NDR Auto DYA JV targets Rs 800-1,000 crore Kia sales in FY31

In Q2 FY27, NDR Auto Components Limited said its 51%-owned DYA joint venture targets Rs 800-1,000 crore of FY31 revenue from full-seat assembly for Hyundai Kia. The venture would complete final Kia assembly, while NDR Auto retains standalone seat-cover and frame production; management expects the venture’s margins to be slightly lower than its standalone business.

What will NDR Auto’s DYA joint venture make for Kia?

The DYA joint venture will undertake full seat assemblies, including assemblies and foams, for Hyundai Kia, while NDR Auto will continue producing seat covers and seat frames in its standalone business. Management specifically said the JV would carry out final seat assembly directly for Kia, separating final integration from NDR Auto’s existing component work for Kia models.

NDR Auto told an analyst that its standalone entity would continue supplying frames and fabric to the JV as the new operation ramps up. The source does not disclose a transfer price, volume split or model-wise allocation, but it establishes that the Rs 800-1,000 crore FY31 opportunity concerns final-seat assembly rather than replacing NDR Auto’s existing frame and cover supplies.

How large is NDR Auto’s DYA opportunity by FY31?

Management’s stated target is Rs 800-1,000 crore of JV revenue to be executed in FY31, subject to orders that were still being procured during the November 5, 2026 earnings call. NDR Auto said it expected greater clarity on orders sometime in the middle of the following year, making the figure a management target rather than a disclosed order book or awarded-contract value.

The FY31 DYA target is substantial alongside NDR Auto’s Q2 FY27 order book, although the measures differ because one is targeted revenue and the other is contracted business at quarter-end. At the end of Q2 FY27, NDR Auto reported Rs 1,190 crore of consolidated orders, including Rs 1,150 crore at standalone operations and Rs 40 crore at NDR Hayashi Joint Venture.

Management agreed with an analyst that the Rs 1,150 crore standalone order book could translate into annual revenue of Rs 1,150 crore at peak. Separately, management said NDR Auto was pursuing further initiatives to achieve its Rs 3,000 crore vision by FY30, while the DYA opportunity itself is targeted for FY31.

How does the DYA venture fit NDR Auto’s existing business?

The DYA plan extends NDR Auto’s seating activity from components into final seat assembly. In Q2 FY27, management said seating solutions remained the predominant portion of revenue and the order book, while new wins also covered other automotive components; consolidated quarterly revenue was Rs 247.86 crore, earnings before interest, tax, depreciation and amortisation, or EBITDA, was Rs 27.47 crore, and profit after tax was Rs 19.78 crore.

The existing component business has manufacturing constraints distinct from the proposed JV. Management put plant capacity utilisation at about 90% and said the board had approved brownfield expansions at Gujarat and Kharkhoda for seat frames, trim and other automotive ancillary products, while the DYA venture is intended to add final assembly and foam-related work for Hyundai Kia.

NDR Auto attributed the Q2 FY27 order-book increase primarily to orders from Maruti Suzuki and Suzuki two-wheeler, alongside new business from Toyota. The Rs 1,190 crore consolidated order book did not include a confirmed DYA order because management said orders for that entity remained under procurement during the November 2026 call.

What does NDR Auto say about ownership, timing and margins?

NDR Auto will hold 51% of the DYA venture and plans an investment of Rs 62.96 crore, according to management’s Q2 FY27 opening remarks. DYA was described as a Korean automotive systems company, and management said the partnership creates an opportunity to work with Hyundai Motors, one of DYA’s clients; the source does not disclose a venture name, plant location, total project cost or commissioning date.

Management said the JV’s margins would be slightly lower than NDR Auto’s standalone business, without quantifying the difference. This differs from the group’s reported Q2 FY27 performance, for which management cited an EBITDA margin of 11.08%, and from its stated target of 11% to 11.5% EBITDA margins for the current and following year.

Management did not say that the 11% to 11.5% EBITDA range would apply specifically to the DYA JV. It said minimum-wage increases in Haryana had increased other expenses, while raw-material price changes were mostly passed through to customers without a lag, and it indicated that margins should remain at a similar level as new models ramp up.

Conclusion

The DYA venture would move NDR Auto beyond frames, covers and trim into final seat assemblies and foams for Hyundai Kia, while preserving the standalone company’s component role. Management’s Rs 800-1,000 crore FY31 revenue target signals the intended scale, but the company has also identified a trade-off in expecting JV margins to be slightly below standalone margins.

The next disclosed milestone is management’s expectation of more order clarity by the middle of the following year after the November 2026 call. Investors can also watch the ramp-up from roughly 90% plant utilisation, the approved Gujarat and Kharkhoda expansions, and progress on the additional initiatives management says are needed for its Rs 3,000 crore FY30 vision.