Fiem Industries reports its strongest first quarter yet, boosted by surging demand from India’s two-wheeler sector and strategic push into electric vehicle lighting, amid cautious outlook for four-wheelers.
Fiem Industries reported a record first quarter, lifted by strong demand from India’s two-wheeler market and rising exposure to electric vehicles. The auto lighting and component maker said revenue rose 18.6% from a year earlier to INR 770 crore, while EBITDA margin held steady at 13.5%, according to its earnings call summary. Management pointed to a robust industry backdrop, with Indian two-wheeler sales at a quarterly high of 7.25 million units, helping support volumes across its portfolio.
The company also highlighted progress in its PBS business, which crossed 1 million cumulative sales, and said it has launched a new model for export to the UK. In its core lighting operations, however, the shift from halogen to LED has been slower than expected. LED penetration has stayed at 63% of automotive lighting revenue for seven consecutive quarters, and management expects only a gradual rise over the next 24 to 30 months, even as it continues to see the market moving towards a much higher LED mix by 2030, according to the call summary and a related earnings note.
Electric vehicles remain one of Fiem’s clearest growth drivers. The company said EVs now account for 9% of two-wheeler volumes, supporting a richer lighting content mix, and added that it has started supplies for Ather’s Konark, River’s RX02 and Royal Enfield’s Flying Fleet models. It also said Hero MotoCorp’s Vida platform is growing quickly, with all Vida lamps for Hero’s new Andhra Pradesh plant expected to be supplied from next quarter. Alongside that, Fiem said it is working on light control modules and hands-off detection systems, though these are still in development and depend on customer approvals and vehicle-level integration timelines.
Management was more cautious on the four-wheeler business, saying the segment still contributes only about 2.5% of sales and that the revenue ramp-up has been pushed back by roughly two quarters because customer conversion is taking longer than planned. It reiterated full-year guidance for 15% to 20% top-line growth and an EBITDA margin of about 14%, even as Q1 absorbed higher raw material costs and wage increases, especially after a minimum wage hike in Haryana. The company said it has around INR 250 crore in cash, no debt, and is weighing capital spending of roughly INR 100 crore in FY27, much of it aimed at its Hosur facilities to support EV demand and other new business opportunities.
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