IGARASHI - Igarashi Motors
📢 Recent Corporate Announcements
Igarashi Motors reported a marginal 2.5% YoY increase in revenue to ₹216.1 crore for Q3 FY26, but net profit declined significantly by 32% to ₹3.5 crore. The bottom line was pressured by rising employee costs and a loss of ₹1.55 crore in the non-automotive segment. While automotive revenue grew to ₹194.3 crore, the overall margin contraction is a concern for investors. The company also accounted for a ₹71.95 lakh impact due to new labor codes during the quarter.
- Revenue from operations grew 2.5% YoY to ₹21,609.35 lakhs from ₹21,080.34 lakhs.
- Net Profit fell 32% YoY to ₹350.39 lakhs compared to ₹515.57 lakhs in the previous year.
- Non-automotive segment reported a loss of ₹155.47 lakhs, dragging down overall profitability.
- Employee benefit expenses increased to ₹2,201.55 lakhs, including a ₹71.95 lakh provision for new labor codes.
- Finance costs saw a significant reduction to ₹208.92 lakhs from ₹382.95 lakhs YoY.
Igarashi Motors India reported a weak performance for Q3 FY26, with Net Profit declining 32% YoY to ₹3.50 crore from ₹5.16 crore. While revenue from operations saw a marginal YoY growth of 2.5% to ₹216.1 crore, sequential revenue and profitability both declined. The company is facing significant headwinds in its non-automotive segment, which turned loss-making this quarter. For the nine-month period ending December 2025, Net Profit has halved to ₹10.55 crore compared to ₹21.11 crore in the previous year, indicating a sustained downward trend in margins.
- Net Profit for Q3 FY26 fell 32% YoY to ₹3.50 crore from ₹5.16 crore in Q3 FY25.
- Revenue from operations stood at ₹216.09 crore, up 2.5% YoY but down from ₹219.14 crore in the preceding quarter.
- The Non-Automotive segment reported a loss of ₹1.55 crore at the EBIT level, dragging down overall performance.
- Nine-month PAT (Apr-Dec 2025) crashed by 50% to ₹10.55 crore from ₹21.11 crore in the year-ago period.
- Earnings Per Share (EPS) for the quarter declined to ₹1.11 from ₹1.64 YoY.
Igarashi Motors India Limited has submitted its monthly report regarding the special window for re-lodgement of physical share transfers as per SEBI guidelines. For the period between December 01, 2025, and January 06, 2026, the company received zero requests for physical share transfers. Consequently, no requests were processed, approved, or rejected during this timeframe. This filing is a routine regulatory requirement to ensure transparency in shareholding transitions from physical to demat form.
- Zero requests received for re-lodgement of physical share transfers during the period.
- Reporting period covers December 01, 2025, to January 06, 2026.
- Compliance maintained with SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97.
- Average time taken for processing requests was nil due to lack of applications.
Igarashi Motors India Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Cameo Corporate Services Limited, confirms that the company processed all dematerialization requests for the quarter ended December 31, 2025. It verifies that physical share certificates were mutilated and cancelled, and the names of depositories were updated in the register of members within the stipulated time limits. This is a standard administrative filing to ensure the integrity of the electronic shareholding system.
- Compliance certificate issued for the quarter ended December 31, 2025.
- Confirmation provided by Registrar and Transfer Agent (RTA), Cameo Corporate Services Limited.
- Physical share certificates received for dematerialization were mutilated and cancelled per SEBI norms.
- Depository names were substituted in the register of members within the mandated timeframes.
Igarashi Motors India Limited has announced the closure of its trading window starting January 01, 2026, in compliance with SEBI Insider Trading regulations. This routine measure precedes the consideration of the company's unaudited financial results for the third quarter ending December 31, 2025. The window will remain closed for all designated persons and their relatives until 48 hours after the board meeting concludes. The specific date for the board meeting to approve the results will be announced at a later time.
- Trading window closure starts on January 01, 2026
- Closure is for the purpose of Q3 FY2025-26 financial results ending December 31, 2025
- Window to remain closed until 48 hours after the Board Meeting conclusion
- Restriction applies to all designated persons including Directors, Employees, and Auditors
Igarashi Motors India Limited submitted a monthly report on the special window for re-lodgement of physical shares transfer as per SEBI circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97 dated July 02, 2025. For the month of November 2025, the company received Nil requests for re-lodgement. The company processed Nil requests during the month. No requests were approved or rejected during this period, and the average time taken for processing requests was Nil days.
- Nil requests received for re-lodgement in November 2025
- Nil requests processed during November 2025
- SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97 dated July 02, 2025
Financial Performance
Revenue Growth by Segment
Total operating income grew 17.5% YoY to INR 656.25 Cr in FY23 from INR 558.61 Cr in FY22. 9MFY23 revenue grew 15% YoY to INR 488.01 Cr, driven by improved capacity utilization and price realizations. H1FY24 revenue was INR 346.69 Cr, a 9.59% increase over the same period in the previous year.
Geographic Revenue Split
Exports contributed 70% of total sales in FY22, down from 82% in FY21, as the company shifted focus toward the domestic market. The company serves major global regions including the United States, Europe, China, Korea, and India.
Profitability Margins
Net Profit Margin tripled from 1.00% in FY24 to 3.00% in FY25. Operating Profit Margin (PBILDT) improved from 10.22% in FY24 to 11.60% in FY25. Return on Net Worth increased from 2.00% to 5.00% over the same period, reflecting improved operational efficiency and price resets with customers.
EBITDA Margin
PBILDT margin stood at 11.60% in FY25, up from 10.22% in FY24. In 9MFY25, the margin further improved to 11.89% due to stable commodity prices and better capacity utilization. Historically, margins were higher at ~15% in FY21 but were impacted by pandemic-related disruptions and a shift in product mix.
Capital Expenditure
Planned growth and maintenance capital expenditure for FY25 is INR 47 Cr, of which INR 34 Cr was already incurred by September 30, 2024. This investment is focused on expanding manufacturing capabilities for automotive and non-automotive motor segments.
Credit Rating & Borrowing
CARE Ratings reaffirmed 'CARE A+; Stable' for long-term bank facilities and 'CARE A1+' for short-term facilities in March 2025. Long-term bank facilities were reduced to INR 22.55 Cr from INR 29.67 Cr. Interest coverage ratio improved significantly from 2.09 in FY24 to 3.21 in FY25.
Operational Drivers
Raw Materials
Raw materials include components for permanent magnet DC motors and BLDC motors. Sourcing is heavily reliant on commodities like steel and copper, with a significant portion of raw materials for the non-automotive segment being imported.
Import Sources
A significant part of raw materials, particularly for the non-automotive Brushless DC (BLDC) motor segment, is imported from China. Disruptions in China during 9MFY23 led to supply chain constraints that temporarily reduced PBILDT margins to 8.85%.
Capacity Expansion
Current capacity is not explicitly stated in units, but the company is investing INR 47 Cr in FY25 to expand and maintain facilities in Chennai, Tamil Nadu, to support the target of scaling operations beyond INR 1,000 Cr.
Raw Material Costs
Raw material costs are managed through a commodity pass-through mechanism with customers, which helps protect margins against price fluctuations. However, disruptions in China and geopolitical conditions have historically caused volatility in procurement costs.
Manufacturing Efficiency
Capacity utilization improved in FY24 and 9MFY25, contributing to the recovery of PBILDT margins to 11.89%. Vertically integrated operations in Chennai allow for better control over the production of critical automotive applications.
Strategic Growth
Expected Growth Rate
15%
Growth Strategy
The company aims to reach a scale of INR 1,000 Cr by diversifying its product profile into non-automotive applications like BLDC motors for fans, expanding its customer base, and increasing its presence in the domestic Indian market while maintaining its 70% export share.
Products & Services
Permanent magnet DC motors, Brushless DC (BLDC) motors, actuator motors for Electronic Throttle Control (ETC), seat applications, and motor accessories for passenger cars and consumer appliances.
Brand Portfolio
Igarashi
New Products/Services
Brushless DC (BLDC) motors for consumer applications like fans were launched in FY20 to de-risk the business from 100% automotive dependency and are expected to contribute significantly to future growth.
Market Expansion
Targeting diversification of products, customers, and geographies in the medium term to reduce segment concentration risk and improve the overall financial risk profile.
Market Share & Ranking
Strong market position in the global automotive motors industry, particularly in the actuator motor segment for Electronic Throttle Control (ETC) applications.
Strategic Alliances
The company operates as a joint venture with the Igarashi Group of Japan. Major shareholders include Agile Electric Sub-Assembly Private Limited (AESPL), Igarashi Electric Works H.K. Ltd, and Igarashi Electric Works Limited (Japan), who together hold 75% of the stake.
External Factors
Industry Trends
The industry is shifting toward BLDC technology and increased electronic content in vehicles. IMIL is positioning itself by expanding its BLDC motor portfolio for both automotive and consumer fan segments.
Competitive Landscape
Operates in the global automotive DC motor market, competing as a full-service supplier with cost-effective manufacturing operations based in India.
Competitive Moat
Moat is built on a 30-year track record, vertical integration, and the critical nature of its products (ETC motors), which have high switching costs for OEMs due to safety and validation requirements.
Macro Economic Sensitivity
Highly sensitive to global automotive industry cycles and geopolitical stability, particularly in China, which affects both the supply chain and the demand for passenger car components.
Consumer Behavior
Increasing demand for energy-efficient consumer appliances is driving the shift toward BLDC motors in the fan industry, a segment IMIL is actively targeting.
Geopolitical Risks
Geopolitical market conditions post-pandemic and disruptions in China have historically impacted capacity utilization and supply chain reliability, leading to margin compression.
Regulatory & Governance
Industry Regulations
Operations are subject to automotive safety standards and environmental regulations. The company maintains a strong internal control system to ensure compliance with documented policies and procedures.
Environmental Compliance
The company has established a Risk Management & ESG Committee to manage environmental compliance and workplace safety in a rapidly evolving regulatory environment.
Risk Analysis
Key Uncertainties
Commodity price movements and product liability are identified as key risks that could impact financial resilience and the 11.60% operating margin.
Geographic Concentration Risk
70% of revenue is derived from exports, making the company highly dependent on international trade policies and global automotive demand.
Third Party Dependencies
High dependency on the Igarashi Group for technology and a few large global clients for the majority of revenue.
Technology Obsolescence Risk
The transition from traditional brushed DC motors to BLDC technology represents a risk, which the company is mitigating through its own BLDC product development.
Credit & Counterparty Risk
Receivables quality is considered stable with a Debtors Turnover Ratio of 4.40, reflecting the reputed nature of its global automotive clientele.