Summary
Remsons Industries Limited - Q3 FY 2026 Earnings Call Summary Friday, February 13, 2026, 4:00 PM IST
Event Participants
Executives 3 Debendra Panda (CFO), Rahul Kejriwal (Whole Time Director), Rohit Darji (Company Secretary)
Analysts 7 Anukool (InVed), Athar Syed (Smart Sync Services), Chirag Shah (White Pine Investment Management), Disha (Sapphire Capital), Kumar Saurabh (Scientific Investing), Rohit Ohri (Progressive Shares), Runit Kapoor (Investire Investments), Shyam Sampat (MSA Capital Partners)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Q3 FY26) | ₹123 crores | +20% YoY, driven by strong OEM demand and expansion into new product verticals. |
| Revenue (9M FY26) | ₹338 crores | +25% YoY, reflecting steady growth in domestic and export markets. |
| EBITDA Margin (Q3) | 12.0% | Stable performance; management targets 13%–14% range over next 2-3 years via premiumization. |
| PAT Margin (Q3) | ~4% | Consistent with 9M FY26 levels despite ongoing capex commitments and segment expansion. |
| Order Book | ~₹500 crores | Current executable book; pipeline for next 2-3 years estimated at ₹800–₹900 crores. |
| Net Debt-to-Equity | 0.63x | Management committed to maintaining leverage within the 0.6x to 0.8x range. |
| Export Mix (9M) | 33% | Exports contributing significantly; targeting a 30:70 to 40:60 mix between Export:Domestic. |
| Receivable Days | 55–56 days | Maintained standard 60-day replacement/OEM cycle; secure cycles for railway contracts. |
Geographic & Segment Commentary
- Domestic (India): Contributes ~67% of revenue; growth driven by a ₹60 crore CV OEM order for gear shifters and push-pull cables starting Q1 FY27. Strategic focus remains on ICE-agnostic products for 2W and CV segments, alongside a new 20,000 sq. ft. capacity expansion in NCR.
- International (UK/US/Brazil): Exports account for 33% of sales; the India-US tariff reduction (50% to 18%) is expected to boost future inquiries for control cables. Management is executing a ₹300+ crore multi-year Stellantis contract in North America and a Technical License Agreement in Brazil to penetrate the South American aftermarket.
- Railways: Newly commissioned 30,000 sq. ft. facility in Chakan is targeting ₹25–₹35 crores in FY27. The company is seeking RDSO approvals for air brake components, slack adjusters, and air reservoirs, aiming for ₹150 crores in revenue from this segment within 3-4 years.
Company-Specific & Strategic Commentary
- Remsons 2.0 Transformation: Shifting from a cable manufacturer to a technology-oriented mobility solutions provider by adding systems (forward integration) rather than just components.
- Capacity Expansion: Identifying 20,000 sq. ft. in NCR and planning another 20,000 sq. ft. in Pune to support order execution.
- Product Diversification: Active execution of a ₹12 crore BEE Lighting order for a German OEM and entering the defense sector through partnerships with large Tier-1 defense vehicle suppliers (₹10–₹15 crores generated last year).
- Inorganic Growth: Earmarking ₹50–₹70 crores for a future acquisition to add global positioning or technological value; targeting ₹150–₹200 crores of the long-term revenue goal via acquisitions.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue (Consolidated) | ₹520–₹570 crores (FY27) | Organic growth expectations excluding any potential new acquisitions. |
| Revenue Target | ₹900–₹1,000 crores (FY30) | Driven by 60% legacy business and 40% new-age segments (Railways, EVs, Lighting). |
| EBITDA Margin | 13%–14% (Medium term) | Expected through improved product mix and transition from component to system supplies. |
| Capex | ₹20 crores+ (FY27) | Focus on capacity augmentation in NCR and Pune regions. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory Risk (ABS) | Potential implementation of ABS regulations in 2W could impact ~8% of consolidated revenue; management has already factored this into long-term projections. |
| Execution Risk | Entry into Railways requires stringent RDSO approvals and field trials (6-12 months), which may delay revenue realization for new components. |
| Global Exposure | While US tariffs have improved, global EV slowdowns have led to “stable” rather than high growth for the UK subsidiary (Magal Cables). |
Q&A Highlights
Order Pipeline & Stellantis (Rahul Kejriwal)
- Question: What is the ramp-up schedule for the Stellantis North America order? (Disha)
- Answer: Supply begins in FY27; expecting ₹15–₹20 crores in the first half-year, ramping up to a ₹40–₹50 crore annual run rate thereafter.
US-India Tariff Reduction (Rahul Kejriwal)
- Question: How does the tariff reduction from 50% to 18% impact the business? (Chirag Shah)
- Answer: It makes Indian-made cables highly competitive against Chinese suppliers. Inquiries worth ₹40–₹50 crores annually that were on hold are expected to restart.
Railway Approvals (Rahul Kejriwal)
- Question: What is the timeline for RDSO approvals in the railway segment? (Chirag Shah)
- Answer: Products not requiring field trials take 30–90 days; those requiring field trials take 6–12 months. Air brake components and slack adjuster audits are currently underway.
Long-term Strategy (Rahul Kejriwal)
- Question: What is the split between organic and inorganic growth for the ₹1,000 crore target? (Shyam Sampat)
- Answer: Approximately ₹800–₹850 crores will be organic growth, with ₹150–₹200 crores coming from strategic acquisitions.
Key Takeaway
Remsons Industries delivered a steady Q3 FY26 with 20% YoY revenue growth, supported by its “Remsons 2.0” strategy of moving up the value chain toward system-level supplies. The company’s strategic move into the Railway segment is progressing with a dedicated Chakan facility and pending RDSO approvals, while the multi-year ₹300+ crore Stellantis contract provides long-term visibility for the export business. Despite a potential 8% revenue risk from impending ABS regulations in the two-wheeler market, Remsons is mitigating this through diversification into lighting, CV gear shifters, and defense applications. Management has guided for a consolidated revenue of ₹520–₹570 crores in FY27 and maintains a long-term target of ₹900–₹1,000 crores by FY30, underpinned by a 13%–14% EBITDA margin profile. The company remains focused on disciplined capital allocation, intending to keep the net debt-to-equity ratio below 0.8x while pursuing both organic capacity expansion and calibrated inorganic opportunities.
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