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SEDEMAC FY26: 1,058 crore revenue, 21 percent EBITDA margin, and a 40 percent RoCE year

SEDEMAC Mechatronics entered FY26 with a simple positioning statement: it designs and supplies critical, control-intensive electronic control units, or ECUs, to major vehicle and industrial OEMs in India, the US, and Europe. FY26 was the year where that positioning started showing up clearly in the financials.

For the full year ended March 31, 2026, revenue from operations rose to 1,058 crore, up 61 percent year on year. Profitability expanded even faster. EBITDA grew to 222 crore with a 21.0 percent margin, while PAT increased to about 104 crore with a 9.8 percent margin. The company also reported RoCE of 40 percent, computed as EBITDA divided by capital employed.

Q4FY26 continued the same trajectory. Revenue from operations was 288 crore versus 180 crore in Q4FY25, a 60 percent year on year increase. EBITDA was 61 crore versus 29 crore, and PAT was 32 crore versus 9 crore. The company noted that Q4FY25 numbers were unaudited even though the FY25 full-year numbers were audited.

Where the revenue came from: Industrial remains the base, Mobility accelerates

SEDEMAC’s presentation breaks revenue into two segments: Industrial and Mobility. In FY26, Industrial contributed 912 crore and Mobility contributed 146 crore.

The historical trend shows two things. First, Industrial remains the larger base, anchored by generator-related electronics where SEDEMAC highlighted an EFI ECU launch and ramp-up for the North American genset market. Second, Mobility is gaining momentum as new propositions move from introduction to meaningful production.

The company also shared a useful operating indicator: the number of “control-intensive ECUs” sold. It sold 3,901,075 such ECUs in FY26, up from 2,438,504 in FY25, and stated it has sold more than 12 million cumulatively. Management described this unit metric as a reasonable proxy for revenue because a majority of revenue comes from control-intensive ECUs.

Business updates: ISG scaling, EV MCU traction, and a key industrial win in North America

In Mobility, SEDEMAC’s current markets include engine-powered and electric 2W and 3W. It listed products such as ISG ECU, EFI ECU, ISG plus EFI ECU, and MCUs. During FY26, management highlighted three developments that improved not just growth, but also resilience.

One, ISG ECU ramp-up for ICE three-wheelers. The company stated there is now widespread penetration of SEDEMAC ISG ECUs in domestic ICE 3W, with exports expected to follow. It also shared an industry adoption data point: the number of 2W and 3W produced with ISG in India increased to 8.4 million in FY26 from 5.1 million in FY23, and it claimed more than 80 percent of ISG volume growth in FY26 was due to SEDEMAC.

Two, meaningful EV market penetration via MCUs. SEDEMAC noted ramp-up of the E3W MCU and partial ramp-up of the E2W MCU, with SOP for the E2W MCU occurring in FY26. In its risk commentary slide, it also reported that EV products as a share of overall 2/3W revenue increased to 7.4 percent in FY26 from 1.7 percent in FY25 and 0.3 percent in FY24.

Three, ISG plus EFI integration. Management pointed to a significant ramp-up of the ISG plus EFI ECU and described integration benefits relative to buying the ISG ECU and EFI ECU separately.

On the Industrial side, the company highlighted a market launch and ramp-up of its EFI ECU for the North American genset market, with widespread adoption by a dominant market leader.

Capacity and footprint: MF3 and MF4 timelines, plus Shoolagiri land

A natural follow-up to a 61 percent revenue growth year is whether manufacturing can keep up. SEDEMAC disclosed new facilities and specific timelines.

MF3 at Chakan, Pune, sized at 120,000 sq ft, is expected to start ECU shipments from Q2 FY27. MF4 at Chakan, Pune, sized at 9,000 sq ft, is expected to start shipments of electric machines from Q3 FY27. The company also disclosed acquisition of roughly 13 acres of land in Shoolagiri under SIPCOT, intended for serving customers with plants in South India.

Management also provided context on its funding and investment model. In its capex and working capital slide and in the call discussion, it described the link between tangible capex and revenue, and referenced working capital investment versus revenue ratio. It also highlighted cumulative product development investment of about 256 crore in its chart, underscoring that product development and proprietary designs are foundational to growth.

Risks and FY27 outlook: growth drivers are clear, but mild margin pressure is expected

The company made risk a central part of its May 2026 communication. It published a summary of a risk assessment survey with investment professionals, and then highlighted three risks in the deck.

Customer concentration is the first. SEDEMAC’s chosen metric was “percent revenue from biggest customer minus the sum of percent revenue from next four.” This metric reduced from 70 percent in FY24 to 66 percent in FY25 and 49 percent in FY26. Management said concentration can be structurally higher in the early phase of a proposition, particularly in industries with a limited number of large OEMs and complex, sticky products.

EV relevance is the second. The company’s disclosed metric shows a steady rise, reaching 7.4 percent in FY26.

The third risk is sustained innovation. Management directly stated that the risk of R&D not yielding future compelling propositions “will never go away” for innovative companies, and positioned its historical track record as the core comfort factor.

For FY27, SEDEMAC laid out both growth drivers and dampeners. On the growth side, it expects ISG ECU introduction on variants of three popular motorcycle models among the top-10 sold in India, across three of the top four OEMs likely. Two launches are expected in Q1FY27, and for one, production at SEDEMAC was already underway. The third launch is expected in Q4FY27. It also expects further ramp-up of E2W MCUs and ramp-up of ISG ECUs for export three-wheelers.

On the dampener side, management flagged semiconductor supply chain tightening and commodity price inflation, which could increase raw material costs and lead to mild EBITDA margin pressure. It also pointed to reports of a strong El Nino in CY26, potentially affecting Indian monsoon and the US hurricane season. Management linked these to potential demand impacts for India two-wheelers and US home-standby generators.

Takeaways

SEDEMAC’s FY26 update is notable because it combines fast growth with a clear profitability and capital efficiency profile. Revenue crossed 1,000 crore, EBITDA margin touched 21 percent, PAT exceeded 100 crore, and RoCE was reported at 40 percent.

The FY27 setup is anchored in specific program launches and ramp-ups, while risks are framed in a structured manner: customer concentration, EV relevance, and the ongoing need for innovation. Margin pressure is not dismissed, but described as likely mild. The new plant timelines in Q2FY27 and Q3FY27 also indicate management is aligning capacity with growth readiness rather than reacting after bottlenecks appear.