Remsons Industries: FY26 ends strong as exports and newer verticals gain weight

Remsons Industries closed FY26 with its strongest reported year on record, supported by a mix shift beyond control cables and a rising contribution from exports and acquired businesses. On a consolidated basis, revenue from operations rose 24% year on year to Rs 4,687 million. EBITDA increased 33% to about Rs 495 million, taking EBITDA margin to 11% for FY26. Net profit attributable to shareholders rose 26% to about Rs 181 million.

The company positions itself as an EV-agnostic mobility solutions partner spanning three engineering disciplines: mechanical systems, sensors and lighting. Over the last few years, Remsons has also added newer lines such as tyre mobility kits, railways and defence-related sub-assemblies through joint ventures, acquisitions and capacity expansion. The FY26 numbers show the benefits of this direction, even as quarterly profitability remained volatile.

FY26 performance: growth with a step-up in profitability

FY26 growth was broad-based and was also aided by consolidation of recent acquisitions. The press release notes that BEE Lighting (UK), acquired in October 2024, contributed only about five months in FY25 but a full 12 months in FY26. Management also attributes the year’s performance to a higher-value product mix, operational efficiencies across plants, and improved realisations in export markets.

However, the quarterly snapshot shows that not every quarter followed the same margin profile. In 4QFY26, consolidated revenue increased 23% year on year to Rs 1,304 million, but EBITDA margin dropped to 8% from 10% a year ago. Depreciation and finance costs were higher, and consolidated PAT for the quarter declined sharply, even though net profit attributable to shareholders grew modestly.

Note: Quarterly table values are from the consolidated performance table. The press release shows PBT at Rs 54 million for 4QFY26, while the consolidated financial performance table shows Rs 53 million.

Revenue mix: global exposure and multi-segment presence

Remsons operates with a global footprint through manufacturing in India and the UK, and a stated presence in several markets via technology centres and application support. For FY26, the presentation indicates a geography split of 62% India and 38% rest of world. The company’s historical domestic versus exports table shows exports rising to Rs 1,795 million in FY26, up from Rs 1,325 million in FY25.

The segment mix shows the company is no longer heavily dependent on a single end-market. Passenger cars are the largest contributor at 42% of revenue, followed by 2 and 3-wheelers at 34%, commercial vehicles at 19% and off-highway at 4%, with a small residual for others. Delivery is largely OEM-led, with 92% of revenue coming from OEMs and 8% from aftermarket.

Implied revenues are calculated using FY26 consolidated revenue of Rs 4,687 million and the disclosed percentage shares.

Strategy and growth levers: orders, inorganic expansion and railways

A key visible lever is the company’s recent order wins. The largest disclosed win is a Rs 300 crore plus, 7-year order from Stellantis in North America for auto control cables. The press release states deliveries are expected to begin in FY27. Other wins include a Rs 600 million gear shifter order from a leading Indian commercial vehicle OEM to be executed over five years, and additional wins such as hood rod assemblies and long-duration pedal-box programmes.

Remsons has also leaned into inorganic growth to add higher-margin and higher-IP categories. The group structure includes the UK business Remsons Automotive UK (formerly Magal Cables), BEE Lighting UK and its Czech Republic design and application engineering arm, and Remsons Brazil. In India, it lists businesses such as Remsons Edge Tech for railways and defence, and Remsons Uni Autonics for sensors and embedded systems, alongside the core cables and mechanical portfolio.

Railways is the newest vertical being positioned as an additional growth lever. The company has inaugurated a 30,000 sq ft facility at Chakan, Pune for locomotive and defence applications, with equipment and capabilities such as CNC machining, fabrication, welding and testing labs. The presentation states a revenue capacity of about Rs 50 crore for this facility, with Rs 5 crore already deployed, and a three-year plan to reach full capacity. It also lists a product portfolio for the railway segment, including components such as flexible cable, potentiometer, brake cylinder and air reservoir.

Margin outlook and key risks highlighted by the company

Management’s stated direction is to move further up the value chain and shift the product basket toward value-added products, with a longer-term EBITDA guidance of 13 to 14% in the roadmap slide. At the same time, the press release takes a more cautious stance on near-term margin expansion. It notes that management views 11 to 13% EBITDA margin, excluding other income, as a reasonable structural band over the medium term. It adds that moving meaningfully higher would require either a major shift toward proprietary products or sustained input cost easing.

The press release also outlines the main risk channels linked to geopolitical disruptions: freight and shipping costs, raw material inflation and currency. It highlights that materials consumed were 53% of revenue in FY26 and provides a sensitivity framing for input costs, while also noting that international programmes often have quarterly raw-material pass-through clauses with a lag.

On balance sheet and funding capacity, net debt to equity is shown around 0.57x to 0.63x as of March 2026 in different parts of the presentation. The company also points to a credit rating upgrade by ICRA, with long-term rating moving from BBB to BBB+ and short-term from A3+ to A2.

Takeaways

FY26 suggests Remsons is benefiting from a deliberate shift from a largely mechanical cable business to a wider mobility platform that includes sensors and lighting, supported by exports and acquisitions. The disclosed order book wins, especially the Stellantis programme starting FY27, offer visible revenue levers for the next phase.

At the same time, quarterly margin variability and the company’s own focus on freight and input-cost risk underline that the path to higher margins may not be linear. The FY30 aspiration of Rs 900 to 1,000 crore and planned capex of Rs 100 crore provide a clear direction, but the key monitorables will be programme ramp-ups, execution in new verticals such as railways, and the ability to protect margins amid cost volatility.