IFB Industries commits Rs 103 crore to Gujarat EV plant

IFB Industries Limited will invest Rs 103 crore across FY27 and FY28 in a Gujarat facility for an undisclosed electric-car component, with manufacturing expected to begin in September or October 2027. Management said it has acquired land, received a letter of intent and begun construction, but cannot name the product under a non-disclosure agreement.

What is IFB Industries building in Gujarat?

IFB Industries is building a Gujarat manufacturing facility for a four-wheeler electric vehicle, or EV, component, with production targeted from September or October 2027. Executive Director, Engineering Business Arup Das said on the November 5, 2026 earnings call that the facility would make a “100% EV product” and later described it as an EV-car product.

The product, customer, capacity and expected revenue remain undisclosed because IFB Industries is bound by a non-disclosure agreement, or NDA. Management said the component would be disclosed once manufacturing starts, leaving the project’s commercial output and asset turnover unquantified at the Rs 103 crore investment stage.

Construction has begun after IFB Industries received a letter of intent, or LOI, for the project. Management said the expenditure would be incurred in two phases during FY27 and FY28, while the expected September or October 2027 production start places commissioning after the six months ended September 2026.

How much is IFB Industries spending on the Gujarat EV facility?

IFB Industries has confirmed Rs 103 crore of capital expenditure for the Gujarat EV-car project across FY27 and FY28. During the call, management referred at different points to Rs 102 crore and Rs 103 crore, before confirming the Rs 103 crore figure; it did not provide a year-wise or phase-wise spending breakdown.

The project commitment exceeds IFB Industries’ total company-wide capital expenditure of Rs 28.58 crore in the six months ended September 2026. That first-half amount comprised Rs 12.43 crore in Q1 FY27 and Rs 16.15 crore in Q2 FY27, while management said capital work-in-progress covered multiple incomplete projects.

The Gujarat facility has also contributed to lease-related cash-flow movements. Chief Financial Officer Soumitra Goswami said principal lease-rental payments increased to Rs 57.45 crore in H1 FY27 from Rs 18.99 crore a year earlier, with Rs 37 crore relating to the Gujarat plant; he said these payments were reported under financing activity rather than profit and loss.

Why is IFB Industries adding a dedicated EV facility?

IFB Industries is adding the facility because management sees disruption risk in automotive components as EV volumes rise. Das said the engineering business needed to prepare adequately for a rise in EV numbers, and the Gujarat plant follows orders received from the EV segment.

The current engineering end-use mix is led by conventional vehicle categories: two-wheelers account for about 50%, four-wheelers about 40%, and electrical products plus three-wheelers about 10%. The call did not disclose the share of existing four-wheeler business that serves EVs, so the new plant’s contribution to the segment mix cannot yet be measured.

Fine blanking and stamping drove recent engineering-business growth, according to management. IFB Industries said the division achieved its budget for revenue and profit, but did not disclose divisional revenue, margin or order-book figures during the November 2026 call.

The EV facility is one of several engineering-business supply initiatives. IFB Industries is also setting up a chain plant after government guidelines restricted chain imports, which management said had affected business; it expects that separate project to support revenue and profit but did not give its capex or commissioning date.

What operating pressures could affect the EV plan?

IFB Industries faces cost-reduction pressure from original equipment manufacturers, or OEMs, in its engineering operations. Management said it has established an engineering technology excellence centre in Switzerland to transfer technology, reduce operations in product manufacturing and improve product cost efficiency.

At the company level, profitability declined in Q2 FY27 even as revenue increased. Revenue rose 14.04% to Rs 1,512 crore from Rs 1,327 crore, while profit before depreciation, interest and tax, or PBDIT, fell 11.3% to Rs 90.92 crore from Rs 102.50 crore; management attributed the decline primarily to commodity-linked material-cost increases and adverse foreign-exchange effects.

For the six months ended September 2026, IFB Industries’ revenue increased 15.34% to Rs 3,042 crore from Rs 2,637 crore, while PBDIT rose to Rs 179.38 crore from Rs 172.45 crore. The PBDIT margin nonetheless declined to 5.9% from 6.5%, and management did not say whether the Gujarat project would change the engineering business’s future margin profile.

When will IFB Industries disclose the EV component?

IFB Industries expects to disclose the EV-car component after manufacturing begins in September or October 2027. The NDA currently prevents identification of the product, while the two-phase FY27 and FY28 capex plan and construction stage mean the next disclosed milestone is execution rather than product details.

Management has confirmed land acquisition, an LOI, construction and Rs 103 crore of planned capex, but has not supplied capacity, annual order value, customer identity, asset-turnover expectations or payback timing. It also did not provide a trial-production date before the September or October 2027 manufacturing target.

Conclusion

IFB Industries is making a Rs 103 crore dedicated investment in an undisclosed EV-car component at a time when two-wheelers and four-wheelers account for about 50% and 40%, respectively, of its engineering end-use mix. The project marks a defined manufacturing response to management’s expectation that rising EV volumes could disrupt automotive-component demand.

The next items to watch are the FY27 and FY28 spending phases, construction progress and the planned September or October 2027 production start. Management has yet to disclose the component, customer, capacity, revenue potential or margin outcome, while it continues to cite OEM cost pressure and higher material costs as operating considerations.