Fiem Industries has released the transcript for its Q3 FY26 Earnings Call held on February 12, 2026. The company reported strong operational and financial performance, with Q3 sales reaching INR685.81 crores (up 16.22% YoY) and EBITDA margin hitting an all-time high of 14.25%. Management confirmed confidence in sustaining 14%+ EBITDA margins going forward, driven by efficiency gains and operating leverage.
Q3 FY26 Earnings Call Summary
Fiem Industries Limited has made the transcript available for its Q3 FY26 Earnings Call, which took place on February 12, 2026. The discussion focused on strong quarterly results against a constructive macro environment for the automotive sector, particularly the 2-wheeler industry, which saw 15% YoY production growth in the quarter.
Key Financial Performance (Q3 FY26)
Fiem Industries reported robust financial results for the quarter:
- Sales for Q3 FY26 stood at INR685.81 crores, marking an increase of 16.22% compared to the corresponding period last year.
- The EBITDA margin for the quarter reached 14.25%, a significant increase from 13.2% in Q3 of the previous year.
- PAT for the quarter was INR63.45 crores, a substantial rise of 33.83% YoY.
- Capex incurred in Q3 was INR41.02 crores.
Nine-Month Performance Highlights
For the first nine months of FY26, performance showed consistent growth:
- Sales grew by 15.54% to INR2,046.3 crores (up from INR1,771.15 crores).
- EBITDA margin improved to 13.89% (from 13.38% YoY).
- PAT increased by 25.16% to INR183.29 crores.
- Total capex spent in the 9-month period was INR78.83 crores.
Strategy and Business Outlook
Margin Sustainability and Mix
Management attributed the all-time high EBITDA margin of 14.25% to operating leverage, efficiency drives, product mix, and escalations. The company targets maintaining margins at 14% plus going forward, expressing confidence despite competitive pressures in the sector.
4-Wheeler Business Focus
While catering 4-wheeler orders from existing facilities currently, the company stated it is building credibility. A detailed business plan outlining the revenue impact of the 4-wheeler segment is expected to be shared in the May investor meet, following the close of the financial year. The company is also actively working on multiple RFQs for the segment, including one from Force Motors which has converted to development.
Electronics and Technology
There is an increased focus on electronics within lighting systems. The increase in electronic content per product varies significantly, ranging from 30% to 80%. The company is progressing with proof-of-concept work for ambient interior lighting for existing clients, including an RFQ received for ambient lighting development. For Mercedes, Fiem has achieved plant and systems approval as a potential global supplier for small lamps, with process development time estimated at 18 months to 2 years post-RFQ.
Fire Incidents and Safety Measures
Regarding recent fire incidents, management confirmed that claims on reinstatement basis have been filed for Unit 7 (INR50 crores assessment pending) and Unit 8 (INR82.30 crores claim filed). Safety audits by third parties and internal teams are ongoing, with the Rai plant incident attributed to a short circuit. No injury to personnel or loss of business resulted from these events.
Future Investments and Cash Position
The company plans further capex of approximately INR200 crores over the next 18 to 24 months, covering both existing and 4-wheeler expansion. Cash reserves stood at INR222 crores as of December 31st. Management is conserving surplus cash to capitalize on potential organic or inorganic growth opportunities, particularly in the 4-wheeler space.
Green Energy Initiatives
Fiem is rolling out renewable energy initiatives, including rooftop solar and open access power arrangements, and exploring wind energy. A clearer picture of capacity additions and expected power cost savings is anticipated within the next 1 to 2 quarters.
Source: BSE
