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Key Conference Call Highlights

Financial Performance & Business Update:

* FIEM delivered a strong FY26 performance, with standalone revenue increasing ~16.0% YoY to INR 27,906 Mn, driven by healthy demand across key OEM customers, increasing LED penetration and a favourable product mix

* EBITDA grew ~22.6% YoY to INR 3,933 Mn, while EBITDA margin expanded to a record ~14.1% from ~13.3% in FY25, supported by operating leverage, improved manufacturing efficiencies and higher value-added products

* PAT increased ~24.5% YoY to INR 2,539 Mn, with PAT margin improving to ~9.1%, reflecting strong operational performance and margin expansion

* Automotive lighting remained the largest business segment, with revenue growing ~19.1% YoY to INR 20,952 Mn in FY26, accounting for approximately 75% of total sales

* Rear-view mirrors revenue increased ~11.6% YoY to INR 2,976 Mn, while plastic moulded parts revenue grew ~7.6% YoY to INR 2,541 Mn, supported by healthy demand from existing customers

* TVS Motor remained the largest customer, contributing ~33.3% of Q4FY26 automotive revenue, followed by Honda (~24.6%), Yamaha (~13.7%), Suzuki (~9.4%) and Royal Enfield (~5.8%)

Technology, Product Development & EV Opportunities:

* The management highlighted that increasing electronic content in vehicle lighting systems remains a key structural growth driver, with value addition rising significantly compared with conventional lighting products

* The company continues to focus on advanced automotive lighting technologies including adaptive lighting, matrix lighting, laser lighting and ambient interior lighting solutions

* FIEM is actively working with major OEMs in the EV segment and highlighted its strong position across leading electric two-wheeler platforms

* New programmes have been secured with customers including Hero MotoCorp, Honda and emerging EV manufacturers, supporting future growth visibility

* The company recently established an EMI/EMC testing and validation facility, which is expected to accelerate product development cycles and enhance inhouse engineering capabilities

Passenger Vehicle Expansion, Capex & Outlook:

* FIEM continues to strengthen its presence in the passenger vehicle segment through engagements with Mahindra & Mahindra, Force Motors and global OEMs

* The management indicated that several RFQs have progressed into development projects, while revenue contribution from the passenger vehicle segment is expected to increase meaningfully over the next few years

* The company incurred capex of ~INR 1,083 Mn during FY26 and plans to invest approximately INR 2,000 Mn over the next two years towards capacity expansion, product development and technology enhancement

* The management reiterated its medium-term revenue growth guidance of ~15–20%, supported by rising LED penetration, increasing content per vehicle, expanding OEM relationships and growing opportunities in the passenger vehicle and EV segments

* The company remains confident of sustaining EBITDA margins above 14% over the medium term, aided by product premiumisation, operational efficiencies and continued scale benefits

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