NDR Auto Components Q2 Results and Strategic Expansion

Revenue from Operations stood at Rs 244.02 crore, with a Net Profit of Rs 19.78 crore.

Reader Takeaway: Strong operational growth driven by new joint venture for Hyundai-Kia and expanded capacity for Maruti Suzuki programs.

What just happened

NDR Auto Components Limited has released its consolidated financial results for the second quarter ended September 30, 2026. Simultaneously, the company unveiled a major expansion strategy including a new joint venture, increased capital expenditure, and a shift toward captive solar energy.

Why this matters

The partnership with Korea-based DYA Co., Ltd. marks a significant entry into supplying passenger car seats for Hyundai and Kia India. NDR Auto will hold a 51% majority stake in the new subsidiary. The project involves a total investment of Rs 62.96 crore, strengthening the company's position in the automotive seating market.

Capital Expenditure

To support new business programs with Maruti Suzuki and Suzuki Motorcycle, the Board has greenlit fresh capital expenditure. This includes Rs 11.34 crore for a facility in Naviyani, Gujarat, and Rs 7.19 crore for a plant in Kharkhoda, Haryana.

Corporate Strategy

The company is also prioritizing sustainable operations by investing Rs 36.30 lakh for a 26% stake in a special purpose vehicle (SPV) to source captive solar power. Additionally, the Board is seeking shareholder approval via postal ballot to expand the scope of its business to include automotive consultancy and support services.

Risks to watch

The management has highlighted an ongoing uncertainty regarding a previous income tax search. The matter is currently under appeal at the Income Tax Appellate Tribunal (ITAT), and no financial adjustments have been recorded pending a final decision.

What to track next

Watch for the operational commencement of the new joint venture, expected within 6 to 8 months. Additionally, investors should monitor the progress of the capacity expansion at the Gujarat and Haryana plants as they transition to support new Maruti Suzuki and Suzuki Motorcycle programs.