IFB Engineering Division books 69% EV-positive orders by September

IFB Industries Limited’s Engineering Division booked Rs 220 crore of orders through September 2026, with Rs 152 crore, or 69%, in EV-positive parts, and is planning press additions, a stamping expansion and an in-house chain line expected to operate from March 2027.

How is IFB Engineering Division’s order mix changing toward EV products?

IFB Engineering Division’s new bookings are led by EV-positive parts, which accounted for Rs 152 crore, or 69%, of the Rs 220 crore booked through September 2026. EV-neutral modules contributed Rs 51 crore, or 23%, while EV-negative internal-combustion-engine parts accounted for Rs 17 crore, or 8%, of bookings.

The division had completed 44% of its Rs 500 crore FY 2026-27 new-order booking target by September 2026. It also had requests for quotation, or RFQs, worth Rs 274 crore under discussion as of September 30, 2026. These RFQs represent potential business discussions rather than booked orders, and the presentation gives no conversion estimate.

Management expects annualised revenue of Rs 150 crore from EV investments, Rs 200 crore from chain manufacturing and Rs 60 crore from braking systems planned during FY 2026-27. The Fine Blanking business has entered motorcycle braking parts and electrical-sector switchgear assemblies, and management said these additions diversify the order book and mitigate EV-transition risk.

How fast is IFB Engineering Division growing?

IFB Engineering Division’s Q2 FY 2026-27 revenue rose 24.09% year on year to Rs 284.48 crore, while profit before depreciation, interest and tax, or PBDIT, increased 24.10% to Rs 43.73 crore. Profit before tax, or PBT, rose 24.52% to Rs 35.26 crore, compared with Rs 28.31 crore in Q2 FY 2025-26.

Fine Blanking was the main contributor to quarterly growth, adding Rs 50.68 crore of revenue year on year, against Rs 3.23 crore for After market and Rs 1.31 crore for Stamping. Its PBDIT rose 33.49% to Rs 41.33 crore, while After market recorded a PBDIT loss of Rs 2.41 crore versus a Rs 0.07 crore loss in Q2 FY 2025-26.

For the year to date through September 2026, revenue grew 20.79% to Rs 542.64 crore and PBDIT rose 20.91% to Rs 82.78 crore. The year-to-date PBDIT margin was 15.26%, compared with 15.24% a year earlier, while the PBT margin increased to 12.23% from 12.17%.

Why is IFB Engineering Division adding press capacity?

IFB Engineering Division is adding presses because its Kolkata Fine Blanking plant is operating near full capacity and its Stamping Division is operating at full capacity. The Kolkata plant requires additional press investment in FY 2026-27 to serve organic growth and businesses under finalisation, while the Bangalore Fine Blanking plant is receiving presses and secondary machines for awarded projects.

The Stamping Division is procuring additional presses at Bangalore in FY 2026-27 for new business and is evaluating a greenfield Gujarat stamping plant with existing and potential customers. The division is also looking to expand Bangalore Stamping and set up a new stamping facility in India, but the presentation gives no project cost, commissioning date or customer commitment.

Capital employed was Rs 347.67 crore for the six months of FY 2026-27, up from Rs 257.90 crore in FY 2025-26. Return on capital employed, or ROCE, was 38.9% on an annualised basis, compared with 42.6% in FY 2025-26 and 45.4% in FY 2024-25; management attributed the decline mainly to higher capital employed despite improved profitability.

What will the chain manufacturing line change?

IFB Engineering Division expects its in-house chain manufacturing line to become operational from March 2027, supporting an existing motorcycle chain-sprocket-kit aftermarket business with annual turnover of about Rs 80 crore. Equipment for the line has been identified and leasehold land has been finalised, according to the presentation.

The stated purpose is to reduce import-related risk after regulatory changes made chain imports difficult. The After market business faced material-availability issues during the year because of Bureau of Indian Standards, or BIS, restrictions on chain imports, although the division said the situation had stabilised by Q2 FY 2026-27.

Management expects the line to enable IFB Engineering Division to offer both sprocket and chain kits to original equipment manufacturers, or OEMs, for new-vehicle fitment and spare-parts requirements. Its stated annualised revenue expectation of Rs 200 crore is Rs 120 crore above the existing Rs 80 crore aftermarket turnover, but the presentation does not disclose capital expenditure, output capacity or customer awards.

How are inventory and electronics businesses progressing?

IFB Engineering Division reported inventory holding of 58 days in Q2 FY 2026-27, unchanged from Q1 FY 2026-27 and Q4 FY 2025-26 but above 55 days in Q1 FY 2025-26. Inventory older than 30 days was Rs 40 crore, including Rs 22 crore of customer-specific tool inventory with a normal realisation cycle of 150 to 180 days.

Customer advances of Rs 3.90 crore have been received against tool orders, reducing the net working-capital exposure. Management aims to reduce overall inventory holding to 45 days through inventory optimisation and faster conversion of tool inventory into receivables; the reported measure uses average opening and closing inventory and the period’s cost of goods sold.

The Advanced Electronic Division generated Rs 3.30 crore of revenue in Q2 FY 2026-27 and Rs 5.14 crore in the year to date through September 2026. It added two projects in semiconductor and oven-pallet segments, which management expects to contribute through higher volumes, while Schmid Automotive & Appliances GmbH supports Kolkata and Bangalore on tool design and research and development work.

Conclusion

IFB Engineering Division’s September 2026 bookings show that EV-positive parts accounted for the largest share of its Rs 220 crore order flow, while Fine Blanking drove most of the 24.09% Q2 revenue growth. The division’s revenue rose to Rs 284.48 crore, and its year-to-date PBDIT margin was broadly unchanged at 15.26% despite the After market loss.

The next disclosed milestones are additional presses at Kolkata and Bangalore during FY 2026-27, evaluation of the Gujarat stamping project and the chain line targeted to operate from March 2027. Progress toward the Rs 500 crore order-booking target, conversion of Rs 274 crore of RFQs and movement toward the 45-day inventory objective from 58 days remain the stated measures to watch.