borrowings; net cash position reflected by cash of INR 2,794 mn.
• Equity increased to INR 12,150 mn; total assets INR 17,005 mn as of 31.03.2026.

Strategic Priorities & Outlook

• R&D and design centers expansion; IPIS-led growth; nine manufacturing facilities.
• IPIS/LED approvals and partnerships to expand product offerings.
• Leadership transitions to strengthen governance; Executive Chairman and MDs appointed as of 01-Jun-2026.

Risks & Mitigation

• IPIS approvals mitigate regulatory risk; but customer concentration persists among major OEMs.
• Customer concentration remains with TVS, Honda, Yamaha, Suzuki, and Royal Enfield.

Governance & Leadership

• Executive Chairman: J.K. Jain appointed.
• MD appointments: Rahul Jain and Aanchal Jain.
• Rajesh Sharma redesignated as Joint MD; Kashi Ram Yadav as Whole-time Director.

Financial results approved

• Standalone Q1 FY27: Total income 78,018.73 lakh; net profit 6,518.57; EPS 24.77.
• Consolidated Q1 FY27: Total income 78,019.67 lakh; net profit 6,492.25; EPS 24.65.

Insurance and fire incidents

• Unit 8 Tapukara fire: Rs 82.30 crore insurance claim submitted; final settlement pending insurer assessment.
• Unit 7 Rai Haryana fire: reinstatement completed; interim payment Rs 50 crore received.
• Final entries to be recorded upon insurer finalization.

Auditor remarks

• Auditors' review: no material misstatement identified in standalone results.
• Auditors' review: no material misstatement identified in consolidated results.

Director/KMP changes

• Re-designated as Executive Chairman (WTD); effective 1 Jun 2026 to 6 Aug 2030; approved at 37th AGM.
• Related to Seema, Rahul, Aanchal; all promoters.
• Not debarred by SEBI/authorities.
• Redesignated and appointed as Managing Director; effective 1 Jun 2026 to 30 Sep 2030; approved at AGM.
• Profile: Director with BSc; MBA studies; led growth; son of Jagjeevan.
• Relationship: son of Jagjeevan; brother of Aanchal; promoter.
• Not debarred.
• Re-designated as Joint Managing Director (WTD); effective 1 Jun 2026; re-appointed for 5 years from 1 Apr 2027.
• Profile: long-time board member since 1999; MBA; HR/OD focus.
• Relationship: daughter of Jagjeevan; sister of Rahul; promoter.
• Re-appointment as Whole-time Director; 5-year term from 1 Apr 2027.
• Profile: co-founder; finance/admin; CSR; promoter.
• Relationship: wife of Jagjeevan; mother of Aanchal and Rahul.
• Re-appointment as Whole-time Director; 3-year term from 25 Oct 2026.
• Profile: four decades in production; oversees North India units.

AGM details

• AGM held July 31, 2026 at 10:30 AM via VC/OAVM; concluded 11:45 AM.
• Record date for entitlement: 24 July 2026.

Key resolutions

• Resolution 1 (Ordinary): Adopt standalone and consolidated financial statements for year ended 31 March 2026.
• Resolution 2 (Ordinary): Final dividend of Rs 40 per equity share.
• Resolution 3 (Ordinary): Re-appoint Rahul Jain as Director.
• Resolution 4 (Ordinary): Re-appoint Aanchal Jain by rotation.
• Resolution 5 (Ordinary): Ratify remuneration of Cost Auditors for FY 2026-27.
• Resolution 6 (Special): Appointment of Executive Chairman and Whole-time Director.
• Resolution 7 (Ordinary): Approve remuneration and appointment of Directors and key personnel.
• Resolution 8 (Ordinary): Revise remuneration of the Whole-time Director.
• Resolution 9 (Special): Re-appoint Kashi Ram Yadav as Whole-time Director for three years.
• Resolution 10 (Ordinary): Re-appoint Seema Jain as Whole-time Director for five years.
• Resolution 11 (Ordinary): Appoint Rajesh Sharma as Joint Managing Director and approve remuneration.

Voting results

• Res 1 passed with near 99.93% assent; minimal dissent.
• Res 2 passed with 100% assent.
• Res 3 passed with ~99.91% assent; small dissent.
• Res 4 passed with ~98.56% assent; ~1.44% dissent.
• Res 5 passed with 100% assent.
• Res 6 passed with ~99.83% assent; ~0.17% dissent.
• Res 7 passed with ~99.86% assent; ~0.14% dissent.
• Res 8 passed with ~98.52% assent; ~1.48% dissent.
• Res 9 passed with ~99.37% assent; ~0.63% dissent.
• Res 10 passed with ~99.85% assent; ~0.15% dissent.
• Res 11 passed with 100% assent.

Dividend

• Final dividend declared: Rs 40 per equity share for FY 2025-26.

Director changes

• Rahul Jain re-appointed as Director.
• Aanchal Jain re-appointed by rotation.
• Kashi Ram Yadav re-appointed as Whole-time Director for three years.
• Seema Jain appointed as Whole-time Director for five years.
• Rajesh Sharma appointed as Joint Managing Director.

Auditor appointments

• Remuneration of Cost Auditors for FY 2026-27 ratified.

AGM Details

• Date/time: July 31, 2026, 10:30–11:45 a.m.
• Mode: VC/OAVM; deemed at the registered office.
• AGM concluded at 11:45 a.m.

Key Resolutions

• Adopt audited standalone and consolidated financial statements for FY2025-26 with reports.
• Declare final dividend of Rs 40 per equity share.
• Re-appoint Rahul Jain as Director on rotation.
• Re-appoint Aanchal Jain as Director on rotation.
• Ratify remuneration of Cost Auditors for FY2026-27.
• Appoint Jagjeevan Kumar Jain as Executive Chairman (KMP).
• Re-designate Rahul Jain as Managing Director with revised remuneration.
• Re-designate Aanchal Jain as Joint Managing Director for five years.
• Re-appoint Seema Jain as Whole-time Director for five years.
• Re-appoint Kashi Ram Yadav as Whole-time Director for three years with remuneration revision.
• Revise remuneration of Rajesh Sharma as Joint Managing Director.

Voting Status

• Voting results awaited; final results to be announced within 48 hours.
• Remote e-voting held July 27–30; cutoff July 24.
• On-meeting voting via InstaMeet; scrutineer appointed; results to NSE/BSE.

Dividend Details

• Final dividend proposed: Rs 40 per equity share.

E-voting & Scrutiny

• Scrutinizer appointed; results announced within 48 hours post-meeting.

Dematerialisation status

• Dematerialisation requests for quarter ended 30 June 2026 were confirmed (accepted/rejected) to the depositories.
• Securities dematerialised have been listed on the stock exchanges where the earlier issued securities are listed.
• Physical certificates received for dematerialisation were mutilated and cancelled after verification.
• Depository's name substituted as registered owner within prescribed timelines.

AGM notice and access

• 37th AGM scheduled for 31 July 2026 at 10:30 IST via VC/OAVM.
• Letters dispatched to shareholders without registered email addresses under Regulation 36(1)(b).
• Web-links and QR codes provided for Annual Report FY26 and 37th AGM Notice.
• Reminder to update email details to ensure ongoing communications.

KYC and dematerialisation updates

• SEBI Listing Regulations require updating KYC details for all holders.
• Physical holders must provide PAN, address, mobile, bank details, and nomination choices.
• Non-updated physical folios may receive payments electronically from Apr 1, 2024.

RTA contact and query channels

• RTA helpdesk portal available for shareholder service requests and queries.